Business
United Airlines Announces Third-Quarter Financial Results: Revenue Beats Consensus on Solid Domestic - and Record-Breaking International Performance
Company had record setting profits in both Atlantic and Pacific regions Pre-tax income increased 29% y-o-y; on an adjusted basis1 increased 37% Delivered
About this update from United Airlines Holdings, Inc.
[{"type":"text","content":"Company had record setting profits in both Atlantic and Pacific regions\nPre-tax income increased 29% y-o-y; on an adjusted basis1 increased 37%\nDelivered strong operational performance, with September being best on-time performance of the year \nIncreasingly powerful segmentation strategy proving to be a competitive advantage\nCHICAGO, Oct. 17, 2023 /PRNewswire/ -- United Airlines (UAL) today reported third-quarter 2023 financial results. The company reported quarterly pre-tax income of $1.5 billion, pre-tax margin of 10.3 % and diluted earnings per share of $3.42 and; on an adjusted1 basis, pre-tax income of $1.6 billion, pre-tax margin of 10.8% and diluted earnings per share of $3.65.\nTotal third-quarter top line revenue was up 12.5% 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% 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.\nIn the international space, profits were at record highs in both the Atlantic and Pacific regions. Revenue in the Atlantic region was up 15% versus the same quarter in 2022, and 70% versus the same quarter in 2019. Pacific revenue exceeded third-quarter 2019 levels despite capacity remaining 24% below third-quarter 2019. Domestic revenues in the quarter were second highest all-time and the domestic system remains solidly profitable.\nThe 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. In total, revenue from premium products was up 20% 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% year-over-year.\nUnited continues to see the benefits of having an award winning airline loyalty program. The third quarter showed a continued multi-year new MileagePlus® member trend, setting a record for third quarter enrollments and ne...