Why United Airlines Stock Is Trading Lower Wednesday

United Airlines Holdings Inc UAL shares are moving lower Wednesday after the company reported third-quarter results and warned that fourth-quarter earnings could be as low as $1.50 per share versus $3.65 per share in the current quarter. 

What Happened: United reported total operating revenue of $14.48 billion in the third-quarter, up 12.5% year-over-year and ahead of consensus estimates of $14.44 billion, according to Benzinga Pro. The company reported adjusted quarterly earnings of $3.65 per share, which beat estimates of $3.39 per share.

Capacity was up 15.7% year-over-year. Total revenue per available seat mile was down 2.8% and costs per available seat mile were down 3.6%, but 2.6% higher excluding fuel. Average fuel price per gallon was $2.95 during the quarter. 

United said it had the highest daily average of revenue passengers ever carried in a quarter at more than 482,000 passengers.

"Our strategy to diversify our revenue streams, capitalize on growth opportunities and constantly innovate to enhance our products for our customers is paying off. Our United Next strategy is working and we remain on track to hit our financial targets," said Scott Kirby, CEO of United Airlines.

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United said it sees fourth-quarter earnings of $1.50 to $1.80 per share and revenue up 9.5% to 10%, depending on how long Tel Aviv flights are suspended.

If flights are only suspended through October, the company anticipates that results will come in at the high end of the provided ranges, but if suspended until the end of the year, United expects fourth-quarter numbers to be near the low end of the provided ranges. 

Management will hold a conference call to discuss these results at 10:30 a.m. It's likely that analysts are waiting to hear what the company has to say on the call before releasing any updates. 

UAL Price Action: United Airlines shares were down 5.36% at $37.96 at the time of writing, according to Benzinga Pro.

Photo: Ronen Fefer from Flickr.