United Airlines says that on an adjusted basis, its pre-tax income stood at USD 1.6 billion, pre-tax margin at 10.8 pc and diluted earnings per share of USD 3.65
United Airlines (UAL) has reported a pre-tax income of USD 1.5 billion in the third quarter of the current year, achieving a pre-tax margin of 10.3 pc and diluted earnings per share of USD 3.42, beating market expectations.
In a press statement, the airline says that on an adjusted basis, its pre-tax income stood at USD 1.6 billion, pre-tax margin at 10.8 pc and diluted earnings per share of USD 3.65.
United says its total third-quarter top line revenue was up 12.5 pc year-over-year, a record revenue quarter and near the high end of guidance. United experienced a strong and steady domestic demand environment in the quarter, with 9 pc revenue growth year-over-year, outpacing second quarter results. The company saw strength in close-in bookings in August and September with both months well ahead of year-over-year demand.
In the international space, profits were at record highs in both the Atlantic and Pacific regions. Revenue in the Atlantic region was up 15 pc versus the same quarter in 2022, and 70 pc versus the same quarter in 2019. Pacific revenue exceeded third-quarter 2019 levels despite capacity remaining 24 pc below third-quarter 2019. Domestic revenues in the quarter were second highest all-time and the domestic system remains solidly profitable, says the carrier.
The company has built a winning strategy around giving customers choice when it comes to the level of service they want. Demand for premium products remains high, with great success in the premium economy cabin where revenue has outpaced capacity growth since its introduction in 2019. United says that in total, revenue from premium products was up 20 pc year-over-year in the quarter and accounts for more than half of all passenger revenue. Basic Economy has also provided another popular option for customers and has been a great competitive offering with revenue for that product in the quarter up 50 pc year-over-year.
United continues to see the benefits of having an award winning airline loyalty programme. The third quarter showed a continued multi-year new MileagePlus member trend, setting a record for third quarter enrollments and nearly doubling the number of new members versus the third quarter just five years ago. Spending across the US card portfolio year-to-date is up double-digits over the first three quarters of 2022 and this third quarter saw more miles redeemed across the program than any third quarter in history for award travel.
Scott Kirby
‘‘Thank you to our extraordinary United team who delivered a record-setting operational performance for our customers in August and September. Our strategy to diversify our revenue streams, capitalise on growth opportunities and constantly innovate to enhance our products for our customers is paying off. Our United Next strategy is working and we remain on track to hit our financial targets,’’ says United Airlines CEO Scott Kirby.
United says its capacity up 15.7 pc compared to third-quarter 2022 and it recorded a total operating revenue of USD 14.5 billion, up 12.5 pc compared to third-quarter 2022. Its net income stood at USD 1.1 billion.
The airline says that it also reached a new wage deal with its pilots who, represented by the Air Line Pilots Association International (ALPA), ratified a new four-year contract with the company.
The company has also announced promotions of Michael Leskinen to Executive Vice President and Chief Financial Officer, Josh Earnest to Executive Vice President of Communications and Advertising, and Terri Fariello to Executive Vice President of Government Affairs and Global Public Policy.
It says it its United Airlines Ventures Sustainable Flight Fund increased its investment power to nearly USD 200 million and added eight new corporate partners, five months after its initial launch and it also launched the industry-leading United Military Pilot Programme giving full-time, active-duty US military pilots access to conditional job offers as a First Officer with the airline.
Among other records set by the airline in the quarter were the highest daily average of revenue passengers ever carried in a quarter at more than 482,000 passengers. It also achieved the most ever quarterly departures in its history, 2621 mainline and 324 widebody daily departures.
