- United Airlines reported a strong first quarter with adjusted earnings per share (EPS) of 91 cents, beating estimates of 74 cents and improving from last year’s loss per share of 15 cents.
- The company’s operating revenue rose by 5.4% year-over-year to $13.21 billion, slightly above the estimated $13.19 billion.
- Passenger revenue increased by 4.8% year-over-year, reaching $11.86 billion, but slightly missed the estimate of $11.9 billion.
- Other revenue rose significantly by 11% year-over-year, totaling $923 million, surpassing the forecast of $876.8 million.
- Passenger revenue per available seat mile (PRASM) was 15.78 cents, nearly matching the previous year’s 15.79 cents.
- Revenue passenger miles increased by 3.6% year-over-year to 59.52 billion, though slightly below the expected 59.97 billion.
- Available seat miles rose by 4.9% year-over-year to 75.16 billion, exceeding the estimate of 74.39 billion.
- The load factor decreased to 79.2% from last year’s 80.1%, falling short of the estimated 80.6%.
- The company consumed 1.07 billion gallons of fuel, up 4.1% year-over-year, slightly above the estimate of 1.06 billion gallons.
- The average fuel price per gallon dropped by 12% year-over-year to $2.53, close to the estimated $2.52.
- Cost per available seat mile excluding fuel (CASM) slightly increased by 0.3% year-over-year to 13.17 cents.
- United plans to reduce scheduled domestic capacity by 4 points in the third quarter of 2025, anticipating resilient earnings despite macroeconomic uncertainty.
- Shares rose by 2.5% in post-market trading, reaching $68.70 with 2,757 shares traded.
- Strong support from analysts with 22 buy ratings, 1 hold, and 1 sell.
United Airlines Holdings on Smartkarma
Analysts on Smartkarma have been closely covering United Airlines Holdings, providing valuable insights for investors. Baptista Research‘s report, “United Airlines: Leveraging Technological Innovation To Change The Game! – Major Drivers,” highlighted the company’s strong performance in the fourth quarter and fiscal year 2024, driven by strategic operational improvements and a favorable market environment. United Airlines achieved a record earnings per share of $10.61, exceeding their initial guidance.
Additionally, Value Investors Club pointed out in their report, “United Airlines Holdings Inc (UAL) – Friday, Sep 27, 2024,” the potential profitability of airlines due to a supply shortage and increased industry rationality. Drawing parallels between the airline industry and historical consolidation in the railroad industry, the report suggests that Boeing and Airbus struggling to meet demand for planes could financially benefit the airlines. These insights offer valuable perspectives for investors evaluating United Airlines Holdings.
A look at United Airlines Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 3 | |
| 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, has shown a promising long-term outlook based on the Smartkarma Smart Scores. With a robust Growth score of 5, the company is positioned well for future expansion and development. This indicates a positive trajectory in terms of expanding its operations and market presence.
Moreover, United Airlines Holdings also scores decently in Value, Resilience, and Momentum, with scores of 3 across these factors. This suggests a solid foundation in terms of financial health, adaptability to market changes, and overall performance momentum. However, the company scores lower in Dividend at 1, which might indicate a focus on reinvesting profits back into the business rather than distributing them to shareholders. Overall, United Airlines Holdings appears well-positioned for growth and resilience in the aviation industry.
Summary: United Airlines Holdings Inc is an airline holding company that operates airlines for passenger, cargo, and mail transportation within the U.S. and internationally. The company has achieved a strong Growth score of 5, indicating a positive outlook for expansion, while also showing decent scores in Value, Resilience, and Momentum.
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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