04:54 PM EDT, 07/17/2024 (MT Newswires) -- United Airlines (UAL) late Wednesday reported second-quarter results that surpassed Wall Street's estimates, though the airline's earnings outlook for the ongoing three-month period fell short of expectations.

Adjusted per-share earnings fell to $4.14 during the June quarter from $5.03 a year earlier. The Capital IQ-polled consensus called for $3.93 in normalized EPS. Operating revenue climbed 5.7% to $14.99 billion, ahead of analysts' $14.97 billion estimate.

Passenger revenue added 5.2% year-over-year to $13.68 billion, while cargo reported a 14% gain. Total revenue per available seat mile, or TRASM, which is used to compare the efficiency of various airlines, was down 2.4% from the 2023 quarter.

United Airlines anticipates reporting adjusted earnings of $2.75 to $3.25 per share for the third quarter, according to an investor update. The Street's view is for EPS of $3.38. United maintained its full-year EPS outlook at $9 to $11, versus market expectations for $9.76.

"For nearly two years, the airline has been anticipating significant domestic capacity reductions recently announced by a variety of US airlines this summer and mid-August is an inflection point, with published schedule changes showing an approximately (three) point decline in industry capacity growth rate," Chief Executive Scott Kirby said in a statement. "We see multiple airlines have begun to cancel loss-making capacity."

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