First-quarter diluted loss per share of $0.38; first-quarter adjusted diluted loss per share1 of $0.15 - ahead of expectations
Updates fleet plan - allowing for a more consistent delivery schedule of approximately 100 narrowbody aircraft yearly 2025 through 2027
Achieved second-best first quarter on-time departure performance in the company's history
Fleet Update
First-Quarter Financial Results
Capacity up 9.1% compared to first-quarter 2023.Total operating revenue of $12.5 billion, up 9.7% compared to first-quarter 2023.TRASM up 0.6% compared to first-quarter 2023.CASM down 0.6%, and CASM-ex1 up 4.7%, compared to first-quarter 2023.Pre-tax loss of $164 million, with a pre-tax margin of (1.3)%; adjusted pre-tax loss1 of $79 million, with an adjusted pre-tax margin1 of (0.6)%.Net loss of $124 million; adjusted net loss1 of $50 million.Diluted loss per share of $0.38; adjusted diluted loss per share1 of $0.15.Average fuel price per gallon of $2.88.Ending available liquidity of $16.9 billion.Total debt and finance lease obligations of $27.2 billion at quarter end.Trailing twelve months adjusted net debt1 to adjusted EBITDAR1 of 2.7x.
Key Highlights
Reached milestone of 200 new and retrofit aircraft featuring United's signature interior featuring bigger bins, seatback screens at every seat and Bluetooth connectivity.United and the International Brotherhood of Teamsters announced a tentative agreement for a four-year contract extension, covering the airline's 9,700 aircraft technicians.Opened an expanded Flight Training Center – a new, 150,000-square-foot building in Denver with 12 additional full-motion flight simulators to train the next generation of world class pilots.Announced MileagePlus® pooling, making United the first airline to allow customers to share and redeem miles in one linked account, providing additional value to loyalty members, their friends and loved ones.Announced the addition of Rosalind Brewer and Michelle Freyre to United's Board of Directors.Named among Fortune's Most Admired Companies list, recognized as having a strong reputation within and across industries.
Customer Experience
Announced the addition of larger overhead bins to 50 regional aircraft for an 80% increase of space for carry-on bags, becoming the first U.S. airline to offer the enhancement.Partnered with the Transportation Security Authority (TSA) to launch TSA PreCheck Touchless ID at O'Hare International Airport and Los Angeles International Airport, providing an expedited security experience to customers.In collaboration with the United Spinal Association and Numotion, launched a new filter in the booking path to enable customers traveling with a personal wheelchair to filter aircraft that can accommodate their device, and for eligible customers, the ability to request a refund of the fare difference in cases where the accommodating trip would be more expensive.Began utilizing generative AI on united.com to expedite customer search and in the airline's industry-leading flight status notification system, further enabling real-time flight status updates to customers.Customer satisfaction for the quarter with onboard WiFi and inflight entertainment systems (IFE) achieved its highest rating since 2022 for on-time flights, with WiFi and IFE ratings improving six points year over year on the consumer satisfaction scale, Net Promoter Score.United was awarded the 'Best Business Class Rose' by Business Traveller as part of its Cellars in the Sky Awards.
Operations
Announced upcoming services to three new destinations, with flights between Marrakesh, Morocco and New York/Newark; Cebu, Philippines and Tokyo-Narita; and Medellin, Colombia and Houston, becoming the first U.S. airline to serve Marrakesh and Cebu. United also announced new service from the airline's Guam hub to Tokyo-Haneda, launching in May.Announced increased service on three routes, adding a second summer-seasonal flight between Porto, Portugal and New York/Newark, a second year-round flight between Hong Kong and Los Angeles starting in October, and extending the second flight between Seoul, South Korea and San Francisco to year-round.Announced the return of service between Shanghai and Los Angeles, with four weekly flights beginning at the end of August, and increasing to daily service in late October.Restarted summer-seasonal service earlier in the year on popular flights like Washington D.C. to Lisbon, Portugal; Barcelona, Spain; and Rome, Italy.Inaugurated service to Tulum, Mexico from Houston and New York/Newark at the end of March; with services from Chicago and Los Angeles starting in the second quarter, announcing an additional inaugural service between Georgetown, Guyana and Houston also in the second quarter.Operated United's largest quarterly domestic schedule by available seat miles, including operating the airline's largest Florida schedule in company history with the addition of three new non-stop routes and a year over year increase of 19% to the popular wintertime destination.
