Reported 5 months ago
United Airlines Holdings Inc. announced that its third-quarter profit is expected to be lower than Wall Street's estimates due to US carriers reducing ticket prices to attract domestic travelers. This strategy has prevented even major airlines from fully benefiting from the summer travel surge. The company's adjusted earnings forecast for the current period is $2.75 to $3.25 per share, falling below the $3.38 average expected by analysts. Competition from discount carriers selling excess seats at lower prices has led to similar warnings from other airlines, such as Delta Air Lines Inc. and Alaska Airlines Group Inc., with Alaska also revising its full-year profit outlook. Despite United reporting better-than-expected second-quarter profits, uncertainty remains as the industry navigates evolving demand and pricing challenges.
Source: YAHOO