United Airlines Q2 Profit Hits $1.32 Billion Amid Strong Travel Demand

United Airlines reported a 23% increase in second-quarter profit, reaching $1.32 billion, driven by heightened demand at U.S. airports and rising fuel and labor costs. Despite the strong performance, the airline cautioned that its third-quarter results are likely to fall short of Wall Street expectations. United, along with Delta Air Lines, expressed concerns about an oversupply of flights, which is creating increased competition and pressure on pricing, particularly for cheaper seats in the main cabin. The number of travelers screened at U.S. airports has increased by more than 6% since the beginning of the second quarter compared to the same period last year.

In addition to profit growth, United Airlines experienced a 5.7% increase in revenue, totaling $14.99 billion. However, the company's forecast for third-quarter earnings is projected to be between $2.75 and $3.25 per share, lower than the $3.44 per share predicted by analysts. CEO Scott Kirby noted that airlines are adjusting their schedules to manage the oversupply issue, which may eventually moderate the current excess in capacity. Despite strong demand for premium travel, both United and Delta reported weaker pricing for main cabin seats due to the increased number of flights.