The company produced strong financial and operational results in the quarter. As the company expected, revenue trends improved as the industry reached an inflexion point in the quarter with unprofitable capacity exiting the market. Domestic unit revenue was positive year-over-year in August and September. Demand continues to be strong for the United product: Corporate revenues were up 13% year over year in September, and in the quarter premium revenues continued to remain resilient and were up 5% year over year and revenue from Basic Economy was up 20% year over year.
"I appreciate the entire United team coming together to take care of our customers by operating a safe and on-time airline this summer," said United Airlines CEO Scott Kirby. "As predicted, unproductive capacity left the market in mid-August, and we saw a clear inflection point in our revenue trends that propelled United to exceed Q3 expectations. A prosperous summer 2024 is just the beginning as our improved customer experience combined with United Next positions the airline at the top of the industry for the foreseeable future."
Capital Allocation
The company's Board of Directors authorized a new share repurchase program for up to $1.5 billion of outstanding shares of common stock and warrants originally issued to the U.S. Treasury under the CARES Act and Payroll Support Program, subject to a limit of $500 million in aggregate through year-end 2024. This amount represents approximately 7% percent of the company's market capitalization based on the closing stock price on Oct 14, 2024. This is the first share repurchase program since the suspension of the previous program in 2020 due to the COVID-19 pandemic. Unless suspended or terminated earlier by our Board of Directors, this program has no set expiration date and will therefore terminate when the company has completed all purchases authorized under the program.
"In the last four years, we've invested $22 billion in our product and nearly $10 billion in our people. Those investments have enabled higher profits and are now contributing to growing free cash flow," said United Airlines CFO Michael Leskinen. "We're now in a position to add a share repurchase program as we continue to invest in and deleverage our business. We are simultaneously targeting net leverage2 below 2x in the next few years. We intend this buyback to be the beginning of a consistent and disciplined return of capital that is paced by our ability to generate increasing levels of free cash."
In the quarter, the company repurchased in the open market just over 2 million shares of UAL common stock in connection with the exercise of roughly 6.4 million warrants issued to the U.S. Treasury under the CARES Act and Payroll Support Program. The repurchase of these shares eliminated the dilution associated with the warrants exercised and are separate from the $1.5 billion share repurchase program above. The shares were purchased at an average price of $39.99.
Under today's $1.5 billion share repurchase program shares may be repurchased in the open market and in privately negotiated transactions, as well as accelerated repurchase agreements, depending on the capital needs of the business, the market price of UAL common stock, general market conditions, securities law limitations and other factors.
Third-Quarter Financial Results
- Capacity up 4.1% compared to third-quarter 2023.
- Total operating revenue of $14.8 billion, up 2.5% compared to third-quarter 2023.
- TRASM down 1.6% compared to third-quarter 2023.
- CASM up 0.1%, and CASM-ex1 up 6.5%, compared to third-quarter 2023.
- Pre-tax earnings of $1.3 billion, with a pre-tax margin of 8.7%; adjusted pre-tax earnings1 of $1.4 billion, with an adjusted pre-tax margin1 of 9.7%.
- Net income of $1.0 billion; adjusted net income1 of $1.1 billion.
- Diluted earnings per share of $2.90; adjusted diluted earnings per share1 of $3.33.
- Average fuel price per gallon of $2.56.
- Ending available liquidity[3] of $17.1 billion.
- Total debt and finance lease obligations of $25.7 billion at quarter end.
- Voluntarily pre-paid the remaining $1.8 billion outstanding balance of the MileagePlus term loan with an interest rate near 11%.
- Net leverage1 of 2.7x.
Key Highlights
- United announced an industry-leading agreement with SpaceX to bring Starlink's Wi-Fi service to more than 1,000 of the airline's mainline and regional aircraft, providing customers free, fast, reliable internet connectivity on passenger flights as soon as late 2025.
