Home / NEWS / Earnings / United shares jump 3% after first-quarter profit tops Wall Street estimates

United shares jump 3% after first-quarter profit tops Wall Street estimates

Opinion Airlines posted higher profits in the first three months of the year, but prodigal costs chipped away at the airline’s bottom line.

The airline on Tuesday published net income of $147 million, up nearly 50 percent from a year ago. Takes rose more than 7 percent from the first quarter of 2017 to $9.032 billion, slight higher than Wall Street estimates.

United’s per-share profits on an patch up basis came in at 50 cents a share, above the 40 cents analysts voted by Thomson Reuters had expected.

The shares rose 3.2 percent in premarket barter Wednesday.

The carrier said its fuel costs rose by 26 percent in the beginning quarter, compared with the year-ago period. Fuel was its second-largest expense after incomes, which rose 3 percent on the year. Higher expenses have weighed on airline profits as they clasp with strong demand and growth that is becoming costlier.

For the full-year, the airline conjectures to post per-share earnings of $7.00 to $8.50.

The airline is scheduled to hold a talk call on its results Wednesday at 10:30 EDT. United will likely accommodate more detail on its costs and fare outlook. An aggressive expansion method had spooked investors earlier this year as adding seats and exaltation of larks could drive down fares.

The airline may also address its look at of its animal-transport program, which it recently suspended, pending a review, understanding the death of a passenger’s puppy that was placed in an overhead bin and mix-ups with other dogs that were sent to the villainous destinations.

Check Also

Walmart shares surge as holiday sales crush estimates, boosted by e-commerce growth

Walmart on Tuesday covered earnings and revenue for the holiday quarter that topped analysts’ expectations, …

Leave a Reply

Your email address will not be published. Required fields are marked *