by Mia Taylor
Last updated: 6:20 PM ET, Wed October 16, 2019
Airlines are reporting record third-quarter profits thanks to a busy summer travel season and cheaper jet fuel.
United Airlines said in a press release that third-quarter profits are up 23 percent to $1 billion. Delta Air Lines meanwhile, set records for passengers and revenue during the third quarter, increasing profits 13 percent to $1.5 billion, according to a statement issued by the airline.
"Our powerful brand and competitive strengths drove another quarter of great results for our people, customers, and owners. Our people bring our brand to life on every flight and I'm pleased to recognize their outstanding efforts with over $1 billion in profit sharing accrued so far this year," Ed Bastian, Delta's CEO, said in a statement. "Demand for the Delta product remains healthy, positioning the company for a strong close to 2019 with expectations for more than 20 percent earnings growth, over $4 billion in free cash flow and a 5th year of pre-tax earnings over $5 billion."
United CEO Oscar Munoz said the airline extended its streak during the third-quarter of expanding pre-tax margin on a quarterly basis.
"While headwinds affected the sector as a whole this quarter, United's team once again demonstrated a robust ability to overcome adverse cost pressure, managing to continue growing our network while investing in winning our customers' loyalty through smart enhancements to the United experience," said Munoz.
Some of the headwinds that impacted United and other airlines include the grounding of the Boeing 737 Max after two fatal crashes, which resulted in thousands of canceled flights and lost revenue. (Delta doesn't own any Max aircraft.)
Still, United has been growing aggressively around the country, increasing the number of flights between hub airports and smaller cities, Associated Press reported.
Even amid the record profits, Delta offered a cautious fourth-quarter forecast, according to Associated Press.
It's also worth noting that Delta did experience a few hiccups this summer. The airline was caught short on pilots, which in turn led to a record amount of overtime flying, according to the pilots' union.
Delta has said it is adding about 6,000 people a year to address increasing passenger traffic and it will replace up to 4,000 employees who leave or retire, Associated Press reported.
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