- Last week, United announced the largest international expansion in the airline's history, bringing service to eight new Atlantic and Pacific destinations in summer 2025 (Ulaanbaatar, Mongolia; Faro, Portugal; Palermo, Italy; Dakar, Senegal; Bilbao, Spain; Madeira Island, Portugal; Nuuk, Greenland; and Kaohsiung, Taiwan). United will serve more international destinations across the Atlantic and Pacific than all other U.S. carriers combined with 800 daily flights to and from 147 international destinations, including nearly 40 not served by any other U.S. airline.
- Increased third quarter customer satisfaction ratings by 5.4 points year over year as measured by the Net Promoter Score scale, with improvements to important touchpoints like baggage, inflight entertainment and food and beverage.
- Ranked first in on time departure and second in on time arrival amongst major U.S. airlines for the third quarter, with the best on time departure in the months of August and September.
- United became the first airline to purchase sustainable aviation fuel (SAF) at Chicago O'Hare International Airport.
- United signed an agreement with SkyWest to begin operating the CRJ550 as part of the United Express portfolio, with 11 initial aircraft to start entering the fleet in December of this year and opportunity for more in the future.
Customer Experience
- Saw a 5.8% increase in customer check-in satisfaction, a 6.5% increase in customer checking in digitally and 9% increase in customer bypassing the lobby for the third quarter year over year thanks to check-in process improvements like introducing Spanish translations within features of the United app, enhancing digital check-in options for basic economy and expanding curbside bag drop-off outside airports.
- Opened the newly updated South Terminal lobby at Miami International Airport, featuring 10 new ticket counters, additional self-serve kiosks and other time-saving app features like bag drop shortcut and updated signage.
- Nearly half (49%) of passengers whose trips were cancelled were rebooked through United's automated service or through self-service in the third quarter, an increase in five points year over year.
- Enhanced customers' culinary experience with the introduction of the airline's new domestic economy cabin wine list, which includes canned wine from two women-owned companies and expanded choice for customers with new rose and brut options.
- With Live Activities on Apple Watch, customers can now access important flight information right from their wrist without opening the United app.
- Unveiled improvements to United's digital offerings by introducing digital food menus for all flights and cabins within the United app and transitioning Hemispheres® magazine to an all-access digital experience on United.com.
- Opened the Reset Suite by Therabody at Chicago O'Hare, a luxury wellness lounge for customers to relax prior to their flight.
Operations
- Operated the busiest third quarter as measured by revenue passenger volumes in company history, setting the record for the most ever passengers carried for the July 4 and Labor Day holidays and for the highest number of customers carried in a day at 552,000 in July.
- Set the company record for the highest daily customer average in a month of September with 474,000 carried.
- United finished the quarter with the best on time departure amongst major U.S. airlines in six of seven of United's U.S. hub locations, making it the 30th quarter in a row leading on time departure at United's Chicago O'Hare hub and 10th in a row leading United's Denver hub.
- In September, the airline achieved its highest completion rate year to date.
Network
- United operated its largest domestic U.S. and Canada third quarter schedule in company history, an increase of 5.2% and 18.5% of flights year over year, respectively.
- In the third quarter, United operated the largest schedule to Europe in United's history, including the largest-ever United schedules to popular Southern Europe tourist destinations such as Portugal, Spain, Italy, and Greece.
- The carrier announced its first-ever nonstop flight between its New York/Newark hub and Dominica, to begin service in February subject to government approval.
- United added or increased service across 145 flights to help customers reach major special events like the Republican and Democratic National Conventions, college football games across the country, and Chicago Bears away games, including adding flights for fans to support the team for their international game in London.
- United launched or reinstated routes from Washington, D.C. to Greenville, S.C.; San Francisco to Detroit, Mich.; and St. Louis, Mo., and added an additional route from San Francisco to Montréal.
- With reinstated service between Los Angeles and Shanghai in the third quarter, United continues to operate the largest mainland China network of any carrier and is the only U.S. carrier to serve mainland China from Los Angeles.
Awards
- United was recognized for the ninth year in a row as a "Best Place to Work for Disability Inclusion" by Disability Equality Index.
