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United Airlines (UAL) Incurs Loss in Q1, Beats Revenue Estimates
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United Airlines Holdings, Inc. (UAL - Free Report) reported first-quarter 2023 loss of 63 cents per share, narrower than the Zacks Consensus Estimate of a loss of 73 cents. In the year-ago quarter, UAL had incurred a loss of $4.24 per share.
Operating revenues of $11,429 million beat the Zacks Consensus Estimate of $11,420.9 million. UAL’s revenues increased 51.1% year over year due to upbeat air-travel demand. The year-over-year increase in the top line was driven by a 61.8% rise in passenger revenues (accounting for 89.8% of the top line) to $10,274 million. Nearly 37 million passengers traveled on UAL flights in the first quarter.
Cargo revenues fell 36.5% year over year to $398 million. Revenues from other sources increased 28.1% from the first quarter of 2022 to $757 million.
United Airlines Holdings Inc Price, Consensus and EPS Surprise
Below, we present all comparisons (in % terms) with the first quarter of 2022 figures unless otherwise stated.
Consolidated passenger revenue per available seat mile (a key measure of unit revenues) increased 31.1%. Total revenue per available seat mile rose 22.5% to 17.39 cents. The average yield per revenue passenger mile increased 19.1% to 19.56 cents.
Consolidated airline traffic, measured in revenue passenger miles, grew 35.9%, while capacity, measured in available seat miles, grew 23.4%. Consolidated load factor (percentage of seat occupancy) inched up 7.3 percentage points to 79.9%.
The average aircraft fuel price per gallon jumped 15.6% to $3.33. Fuel gallons consumed were up 22.8% from the first quarter of 2022 actuals.
Adjusted operating expenses increased 23.3% to $8,243 million. Operating expenses (on a reported basis) increased 28.3% to $11,472 million. Consolidated unit cost or cost per available seat mile (CASM), excluding fuel, third-party business expenses, profit-sharing and special charges, fell 0.1% to 12.54 cents.
United Airlines exited the first quarter with cash and cash equivalents of $7,634 million compared with $7,166 million at the end of the prior quarter. Long-term debt at the end of the reported quarter was $27,460 million compared with $28,283 million at the end of the prior quarter. Currently, UAL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Outlook
For the second quarter of 2023, United Airlines expects capacity to improve by almost 18.5% from the year-ago reported figure.
Total revenues are anticipated to grow 14-16% year over year. UAL expects second-quarter earnings per share (EPS) in the $3.50-$4.00 band. The Zacks Consensus Estimate for second-quarter earnings is currently pegged at $3.50.
UAL forecasts the average aircraft fuel price per gallon in the $2.80-$3.00 band.
For 2023, United Airlines expects capacity to stay in the high teens. CASM, excluding fuel, third-party business expenses, profit-sharing and special charges is expected to remain flat. Adjusted capital expenditures are expected to be around $8.5 billion.
UAL expects 2023 EPS in the $10-$12 band. The Zacks Consensus Estimate for 2023 earnings is currently pegged at $8.66.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), and a 17% decline in revenue per load in Truckload (JBT). Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%.
JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel price and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
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United Airlines (UAL) Incurs Loss in Q1, Beats Revenue Estimates
United Airlines Holdings, Inc. (UAL - Free Report) reported first-quarter 2023 loss of 63 cents per share, narrower than the Zacks Consensus Estimate of a loss of 73 cents. In the year-ago quarter, UAL had incurred a loss of $4.24 per share.
Operating revenues of $11,429 million beat the Zacks Consensus Estimate of $11,420.9 million. UAL’s revenues increased 51.1% year over year due to upbeat air-travel demand. The year-over-year increase in the top line was driven by a 61.8% rise in passenger revenues (accounting for 89.8% of the top line) to $10,274 million. Nearly 37 million passengers traveled on UAL flights in the first quarter.
Cargo revenues fell 36.5% year over year to $398 million. Revenues from other sources increased 28.1% from the first quarter of 2022 to $757 million.
United Airlines Holdings Inc Price, Consensus and EPS Surprise
United Airlines Holdings Inc price-consensus-eps-surprise-chart | United Airlines Holdings Inc Quote
Other Details of Q1
Below, we present all comparisons (in % terms) with the first quarter of 2022 figures unless otherwise stated.
Consolidated passenger revenue per available seat mile (a key measure of unit revenues) increased 31.1%. Total revenue per available seat mile rose 22.5% to 17.39 cents. The average yield per revenue passenger mile increased 19.1% to 19.56 cents.
Consolidated airline traffic, measured in revenue passenger miles, grew 35.9%, while capacity, measured in available seat miles, grew 23.4%. Consolidated load factor (percentage of seat occupancy) inched up 7.3 percentage points to 79.9%.
The average aircraft fuel price per gallon jumped 15.6% to $3.33. Fuel gallons consumed were up 22.8% from the first quarter of 2022 actuals.
Adjusted operating expenses increased 23.3% to $8,243 million. Operating expenses (on a reported basis) increased 28.3% to $11,472 million. Consolidated unit cost or cost per available seat mile (CASM), excluding fuel, third-party business expenses, profit-sharing and special charges, fell 0.1% to 12.54 cents.
United Airlines exited the first quarter with cash and cash equivalents of $7,634 million compared with $7,166 million at the end of the prior quarter. Long-term debt at the end of the reported quarter was $27,460 million compared with $28,283 million at the end of the prior quarter. Currently, UAL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Outlook
For the second quarter of 2023, United Airlines expects capacity to improve by almost 18.5% from the year-ago reported figure.
Total revenues are anticipated to grow 14-16% year over year. UAL expects second-quarter earnings per share (EPS) in the $3.50-$4.00 band. The Zacks Consensus Estimate for second-quarter earnings is currently pegged at $3.50.
UAL forecasts the average aircraft fuel price per gallon in the $2.80-$3.00 band.
For 2023, United Airlines expects capacity to stay in the high teens. CASM, excluding fuel, third-party business expenses, profit-sharing and special charges is expected to remain flat. Adjusted capital expenditures are expected to be around $8.5 billion.
UAL expects 2023 EPS in the $10-$12 band. The Zacks Consensus Estimate for 2023 earnings is currently pegged at $8.66.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), and a 17% decline in revenue per load in Truckload (JBT). Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%.
JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel price and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.