Employees, Sustainability & Communities
Celebrated one year of Innovate, United's digital technology career pathway program that has a 92% retention rate for participants.Announced the addition of eight new corporate partners to the UAV Sustainable Flight Fund, bringing the amount of capital commitments to more than $200 million from cross-industry businesses to support start-ups focused on decarbonizing air travel by accelerating the research, production and technologies associated with sustainable aviation fuel (SAF). More than 115,000 United customers have contributed nearly $500,000 to supplement United's commitment to the Fund.Announced Somos, a new employee Business Resource Group focused on supporting and championing allyship for Latino and Hispanic employees.Throughout the quarter, more than 1,200 employees volunteered over 8,600 hours at non-profit organizations supporting local communities around the world.United and MileagePlus® members donated nine million miles to non-profit charities across the globe through the Miles on a Mission program, including the quarter's two feature non-profit partners, Make-A-Wish America and Girl Scouts of the USA.Transported nearly 299 million pounds of cargo, including approximately 10.3 million pounds of medical shipments and 263,000 pounds of military shipments.Named the inaugural recipient of the Humanitarian Force for Good Award by Air Transport World in its Airline Industry Awards.Employees from across the U.S. marched alongside United's Black Business Resource Group BEACON in Martin Luther King Jr. Day parades in Denver and Los Angeles and volunteered in community service events across the system, including sorting 145,000 pounds of food to help provide more than 174,000 meals to communities in need through the Los Angeles Regional Food Bank, Food Bank of the Rockies and Community FoodBank of New Jersey.
Outlook
UNITED AIRLINES HOLDINGS, INC STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED) | ||||||
Three Months Ended | % Increase/ (Decrease) | |||||
(In millions, except for percentage changes and per share data) | 2024 | 2023 | ||||
Operating revenue: | ||||||
Passenger revenue | $ 11,313 | $ 10,274 | 10.1 | |||
Cargo | 391 | 398 | (1.8) | |||
Other operating revenue | 835 | 757 | 10.3 | |||
Total operating revenue | 12,539 | 11,429 | 9.7 | |||
Operating expense: | ||||||
Salaries and related costs | 3,932 | 3,322 | 18.4 | |||
Aircraft fuel | 2,954 | 3,174 | (6.9) | |||
Landing fees and other rent | 804 | 717 | 12.1 | |||
Aircraft maintenance materials and outside repairs | 773 | 702 | 10.1 | |||
Depreciation and amortization | 708 | 655 | 8.1 | |||
Regional capacity purchase | 585 | 615 | (4.9) | |||
Distribution expenses | 480 | 403 | 19.1 | |||
Aircraft rent | 43 | 56 | (23.2) | |||
Special charges | 13 | 14 | NM | |||
Other operating expenses | 2,148 | 1,814 | 18.4 | |||
Total operating expense | 12,440 | 11,472 | 8.4 | |||
Operating income (loss) | 99 | (43) | NM | |||
Nonoperating income (expense): | ||||||
Interest expense | (454) | (486) | (6.6) | |||
Interest income | 177 | 170 | 4.1 | |||
Interest capitalized | 61 | 38 | 60.5 | |||
Unrealized gains (losses) on investments, net | (37) | 24 | NM | |||
Miscellaneous, net | (10) | 41 | NM | |||
Total nonoperating expense, net | (263) | (213) | 23.5 | |||
Loss before income tax benefit | (164) | (256) | (35.9) | |||
Income tax benefit | (40) | (62) | (35.5) | |||
Net loss | $ (124) | $ (194) |