- Executive Vice President and Chief Communication Officer Josh Earnest was named to PR Week's Power List for the fourth year in a row in recognition of his influential industry leadership.
- Linda Jojo, United's Chief Customer Officer, was reappointed to the Federal Aviation Administration's Management Advisory Council for a second term, serving as the Chair.
- United's Digital Technology team won the Digital Leadership Award from the Flight Global Airline Strategy Awards for their innovation and excellence in the market.
- Business Travel News Europe awarded the airline the 2024 Technology Innovation and Traveler Experience award for the United app's improvements to customer experience.
Employees and Communities
- In partnership with United's Eco-Skies Alliance, United partnered with the San Francisco 49ers to become the first NFL team to purchase sustainable aviation fuel.
- In the third quarter, United saw a nearly 50% growth in employee volunteerism year to date, with nearly 4,000 United employees volunteering more than 16,000 hours, 11,000 hours of which were logged in United's annual month-long volunteer campaign September of Service to honor those affected by 9/11.
- Announced a new sponsorship with the Washington Capitals, Mystics and Wizards as the three teams' official airline and a founding partner of the Monumental Sports & Entertainment's Capitol One Arena transformation, giving MileagePlus customers access to exclusive experiences.
- For the second year in a row, United donated $1.25 million through the education nonprofit DonorsChoose to support aviation and STEM classroom projects in historically underfunded schools across United's domestic hub communities.
- United and Airlink mobilized 335 responders for 14 emergencies, humanitarian crises and recovery and preparedness initiatives globally, and United shipped 17 million tons of aid cargo to support relief efforts.
- Members of United's Black Business Resource Group Beacon participated in Chicago's Bud Billiken Parade, with United awarding a $2,500 scholarship to Emory University.
- United hosted more than 850 girls at 35 different airports across their system to celebrate the 10th anniversary of Girls in Aviation Day, recognizing the achievements of women in aviation and inspiring the next generation of aviators.
UNITED AIRLINES HOLDINGS, INC. STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED) | |||||||||||||
Three Months Ended | % Increase/ (Decrease) | Nine Months Ended | % Increase/ (Decrease) | ||||||||||
(In millions, except for percentage changes and per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||
Operating revenue: | |||||||||||||
Passenger revenue | $ 13,561 | $ 13,349 | 1.6 | $ 38,554 | $ 36,625 | 5.3 | |||||||
Cargo | 417 | 333 | 25.2 | 1,222 | 1,093 | 11.8 | |||||||
Other operating revenue | 865 | 802 | 7.9 | 2,592 | 2,373 | 9.2 | |||||||
Total operating revenue | 14,843 | 14,484 | 2.5 | 42,368 | 40,091 | 5.7 | |||||||
Operating expense: | |||||||||||||
Salaries and related costs | 4,323 | 3,914 | 10.4 | 12,353 | 10,946 | 12.9 | |||||||
