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United Continental: What To Look For In The Q3 2015 Report

United Continental Holdings is expected to report earnings on October 22.

Like most airlines Q3 2015 is expected to be a record quarter driven by sharply lower year-over-year fuel expenses.

Guidance, especially involving PRASM, is likely to be the most important part of the report.

Airline earnings season is once again upon us and United Continental Holdings (NYSE:UAL) is expected to report on October 22. Like its rivals, United Continental is also expected to report record earnings powered by a significant decrease in fuel expenses.

But so far this year the market has mostly ignored fuel savings preferring to focus on PRASM and capacity concerns. Because of this, Q3 PRASM results and management's guidance could be the most important part of the Q3 2015 report.

What's expected

Currently 15 analysts report to Yahoo Finance and their average Q3 EPS estimate currently sits at $4.55 with a high of $4.62 and a low of $4.40. Hitting the analyst average would represent a 65% year-over-year EPS gain; a gain similar to the forecast 63% year-over-year gain for American Airlines Group (NASDAQ:AAL). Over the past 90 days, analysts have sharply increased their estimates for United Continental's Q3 rising from $3.64 to the current $4.55. These upward revisions have likely been made to reflect oil prices remaining low throughout the quarter.

On the top line analysts are calling for an average of $10.31 billion with a high...