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Why United Continental (UAL) Shares are Climbing Today

On Wednesday, shares of airline leader United Continental UAL are gaining, up over 4% to $80.11 per share in morning trading after the company reported positive traffic numbers for the month of June.

United said that June consolidated traffic in terms of revenue per passenger mile rose 3.4%, while consolidated capacity grew 5% compared to the prior year period.

The airliner also said that second-quarter passenger unit revenue, which is an important metric for the industry, should hit in the middle of its forecast range, rising about 2%. United expects unit revenue to increase between 1%-3%.

"Last month's performance capped off an exceptional first half for our operation, and we look to continue this momentum through the second half of the year and beyond," President Scott Kirby said in a statement. 

However, United added that the overall trans-Pacific market continued to face “incremental weakness due to unfavorable supply and demand dynamics in China and Hong Kong.” But other than this market, all regions performed in line with to slightly better than original expectations.

United’s announcement follows that of Delta Airlines DAL, who said last week that its own unit revenue had risen roughly 2.5%, falling at the higher end of its forecast range. And on Monday, Southwest Airlines LUV reiterated its guidance for unit revenue growth of 1%-2%.

UAL is currently a #1 (Strong Buy) on the Zacks Rank, with a VGM score of ‘C.’ The airline is set to report its second-quarter earnings on July 18 after the bell. Zacks expects United to report earnings of $2.23 per share and sales of $9.88 billion for the period.

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Southwest Airlines Company (LUV): Free Stock Analysis Report
 
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
 
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
 
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