Aircraft fuel | 2,993 | 3,342 | (10.4) | 9,080 | 9,336 | (2.7) | |||||||
Landing fees and other rent | 866 | 801 | 8.1 | 2,536 | 2,283 | 11.1 | |||||||
Aircraft maintenance materials and outside repairs | 765 | 684 | 11.8 | 2,254 | 2,072 | 8.8 | |||||||
Depreciation and amortization | 742 | 663 | 11.9 | 2,169 | 1,987 | 9.2 | |||||||
Regional capacity purchase | 651 | 592 | 10.0 | 1,848 | 1,806 | 2.3 | |||||||
Distribution expenses | 574 | 516 | 11.2 | 1,680 | 1,406 | 19.5 | |||||||
Aircraft rent | 65 | 46 | 41.3 | 148 | 151 | (2.0) | |||||||
Special charges | (5) | 29 | NM | 44 | 902 | NM | |||||||
Other operating expenses | 2,304 | 2,158 | 6.8 | 6,663 | 5,989 | 11.3 | |||||||
Total operating expense | 13,278 | 12,745 | 4.2 | 38,775 | 36,878 | 5.1 | |||||||
Operating income | 1,565 | 1,739 | (10.0) | 3,593 | 3,213 | 11.8 | |||||||
Nonoperating income (expense): | |||||||||||||
Interest expense | (379) | (493) | (23.1) | (1,260) | (1,472) | (14.4) | |||||||
Interest income | 187 | 234 | (20.1) | 554 | 620 | (10.6) | |||||||
Interest capitalized | 53 | 48 | 10.4 | 174 | 128 | 35.9 | |||||||
Unrealized gains (losses) on investments, net | (90) | (54) | 66.7 | (160) | 54 | NM | |||||||
Miscellaneous, net | (50) | 11 | NM | (40) | 73 | NM | |||||||
Total nonoperating expense, net | (279) | (254) | 9.8 | (732) | (597) | 22.6 | |||||||
Income before income tax expense | 1,286 | 1,485 | (13.4) | 2,861 | 2,616 | 9.4 | |||||||
Income tax expense | 321 | 348 | (7.8) | 697 | 598 | 16.6 | |||||||
Net income | $ 965 | $ 1,137 | (15.1) | $ 2,164 | $ 2,018 | 7.2 | |||||||
Diluted earnings per share | $ 2.90 | $ 3.42 | (15.2) | $ 6.49 | $ 6.08 | 6.7 | |||||||
Diluted weighted average shares | 332.7 | 332.4 | 0.1 | 333.3 | 331.8 | 0.5 | |||||||
NM-Greater than 100% change or otherwise not meaningful. |
UNITED AIRLINES HOLDINGS, INC. PASSENGER REVENUE INFORMATION AND STATISTICS (UNAUDITED) | |||||||||||||
Information is as follows (in millions, except for percentage changes): | |||||||||||||
3Q 2024 Passenger Revenue | Passenger Revenue vs. 3Q 2023 | Passenger | Yield vs. | Available Seat Miles vs. 3Q 2023 | 3Q 2024 | 3Q 2024 | |||||||
Domestic | $ 7,857 | 2.4 % | (0.8 %) | (0.4 %) | 3.3 % | 43,746 | 37,784 | ||||||
Europe | 2,972 | 1.4 % | (0.9 %) | (0.7 %) | 2.3 % | 17,906 | 15,469 | ||||||
Middle East/India/Africa | 265 | (35.7 %) | 5.4 % | 9.8 % | (38.9 %) | 1,853 | 1,562 | ||||||
Atlantic | 3,237 | (3.2 %) | 0.6 % | 1.4 % | (3.8 %) | 19,759 | 17,031 | ||||||
Pacific | 1,335 | 7.2 % | (15.7 %) | (9.9) % | 27.2 % | 10,461 | 8,095 | ||||||
Latin America | 1,132 | 3.8 % | (0.8 %) | (0.9 %) | 4.6 % | 7,575 | 6,639 | ||||||
International | 5,704 | 0.4 % | (4.3 %) | (2.1 %) | 5.0 % | 37,795 | 31,765 | ||||||
Consolidated | $ 13,561 | 1.6 % | (2.4 %) | (1.1 %) | 4.1 % | 81,541 | 69,549 |
Select operating statistics are as follows: | |||||||||||||||
Three Months Ended | % Increase/ (Decrease) | Nine Months Ended | % Increase/ (Decrease) | ||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Passengers (thousands) (a) | 45,559 | 44,381 | 2.7 | 129,259 | 123,148 | 5.0 | |||||||||
