United Airlines reported a strong second quarter, with revenue exceeding expectations. However, the stock is falling in US after-hours trading due to the company's skyrocketing fuel costs.
United Airlines released the company's interim report after Wall Street closed on Wednesday evening.
Adjusted earnings per share came in at $1.99, down from $3.87 in the prior-year quarter, but higher than the expected $1.85 – according to Bloomberg's analyst consensus.
United Airlines raises its full-year earnings per share forecast to a range of $9 to $11, from a previously set range of $7 to $11.
Operating income amounted to $17.67 billion, an increase of 16 percent from the same period last year. Expectations were $17.55 billion.
Despite the strong numbers, the airline's shares fell 1.8 percent in after-hours trading. The reason is that the company estimates that jet fuel costs will increase by $6 billion this year – equivalent to around 57.5 billion Swedish kronor.
The average fuel price per gallon increased 79 percent from the comparable quarter to $4.19. This was closely in line with analysts' expectations.
The increased costs are due to the rise in oil prices as a result of the fighting in the Middle East and its impact on the important Strait of Hormuz.
Source: DI.SE
