• United Airlines unveiled plans for a $1.5 billion share buyback, its first since the pandemic, as the carrier also reported quarterly results that beat analysts’ estimates.

  • United reported third-quarter adjusted EPS of $3.33, ahead of its own guidance and those of analysts polled by Visible Alpha.

  • It also projected adjusted EPS of $2.50 to $3.00 a share in the fourth quarter and said “unproductive capacity” had left the market.

United Airlines (UAL) unveiled plans for a $1.5 billion share buyback, its first since the pandemic, as the carrier also reported quarterly results that beat analysts’ estimates.

Late Tuesday, United reported third-quarter adjusted earnings per share (EPS) of $3.33, ahead of its own guidance and expectations of analysts polled by Visible Alpha. It also projected adjusted EPS of $2.50 to $3.00 a share in the fourth quarter, with the midpoint below the $2.92-per-share Visible Alpha estimate.

The airline said the glut in airline capacity that had plagued the industry this year had been addressed.

“As predicted, unproductive capacity left the market in mid-August, and we saw a clear inflection point in our revenue trends that propelled United to exceed Q3 expectations,” United Chief Executive Officer (CEO) Scott Kirby said.

United’s $1.5 billion share buyback marks its first repurchase plan since it suspended its program in 2020 during the COVID-19 pandemic.

United shares are rising 1% in premarket trading. They are up 55% this year through Tuesday’s close.

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