Investing.com -- Shares in United Continental Holdings Inc (NYSE:UAL) were relatively flat on Tuesday in after-hours trading, after the third-largest airliner in the U.S. reported declining revenues in the second quarter and a lower forward guidance for the current period.
During United's second quarter of Fiscal Year 2016, the company reported earnings of $588 million or 1.78 per share down substantially from net profits of $1.19 billion or 3.14 per share over the same period last year. At the same time, United's sales fell sharply by 5.2% to $9.4 billion, as its passenger revenue per available seat mile decreased by 6.6% on a year-over-year basis. The measure is regarded as a key industry metric.
"We made significant progress in the second quarter as a direct result of the passion and dedication that United’s aviation professionals around the world have for running a great airline,” said Oscar Munoz, president and chief executive officer of United Airlines. “This progress is exemplified by the best six months of operational performance in our history and we will continue down the path of unlocking United’s full potential."
The subdued results provide the latest hit to the airliner in the wake of last week's guilty plea by David Samson, the former chairman of the Port Authority. Samson, an appointee of New Jersey governor Chris Christie, plead guilty to bribery charges on July 14 for compelling United officials to deny critical funding proposals unless the airlines altered flight plans to accommodate his twice-a-week travel plans to South Carolina from Newark International Airport. As part of the charges, United announced that it will pay a $2.25 fine to the Federal Aviation Authority (FAA) will enhance anti-bribery compliance efforts to settle charges with the U.S. federal government.
Also, the company announced that its Board of Directors authorized a $2 billion share repurchase program, representing approximately 13% of its market capitalization as of the closing price on July 18. In addition, United announced Tuesday that it expects unit revenues to fall between 5.5 and 7.5% over the current quarter, amid weakening demand.
Shares in United fell 0.30 or 0.63% to 47.55 in after-hours trading.