United Airlines Holdings (UAL.O) on Wednesday lifted its full-year profit outlook after posting the highest ever quarterly earnings on booming demand for international travel
Its shares rose 2.4% in extended trading.
Ticket sales at U.S. carriers are soaring despite rising living costs as consumers cut spending on goods in favor of experiences.
Last week, rival Delta Air lines (DAL.N) lifted its full-year profit outlook for the second time in less than a month and reported the highest quarterly earnings in its history.
International bookings have increased significantly since the removal of pandemic-related restrictions.
According to data from the travel company Kayak, queries by US-based clients for summer vacation to Europe are up 55% over last year.
Higher-margin overseas travel is the most crucial to United among US airlines, accounting for approximately 38% of its passenger revenue prior to the pandemic.
International passenger revenue accounted for approximately 41% of total passenger revenue for the airline in the second quarter.
United announced earlier this week a second expansion of its Pacific coverage this autumn, with new flights to Manila, Hong Kong, Taipei, and Tokyo, in order to capitalise on international travel demand.
The airline anticipates a 10%-13% year-on-year growth in revenue and a 16% increase in capacity in the third quarter.
It expects adjusted earnings per share of $3.85 to $4.35 for the quarter, compared to the Wall Street estimate of $3.70. /Reuters
