United Airlines recently reported its earnings for the first quarter of 2024. They “beat” on the mythological adjusted earnings per share, reporting a whopping 91 cents! This figure is a beat on Wall Street’s consensus expectations as well, which was for earnings of 76 cents per share. In 2022, the airline brought in $13.21 billion in revenue. While this was short of the anticipated $13.26 billion, it still represents a more than 5% increase compared to last year.
The airline announced that it had earned a record $387 million profit for the first quarter. That was quite a turnaround from its $124 million loss it faced in the third quarter of 2023. United’s third-quarter profit came in at $1.16 per share. This is a huge shift from last year’s 38 cent per share loss. Despite these improvements, United’s anticipated revenue numbers did not meet analyst expectations.
United’s capacity was up almost 5% versus the first quarter of last year. Yet, during today’s earnings call, the airline announced its intention to cut domestic capacity by 4% beginning in Q3 of next year. Regardless of the reason, United is making this decision to provide more options. They’re focusing heavily on international travel and premium-cabin bookings, both of which have an insatiable appetite.
United’s CEO Scott Kirby highlighted the airline’s strategy moving forward, stating, “It has given us industry-leading margins in the good times and we expect to expand our lead further in challenging economic times.” He reiterated that United will continue to follow its multiyear plan. Whatever the course of the market, this plan needs to set the airline up to prosper, not just survive.
Looking forward, United expects adjusted earnings per share for the second quarter to be in the $3.25 to $4.25 range. The airline’s emphasis on premium travel and international routes seems to be a major component fueling this positive outlook.