United Airlines (UAL) -) shares edged higher in early Tuesday trading ahead of the carrier's third quarter earnings slated for after the closing bell.
United is expected to follow its larger rival, Delta Air Lines DAL, in posting a big jump in overall revenues, which are forecast to come in 12% higher from the same period last year at $14.44 billion, amid the ongoing post-Covid travel boom.
The Transportation Security Administration said it screened around 227.5 million passengers between Memorial Day and the Labor Day weekend. That's a larger total than in 2019, the year prior to the pandemic, and works out to around 2.5 million travelers per day through all U.S. airports.
United made a big bet on the very trend earlier this month, in fact, when it ordered around 110 aircraft from Boeing BA and Airbus that will enter its flight schedules start in 2028.
Higher ticket and sundry prices are also like to boost the carrier's overall profits, as well, with analysts expecting United's adjusted bottom line to rise 19.2% from last year to $3.35 per share.
Surging fuel costs could hit profit margins over the final months of the year, however, following the recent rally in crude sparked by Israel's war with Hamas and the ongoing production cuts from OPEC members lead by Saudi Arabia and non-member allies such as Russia.
Last week, Delta forecast firmer fourth quarter revenue growth, but cautioned that rising jet fuel prices would eat into its overall profits. Delta clipped its 2023 forecast to between $6 to $6.25 per share, down from its prior forecast of between $6 and $7 per share.
United Airlines shares were marked 0.4% higher in early Tuedsay trading to change hands at $39.71 each.
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