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Sep 30, 2021
United Airlines Q3 2021 Earnings Report
United Airlines announced third-quarter 2021 financial results and remained on track to meet 2022 targets.
Key Takeaways
United Airlines reported a net income of $0.5 billion for the third quarter of 2021, despite the impact of the COVID-19 Delta variant. The company remains on track to achieve its longer-term financial targets and reduce CASM-ex below 2019 levels next year. United plans to increase international capacity by 10% in 2022 while keeping domestic capacity flat to 2019.
Airline remains on track to reduce CASM-ex next year below 2019 levels
Approximately $2.2 billion in structural cost reductions and returning aircraft to service will fuel strong CASM-ex performance in 2022 and beyond
Returning business travelers and re-opening European borders are opportunities United is well positioned to capitalize on
Continuing improvements and reliability leads to all-time record Net Promoter Score year-to-date; a nearly 12% increase
United Airlines
United Airlines
United Airlines Revenue by Segment
United Airlines Revenue by Geographic Location
Revenue by Segment
Passenger Revenue
CapyFin.comCargo Revenue
CapyFin.comOther Operating Rev Revenue
CapyFin.comRevenue by Geographic Location
Latin America Revenue
CapyFin.com Forward Guidance
United expects fourth quarter 2021 capacity to be down approximately 23% versus fourth quarter 2019 and total revenue to be down 25% to 30% versus the fourth quarter 2019. The company estimates fourth quarter 2021 fuel price of approximately $2.39 per gallon and continues to expect 2022 CASM-ex to be lower than 2019.
Positive Outlook
- Continues to expect 2022 CASM-ex1 to be lower than 2019.
- Expects 2022 capacity to be up approximately 5% versus 2019 driven by international growth.
- Expects adjusted capital expenditures2 to be around $3 billion in full year 2021.
- Expects adjusted diluted earnings per share2 in 2026 of around $20 assuming the same number of diluted shares outstanding as of September 30, 2021.
- Remains on track to achieve long term financial targets from United Next plan.
Challenges Ahead
- Expects fourth quarter 2021 capacity to be down approximately 23% versus fourth quarter 2019.
- Expects fourth quarter 2021 total revenue to be down 25% to 30% versus the fourth quarter 2019.
- Expects fourth quarter 2021 CASM-ex1 to be up 12% to 14% compared to fourth quarter 2019.
- Estimates fourth quarter 2021 fuel price of approximately $2.39 per gallon.
- United Next assumes 2026 TRASM remains down around 1% versus 2019.
Revenue & Expenses
Visualization of income flow from segment revenue to net income