A 14% Drop In United Airlines Earnings In Q3 Seems Likely

United Airlines (NASDAQ: UAL) will report its Q3 2024 results on Wednesday, October 16. We expect the company’s revenues to come in at $14.85 billion and earnings to be $3.15 per share, slightly ahead of the consensus estimates of $14.78 billion and $3.12, respectively. The company likely saw lower passenger yields and increased costs in Q3. See our interactive dashboard analysis on United Airlines’ FY 2024Q3 Earnings Preview for more details on United Airlines’ revenues and earnings for the quarter.Trends To Watch Out For In Q3

United Airlines will likely continue to benefit from an increased capacity, while the occupancy and yields may trend lower than the levels seen in the prior-year quarter. Also, the company should continue to see higher non-fuel costs, primarily due to increased wages. The company’s PRASM (passenger revenue per available seat mile) is expected to see a low single-digit y-o-y decline to $16.80 in Q3. With a likely rise in overall costs, the company’s bottom line is expected to fall 14% to $3.15 on an adjusted basis.How Did United Airlines Perform In Q2?

United Airlines’ revenue of $15 billion in Q2 was up 5.7% y-o-y. The company reported an 8.3% rise in available seat miles, while the PRASM was down 2.9%. The company saw its adjusted pre-tax margin fall to 12.1% in Q2’24 from 15.3% in the prior-year quarter. The company’s bottom line stood at $4.14 on an adjusted basis, versus $5.03 in Q2’23. It also reported a 3.8% y-o-y rise in average fuel cost per gallon. United Airlines expects its Q3 adjusted EPS to be in the range of $2.75 and $3.25.