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Revenue grew 17.1% year-over-year to $14.2 billion, beating the consensus estimate of $13.9B.
The company raised its fiscal year 2023 outlook, expecting EPS in the range of $11.00-$12.00 (vs. previous guidance of $10-$12), compared to the consensus estimate of $9.73.
According to CEO Scott Kirby, strong Q2 performance and updated outlook make it clear that United Next is working and is the right strategy at the right time.
TD Cowen analysts said UAL positively surprised with its Q2 report.
“We expect the shares to be up Thursday as the company raised full year guidance to the higher end of the $10-$12/ share range. International continues to drive higher results, especially Europe and Asia. We expect Asia strength to accelerate into 2024 as people continue to “catch up” on trips missed earlier in the decade,” they wrote.
BofA analysts added that the international business continues to yield benefits for UAL.
“The results come despite meaningful cancellations at the end of June that likely impacted revenues by at least 1% point and drove costs at least a similar amount higher,” they commented.
(Additional reporting by Senad Karaahmetovic)
