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United announces $1.5 bn share buyback as earnings top estimates
United announces $1.5 bn share buyback as earnings top estimates / Photo: JUSTIN SULLIVAN - GETTY IMAGES NORTH AMERICA/AFP

United announces $1.5 bn share buyback as earnings top estimates

United Airlines announced a $1.5 billion share buyback on Tuesday as its earnings for the third quarter topped analyst estimates.

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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.

J.V.Jacinto--PC