United results top estimates as demand remains resilient despite high fares

United Airlines’ Q4 profit and outlook for early 2023 topped Wall Street estimates thanks to strong travel demand and high fares. Consumers’ appetite for air travel and willingness to pay higher fares has helped airlines return to profitability despite higher costs for fuel, labor and other expenses tied to ramping their networks back up. Meanwhile, aircraft delivery delays and training backlogs have constrained airlines’ growth, keeping fares high. United reported an $843m profit for the last three months of 2022, a 31% increase compared with three years earlier, on revenue of $12.4b. That revenue was almost 14% higher than the same period in 2019, before the pandemic, despite flying 9% less, helping it post a profit despite a 21% increase in unit costs from three years earlier. The quarterly update is another sign of a strong year-end for airlines, despite severe winter storms and disruptions during the popular holiday travel period.<br/>