United profit beats forecasts as new flights from hubs pay off

United on Tuesday reported a Q4 profit that easily beat Wall Street forecasts, sending shares higher, as the carrier scheduled more flights out of its hubs and won back customers after a series of public relations disasters. Shares of United Continental Holdings jumped 6% to $86.11 in extended trading, lifting the airline sector and investor confidence after the carrier reported a 5% rise in revenue per mile flown, a closely watched industry measurement. That growth was at the top end of United’s forecast and outpaced growth reported by rival Delta earlier Tuesday. Airline shares had fallen this month after both Delta and American Airlines Group lowered estimates for Q4 unit revenue, raising concerns about the industry’s ability to raise fares in an uncertain global economy. United attributed its revenue growth to a strategy launched last January to expand its domestic network by adding flights and more options for connections through its seven main hubs, with a particular focus on Chicago, Denver and Houston. For 2019, United said it expects adjusted earnings of $10.00 to $12.00 per share. United posted Q4 net income of $462m, or $1.70 per share, compared with a profit of $579m, or $1.98 per share, a year ago. The airline said it planned to boost its flight network by another 4 to 6% next year, and said it had placed orders for four Boeing 777-300ER aircraft and 24 737 MAX planes. However, the ability of airlines to introduce new aircraft into their fleets is being hampered by a partial US government shutdown.<br/>