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Jun 30, 2021
United Airlines Q2 2021 Earnings Report
United Airlines reported a net loss of $0.4 billion for Q2 2021, but expects profitability in Q3 and beyond, driven by faster than expected revenue recovery and well-managed costs.
Key Takeaways
United Airlines announced second-quarter 2021 financial results, reporting a net loss of $0.4 billion. However, the company expects positive adjusted pre-tax income in the third and fourth quarters of 2021 as travel demand rebounds. The company's second quarter performance largely exceeded original expectations as international long haul and business travel accelerated even faster than anticipated, together with continued yield improvement.
Reported second quarter 2021 capacity down 46% compared to second quarter 2019.
Reported second quarter 2021 net loss of $0.4 billion, adjusted net loss of $1.3 billion.
Reported second quarter 2021 total operating revenue of $5.5 billion, down 52% compared to second quarter 2019.
Reported second quarter 2021 ending available liquidity of approximately $23 billion.
Revenue by Segment
Forward Guidance
United Airlines expects positive adjusted pre-tax income in the third and fourth quarters of 2021. They anticipates TRASM growth to be positive compared to the third quarter 2019. The company expects 2022 CASM-ex to be lower than 2019.
Positive Outlook
- Expects third quarter 2021 capacity to be down around 26% compared to third quarter 2019, up 39% quarter over quarter.
- Based on current trends, the company expects third quarter 2021 TRASM growth to be positive compared to the third quarter 2019, the first quarter of positive TRASM growth since the second quarter of 2020.
- Third quarter 2021 estimated fuel price of approximately $2.17 per gallon.
- Expects third quarter 2021 adjusted pre-tax income to be positive, the first quarter of positive adjusted pre-tax income since fourth quarter 2019. Additionally, expects fourth quarter 2021 adjusted pre-tax income to be positive.
- Expects 2022 cost per available seat mile, excluding fuel, profit sharing, third-party business expenses and special charges (CASM-ex) to be lower than 2019.
Challenges Ahead
- Expects third quarter 2021 cost per available seat mile, excluding fuel, profit sharing, third-party business expenses and special charges (CASM-ex) to be up approximately 17% compared to third quarter 2019 (includes a 6-point headwind largely driven by lower stage length and lower gauge of our network, including the temporary grounding of 52 Boeing Pratt & Whitney powered 777 widebody aircraft).
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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