United Continental Holdings Inc (NYSE:UAL) late Tuesday posted market-beating second quarter earnings results, but a key airline metric forecast for the third quarter was weaker than expected, and investors sold the shares off in aftermarket trading.
UAL said that Q2 passenger revenue per available seat mile (PRASM) gained 2.1%, while consolidated yield increased 2.0% year-over-year.
For the full year, UAL sees capacity up 2.5% to 3.5%, CASM also up 2.5% to 3.5% and capex of $4.6 to $4.8 billion.
From investing in our products and our people, redoubling our focus on the customer experience, closing the margin gap with our peers and delivering strong returns to our investors, we have made important progress and moved United decisively forward.” United Continental shares fell more than 3% in after-hours trading Tuesday following the report.
UAL currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #5 of 19 stocks in the Airlines category.