RPMs (millions) (b) | 69,549 | 67,691 | 2.7 | 194,040 | 183,764 | 5.6 | |||||||||
ASMs (millions) (c) | 81,541 | 78,348 | 4.1 | 232,887 | 217,606 | 7.0 | |||||||||
Passenger load factor: (d) | |||||||||||||||
Consolidated | 85.3 % | 86.4 % | (1.1) | pts. | 83.3 % | 84.4 % | (1.1) | pts. | |||||||
Domestic | 86.4 % | 86.7 % | (0.3) | pts. | 85.5 % | 85.0 % | 0.5 | pts. | |||||||
International | 84.0 % | 86.0 % | (2.0) | pts. | 80.8 % | 83.8 % | (3.0) | pts. | |||||||
PRASM (cents) | 16.63 | 17.04 | (2.4) | 16.55 | 16.83 | (1.7) | |||||||||
Total revenue per available seat mile ("TRASM") (cents) | 18.20 | 18.49 | (1.6) | 18.19 | 18.42 | (1.2) | |||||||||
Average yield per RPM (cents) (e) | 19.50 | 19.72 | (1.1) | 19.87 | 19.93 | (0.3) | |||||||||
Cargo revenue ton miles (millions) (f) | 881 | 766 | 15.0 | 2,623 | 2,265 | 15.8 | |||||||||
Aircraft in fleet at end of period | 1,381 | 1,335 | 3.4 | 1,381 | 1,335 | 3.4 | |||||||||
Average stage length (miles) (g) | 1,510 | 1,506 | 0.3 | 1,503 | 1,480 | 1.6 | |||||||||
Employee headcount, as of September 30 (in thousands) | 106.5 | 102.0 | 4.4 | 106.5 | 102.0 | 4.4 | |||||||||
Cost per ASM ("CASM") (cents) | 16.28 | 16.27 | 0.1 | 16.65 | 16.95 | (1.8) | |||||||||
CASM-ex (cents) (h) | 12.26 | 11.51 | 6.5 | 12.47 | 11.94 | 4.4 | |||||||||
Average aircraft fuel price per gallon | $ 2.56 | $ 2.95 | (13.2) | $ 2.73 | $ 2.97 | (8.1) | |||||||||
Fuel gallons consumed (millions) | 1,170 | 1,132 | 3.4 | 3,329 | 3,146 | 5.8 |
(a) The number of revenue passengers measured by each flight segment flown. |
(b) The number of scheduled miles flown by revenue passengers. |
(c) The number of seats available for passengers multiplied by the number of scheduled miles those seats are flown. |
(d) RPMs divided by ASMs. |
(e) The average passenger revenue received for each RPM flown. |
(f) The number of cargo revenue tons transported multiplied by the number of miles flown. |
(g) Average stage length equals the average distance a flight travels weighted for size of aircraft. |
(h) CASM-ex is CASM less the impact of fuel expense, profit sharing, special charges and third-party expenses. See NON-GAAP FINANCIAL INFORMATION for a reconciliation of CASM-ex to CASM, the most comparable GAAP measure. |
UNITED AIRLINES HOLDINGS, INC. NON-GAAP FINANCIAL INFORMATION (Continued) | ||||||||||||
Three Months Ended | Nine Months Ended | Twelve Months Ended | ||||||||||
Adjusted EBITDA and EBITDAR (in millions) | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||
Net income (GAAP) | $ 965 | $ 1,137 | $ 2,164 | $ 2,018 | $ 2,764 | $ 2,861 | ||||||
Adjusted for: | ||||||||||||
Depreciation and amortization | 742 | 663 | 2,169 | 1,987 | 2,853 | 2,611 | ||||||
Interest expense, net of capitalized interest and interest income | 139 | 211 | 532 | 724 | 755 | 1,015 | ||||||
Income tax expense | 321 | 348 | 697 | 598 | 868 | 885 | ||||||
Special charges | (5) | 29 | 44 | 902 | 91 | 918 | ||||||
Nonoperating unrealized (gains) losses on investments, net | 90 | 54 | 160 | (54) | 187 | (86) | ||||||
Nonoperating debt extinguishment and modification fees | 75 | — | 110 | 11 | 110 | 11 | ||||||
