LONDON – United Airlines reported strong net income numbers for the full year of 2022 as well as in the fourth quarter.
The Numbers…
For 4Q22, United Airlines reported an adjusted net income of $811 million from total operating revenue of $12.4bn, with the revenue figure up 14% compared to 4Q19.
Adjusted operating margins for the carrier in that quarter were 11.2%, two percentage points more than the same period in 2019.
Despite this, United’s capacity was down 9% compared to 4Q19, highlighting what could be achieved by the airline when it makes up that gap.
As for the FY22 results, United Airlines reported an adjusted net income of $831 million, with the net being $737 million.
Adjusted operating margins for the carrier was 5.5%, ending with around $18.2bn of available liquidity.
Kirby: Despite Disruption, Good Results for United Airlines…
Commenting on the financial results was United Airlines CEO Scott Kirby, who thanked employees for their hard work during a difficult fourth quarter plagued by disruption:
“Thank you to the United team that, last month, managed through one of the worst weather events in my career to deliver for so many of our customers and get them home for the holidays”.
“Our dedicated team used our state-of-the-art tools to prepare for the bad weather, take care of our customers and quickly recover once the worst of the weather had passed.”
“Over the last three years, United has made critical investments in tools, infrastructure, and our people – all of which are essential investments in our future.”
“That’s why we’ve got a big head start, and we’re now poised to accelerate in 2023 as our United Next strategy becomes a reality.”
United Airlines Looking Ahead to 2023…
For United Airlines the carrier has a lot planned ahead of the upcoming Summer 2023 season, starting in a few months.
For instance, services to three new cities, being Malaga, Stockholm, and Dubai, will add further connectivity around the globe.
On top of that, there has been a focus on the Australian market through an alliance partnership with Virgin Australia, featuring nonstop services between San Francisco and Brisbane.
This enabled the airline to become the largest carrier between the United States and Australia.
South Africa will be another focus, especially through the nonstop services between Washington D.C and Cape Town, as well as New York and Cape Town as well.
Finally, with United Airlines making a blockbuster order for over 200 aircraft late last year as well, it puts them in a good position to grow steadily throughout this decade.
It is elements like this, among other things, that will generate further growth for United Airlines in the year ahead.
Overall…
It remains clear that United Airlines is gaining momentum, especially as we progress slowly and further into 2023.
All eyes will be on the carrier to see how the new routes will perform, as well as their interlining agreements with other airlines around the world.
But for now, we will wait to see how the first and second quarters of the year perform for United Airlines and to establish whether its net income will increase further.
