- United Airlines Holdings Inc UAL reported a first-quarter operating revenue decline of 21% compared to 1Q19 to $7.6 billion, missing the consensus of $7.68 billion.
- Capacity down 19% compared to 1Q19. Cost Per Available Seat Mile (CASM) was up 21%, and CASM-ex3 was up 18%, compared to 1Q19. TRASM of down 3% vs. 1Q19.
- Adjusted EPS was $(4.24), missing the consensus of $(4.21).
- UAL reported a Q1 operating loss of $1.4 billion and an adjusted operating loss of $1.4 billion. The fuel price was ~$2.88 per gallon in the quarter.
- United Airlines ended the quarter with available liquidity of $20 billion. It reported a decline in total debt of over $700 million.
- UAL’s net cash provided by operating activities totaled $1.47 billion for the quarter, compared to $447 million in 1Q21.
- The airline has a bullish outlook on the future – bolstered by this persistent strength of demand and the fact that it is nearing 2019 operating margins – and once again reiterated confidence in its long term United Next targets of an adjusted pre-tax margin of ~9% in 2023 and about 14% in 2026. This confidence is underpinned by the company’s current expectation to report a profit for the full year 2022.
- FY22 Outlook: UAL expects Capacity vs 2019 down ~13%, (TRASM) vs 2019 ~17%, CASM-ex vs 2019 ~16%.
- It expects the average Aircraft Fuel Price per Gallon to be $3.43 and an Operating and Adjusted Operating Margin of ~10%.
- Price Action: UAL shares are trading higher by 7.63% at $50.07 during the post-market session on Wednesday.
- Photo via Wikimedia Commons
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
