United Airlines (UAL) has seen its stock soar by 12% to reach its highest level since early 2020, driven by a combination of strong third-quarter earnings and the announcement of a significant share buyback program. The airline's recent financial performance has exceeded Wall Street expectations, with third-quarter revenue and earnings surpassing analyst forecasts. United reported adjusted earnings per share of $3.33, beating the expected $3.17, and revenue of $14.84 billion, slightly above the anticipated $14.78 billion.

The airline's board has authorized a $1.5 billion share repurchase program, marking the first buyback since the onset of the COVID-19 pandemic. This move reflects United's growing confidence in its financial stability and future prospects. The buyback is expected to cover approximately 7% of the company's outstanding shares, signaling a strategic return of capital to shareholders.

United's Chief Commercial Officer, Andrew Nocella, highlighted the airline's improved revenue trends, attributing the positive outlook to strategic capacity adjustments and a more favorable pricing environment. The airline has seen a resurgence in domestic unit revenue, with significant improvements noted in August and September.

Despite the positive financial results, United's decision to resume share buybacks has faced criticism from its flight attendants' union, which argues that the funds should be directed towards employee compensation. Nevertheless, United's CEO, Scott Kirby, emphasized the importance of balancing shareholder returns with investments in the company's workforce and operations.

The airline industry as a whole appears to be emerging from the challenges posed by the pandemic, with United and its peers benefiting from reduced capacity and lower fuel prices. The NYSE Arca Airline Index has risen significantly, outpacing broader market gains, as airlines capitalize on improved market conditions.

Overall, United Airlines' recent performance and strategic initiatives have positioned the company for continued growth, as it seeks to navigate the post-pandemic landscape and deliver value to its shareholders.