United Airlines has reported record earnings of $US1.2 billion ($A1.6 billion) for the second quarter, helped by a $US1 billion fall in fuel costs.
Passenger, cargo and other operating revenues fell 2.6 per cent in the April-June period to $US9.9 billion, but that was more than offset by the 34 per cent fall in fuel costs, normally the largest cost for an airline, compared with a year ago.
Net income was up 51.2 per cent from a year earlier and earnings per share surged 48.1 per cent to $US3.14.
The company moved to share some of the boon with shareholders, announcing a $US3 billion share repurchase plan through 2017, on top of an existing $US1 billion buyback program.
“This quarter’s record results reflect the progress we’re making on our long-term plan,” chairman and chief executive Jeff Smisek said in a statement on Thursday.
“The $US3 billion share repurchase program we announced today demonstrates the confidence we have in our future. We will continue to invest in our customers, assets and our people, and remain committed to improving our balance sheet, expanding our margins and improving our return on invested capital.”
The Chicago-based airline, under parent United Continental Holdings, said its capital return surged to 18.2 per cent in the year to June 30.
The results showed some deterioration due to the addition of capacity. Passenger revenue per available seat mile, a key measure of operating efficiency, fell 3.4 per cent, mainly due to sharp falls in international service, especially that serving Asia. Domestically the gauge rose 0.2 per cent.
United shares surged 4.0 per cent to $US59.37 in opening trade.
