- United’s adjusted earnings per share (EPS) for the third quarter were $3.33. This is lower than last year’s $3.65 but beats the estimate of $3.07.
- Operating revenue increased by 2.5% year-over-year, reaching $14.84 billion, surpassing the estimated $14.72 billion.
- Passenger revenue rose to $13.56 billion, marking a 1.6% increase from last year, slightly above the projected $13.5 billion.
- Cargo revenue saw a significant increase of 25% year-over-year, totaling $417 million, which exceeded the estimate of $373.9 million.
- Other revenue amounted to $865 million, a rise of 7.9% year-over-year, but it fell short of the $870.5 million estimate.
- Revenue Passenger Miles (RPM) increased by 2.7% to 69.55 billion, just below the estimated 70.20 billion.
- Available Seat Miles (ASM) grew by 4.1% to 81.54 billion, topping the forecast of 81.16 billion.
- The load factor decreased to 85.3% from last year’s 86.4%, matching the estimate of 86.4%.
- Fuel consumption rose by 3.4% to 1.17 billion gallons, aligning with expectations.
- The average price per fuel gallon decreased by 13% to $2.56, which is lower than the expected $2.64.
- Cost per available seat mile (CASM) excluding fuel climbed by 6.5% to 12.26 cents.
- The Board of Directors authorized a new share repurchase program worth up to $1.5 billion, marking the first buyback since 2020.
- The share buyback will include stock and warrants related to the CARES Act, with a limit of $500 million through the end of 2024.
- This repurchase program follows the suspension of the previous program due to the COVID-19 pandemic.
- Overall capacity increased by 4.1% compared to the same quarter in 2023.
United Airlines Holdings on Smartkarma
On Smartkarma, analyst coverage of United Airlines Holdings by Baptista Research sheds light on the strategic response of the company to market competitiveness. In their research report titled “United Airlines Holdings: What Is Their Strategic Response To Market Competitiveness? – Major Drivers,” Baptista Research highlights the second quarter 2024 earnings of United Airlines Holdings. They emphasize the company’s adept navigation through the industry’s capacity and demand fluctuations, maintaining a leading position through optimized operational tactics and strategic foresight. Despite a 5.7% year-over-year revenue increase reaching $15 billion, Total Revenue per Available Seat Mile (TRASM) saw a 2.4% decrease due to an 8.3% rise in capacity. This disparity underscores the challenge of aligning supply with demand efficiently in the aviation industry.
A look at United Airlines Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| 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 received a varied outlook according to the Smartkarma Smart Scores. With a strong momentum score of 5, United Airlines is showing positive signs of growth and profitability. This suggests that the company is performing well in terms of market trends and investor sentiment, potentially indicating a promising future ahead. Additionally, the growth score of 4 highlights the company’s potential for expansion and increasing market share, positioning it well for long-term success.
On the other hand, United Airlines received lower scores in areas such as dividend and resilience, indicating areas for potential improvement. Despite these lower scores, the company’s overall outlook remains positive, with its value score indicating a solid foundation for investment. Overall, United Airlines Holdings Inc appears to have a promising future ahead, supported by strong growth and momentum scores alongside its established presence as a leading airline operator.
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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