United Airlines (UAL) today unveiled its financial outcomes for the first quarter of 2024, highlighting a pre-tax loss of $164 million. This figure marks a $92 million improvement compared to the same period last year. When adjusted for certain factors, the pre-tax loss stands at $79 million, showing a $187 million enhancement from last year’s results. These figures were notably impacted by the Boeing 737 MAX 9 grounding, which had approximately a $200 million negative effect. Without this incident, United would have realized a profit for the quarter.
In terms of performance metrics, United experienced a robust quarter with $2.8 billion in operating cash flow and a commendable $1.5 billion in free cash flow. The airline continues to maintain its forecast for the full-year 2024, expecting adjusted diluted earnings per share to be between $9 and $11.
Operational Highlights and Strategic Adjustments
Throughout the quarter, United reported a substantial 9.1% increase in capacity compared to the first quarter of 2023. Total operating revenue rose to $12.5 billion, up by 9.7% from the previous year. The airline saw notable revenue growth in both the Atlantic and domestic markets, with passenger revenue per available seat mile (PRASM) increasing by 11% and 6% respectively.
Scott Kirby, CEO of United Airlines, expressed gratitude towards the team for their exceptional performance this quarter, stating, “I want to thank the United team for working so hard this quarter to deliver strong operational metrics for our customers and sharpen our focus on safety, while producing excellent financial results for our shareholders.” Kirby also highlighted adjustments in the fleet plan to better align with aircraft delivery capabilities, aiming to enhance profitability through strategic hub operations and international network expansion.
Fleet and Network Developments
United has adjusted its long-term fleet strategy to better match the anticipated aircraft delivery schedules. This includes converting some Boeing MAX 10 aircraft orders to Boeing MAX 9s from 2025 to 2027, with options to make further adjustments as necessary. The airline has also signed letters of intent to lease 35 new Airbus A321neos with CFM engines, expected to be delivered in 2026 and 2027.
These adjustments come as United navigates manufacturing and certification delays which had previously affected its delivery schedule. For 2024, United initially expected 101 narrowbody deliveries, but due to the 737 MAX 9 grounding and production constraints announced by the FAA, the forecast has been adjusted to 61 narrowbody and 5 widebody aircraft.
United has reached a milestone with 200 aircraft now featuring its signature interior, which includes larger bins and seatback screens. The airline also continues to innovate in customer service by expanding TSA PreCheck Touchless ID at major airports and launching new features in the booking path to assist customers traveling with personal wheelchairs.
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