United Airlines (UAL) shares zoomed upwards as it posted strong revenue for its fourth quarter. It has posted good earnings result and revenue beyond expectations.
Shares of the company were up in premarket trade on Wednesday. The airlines released its results on Tuesday where it surpassed its estimates with good figures. It rose by 6 percent in premarket trade. The shares were at $86.03 before trading hours.
Oscar Munoz, the CEO of United had plans to expand the company by 6 percent, a year earlier. Though it was tough to convince investors, the company has topped estimates by expanding its capacity by 6 percent.
United Continental Holdings had revenue of $10.49 billion for the quarter. It was higher than poll estimates at $10.34 billion.
Results have been above earnings estimate for the quarter and gone beyond analyst expectations.
However, the net income was 20 percent lower than the previous year, as it posted income of $462 million. The company says that the chief reason for falling 20 percent was due to the increasing fuel bill. Fuel expenses have increased by 27 percent in the fourth quarter from the previous year.
United has made $2.42 per share against $1.99 per share expected from the company, according to an analysis by FactSet. The company had shown earnings per share at $1.44 with $9.54 billion last year.
Meanwhile, Delta Air Lines has said that its unit revenue has been affected by the partial government shutdown and expects 2 percent growth, maximum.
For the first quarter, this year, United Airlines expects $1 per share as adjusted revenue, which is much above expectation of 84 cents.
United Airlines says that its revenue grows in each region that it operates in. Its domestic revenues were growing faster by 12 percent.
The Chicago-based company expects its unit revenue to be the same this quarter as that of last year in 2018, which is at 3 percent.