Based on its first-quarter financial results released this week, United Airlines made a $194m loss in that period.
Whilst this is a significant loss, the carrier stated that it was “consistent with expectations provided in March”.
There were positives to take from these results, as we shall divulge now…
United Airlines’ Financial Results…
Whilst a net loss of $194m was recorded, capacity at the airline has increased by 23.4% compared to the same period last year.
Operating revenue for United Airlines rose 51.1% to $11.4bn, and it has been able to reduce its adjusted total debt by $4.6bn in the last 12 months.
Commenting on these results was CEO Scott Kirby, who said the following:
“I am extremely proud of the United team’s performance during the first quarter of 2023.”
“Our industry-leading operational performance contributed to an all-time high operating cash flow in the first quarter and keeps us on track to achieve our cost targets for the full year”.
“We are watching the macroeconomic risks carefully, but demand remains strong, especially internationally, where we are growing at twice the domestic rate.”
“We expect all of these factors will keep us on track to achieve our full-year adjusted diluted EPS1 target.”
Making Strides for Further Success…
United Airlines has been making strides for further success in multiple areas.
With its network, the carrier has got a joint business agreement with Air Canada, which will increase capacity offerings between Canada and the U.S. for the Summer 2023 season.
The airline has also launched multiple new international destinations, which United lists as:
- Launched four new international routes between Dubai, United Arab Emirates, and Newark/New York and between Tokyo-Haneda, Japan, and Newark/New York, Los Angeles, and Washington D.C. Reintroduced four international routes not flown since the beginning of the pandemic – service between Tokyo-Narita, Japan and Denver, Osaka, Japan and San Francisco, Hong Kong, and San Francisco, and Managua, Nicaragua, and Houston.
- Resumed non-stop service between Shanghai and San Francisco, becoming the first U.S. airline not to require a technical stop between the U.S. and Shanghai since November 2020.
Finally, United Airlines has managed to increase domestic premium seat capacity by 25% versus the same period in 2019 as demand for that sort of travel continues to increase.
It remains clear that whilst the airline isn’t in the financial position it wants to be, being profitable, there are strides being made to make this a reality.
Looking ahead to the Summer 2023 season, all eyes will be on the carrier to see how much further they can take things and whether these continued successes will carry on into what is going to be the busiest period of the year.
But for now, all eyes are on United Airlines to see how the second quarter of this year goes for the carrier.