REUTERS: United Airlines Holdings Inc on Tuesday reported a bigger-than-expected increase in second-quarter profit, driven by strong air travel demand and the ability to charge more for seats after the grounding of Boeing Co's 737 MAX reduced capacity.
The No. 3 U.S. air carrier is in the midst of a three-year plan to claw back domestic market share from rivals by building up connections through its main U.S. hubs, including Chicago, New York and San Francisco, cities that attract lots of travelers willing to fly first-class and business-class. Still, the earnings per share growth for the year is expected to be slower than in 2018 due to the MAX grounding and closed Pakistani air space, which forced United to cut its 2019 capacity growth target for a second time this year. It now expects capacity to increase between 3per cent and 4per cent, versus an original forecast of 4per cent-6per cent growth.
United shares were up 0.6per cent in after-hours trading on Tuesday. United management will host a conference call on Wednesday at 10:30 a.m. EDT.
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