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United Airlines (UAL) Q4 Earnings & Revenues Top Estimates
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United Airlines Holdings, Inc. (UAL - Free Report) reported fourth-quarter 2023 earnings per share (excluding 19 cents from non-recurring items) of $2.00, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13,626 million beat the Zacks Consensus Estimate of $13,546.8 million. The top line increased 9.9% year over year due to upbeat air-travel demand. This was driven by a 10.9% rise in passenger revenues (which accounted for 91.1% of the top line) to $12,421 million. Almost 41,779 passengers traveled on UAL flights in the fourth quarter.
Cargo revenues fell 14.8% year over year to $402 million. Revenues from other sources jumped 10.6% from the fourth quarter of 2022 to $803 million.
Other Details of Q4
Below, we present all comparisons (in % terms) with the fourth quarter of 2022 figures unless otherwise stated.
Consolidated passenger revenue per available seat mile (a key measure of unit revenues) decreased 1%. Total revenue per available seat mile dipped 2.8% to 18.49 cents. The average yield per revenue passenger mile remained flat at 19.72 cents.
Consolidated airline traffic, measured in revenue passenger miles, grew 10.8%. Capacity, measured in available seat miles, expanded 14.7%. Consolidated load factor (percentage of seat occupancy) contracted 2.9 percentage points to 82.3%.
Average aircraft fuel price per gallon fell 11.6% to $3.13. Fuel gallons consumed were up 13.1%.
Operating expenses (on a reported basis) increased 14.6% to $12,628 million. Consolidated unit cost or cost per available seat mile (CASM), excluding fuel, third-party business expenses, profit-sharing and special charges, increased 4.9% to 12.28 cents.
UAL exited the fourth quarter with cash and cash equivalents of $6,058 million compared with $7,478 million at the prior-quarter end. Long-term debt was $25,057 million compared with $25,932 million at the end of the prior quarter.
Outlook
For first-quarter 2024, UAL expects total revenue per available seat mile to stay flat year over year. Adjusted cost or operating expense per available seat mile (CASM-ex) is expected to be up in the mid-single digits.Adjusted loss per share is expected to lie between 85 and 35 cents.
For 2024, adjusted earnings per share are expected to lie between $9 and $11. Adjusted capital expenditures are expected to be around $9 billion.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2023 earnings of $1.47 per share missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
JBHT’s total operating revenues of $3,303.70 million surpassed the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.
Delta Air Lines (DAL - Free Report) has reported fourth-quarter 2023 earnings (excluding $1.88 from non-recurring items) of $1.28 per share, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis, driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
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United Airlines (UAL) Q4 Earnings & Revenues Top Estimates
United Airlines Holdings, Inc. (UAL - Free Report) reported fourth-quarter 2023 earnings per share (excluding 19 cents from non-recurring items) of $2.00, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13,626 million beat the Zacks Consensus Estimate of $13,546.8 million. The top line increased 9.9% year over year due to upbeat air-travel demand. This was driven by a 10.9% rise in passenger revenues (which accounted for 91.1% of the top line) to $12,421 million. Almost 41,779 passengers traveled on UAL flights in the fourth quarter.
Cargo revenues fell 14.8% year over year to $402 million. Revenues from other sources jumped 10.6% from the fourth quarter of 2022 to $803 million.
Other Details of Q4
Below, we present all comparisons (in % terms) with the fourth quarter of 2022 figures unless otherwise stated.
Consolidated passenger revenue per available seat mile (a key measure of unit revenues) decreased 1%. Total revenue per available seat mile dipped 2.8% to 18.49 cents. The average yield per revenue passenger mile remained flat at 19.72 cents.
Consolidated airline traffic, measured in revenue passenger miles, grew 10.8%. Capacity, measured in available seat miles, expanded 14.7%. Consolidated load factor (percentage of seat occupancy) contracted 2.9 percentage points to 82.3%.
Average aircraft fuel price per gallon fell 11.6% to $3.13. Fuel gallons consumed were up 13.1%.
Operating expenses (on a reported basis) increased 14.6% to $12,628 million. Consolidated unit cost or cost per available seat mile (CASM), excluding fuel, third-party business expenses, profit-sharing and special charges, increased 4.9% to 12.28 cents.
UAL exited the fourth quarter with cash and cash equivalents of $6,058 million compared with $7,478 million at the prior-quarter end. Long-term debt was $25,057 million compared with $25,932 million at the end of the prior quarter.
Outlook
For first-quarter 2024, UAL expects total revenue per available seat mile to stay flat year over year. Adjusted cost or operating expense per available seat mile (CASM-ex) is expected to be up in the mid-single digits.Adjusted loss per share is expected to lie between 85 and 35 cents.
For 2024, adjusted earnings per share are expected to lie between $9 and $11. Adjusted capital expenditures are expected to be around $9 billion.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2023 earnings of $1.47 per share missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
JBHT’s total operating revenues of $3,303.70 million surpassed the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.
Delta Air Lines (DAL - Free Report) has reported fourth-quarter 2023 earnings (excluding $1.88 from non-recurring items) of $1.28 per share, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis, driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.