Adjusted EBITDA (non-GAAP) | $ 2,327 | $ 2,442 | $ 5,876 | $ 6,186 | $ 7,628 | $ 8,215 | ||||||
Adjusted EBITDA margin (non-GAAP) | 15.7 % | 16.9 % | 13.9 % | 15.4 % | 13.6 % | 15.7 % | ||||||
Adjusted EBITDA (non-GAAP) | $ 2,327 | $ 2,442 | $ 5,876 | $ 6,186 | $ 7,628 | $ 8,215 | ||||||
Aircraft rent | 65 | 46 | 148 | 151 | 194 | 210 | ||||||
Adjusted EBITDAR (non-GAAP) | $ 2,392 | $ 2,488 | $ 6,024 | $ 6,337 | $ 7,822 | $ 8,425 |
Three Months Ended | Nine Months Ended | ||||||
Adjusted Capital Expenditures (in millions) | 2024 | 2023 | 2024 | 2023 | |||
Capital expenditures, net of flight equipment purchase deposit returns (GAAP) | $ 1,410 | $ 1,842 | $ 3,940 | $ 5,105 | |||
Property and equipment acquired through the issuance of debt, finance leases, | 47 | 118 | (159) | 677 | |||
Adjusted capital expenditures (Non-GAAP) | $ 1,457 | $ 1,960 | $ 3,781 | $ 5,782 | |||
Free Cash Flow (in millions) | |||||||
Net cash provided by operating activities (GAAP) | $ 1,498 | $ 880 | $ 7,221 | $ 7,821 | |||
Less capital expenditures, net of flight equipment purchase deposit returns | 1,410 | 1,842 | 3,940 | 5,105 | |||
Free cash flow, net of financings (Non-GAAP) | $ 88 | $ (962) | $ 3,281 | $ 2,716 | |||
Net cash provided by operating activities (GAAP) | $ 1,498 | $ 880 | $ 7,221 | $ 7,821 | |||
Less adjusted capital expenditures (Non-GAAP) | 1,457 | 1,960 | 3,781 | 5,782 | |||
Free cash flow (Non-GAAP) | $ 41 | $ (1,080) | $ 3,440 | $ 2,039 |
September 30, |
Increase/ (Decrease) | ||||||
Adjusted total debt and Adjusted net debt (in millions) | 2024 | 2023 | |||||
Debt - current and noncurrent (GAAP) | $ 25,486 | $ 29,581 | $ (4,095) | ||||
Operating lease obligations - current and noncurrent | 4,923 | 5,091 | (168) | ||||
Finance lease obligations - current and noncurrent | 176 | 342 | (166) | ||||
Pension and postretirement liabilities - noncurrent | 1,624 | 1,421 | 203 | ||||
Other financial liabilities - current and noncurrent | 2,774 | 1,692 | 1,082 | ||||
Adjusted total debt (Non-GAAP) | $ 34,983 | $ 38,127 | (3,144) | ||||
Less: Cash and cash equivalents | $ 8,812 | $ 7,478 | 1,334 | ||||
Short-term investments | 5,352 | 9,608 | (4,256) | ||||
Adjusted net debt (Non-GAAP) | $ 20,819 | $ 21,041 | (222) | ||||
Net leverage | 2.7 | 2.5 | 0.2 | pts. |
UNITED AIRLINES HOLDINGS, INC. NON-GAAP FINANCIAL INFORMATION (Continued) | |||||||||||
Three Months Ended | % Increase/ (Decrease) | Nine Months Ended | % Increase/ (Decrease) | ||||||||
(in millions, except for percentage changes and per share data) | 2024 | 2023 | 2024 | 2023 | |||||||
Operating expenses (GAAP) | $ 13,278 | $ 12,745 | 4.2 | $ 38,775 | $ 36,878 | 5.1 | |||||
Special charges | (5) | 29 | NM | 44 | 902 | NM | |||||
Operating expenses, excluding special charges | 13,283 | 12,716 | 4.5 | 38,731 | 35,976 | 7.7 | |||||
Adjusted to exclude: | |||||||||||
Fuel expense | 2,993 | 3,342 | (10.4) | 9,080 | 9,336 | (2.7) | |||||
Profit sharing | 231 | 301 | (23.3) | 419 | 521 | (19.6) | |||||
Third-party business expenses | 61 | 52 | 17.3 | 183 | 139 | 31.7 | |||||
