United Airlines plans $1.5b share buyback, forecasts Q4 earnings above estimates

United Airlines said Tuesday that it is starting a $1.5b share buyback as the carrier reported higher-than-expected earnings for the busy summer travel season and forecast strong results for the last three months of the year. United expects to earn an adjusted $2.50 to $3.00 a share in the fourth quarter, compared to $2.00 a share a year earlier and the $2.68 analysts polled by LSEG estimated. Here is what United reported for the third quarter compared with what Wall Street expected, based on average estimates compiled by LSEG:<br/>Earnings per share: $3.33 adjusted vs. $3.17 expected<br/>Revenue: $14.84b vs. $14.78b expected<br/>The share buyback would be United’s first since before the Covid-19 pandemic. U.S. airlines received more than $50b in government aid during the pandemic travel slump that prohibited share repurchases and dividends, though airlines were still fighting for financial stability. “Like other leading airlines and companies, we are initiating a measured, strategic share repurchase program,” United CEO Scott Kirby said in a note to staff on Tuesday. “Importantly, my commitment to you is that investing in our people and our business will always be my top priority even while we institute this share repurchase program.”<br/>