United Airlines Losses Were Smaller Than Expected

United Airlines Holdings stock is rising 2.2% in after-hours trading. The airline reported a narrower loss than analysts had expected.

United Airlines reported an adjusted loss of $1.02 per share, better than forecasts for a $1.67 loss per share, on sales of $7.8 billion, topping expectations for $7.64 billion. The top line is down 32% compared with the third quarter of 2019, the last such reporting period before the pandemic.

The company said that travelers are resuming flights, and that it is optimistic about the future. “We’re solidly on track to achieve the targets we set for 2022,” United Airlines CEO Scott Kirby said in the company’s press release. “From the return of business travel and the planned re-opening of Europe and early indications for opening in the Pacific, the headwinds we’ve faced are turning to tailwinds.”

The company also said it plans to increase international capacity by 10% in 2022.

Management guided for revenue in the current quarter to be down 27.5%, at the midpoint of its range, from the fourth quarter of 2019, while analysts had forecasted a 25% drop. Still, the company also said it expects adjusted earnings per share to hit $20 in 2026, almost double the dollar figure expected for all of 2023.

The stock had fallen 6.4% in the five trading days leading into earnings and has risen only 11% year-to-date through Tuesday’s close, underperforming the broader market. The S&P 500 index and Dow Jones Industrial Average have risen 22% and 17%, respectively, so far this year.