Bond Market News

United Airlines’ bonds have trended upwards this week with the company releasing its Q3 2022 financial results yesterday, that beat analysts expectations all around. Its Q3 adjusted earnings and revenue were $2.81 per share and $12.9bn respectively, beating market estimates of $2.29/share and $12.7bn. Its operating revenue grew 13.2% compared to the same period in 2019. Its total debt stood at $31.4bn, 5.7% lower than end-2021 and its cash holdings were at $11.2bn, 38.4% lower than end-2021. On top of the positive earnings result, the Chicago-based carrier also raised profit estimates for the final quarter of the year. Boosted by strong COVID recovery trends and rebounding travel, the airline expects its earnings to be $2-2.25/share in Q4 2022, where analysts had initially expected $0.96/share on average as per Bloomberg. CEO Scott Kirby said “Despite growing concerns about an economic slowdown, the ongoing Covid recovery trends at United continue to prevail and we remain optimistic that we’ll continue to deliver strong financial results in the fourth quarter, 2023 and beyond.”

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