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United Airlines reported third-quarter earnings that exceeded analyst expectations, driven by strong growth in premium services and increased international travel demand. The airline's adjusted earnings per share (EPS) surpassed Wall Street's consensus. However, the company missed revenue forecasts for the third consecutive quarter.
Following the earnings announcement, United Airlines shares experienced a significant decline, dropping from around $104 to as low as $94.75 during intraday trading before closing down about 5%. This sharp decrease surprised many observers given the company's earnings beat.
Despite management guiding fourth-quarter EPS above analyst estimates and emphasizing strength in premium markets and loyalty programs, investors were concerned by several factors discussed during the earnings call. These included rising costs expected in the fourth quarter, operational constraints at Newark airport exacerbated by a government shutdown, and plans to increase spending on customer experience initiatives.
