United Airlines' cargo revenue increased 22.6% to $527 million in the second quarter, driven by sharply higher air cargo rates and the strongest volumes since the Covid-19 pandemic. Global cargo demand grew 4% in the first half of the year and surged 7% in June, while capacity barely changed, but shipping space on aircraft fell more than 12% in the Middle East due to the U.S.-led military campaign against Iran, pushing spot rates up 35% to 40% year over year in the previous two months. United transported nearly 347 million pounds of cargo during the quarter, the most for the period since March 2020, with higher yields being the main contributor to the strong performance. Chief Commercial Officer Andrew Nocella said most of the gains were yield-related and expects that trend to continue into the third quarter. Overall, United raised its full-year earnings guidance after posting adjusted earnings of $1.99 per share and a 16% gain in revenue to $17.7 billion, though net income fell more than 17% to $805 million due to a $2.3 billion increase in fuel costs tied to disruptions in the Strait of Hormuz.
United Airlines Holdings IncCargo revenue jumped 23% on high yields and pandemic-level volumes, with strong demand and raised guidance.