United Airlines Holdings, Inc. ( UAL ) shares are trading higher Thursday in sympathy with Delta Air Lines after the company reported better-than-expected third quarter financial results and raised its fiscal year 2025 earnings per share guidance above estimates.

What To Know: Delta reported adjusted earnings per share of $1.71, beating the consensus estimate of $1.52. In addition, the company reported sales of $16.67 billion, beating the consensus estimate of $15.04 billion.

Operating revenue increased 6% year-over-year, while GAAP earnings per share rose 10% to $2.17. Delta said its premium products and loyalty travel awards helped drive a 3% increase in passenger revenue, alongside a 59% jump in ancillary revenue.

The airline posted adjusted operating income of $1.7 billion with an operating margin of 11.2%. It also reported free cash flow of $833 million, up sharply from $95 million a year earlier, as debt and lease obligations declined 16% to $14.9 billion.

Delta expects total revenue growth of 2% to 4% for the December quarter and forecasted adjusted earnings per share between $1.60 and $1.90. For the full year, it raised its adjusted EPS outlook to approximately $6.00, near the high end of its prior guidance range.

United shares appear to be trading higher Thursday as investors view Delta's strong earnings as a sign of broader strength across the airline industry.

United Airlines is due to report financial results for the third quarter after the market close on Oct. 15. Analysts expect the company to report earnings per share of $2.62 and revenue of $15.32 billion, according to estimates from Benzinga Pro.

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UAL Price Action: At the time of writing, United shares are trading 3.24% higher at $101.12, according to data from Benzinga Pro.

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