Latest results from United Airlines

United Airlines reported fourth-quarter and full-year 2023 financial results this week, showing how the mega-carrier diversified revenue strategy proved, once again, to be a critical, differentiated, competitive advantage. United's premium cabin saw an increase in revenue of 16% for the quarter year-over-year, while its Basic Economy offering again saw a substantial revenue increase of 20% for the quarter year-over-year.

United also benefited from cost convergence across the industry. This cost convergence resulted in a stronger relationship between United's unit costs and unit revenue performance. Combined with durable demand for travel and an increasing preference for United's reliable operational performance and premium offerings, the company delivered on its initial full year 2023 earnings per share guidance despite a wide range of headwinds.

"Our plans really came together in 2023, and I want to thank the United team for all of the hard work it took to get us there," said United Airlines CEO Scott Kirby. "Despite unpredictable headwinds, we delivered on our ambitious EPS target that few thought possible – and set new operational records for our customers," said United Airlines CEO Scott Kirby. "Looking ahead, we expect these trends to continue and United is incredibly well positioned to capitalize on them and to deliver on our short and long-term financial targets."

Fourth-Quarter Financial Results

• Capacity up 14.7% compared to fourth-quarter 2022.
• Total operating revenue of $13.6 billion, up 9.9% compared to fourth-quarter 2022.
• TRASM⁴ down 4.2% compared to fourth-quarter 2022.
• CASM⁴ down 0.1%, and CASM-ex^1,4 up 4.9%, compared to fourth-quarter 2022.
• Pre-tax income of $0.8 billion, with a pre-tax margin of 5.7%; adjusted pre-tax income¹ of $0.8 billion, with an adjusted pre-tax margin¹ of 6.2%.
• Net income of $0.6 billion; adjusted net income¹ of $0.7 billion.
• Diluted earnings per share of $1.81; adjusted diluted earnings per share¹ of $2.00.
• Average fuel price per gallon of $3.13.

Full-Year Financial Results

• Net income of $2.6 billion; adjusted net income¹ of $3.3 billion.
• Pre-tax income of $3.4 billion, with a pre-tax margin of 6.3%; adjusted pre-tax income¹ of $4.3 billion, with an adjusted pre-tax margin¹ of 8.0%.
• Diluted earnings per share of $7.89; adjusted diluted earnings per share¹ of $10.05.
• Ending available liquidity³ of $16.1 billion.
• Total debt and finance lease obligations of $29.3 billion at year end.
• Adjusted net debt¹ to adjusted EBITDAR¹ of 2.9x, consistent with the guidance provided at the start of the year.

Key Highlights

• Announced orders for 110 more aircraft for delivery beginning in 2028 – another significant milestone in the company's United Next growth strategy.
• Took delivery and flew the first revenue flight of the airline's first A321neo. The new aircraft is achieving the highest customer survey results in the entire fleet.
• United pilots represented by the Air Line Pilots Association, International (ALPA) ratified a new four-year contract. In addition, employees represented by International Association of Machinists & Aerospace Workers (IAM) and United ratified a new 2-year contract in May.
• Accrued $681 million for the year for employee profit sharing.
• Opened five new United Club℠ locations across three hubs, including the airline's largest – a 35,000 sq. ft. club in its Denver hub.
• Announced significant updates to Houston and Denver hubs and opened a new Terminal A at Newark.
• Celebrated the graduation of United Aviate Academy's inaugural class of pilots, an important step toward training the next generation of talented, qualified, and motivated aviators.
• Launched the United Airlines Ventures Sustainable Flight Fund℠, a first-of-its-kind investment vehicle designed to leverage support from cross-industry businesses to support start-ups focused on decarbonizing air travel through sustainable aviation fuel (SAF) research, technology and production associated with SAF, convening nearly $200 million in investment power to support the production of SAF since the launch.
• Opened an expanded and newly renovated global Inflight Training Center in Houston, Texas – the $32 million expansion project more than doubles the available training space.

