By Rajesh Kumar Singh
CHICAGO (Reuters) -United Airlines forecast on Wednesday a lower-than-expected profit in the quarter through September as worries about rising living costs and an uncertain economic outlook have led to a pullback in discretionary travel spending.
The Chicago-based airline, however, said it has seen an improvement in overall bookings in the current quarter from a quarter ago, with a double-digit acceleration in business travel demand.
United expects an adjusted profit in the range
of $2.25 a share to $2.75 per share in the quarter through September. The midpoint of the forecast is $2.50 per share, compared with analysts' average estimate of $2.60, according to LSEG data.
Its earnings in the third quarter are also expected to take a hit as a result of disruptions at Newark airport.
The company's full-year adjusted profit is now estimated to come in the range of $9 a share to $11 a share. That compares with analysts' expectations of $10.04 a share.
The company's shares were down 2.5% in after-hours trading.
In April, United took an unusual step of offering two different earnings forecasts as President Donald Trump's trade war dented consumer and business confidence, making it harder for carriers to forecast their business.
Since then, industry executives say travel demand has stabilized. Passenger traffic in the U.S., however, is still down from a year ago, leading to a decline in air fares, government data shows.
United said demand trends have improved since the beginning of July, thanks to less geopolitical and macroeconomic uncertainty.
(Reporting by Rajesh Kumar Singh, Editing by Franklin Paul and Sandra Maler)
