United Airlines reports record third-quarter revenue of $17.9 billion as fuel costs rise 62%

United Airlines reported record third-quarter revenue of US$17.9 billion on Tuesday 20 October, up 17.4% from a year earlier, as fuel costs rose sharply.

Net income was US$1.0 billion, or US$3.14 a diluted share, compared with US$949 million, or US$2.90, a year earlier. Excluding special items, including gains on aircraft sale-leaseback deals, adjusted earnings were US$2.54 a share, which the company said was within its guidance, compared with US$2.78 a year earlier.

Fuel expense rose 62% to US$4.84 billion. The average price paid per gallon was US$3.90, up from US$2.43. CNBC reported that the results were below analysts’ estimates for revenue and earnings.

United said it carried a record 49.5 million passengers in the quarter and expects fourth-quarter revenue to grow by more than 20% from a year earlier. Premium cabin revenue rose 17% and corporate contract revenue rose 26%, the company said.

“Our employees met the challenge of our ever-changing environment,” chief executive Scott Kirby said. The company said its Starlink Wi-Fi was installed on more than 640 aircraft.

United shares rose about 5% in midday trading on Wednesday 21 October, CNBC reported.