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United Continental shares rally amid brighter revenue forecast

A United Continental plane
Kim White | Bloomberg | Getty Images

United Continental shares climbed more than 3.3 percent Tuesday, on news that the airline expects an increase of $3.1 billion in operating income by 2018.

The income will draw from both increased revenue and reduced costs, including installing "slimline seats" which allow for fitting more passengers on a given plane, and increased customer segmentation. The company also expects to make $300 million from reducing delays and increasing reliability.

"We continue to accelerate our business performance while making strides in earning back the trust of our employees and customers," Oscar Munoz, the company's president and CEO, said in a release.

The company also noted it is expanding its route offerings, adding flights to Europe and Asia including a trip between San Francisco and Singapore.

While the company's shares have struggled over the past few years relative to airline competitors like Delta Air Lines and JetBlue, Munoz recently purchased close to 20,000 shares of the company, indicating confidence in its performance.

Shares of United Continental, however, are down more than 21 percent this year.

United Continental in 2016

— CNBC's Christine Wang contributed to this report.