Adjusted operating expenses (Non-GAAP) | $ 9,998 | $ 9,021 | 10.8 | $ 29,049 | $ 25,980 | 11.8 | |||||
Operating income (GAAP) | $ 1,565 | $ 1,739 | (10.0) | $ 3,593 | $ 3,213 | 11.8 | |||||
Special charges | (5) | 29 | NM | 44 | 902 | NM | |||||
Adjusted operating income (Non-GAAP) | $ 1,560 | $ 1,768 | (11.8) | $ 3,637 | $ 4,115 | (11.6) | |||||
Operating margin | 10.5 % | 12.0 % | (1.5) pts. | 8.5 % | 8.0 % | .5 pts. | |||||
Adjusted operating margin (Non-GAAP) | 10.5 % | 12.2 % | (1.7) pts. | 8.6 % | 10.3 % | (1.7) pts. | |||||
Pre-tax income (GAAP) | $ 1,286 | $ 1,485 | (13.4) | $ 2,861 | $ 2,616 | 9.4 | |||||
Adjusted to exclude: | |||||||||||
Special charges | (5) | 29 | NM | 44 | 902 | NM | |||||
Unrealized (gains) losses on investments, net | 90 | 54 | NM | 160 | (54) | NM | |||||
Debt extinguishment and modification fees | 75 | — | NM | 110 | 11 | NM | |||||
Adjusted pre-tax income (Non-GAAP) | $ 1,446 | $ 1,568 | (7.8) | $ 3,175 | $ 3,475 | (8.6) | |||||
Pre-tax margin | 8.7 % | 10.3 % | (1.6) pts. | 6.8 % | 6.5 % | .3 pts. | |||||
Adjusted pre-tax margin (Non-GAAP) | 9.7 % | 10.8 % | (1.1) pts. | 7.5 % | 8.7 % | (1.2) pts. | |||||
Net income (GAAP) | $ 965 | $ 1,137 | (15.1) | $ 2,164 | $ 2,018 | 7.2 | |||||
Adjusted to exclude: | |||||||||||
Special charges | (5) | 29 | NM | 44 | 902 | NM | |||||
Unrealized (gains) losses on investments, net | 90 | 54 | NM | 160 | (54) | NM | |||||
Debt extinguishment and modification fees | 75 | — | NM | 110 | 11 | NM | |||||
Income tax benefit on adjustments, net | (15) | (7) | NM | (34) | (204) | NM | |||||
Adjusted net income (Non-GAAP) | $ 1,110 | $ 1,213 | (8.5) | $ 2,444 | $ 2,673 | (8.6) | |||||
Diluted earnings per share (GAAP) | $ 2.90 | $ 3.42 | (15.2) | $ 6.49 | $ 6.08 | 6.7 | |||||
Adjusted to exclude: | |||||||||||
Special charges | (0.01) | 0.09 | NM | 0.13 | 2.72 | NM | |||||
Unrealized (gains) losses on investments, net | 0.27 | 0.16 | NM | 0.48 | (0.16) | NM | |||||
Debt extinguishment and modification fees | 0.22 | — | NM | 0.33 | 0.03 | NM | |||||
Income tax benefit on adjustments, net | (0.05) | (0.02) | NM | (0.10) | (0.61) | NM | |||||
Adjusted diluted earnings per share (Non-GAAP) | $ 3.33 | $ 3.65 | (8.8) | $ 7.33 | $ 8.06 | (9.1) |
UNITED AIRLINES HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
| |||
(in millions) | September 30, 2024 | December 31, 2023 | |
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 8,812 | $ 6,058 | |
Short-term investments | 5,352 | 8,330 | |
Restricted cash | 36 | 31 | |
Receivables, less allowance for credit losses (2024 — $21; 2023 — $18) | 2,042 | 1,898 | |
Aircraft fuel, spare parts and supplies, less obsolescence allowance (2024 — $788; 2023 — $689) | 1,639 | 1,561 | |
Prepaid expenses and other | 690 | 609 | |
Total current assets | 18,571 | 18,487 | |
Total operating property and equipment, net | 41,680 | 39,815 | |
Operating lease right-of-use assets | 3,782 | 3,914 | |
Other assets: | |||
Goodwill | 4,527 | 4,527 | |
Intangibles, less accumulated amortization (2024 — $1,355; 2023 — $1,495) | 2,691 | 2,725 | |
