United Airlines on Wednesday reported that its second-quarter profit rose 23% to $1.32 billion, as record crowds at U.S. airports helped the carrier overcome sharply rising costs for fuel and labor.
However, United warned that third-quarter results will fall short of Wall Street expectations.
Like rival Delta Air Lines, United said it was concerned that carriers are adding more flights than necessary, creating a glut of seats that is keeping prices from rising.
Airlines are trimming their schedules for mid-August and beyond, which will help reduce the oversupply of flights while increasing the airlines’ pricing power.
Chicago-based United said its second-quarter profit worked out to $4.14 per share, excluding one-time gains and losses. Analysts expected $3.93 per share, according to a FactSet survey.
Revenue was $14.99 billion, slightly below the analysts’ forecast of $15.04 billion.
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