United beats 2Q profit forecasts

In fact, United said it made enough money in the second quarter that it can focus on what airlines seem to really care most about – returning money to investors. Earnings, adjusted for non-recurring costs, were $3.31 per share.

Miami, Florida -July 23, 2015 – (TechSonian) -United Continental Holdings Inc (NYSE:UAL) and Cowshed Spa, the premium spa and lifestyle brand of London-based Soho House & Co., are joining together in a joint venture to bring travelers contemporary new amenities onboard and at more than a dozen United airport lounges worldwide. Revenue dipped 4% to $9.9 billion. Similarly, the EPS is projected at $3.31.

United Continental Holdings Inc on Thursday forecast a drop in unit revenue and trimmed plans for capacity growth as the U.S. dollar weighs on demand overseas, but it announced new share buybacks because its profit continues to rise.

The shares rose 1.4 percent in early trading. The stock is expected to increase today due to the earnings release. “American Airlines has operated charter flights to Cuba for almost 25 years and we stand ready to begin scheduled service when it’s allowed”.

United also announced a $3 billion buyback plan, an addition to its prior $1 billion authorization. Additionally, it generated $474 million from free cash flow, and invested $1.26 billion in capital expenditure.

Chicago-based United spent $2.11 billion on fuel in the second quarter, down 32 percent from $3.10 billion in the same quarter last year, which was before oil prices began to plummet. Revenue fell 1.14% compared to the same quarter a year ago. Furthermore, the company reported 22.43 million available seat miles that showed a 2.2% YoY growth.

In looking at the consensus numbers, the sell-side analysts covering the stock have a mean target price of $79.346 for United Continental Holdings, Inc.

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People familiar with the industry remain confident that the airline will benefit from its deal with Azul Brazilian Airlines, to report a growth in unit revenues in 3QFY15. EPS for the same period registers at $5.74.