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United Airlines boosts profits and buys used Boeing 737 amid Max Grounding

The strong demand for travel has boosted United Airlines Holdings' second quarter revenue by more than 50% over the previous year despite ongoing challenges from the creation of the Boeing 737 Max.

United has not figured out how the reason The fifth month has had a negative impact on earnings, but an agreement has been signed for the purchase of 19 used Boeing 737-700 aircraft (older jets) to meet growing demand. These aircraft are expected to be delivered in December.

The Boeing 737 Max aircraft were launched in mid-March after two fatal accidents ̵

1; one in Indonesia in October and one in Ethiopia in March – with a total of 346 deaths worldwide. The regulators have not announced when they expect a restart of the aircraft and have forced the airlines to cancel thousands of flights during the summer and fall high season

On Friday, United removed the aircraft from the flight plan by early November, without an end of grounding was foreseeable. United, which has 14,737 Max 9 jets, had expected the planes to return to Labor Day. American Airlines also canceled the aircraft on Sunday until the beginning of November. This would mean the cancellation of about 115 flights per day. American has 24 Boeing 737 Max jets in its fleet.

Delta Air Lines, which does not have the troubled aircraft in its fleet, said it has benefited only marginally as its competitors' operations are hampered by the landing.

For the three months ended June 30, the carrier reported net income of $ 1.1 billion, or $ 4.02 per share. Adjusted, it was $ 4.21 per share, outperforming analysts' expectations of $ 4.09 per share. Revenues were up nearly 6% to $ 11.4 billion year-on-year, slightly ahead of $ 11.36 billion, as demand for seats across all of the regions in which the company operates is in excess of $ 11.3 billion the high-traffic travel time had risen.

United also raised the bottom line from its earnings guidance for the year to $ 10.50 to $ 12 per share on an estimate of only $ 10 per share.

Managers of the second-largest US carrier will call analysts on Wednesday at 10:30 ET. Then you will probably face questions about how grounding the Boeing 737 Max could affect their operations by the end of the year.

Equities increased by 0.6% in postmarket trading.

American and Southwest announce results for the second quarter July 25.

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