Restricted cash | 180 | 245 | |
Investments in affiliates and other, less allowance for credit losses (2024 — $32; 2023 — $38) | 1,209 | 1,391 | |
Total other assets | 8,607 | 8,888 | |
Total assets | $ 72,640 | $ 71,104 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 4,008 | $ 3,835 | |
Accrued salaries and benefits | 2,802 | 2,940 | |
Advance ticket sales | 8,477 | 6,704 | |
Frequent flyer deferred revenue | 3,314 | 3,095 | |
Current maturities of long-term debt | 3,279 | 4,018 | |
Current maturities of operating leases | 491 | 576 | |
Current maturities of finance leases | 87 | 172 | |
Current maturities of other financial liabilities | 69 | 57 | |
Other | 838 | 806 | |
Total current liabilities | 23,365 | 22,203 | |
Long-term liabilities and deferred credits: | |||
Long-term debt | 22,207 | 25,057 | |
Long-term obligations under operating leases | 4,432 | 4,503 | |
Long-term obligations under finance leases | 89 | 91 | |
Frequent flyer deferred revenue | 4,057 | 4,048 | |
Pension liability | 1,030 | 968 | |
Postretirement benefit liability | 594 | 637 | |
Deferred income taxes | 1,224 | 594 | |
Other financial liabilities | 2,705 | 2,265 | |
Other | 1,500 | 1,414 | |
Total long-term liabilities and deferred credits | 37,838 | 39,577 | |
Total stockholders' equity | 11,437 | 9,324 | |
Total liabilities and stockholders' equity | $ 72,640 | $ 71,104 |
UNITED AIRLINES HOLDINGS, INC. CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)
| |||
(in millions) | Nine Months Ended September 30, | ||
2024 | 2023 | ||
Cash Flows from Operating Activities: | |||
Net cash provided by operating activities | $ 7,221 | $ 7,821 | |
Cash Flows from Investing Activities: | |||
Capital expenditures, net of flight equipment purchase deposit returns | (3,940) | (5,105) | |
Purchases of short-term and other investments | (4,057) | (8,875) | |
Proceeds from sale of short-term and other investments | 7,206 | 8,614 | |
Proceeds from sale of property and equipment | 66 | 20 | |
Other, net | (211) | (17) | |
Net cash used in investing activities | (936) | (5,363) | |
Cash Flows from Financing Activities: | |||
Proceeds from issuance of debt and other financing liabilities, net of discounts and fees | 5,302 | 1,685 | |
Payments of long-term debt, finance leases and other financing liabilities | (8,792) | (3,423) | |
Repurchase of common stock | (82) | — | |
Other, net | (19) | (31) | |
Net cash used in financing activities | (3,591) | (1,769) | |
Net increase in cash, cash equivalents and restricted cash | 2,694 | 689 | |
Cash, cash equivalents and restricted cash at beginning of the period | 6,334 | 7,421 | |
Cash, cash equivalents and restricted cash at end of the period | $ 9,028 | $ 8,110 | |
Investing and Financing Activities Not Affecting Cash: | |||
Property and equipment acquired through the issuance of debt, finance leases and other | $ (159) | $ 677 | |
Right-of-use assets acquired through operating leases | 376 | 470 | |
Lease modifications and lease conversions | 117 | 438 | |
Investment interests received in exchange for loans, goods and services | 18 | 25 |