On April 20th, United Airlines has reported their Q1 financial results.
The airline reported the following:
- Excluding special items, UAL reported first-quarter net income of US$435 million, earnings of 1.23$ per diluted share and pre-tax earnings of US$688 million.
- Including special items, UAL reported a net income of US$313 million, earnings of 0.88$ per diluted share and pre-tax earnings of US$494 million.
- During the first quarter of 2016 the company repurchased US$1.5 billion worth of its stock, which translates in around 8% of shares.
Total revenue was US$8.2 billion, decreasing 4.8% since last year’s first quarter. The PRASM (Passenger Revenue per Available Seat Mile) decreased 7.4% since last year and consolidated yield decreased 6.1% compared to last year.
Total operating expenses, excluding special charges, was US$7.4 billion, down 5.7% since last year. Including special charges, the expenses reached US$7.5 billion, down 4.1% since last year. The decrease was mainly drives by low oil prices.
The airline also listed their accomplishments during Q1 2016:
- Reported best quarterly on-time performance, with a on time arrival rate of 72.9%.
- Achieved the best quarterly mishandled bag rate since the merger with Continental.
- Epilogue so earned cash-incentive payment of around US$30 million for achieving operational performance goals.
- Reached ratified agreements with more than half of represented employees: pilots, dispatchers and IAM-represented employees. The company remains focused on getting contracts like there for flight attendants and technicians.
The airline has expanded their network and fleet in Q1 2016:
- Announced new international routes including flights between San Francisco and Hangzhou, China, and Singapore, both operated by the Boeing 787-9
- Launched the first-ever nonstop service between Sam Francisco and Tel Aviv.
- Announced a joint venture revenue-sharing agreement with Air New Zealand.
- Signed an agreement to strengthen the partnership and established a strategic initiative with Air China.
- Ordered 65 two-cabin Boeing 737-700 aircraft, reducing usage of 50-seat aircraft.