United Airlines Q2 profit rises to $1.32 billion as travel demand offsets the carrier's rising costs

abcnews.go.com:

United Airlines has reported higher profit in the second quarter, thanks to record crowds at U.S. airports

United Airlines on Wednesday reported that its second-quarter profit rose 23% to $1.32 billion, as record crowds at U.S. airports helped the carrier overcome sharply rising costs for fuel and labor.

However, United warned that third-quarter results will fall short of Wall Street expectations because of a glut of U.S. flights that has airlines cutting prices to fill seats.

Delta Air Lines gave a similarly dim forecast last week. The airlines said, however, that across the industry carriers are trimming their schedules for mid-August and beyond, which should boost their pricing power.

Since the start of the second quarter on April 1, the number of travelers screened at U.S. airports has increased more than 6% over the same period last year, according to figures from the Transportation Security Administration. The nine busiest days in TSA’s history have occurred during that span, although two were after the second quarter ended June 30.

However, Delta reported last week that its second-quarter profit fell 29%, and it gave a weaker-than-expected forecast for its third-quarter profit.

United said Wednesday that it expects to earn $2.75 to $3.25 per share in the third quarter, which is below the average $3.38 forecast among analysts in a FactSet survey.

Both airlines indicated that demand for premium travel – sitting in the front cabin – is strong. United said revenue from premium passengers grew 8.5% from a year earlier.

Pricing is weaker, however, for cheaper seats in the main cabin because airlines collectively have added so many flights. Delta executives called out budget airlines such as Spirit and Frontier for