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United Airlines
🇺🇸 NASDAQ:UAL
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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

Total Revenue
$7.75B
Previous year: $2.49B
+211.4%
EPS
-$1.02
Previous year: -$8.16
-87.5%
Cost per ASM
$12.5
Load Factor
76.1%
Previous year: 47.8%
+59.2%
Yield
$16.2
Previous year: $15.5
+4.1%
Gross Profit
$1.35B
Previous year: -$1.96B
-168.9%
Cash and Equivalents
$19.3B
Previous year: $13.2B
+46.4%
Total Assets
$69.3B
Previous year: $61.2B
+13.2%

United Airlines

United Airlines

United Airlines Revenue by Segment

United Airlines Revenue by Geographic Location

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

Company Overview

Full financial data and analysis

View United Airlines