United Airlines shares surge on higher profit and strong demand forecast

United Airlines forecast another profit for the end of the year and said consumer appetite for travel is showing no signs of slowing down despite high airfares. Shares jumped more than 7% in after-hours trading on Tuesday. “Looking forward through the end of the year, the airline expects the strong Covid recovery trends to continue to overcome the recessionary pressures in the macroeconomic environment,” United said in an earnings release. “The airline now expects fourth-quarter adjusted operating margin to be above 2019 for the first time.” The Chicago-based carrier posted a Q3 profit of $942m, down 8% from three years ago, and $12.88b in revenue, which was ahead of analysts’ estimates and up 13% from 2019. Adjusting for one-time items, United earned $2.81 per share, easily topping the $2.28 analysts polled by Refinitiv were expecting. The airline said it expects adjusted earnings per share of as much as $2.25 for Q4, far ahead of analysts’ estimates of 98 cents, according to Refinitiv. The strong summer travel season and sunny outlook for the rest of the year indicate consumers are willing to continue to spend on trips, a turnaround from early in the pandemic when Covid-19 restrictions devastated demand. Delta Air Lines last week said it brought in record revenue for the third quarter and forecast another profit for Q4. The upbeat outlooks from airline executives contrast with other sectors that have struggled this year, including parts of the retail industry and some streaming platforms that were beneficiaries of lockdowns early in the pandemic.<br/>