CHICAGO – On Tuesday, United Airlines announced a 15% decrease in its profit for the third quarter compared to the same period last year; however, positive revenue trends emerged as low-cost carriers scaled back their expansion plans for the remainder of the year.

In a significant move, the airline’s board approved a share buyback program of up to $1.5 billion. This is United’s first such initiative since 2020, during which airlines were restricted from repurchasing their stocks due to conditions tied to federal pandemic relief funding.

By September, United observed a resurgence in travel demand, particularly within corporate sectors and among travelers opting for premium and basic economy services. Airline leaders have expressed frustrations over budget airlines destabilizing prices for economy-class tickets, leading to an oversupply of flights. However, pricing conditions have started to improve as carriers like Spirit and Southwest reduce their flight schedules, tightening the available seating.

A particularly important metric, revenue per seat, has shown a positive trend for United’s domestic flights during August and September after previously lagging behind levels recorded earlier in 2023.

United’s third-quarter profit amounted to $965 million, a decline from last year’s figure of $1.14 billion. When excluding special items, the airline’s adjusted earnings came to $3.33 per share, surpassing analysts’ average expectation of $3.17 per share, as reported by FactSet.

The company’s revenue increased by 2.5%, reaching $14.84 billion and exceeding the analysts’ average predictions of $14.77 billion.

For the fourth quarter, United expects to achieve earnings between $2.50 and $3 per share, aligning with the average analyst forecast of $2.76 per share.