Has United Turned the Corner With Its Earnings Beat?

CHICAGO ( TheStreet) -- United ( UAL) beat Wall Street estimates as second-quarter net income rose 51% and costs fell.

The carrier announced a stock buyback plan, leaving some analysts to wonder whether the carrier might have finally turned the corner.

Excluding items, the carrier reported net income of $919 million, or $2.34 a share. Analysts surveyed by Thomson Reuters had estimated $2.16 a share. Revenue rose 3.3% to $10.3 billion, in line with estimates.

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Including items, net income was $789 million, or $2.01 a share.

In premarket trading just before the bell, United shares were trading at $48.97, up $2.97 or 6.5%.

During the quarter, consolidated passenger revenue per available seat mile rose 3.7%.

"PRASM and company appear to be turning the corner," Cowen & Co. analyst Helane Becker wrote in a note released shortly after the earnings were reported. "We are the most bullish about the 2% to 4% expected increase in PRASM during 3Q14 as it is in line with Delta (DAL) and shows the company is beginning to bridge the gap in terms of PRASM," Becker said.

Domestic PRASM rose 7.8% as domestic capacity fell 1.4%. Domestic revenue was $3.5 billion while international revenue was $3.6 billion.

International PRASM rose 1% on a 2.1% capacity increase. Latin American PRASM rose 4.4% despite a 5.6% capacity increase. Trans-Atlantic PRASM rose 2.5% but Pacific PRASM fell 2.6%.

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