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United Airlines Holdings Inc UAL shares are trading higher in Tuesday’s after-hours session after the airline turned in better-than-expected quarterly results and issued strong guidance.
What Happened: United Airlines reported fourth-quarter revenue of $12.4 billion, which beat average analyst estimates of $12.23 billion, according to Benzinga Pro. The company reported fourth-quarter earnings of $2.55 per share, which beat estimates of $2.10 per share.
Compared to the fourth quarter of 2019 (comparable pre-pandemic quarter), the company grew its operating revenue by 14% and its total revenue per available seat mile (TRASM) by 26%. Capacity was down 9% compared to the fourth quarter of 2019.
Operating margins came in at 11.1%, ahead of company guidance. Average fuel prices were $3.54 per gallon during the quarter.
United said it was able to recover quickly from irregular operations caused by winter storm Elliott in December.
“Our dedicated team used our state-of-the-art tools to prepare for the bad weather, take care of our customers and quickly recover once the worst of the weather had passed,” said Scott Kirby, CEO of United Airlines.
What’s Next: United said it expects first-quarter adjusted earnings to be in a range of 50 cents to $1 per share versus average estimates of 25 cents per share. Full-year 2023 adjusted earnings are expected to be in a range of $10 to $12 per share versus estimates of $6.54 per share.
“Over the last three years, United has made critical investments in tools, infrastructure and our people – all of which are essential investments in our future. That’s why we’ve got a big head start, and we’re now poised to accelerate in 2023 as our United Next strategy becomes a reality,” Kirby said.
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UAL Price Action: United shares are flying past 52-week highs on Tuesday.
The stock was up 4.45% in after hours at $53.48 at time of publication, according to Benzinga Pro.
Photo: Oliver Holzbauer from Flickr.
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Image and article originally from www.benzinga.com. Read the original article here.