Customer Experience

• The United mobile app was named the Best Airline App by Business Traveler USA at their Business Traveler Awards North America in the fourth quarter, making it the world's most downloaded airline app.
• Became the first airline to launch Live Activities for iPhone, giving customers real-time access to their boarding pass, gate and seat number, and countdown clock to departure time, hosting 65 million sessions in 2023.
• In the fourth quarter, United announced the largest overhaul since 2016 of United Polaris® – the airline's international business class – debuting new in-airport and onboard amenities from Therabody® and Saks Fifth Avenue that are designed to give customers "the best sleep in the sky."
• United launched WILMA in the fourth quarter, a new boarding process that enables a smoother and faster boarding process.
• Best fourth quarter CSAT in the company's history.²
• United was recognized in Forbes' first-ever best customer service list in the fourth quarter, which honored top brands for excelling in high-quality service.
• Throughout the year, saved 713,000 customer connections through Connection Saver, ensuring more customers made their flights.
• Became the first U.S. airline to add braille to aircraft interiors.
• Customers who were extremely likely to recommend United to family and friends increased by 4% year over year.
• Two thirds of United's travelers in 2023 used the mobile app to manage their day-of travel, from re-booking options, bag tracking information and hotel vouchers when eligible.

Operations 

• During the last two weeks of December, United operated its busiest travel period in history, flying 8.2 million customers – an average of 483,000 each day.
• In the fourth quarter, the airline achieved its best-ever on-time performance² for express and consolidated flying, and second-best quarter for mainline flying.
• The fourth quarter set the record for the lowest quarterly misconnect rate.²
• United carried the largest number of passengers ever in a year at 165 million, and achieved the highest seat factor ever for the year at 86.4%.

Network

• In the fourth quarter, United announced the largest international winter schedule expansion in the airline's history, with the addition of 50 daily flights and new routes between Denver and the Caribbean including San Juan and Montego Bay.
• United announced its largest-ever international summer 2024 schedule in the fourth quarter, including the first and only non-stop flight between Newark and Faro, Portugal and new flights to Reykjavik, Iceland; Brussels; Rome and Málaga, Spain and the introduction of service to nine of the airline's most popular seasonal routes up to two months early.
• Re-introduced daily service to China, resuming service to Beijing from San Francisco and increasing service to Shanghai to daily flights in the fourth quarter.
• Operated the largest-ever fourth quarter schedule by available seat miles from Denver in company history, serving more daily flights to more destinations from Denver than any other airline.
• Became the world's largest airline by available seat miles for the full year of 2023.
• Flew the largest domestic schedule in company history (by available seat miles, excluding Canada) for the full fiscal year with over 3,500 daily domestic flights.
• Flew the largest international schedule among U.S. carriers by available seat miles for the full fiscal year, 30% larger than the next largest carrier.
• Launched three new international destinations including Málaga, Spain; Dubai, United Arab Emirates and the only nonstop service from the U.S. to New Zealand's South Island with flights to Christchurch, New Zealand. Launched new international routes to existing destinations, including Barcelona, Spain; Rome; Shannon, Ireland; Auckland, New Zealand; Brisbane, Australia; San Juan, Puerto Rico; Montego Bay, Jamaica; Hong Kong; Tokyo and the first nonstop service between the continental U.S. and the Philippines by a U.S. airline with flights to Manila, Philippines. Additionally resumed service to Osaka, Japan; Managua, Nicaragua; Stockholm, Sweden and Beijing for the first time since the pandemic and added additional frequencies on routes to London; Edinburgh, United Kingdom; Paris; Naples, Italy; Delhi, India; Shanghai and Taipei.
• For the full fiscal year, United had the greatest increase in-seat capacity year over year compared to the four other largest U.S. carriers, and had the second largest increase in volume of scheduled departures year over year.

