United Airlines announced a $1.5 billion share buyback on Tuesday as its earnings for the third quarter topped analyst estimates.
The US airline reported net income of $965 million, down more than 15 percent from the same period a year earlier. This translated to an adjusted diluted earnings per share of $3.33 — above analyst estimates.
But operating revenues rose by 2.5 percent to around $14.8 billion due to an increase in both passenger and cargo revenues.
United’s share price rose slightly in after-hours trading.
“I appreciate the entire United team coming together to take care of our customers by operating a safe and on-time airline this summer,” United Airlines CEO Scott Kirby said in a statement.
“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,” he continued.
Alongside its earnings, United also announced a new $1.5 billion share repurchase program — its first since the onset of the Covid-19 pandemic.
The firm said the buyback program represents around seven percent of its market capitalization, based on Monday’s closing stock price.