Key United Airlines 1Q Highlights:
- The operating revenue was $12.54 billion, a 9.7% increase year-on-year (y/y), surpassing estimates of $12.44 billion.
- Passenger revenue also saw an increase of 10% y/y, reporting at $11.31 billion against the estimated $11.19 billion.
- Cargo revenue, however, declined 1.8% y/y to $391 million but outperformed the estimated $371 million.
- Other revenue came in at $835 million, a 10% increase y/y, beating the estimate of $800.6 million.
- The adjusted loss per share has been reduced from 63c y/y to 15c, better than the estimated loss/share of 57c.
- PRASM declared at 15.79c, a growth of 1% y/y, over the predicted 15.68c.
- There has been a 9.3% y/y growth in revenue passenger miles to 57.43 billion, slightly more than the 57.36 billion estimate.
- Average yield per revenue passenger mile stood at 19.70c, higher than both last year’s 19.56c and the estimated 19.45c.
- Available seat miles increased 9.1% y/y to 71.67 billion, exceeding the estimate of 71.19 billion.
- The load factor was cited at 80.1%, up from last year’s 79.9% but slightly below the estimated 80.7%.
- Fuel consumption rose by 7.7% y/y to 1.03 billion gallons, aligning with estimates.
- The average price per gallon of fuel dropped 14% y/y to $2.88, rather than the estimated $2.93.
- CASM excluding fuel was 13.13c, lower than the estimate of 13.22c.
- United Airlines projects 2024 full-year adjusted diluted earnings per share between $9 to $11.
- Following the announcement, United Airlines’ shares rose 3.6% in after-market trading, equating to $43.00 per share.
- The current analyst sentiment is positive with 15 buy ratings, 6 hold ratings, and no sell ratings.
United Airlines Holdings on Smartkarma
Analysts on SmartKarma, such as Baptista Research, have been closely monitoring United Airlines Holdings. In a recent report titled “United Airlines: Are The Recent Delays & Safety Concerns A Major Factor That Could Slow Them Down? – Key Drivers,” the management team’s positive sentiments during the latest earnings call were highlighted. Despite global challenges, United Airlines showcased the effectiveness of its United Next plan through diversified revenue streams and strong operational metrics, leading to full-year EPS above $10.
In another report by Baptista Research on “United Airlines: European Routes,” the focus was on United Airlines’ robust financial performance in the third quarter of 2023. With a significant increase in total revenue and capacity, the airline is set for continued growth. Strong demand in Atlantic and Pacific routes is expected to drive a 10.5% revenue increase in the fourth quarter, supported by United’s strategic capacity planning and cost management approach.
A look at United Airlines Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
United Airlines Holdings Inc, an airline holding company transporting passengers, property, and mail domestically and internationally, presents a mixed long-term outlook based on the Smartkarma Smart Scores. With a solid Value score of 4 and robust Growth and Momentum scores of 4 each, United Airlines Holdings is positioned favorably in terms of valuation and growth potential. However, the company’s lower scores in Dividend (1) and Resilience (2) suggest challenges in terms of dividend payouts and overall resilience to market fluctuations.
In summary, while United Airlines Holdings shows strength in value, growth, and momentum aspects of its business, investors may need to closely monitor the company’s ability to weather market challenges and sustain dividend payments over the long term based on the Smartkarma Smart Scores provided.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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