Communities

• United hosted Fantasy Flight events across 12 stations in the fourth quarter, where 770 employees volunteered to provide a unique event for children across the world, including Hawaiian residents impacted by wildfires, those terminally ill, or those suffering from serious medical conditions.
• United, alongside MileagePlus® members, donated more than 106 million miles to non-profit charities across the globe in 2023 via the Miles on a Mission℠ program.
• Welcomed nine new corporate participants to its Eco-Skies Alliance program, set up to contribute to the purchase of SAF. To date the program has invested in the future production of more than five billion gallons of SAF.
• United collaborated with Sesame Workshop to announce Oscar the Grouch as its first Chief Trash Officer as he and the airline celebrate his love of rubbish. The campaign is designed to promote the expected benefit of using SAF more broadly.
• In 2023, United received SAF-blended fuel deliveries at Amsterdam, Los Angeles, London Heathrow and San Francisco airports, representing two new airports where United has used a SAF blend.
• In 2023, approximately 5,600 employees volunteered over 59,000 hours at nonprofits organizations in communities around the world.
• During the year, United transported nearly 313 million pounds of cargo, including approximately 9.6 million pounds of medical shipments and 264,000 pounds of military shipments.

UNITED AIRLINES HOLDINGS, INC STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)
		Three Months Ended December 31,				% Increase/ (Decrease)			Year Ended December 31,				% Increase/ (Decrease)
(In millions, except percentage changes and per share data)		2023		2022					2023		2022
Operating revenue:
Passenger revenue		$  12,421		$  11,202		10.9			$  49,046		$  40,032		22.5
Cargo		402		472		(14.8)			1,495		2,171		(31.1)
Other operating revenue		803		726		10.6			3,176		2,752		15.4
Total operating revenue		13,626		12,400		9.9			53,717		44,955		19.5
Operating expense:
Salaries and related costs		3,841		3,000		28.0			14,787		11,466		29.0
Aircraft fuel		3,315		3,317		(0.1)			12,651		13,113		(3.5)
Landing fees and other rent		793		657		20.7			3,076		2,576		19.4
Aircraft maintenance materials and outside repairs		664		600		10.7			2,736		2,153		27.1
Depreciation and amortization		684		624		9.6			2,671		2,456		8.8
Regional capacity purchase		594		571		4.0			2,400		2,299		4.4
Distribution expenses		571		434		31.6			1,977		1,535		28.8
Aircraft rent		46		59		(22.0)			197		252		(21.8)
Special charges		47		16		NM			949		140		NM
Other operating expenses		2,073		1,745		18.8			8,062		6,628		21.6
Total operating expense		12,628		11,023		14.6			49,506		42,618		16.2
Operating income		998		1,377		(27.5)			4,211		2,337		80.2
Nonoperating income (expense):
Interest expense		(484)		(479)		1.0			(1,956)		(1,778)		10.0
Interest income		207		156		32.7			827		298		NM
Interest capitalized		54		32		68.8			182		105		73.3
Unrealized gains (losses) on investments, net		(27)		32		NM			27		20		35.0
Miscellaneous, net		23		12		91.7			96		8		NM
Total nonoperating expense, net		(227)		(247)		(8.1)			(824)		(1,347)		(38.8)
Income before income tax expense		771		1,130		(31.8)			3,387		990		NM
Income tax expense		171		287		(40.4)			769		253		NM
Net income		$       600		$       843		(28.8)			$    2,618		$       737		NM
Diluted earnings per share		$      1.81		$      2.55		(29.0)			$      7.89		$      2.23		NM
Diluted weighted average shares		331.3		330.4		0.3			331.9		330.1		0.5
NM-Greater than 100% change or otherwise not meaningful.

