United Airlines (NASDAQ:UAL) reported disappointing Q2 results on Wednesday, with both revenue and forward guidance falling short of Wall Street expectations due to weakening demand for air travel.
The airline posted adjusted EPS of $4.14 on revenue totaling $14.99 billion. This performance missed analyst forecasts, which had projected EPS of $3.98 on revenue of $15.11 billion.
The dip in revenue comes at a challenging period for the airline sector. Various U.S. airlines have recently indicated that this summer and mid-August could mark a critical juncture.
United’s cost per available seat mile (CASM) decreased by 4.8% in Q2 compared to the same period last year, reflecting some operational efficiencies.
Looking forward, United Airlines provided Q3 guidance, forecasting adjusted EPS between $2.75 and $3.25, which is below the Street estimate of $3.59. For the full year, United Airlines anticipates adjusted EPS to be in the range of $9.00 to $11.00.