United Airlines Holdings, Inc. (UAL) Q4 2023 Earnings Call Transcript Summary

By / / United Airlines

The following is a summary of the United Airlines Holdings, Inc. (UAL) Q4 2023 Earnings Call Transcript:

Financial Performance:

  • United Airlines’ q4 total revenue increased by 9.9% due to a 14.7% increase in capacity.
  • Pretax income of $4.3 billion in 2023, an improvement of over $3.2 billion compared to 2022.
  • Earnings per share for the year were reported at $10.05, within the initial guidance range and ahead of consensus expectations.
  • The fourth quarter of the fiscal year saw a pretax income of $845 million and earnings per share of $2, which was above the guided range.
  • The reported CASM-ex (cost-per-available-seat-mile) for the fourth quarter increased by 4.9%.
  • The company maintained their net debt to EBITDAR ratio within its target of less than 3 times.
  • However, United Airlines anticipates a loss per share between $0.35 and $0.85 for the first quarter of 2024.

Business Progress:

  • Strides made in both domestic and international regions. Increasing business traffic volumes domestically. Atlantic region continues to show strength.
  • United Airlines plans to continue focusing on slow growth across the Atlantic for 2024 and growing the Asia Pacific capacity.
  • Regulatory approval of labor contracts and development of a solid commercial strategy has positioned the company to withstand inflationary cost pressures.
  • On the fleet side, the company took delivery of 20 Boeing MAX and four Airbus A321 aircraft in the fourth quarter and scheduled to take delivery of a total of 107 aircraft in 2024.
  • The MileagePlus program is in place that is being developed to enhance customer experience and create a better platform for data monetization.
  • Plans to host an Investor Day on May 1st to provide updates on United Next project, and future plans include capitalizing on emerging opportunities within the industry.
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