Even in the Off-Season, Performance Soars... UA Net Profit Triples

United Airlines (UA) in the United States posted better-than-expected strong results in the second quarter, which is typically an off-peak season for airlines, driven by robust growth in overseas travel demand.

On the 19th (local time), United Airlines announced its second-quarter earnings for this year, reporting a net profit of $1.075 billion, a 226.7% increase compared to $329 million in the same period last year. Revenue for the same period reached $14.178 billion, up 17.1% from $12.112 billion in the previous year. Earnings per share stood at $5.03, significantly surpassing market expectations of $4.03.

The company explained that the profit increase was due to "a surge in demand on profitable long-haul international routes." It added that as international passenger transport performance grew, profitability exceeded the pre-COVID-19 pandemic levels of 2019.

Despite forecasts that overseas travel demand would decline due to recessionary headwinds, airlines are recording strong results. This is attributed to the explosive demand for long-haul international routes that had been suppressed during the COVID-19 pandemic.

According to the airfare comparison site Kayak, the number of searches by Americans for flights to Europe this year increased by an average of 55% compared to last year. International passenger transport revenue accounts for about 41% of total revenue for U.S. airlines, including United Airlines.

In response to the growing demand for international flights, United Airlines has decided to increase seat capacity on popular long-haul routes such as Manila, Hong Kong, and Tokyo.

[Image source=AP Yonhap News]

Earlier, on the 13th, Delta Air Lines also announced that its second-quarter revenue ($15.6 billion) and earnings per share ($2.84) both exceeded market expectations, achieving record quarterly results.

Delta Air Lines CEO Glen Hauenstein stated, "Strong demand is expected to continue into the third quarter of this year," and forecasted that the third quarter would show similar levels of passenger transport performance and revenue growth as the second quarter. Reflecting the robust demand outlook, Delta raised its third-quarter earnings per share guidance to $6 to $7.