United Airlines has reported a first quarter net loss of $124 million or ($0.38) per diluted share on a year-over-year increase in revenue of 9.7 percent to $12.54 billion. Earnings reflect an approximately $200 million impact from the Boeing 737-9 MAX grounding.
On Tuesday (April 16, 2024) United Airlines reported their first quarter financial results for the period ending March 31, 2024. The carrier reported a first quarter net loss of $124 million or ($0.38) per diluted share on a year-over-year increase in revenue of 9.7 percent to $12.54 billion. According to the company, these results reflect an estimated $200 million impact related to the temporary grounding of the Boeing 737-9 MAX during the period, without with the company would have reported a quarterly profit.
In Tuesday’s announcement, United Airlines’ CEO, Scott Kirby, said,
“I want to thank the United team for working so hard this quarter to deliver strong operational metrics for our customers and sharpen our focus on safety, while producing excellent financial results for our shareholders. We've adjusted our fleet plan to better reflect the reality of what the manufacturers are able to deliver. And, we’ll use those planes to capitalize on an opportunity that only United has: profitably grow our mid-continent hubs and expand our highly profitable international network from our best in the industry coastal hubs.”
United’s first quarter total revenue per available seat mile (TRASM) increased 0.6 percent compared to Q1 2023 to 17.50 cents, while cost per available seat mile (CASM) declined 0.6 percent to 17.36 cents. Costs, excluding fuel (CASM-ex) increased year-over-year by 4.7 percent to 13.3 cents.
During the first quarter, United converted a portion of Boeing 737-10 MAX orders to 737-9s for delivery from 2025 through 2027, while maintaining the right to convert more 737-10s into different models as needed. The company also signed letters of intent with two lessors for the lease of 35 new Airbus A321neos with CFM engines, which are expected in 2026 and 2027. Additionally, United reached a milestone 200 new and retrofit aircraft featuring their new signature interior during the period. The new or refreshed aircraft feature larger overhead bins, seatback screens at every seat, and Bluetooth connectivity.
At United Airlines, ‘Good Leads the Way.’ The airline operates the most comprehensive network among North American carriers with U.S. hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United and United Express operate over 4,000 flights per day to more than 350 airports across six continents. In 2023, United carried more than 150 million customers, becoming the world’s largest airline as measured by available seat miles (ASMs). Shares in the company’s parent, United Airlines Holdings, Inc., are publicly traded on the NASDAQ under the symbol ‘UAL.’
Source: United Airlines/PRNewswire