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United Airlines (UAL) today reported fourth-quarter and full-year 2023 financial results. The company delivered full-year diluted earnings per share of $7.89 and adjusted full-year diluted earnings per share1 of $10.05, achieving its initial full-year target of $10 – $12 set at the beginning of 2023.

United’s 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-ex1,4 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.

Earnings Call

UAL will hold a conference call to discuss fourth quarter and full-year 2023 financial results, as well as its financial and operational outlook for first-quarter 2024 and beyond, on Tuesday, Jan. 23, at 9:30 a.m. CST/10:30 a.m. EST. A live, listen-only webcast of the conference call will be available at ir.united.com. The webcast will be available for replay within 24 hours of the conference call and then archived on the website for three months.

Outlook

This press release should be read in conjunction with the company’s Investor Update issued in connection with this quarterly earnings announcement, which provides additional information on the company’s business outlook (including certain financial and operational guidance) and is furnished with this press release to the U.S. Securities and Exchange Commission on a Current Report on Form 8-K. The Investor Update is also available at ir.united.com. Management will also discuss certain business outlook items, including providing certain full year 2024 financial targets, during the quarterly earnings conference call.

The company’s business outlook is subject to risks and uncertainties applicable to all forward-looking statements as described elsewhere in this press release. Please see the section entitled “Cautionary Statement Regarding Forward-Looking Statements.”