 

UNITED AIRLINES HOLDINGS, INC. PASSENGER REVENUE INFORMATION AND STATISTICS (UNAUDITED)
Information is as follows (in millions, except for percentage changes):
	4Q 2023 Passenger Revenue		Passenger Revenue vs. 4Q 2022		Passenger Revenue per Available Seat Mile ("PRASM") vs. 4Q 2022		Yield vs. 4Q 2022		Available Seat Miles ("ASMs") vs. 4Q 2022		4Q 2023   ASMs		4Q 2023 Revenue Passenger Miles ("RPMs")
Domestic	$         7,697		6.9 %		(0.5 %)		1.0 %		7.4 %		40,343		34,506
Europe	1,910		15.3 %		3.9 %		6.4 %		11.0 %		12,707		10,147
Pacific	1,328		61.2 %		(11.6 %)		(2.5) %		82.3 %		10,800		7,708
Latin America	1,196		6.9 %		(11.6 %)		(8.4 %)		20.9 %		7,797		6,580
Middle East/India/Africa	290		(28.2 %)		1.0 %		4.0 %		(29.0 %)		2,080		1,730
International	4,724		18.0 %		(5.5 %)		0.0 %		24.8 %		33,384		26,165
Consolidated	$       12,421		10.9 %		(3.3 %)		0.0 %		14.7 %		73,727		60,671

 

Select operating statistics are as follows:
		Three Months Ended December 31,				% Increase/ (Decrease)			Year Ended December 31,				% Increase/ (Decrease)
		2023		2022					2023		2022
Passengers (thousands) (a)		41,779		38,242		9.2			164,927		144,300		14.3
RPMs (millions) (b)		60,671		54,758		10.8			244,435		206,791		18.2
ASMs (millions) (c)		73,727		64,294		14.7			291,333		247,858		17.5
Passenger load factor: (d)
Consolidated		82.3 %		85.2 %		(2.9)	pts.		83.9 %		83.4 %		0.5	pts.
Domestic		85.5 %		86.8 %		(1.3)	pts.		85.1 %		85.5 %		(0.4)	pts.
International		78.4 %		82.9 %		(4.5)	pts.		82.4 %		80.5 %		1.9	pts.
PRASM (cents)		16.85		17.42		(3.3)			16.84		16.15		4.3
Total revenue per available seat mile ("TRASM") (cents)		18.48		19.29		(4.2)			18.44		18.14		1.7
Average yield per RPM (cents) (e)		20.47		20.46		—			20.07		19.36		3.7
Cargo revenue ton miles (millions) (f)		894		765		16.9			3,159		3,041		3.9
Aircraft in fleet at end of period		1,358		1,338		1.5			1,358		1,338		1.5
Average stage length (miles) (g)		1,475		1,436		2.7			1,479		1,437		2.9
Employee headcount, as of December 31 (in thousands)		103.3		92.8		11.3			103.3		92.8		11.3
Cost per ASM ("CASM") (cents)		17.13		17.14		(0.1)			16.99		17.19		(1.2)
CASM-ex (cents) (h)		12.28		11.71		4.9			12.03		11.73		2.6
Average aircraft fuel price per gallon		$           3.13		$           3.54		(11.6)			$ 3.01		$ 3.63		(17.1)
Fuel gallons consumed (millions)		1,059		936		13.1			4,205		3,608		16.5

(a)	The number of revenue passengers measured by each flight segment flown.
(b)	The number of scheduled miles flown by revenue passengers.
(c)	The number of seats available for passengers multiplied by the number of scheduled miles those seats are flown.
(d)	RPMs divided by ASMs.
(e)	The average passenger revenue received for each RPM flown.
(f)	The number of cargo revenue tons transported multiplied by the number of miles flown.
(g)	Average stage length equals the average distance a flight travels weighted for size of aircraft.
(h)	CASM-ex is CASM less the impact of fuel expense, profit sharing, special charges and third-party expenses. See NON-GAAP FINANCIAL INFORMATION for a reconciliation of CASM-ex to CASM, the most comparable GAAP measure.