United Airlines hits a revenue milestone, but costs constrain its quarterly profit

United Airlines on Wednesday reported revenue of $12.1b in the three months that ended in June, its largest quarterly haul in at least a decade and the most it has ever earned in the second quarter of a year. High costs put a damper on the good news, however, holding profit to $329m, after a loss of nearly $1.4b in Q1. The airline said it expected the economy to slow “in the near to medium term.” And its CE, Scott Kirby, said that the possibility of a recession, high fuel prices and the industry’s struggles to keep operations running smoothly posed threats to the industry over the next six to 18 months. But United said it was optimistic nevertheless, given the strength of the travel recovery. “These fundamental challenges have already led to higher costs, higher fuel prices,” Kirby said — but “also higher revenue.” United said it expected operating revenue in Q3, which ends in September, to be up about 11% from the same quarter in 2019. The earnings report, delivered after the close of regular trading, sent United shares down more than 6 percent. After more than two lackluster years, airlines are enjoying a travel boom. But staffing shortfalls, high costs and other challenges have held the industry back, forcing many carriers to rein in their ambitions to limit operational meltdowns. <br/>