United Continental Holdings, Inc.’s (UAL - Free Report) wholly owned subsidiary, United Airlines, reported impressive traffic figures for July. Consolidated traffic, measured in revenue passenger miles (RPMs), was 23 billion, up 6.9% from the year-ago figure.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) rose 4% to 25.76 billion. Also, load factor (percentage of seats occupied by passengers) expanded 240 basis points (bps) to 89.3% as traffic was higher than capacity growth.
At the end of the first seven months of 2018, the carrier registered a 5.8% increase in RPMs to 132.8 billion while ASMs climbed 4.2% to 158.44 billion, both on a year-over-year basis. Thus load factor inched up 130 bps to 83.8%.
The company posted an on-time performance of 62.3% and a completion factor of 99.3% for the month.
Last month, this Zacks Rank #3 (Hold) company released impressive second-quarter 2018 financial numbers wherein both earnings and revenues surpassed estimates as well as improved year over year. The company’s earnings (excluding 75 cents from non-recurring items) of $3.23 per share outpaced the Zacks Consensus Estimate of $3.07 and ascended 17% year over year owing to higher revenues. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Operating revenues came in at $10,777 million, outpacing the Zacks Consensus Estimate of $10,702 million and growing 7.7% year over year. (Read more: United Continental Beats on Q2 Earnings, Raises View)
Key airline players, namely American Airlines Group Inc. (AAL - Free Report) , Southwest Airlines Co. (LUV - Free Report) and Alaska Air Group, Inc. (ALK - Free Report) also recently posted their second-quarter financial figures. Each of the carriers beat on earnings but missed on revenues.
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