Why United Airlines' Stock Is Flying Higher Today

United Carburetor Holdings, Inc. (NASDAQ resonance code: UAL)Reported smaller-than-expected quarterly loss, saidBoeingThe company's problems will not affect its full-year performance guidance. Investors cheered the results, with the company's shares up 11% as of 10 a.m. EST.

Growth Against the Odds

United reported quarterly revenue of $12.54 billion, a loss of $0.15 per share, better than the Wall Street consensus estimate of $12.45 billion in sales and a loss of $0.57 per share. The company's pre-tax loss was $164 million, a decrease of $92 million from the same period last year.

This quarter's results include a decrease in the number of employees due toAlaska Airlines Group United Airlines suffered a $200 million loss when it grounded its Boeing MAX 9 jetliner following an accident involving one of its aircraft. Without that loss, United would have realized a quarterly profit.

United said it is adjusting its long-term fleet strategy in light of demand trends and expected delays caused by ongoing problems at Boeing. However, the company reiterated its full-year guidance of earnings per share in the range of $9 to $11, which represents some upside from the consensus estimate of $9.67 per share.

The airline's capacity grew by 9.11 TP3T year-on-year during the quarter.

With Strong Earnings, Is United Worth Buying?

Airline investors have a lot to deal with in this earnings season. The airline industry has done very well in a period of inflation and rising interest rates, and United doesn't seem to be seeing any signs of weakening demand.

United's ability to adjust its fleet to minimize the impact of Boeing's flight delays has nothing to do with theSouthwest Airlines The contrast between the comments that led to the decline in the stock price ahead of the earnings season is striking.

In recent years, United's new management has worked hard to position the long-time laggard as an industry leader. These latest industry achievements underscore the good work United has done.

Investors need to be aware that airlines are cyclical and a recession will likely cause the stock to fall. However, United is an attractive option for those interested in investing in the sector.

Should you now invest $1,000 in United Airlines?

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Lou Whiteman does not own any of these stocks.The Motley Fool recommends Alaska Air Group and Southwest Airlines.The Motley Fool has a disclosure policy.

Why is United Airlines' Stock Flying Higher Today?