CHICAGO, Oct 15 (Reuters) - United Airlines on

Tuesday forecast a stronger-than-expected profit in the current

quarter, after third-quarter earnings topped Wall Street

estimates on improved pricing power.

In a sign of growing confidence in its business, the

Chicago-based airline also announced a $1.5 billion share

buyback program - its first since the COVID pandemic.

United said it expects an adjusted profit of $2.50-$3 per

share in the quarter through December. Analysts expect the

company to report a quarterly profit of $2.68 a share, according

to LSEG data.

United reported adjusted earnings in the September quarter

of $3.33 a share, compared with analysts' expectations of $3.17.

The airline said its domestic unit revenue, a proxy for

pricing power, turned positive in August and September from a

year ago.

An excess supply of airline seats in the domestic market

during the summer travel season had forced carriers to discount

fares, hurting their earnings.

U.S. airlines have moderated capacity since then. Annual

domestic seat growth has slowed to 1.5% in October and November

from 5.5% in July, according to analysts at BofA.

"As predicted, unproductive capacity left the market in

mid-August, and we saw a clear inflection point in our revenue

trends that propelled United to exceed Q3 expectations,"

United's CEO, Scott Kirby, said in a statement.