In an news report yesterday, Phil LeBeau of CNBC reported on the spike seen in share price of United Continental Holdings Inc (NYSE:UAL) on the back of updated 2Q passenger revenue guidance provided by United Air Lines, Inc. (United), which is a 100% owned subsidiary of Chicago head quartered parent company.
Mr. LeBeau described the June passenger numbers and corresponding 2Q guidance increase by United Continental Holdings Inc (NYSE:UAL)’s subsidiary as “encouraging news.” He went on to report that, United Air Lines, Inc. (United) reported “second quarter passenger revenue for available seat mile is actually going to be up 3.35 percent” in comparison to its previous guidance of “increase between 1 to 3 percent.”
The CNBC report observed that the passenger traffic for the month of June, came in flat, but went on to point out other positives coming out of the earnings update. Mr. LeBeau pointed out to his viewers that “previous guidance was that costs were going to be up anywhere from 13.25% up to 23.25%.”
The news report finally concluded that, United Continental Holdings Inc (NYSE:UAL)’s subsidary United Air Lines, Inc. (United) updated guidance points towards a “better than expected performance in the second quarter” and went on to link the surge in the share price of the stock to this development.
While ending his report, Phil LeBeau goes on to caution viewers “not get carried away” since the numbers being forecasted by United Continental Holdings Inc (NYSE:UAL)’s subsidary United Air Lines, Inc. (United) are not as impressive in comparison to similar updates released by its competitors like Delta Air Lines, Inc. (NYSE:DAL) and American Airlines Group Inc (NASDAQ:AAL). He explained that the reason investors were trooping into the stock of United Air Lines, Inc. (United) was due to the fact that the 2Q guidance provided was “better than expected.”