United Airlines profit benefited from travel surge

United Airlines on Wednesday edged higher the expected profit milestone in its pandemic recovery. The company announced that there will be scaling back of corporate growth plans through 2023.

Strong demand has been reported as well as high costs for fuel and other operation expenses. United reported its first quarterly profit; $329 million, since the Covid-19 pandemic began without the help of federal payroll aid, which expired almost a year ago.

Unit revenues in the second quarter surged 24% over 2019 thanks to strong travel demand, even at sky-high fares, while unit costs, excluding fuel, rose 17% over the April-June period of three years ago. Fuel costs also soared.

“It is nice to return to profitability — but we must confront three risks that could grow over the next 6-18 months,” United CEO Scott Kirby said in an earnings release.