Achieved the lowest mainline flight and seat cancellation rates of any U.S. airline despite having the most flights impacted by weather
Seeing strong international demand in Q2; international expansion twice the rate of domestic
U.S. mega-carrier United Airlines has just reported its first-quarter 2023 financial results. The company reported a $256 million pre-tax loss, consistent with expectations provided in March. The company grew total operating revenue by 51.1% compared to first quarter 2022 and total revenue per available seat mile (TRASM) by 22.5%. Cost per available seat mile (CASM) increased 4.0%, while CASM-ex2 came in at down 0.1%, better than guidance due to strong operational reliability that produced available seat miles (ASMs) 23.4% higher than the first quarter of 2022. The company remains confident in the 2023 United Next adjusted diluted earnings per share1 target of $10 to $12.
"I am extremely proud of the United team's performance during the first quarter of 2023. Our industry-leading operational performance contributed to an all-time high operating cash flow in the first quarter and keeps us on track to achieve our cost targets for the full year," said United Airlines CEO Scott Kirby. "We are watching the macroeconomic risks carefully, but demand remains strong, especially internationally, where we are growing at twice the domestic rate. We expect all of these factors will keep us on track to achieve our full-year adjusted diluted EPS1 target."
First-Quarter Financial Results
Net loss of $194 million, adjusted net loss3 of $207 million.
Capacity up 23.4% compared to first-quarter 2022.
Total operating revenue of $11.4 billion, up 51.1% compared to first-quarter 2022.
TRASM up 22.5% compared to the first-quarter 2022.
CASM up 4.0%, and CASM-ex2 down 0.1%, compared to the first-quarter 2022.
Diluted loss per share of $0.59, adjusted diluted loss per share1 of $0.63.
Average fuel price per gallon of $3.33.
Reduced adjusted total debt3 by $4.6 billion in the last 12 months.
Key Highlights
United reached a tentative agreement with the International Association of Machinists & Aerospace Workers (IAM) for a new, industry-leading contract for our nearly 30,000 IAM-represented employees. Voting is expected to complete in early May.
Today announced the largest South Pacific network expansion ever to and from the continental U.S., including the first non-stop flight between San Francisco and Christchurch (subject to government approval). With 66 flights between the United States and Australia/New Zealand every week, United will operate nearly 40% more flights from the United States to Australia and New Zealand next northern winter versus last year.
Launched the United Airlines Ventures Sustainable Flight FundSM, a first-of-its-kind investment vehicle designed to support start-ups focused on decarbonizing air travel by accelerating the research, production and technologies associated with sustainable aviation fuel.
Opened expanded and newly renovated global Inflight Training Center in Houston, Texas – the $32 million expansion project more than doubles the available training space and supports the airline's plan to hire and train a total of 15,000 people in 2023, including 4,000 flight attendants.