United Airlines Holdings ( NASDAQ: UAL ) fell after a Q2 profit miss.
While the company achieved the highest Q2 revenue tally in its history and delivered its first profitable quarter since COVID-19 despite record-high fuel prices, EPS came in at $1.43 vs. $1.88 consensus.
For the quarter, operating revenue was up 6% vs. 2019 to $12.1B. Unit revenue was up 24% vs. the same quarter in 2019. Cost per available seat mile was up 17% compared to Q2 of 2019. UAL's adjusted operating margin for the quarter was 8.2%.
Looking ahead, the carrier said it expects Q3 operating revenue to be up 11% from the level seen in 2019. Capacity is seen being down 11% in Q3 vs. 2019 and 10% lower in Q4 vs. 2019. The company continues to expect to be profitable for the full year even with higher fuel prices a big consideration. UAL is also confident that it can hit a target for 9% adjusted pretax margin in 2023 and 14% by 2026.
UAL on the risks ahead: "Industry-wide operational challenges that limit the system's capacity, record fuel prices and the increasing possibility of a global recession are each real challenges that we are already addressing."
Shares of United Airlines Holdings fell 5.66% in after-hours trading to $39.34 vs. the 52-week trading range of $30.54 to $54.52.
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United Airlines turns profitable in Q2 but misses analyst expectations