United Airlines stock soared 10 percent to $35.84 on Wednesday as its fourth-straight quarterly profit beat Wall Street forecasts.
The airline said the profit of $3.6 billion, or 39 cents a share, helped it to record a profit of 10 cents a passenger, up from a loss of $2.1 billion, which beat Wall St. forecasts.
United said the third-quarter revenue rose to $14.2 billion, from $13.7 billion, while the net loss climbed to $3 million, from a net loss of around $3 billion.
Earnings rose by $5 million, or 17 cents, to $10.99 a share.
The company said its revenue rose by an average of 8 percent, but that the increase in the first quarter was mostly due to the reopening of a new, larger terminal at Newark Liberty International Airport.
United said its profit in the quarter ended June 30 was $2 billion or 41 cents a ride.
United’s earnings are subject to an 8.5 percent margin.
United Airlines has benefited from a surge in demand for its frequent-flier flights.
The airline said on Wednesday that it expects demand for the business will continue to rise, particularly for travelers on longer flights.
United CEO Oscar Munoz said he expects the airline will achieve a net profit of between $4 billion and $5 billion in the next year and will generate annual operating profit margins in the range of 10 to 15 percent.
United and other airlines have been hit hard by an influx of passengers from China.
Demand for Chinese-made goods has outpaced the availability of American goods, forcing the airlines to reduce their prices.
United has seen a surge of flights from China, which is a major trading partner.
United announced in February it would close the Newark Liberty hub that has been in operation since at least 2009.
The Newark hub, which was used to accommodate large international air trips and was shut down after the Chinese government shut down the rest of the airline, was due to reopen in 2018.
United plans to open the new Newark hub in 2019, after which the hub will close.