Press release
United Airlines Announces Second-Quarter 2024 Financial Results; Achieves 2Q EPS Expectations
2Q pre-tax margin expected to be among industry leaders, despite excess industry capacity in the domestic market Expect best unit revenue performance among
About this update from United Airlines Holdings, Inc.
[{"type":"text","content":" 2Q pre-tax margin expected to be among industry leaders, despite excess industry capacity in the domestic market\nExpect best unit revenue performance among large peers\nUnited's key revenue diversity advantages – Premium revenue, Basic Economy revenue and market share shift among domestic road warriors – gained additional momentum in 2Q\nSees mid-August as inflection point when industry-wide oversupply eases and United is best positioned to benefit\nCHICAGO, July 17, 2024 /PRNewswire/ -- United Airlines (UAL) today reported second-quarter 2024 financial results. The company had pre-tax earnings of $1.7 billion, with a pre-tax margin of 11.6%; adjusted pre-tax earnings1 of $1.8 billion, with an adjusted pre-tax margin1 of 12.1%. The company expects pre-tax margin to be near the top of the industry. The company also achieved diluted earnings per share of $3.96; adjusted diluted earnings per share1 of $4.14, in line with second-quarter 2024 guidance provided at the start of the quarter. The company continues to expect full-year 2024 adjusted diluted earnings per share2 of $9 to $11.\nFor nearly two years, the airline has been anticipating significant domestic capacity reductions recently announced by a variety of U.S. airlines this summer and mid-August is an inflection point, with published schedule changes showing an approximately 3 point decline in industry capacity growth rate. The airline expects three critical revenue diversity advantages that propelled it to the top of the industry during this challenging period to further accelerate. The first, premium revenue, grew 8.5% in the second quarter versus the same quarter last year. The second, Basic Economy revenue, grew 38% year-over-year during the quarter. The third, market share among domestic road warriors, increased during the quarter year-over-year. \n\"The revenue diversity advantages that we've built with our premium customers, Basic Economy customers, and domestic road warriors, on top of the world's best loyalty program and leading customer service, have propelled our margins to near the top of the industry,\" said United Airlines CEO Scott Kirby. \"Looking forward, we see multiple airlines have begun to cancel loss-making capacity, and we expect leading unit revenue performance among our largest peers in the second half of the third quarter. United has long been pr...