https://assets.capyfin.com/instruments/678fdc13234e27009c5d5820.png avatar
United Airlines
🇺🇸 NASDAQ:UAL
View Company
OverviewEarningsDividends
•
Dec 31, 2021

United Airlines Q4 2021 Earnings Report

United Airlines achieved fourth quarter financial targets despite headwinds from the Omicron variant.

Key Takeaways

United Airlines announced fourth quarter and full year 2021 financial results, achieving every major financial guidance target for the fourth quarter and setting a new Net Promoter Score (NPS) record in 2021, despite the Omicron variant impact. Bookings for spring travel and beyond remain strong, maintaining confidence in the 2023 and 2026 CASM-ex1 United Next targets.

Reported fourth quarter 2021 capacity down 23% compared to fourth quarter 2019.

Reported fourth quarter 2021 net loss of $0.6 billion, adjusted net loss of $0.5 billion.

Reported fourth quarter 2021 total operating revenue of $8.2 billion, down 25% compared to fourth quarter 2019.

Reported fourth quarter 2021 Total Revenue Per Available Seat Mile (TRASM) of down 3% compared to fourth quarter 2019.

Total Revenue
$8.19B
Previous year: $3.41B
+140.1%
EPS
-$1.6
Previous year: -$7
-77.1%
Cost per ASM
$15.7
Load Factor
77%
Previous year: 55.6%
+38.5%
Yield
$16.3
Previous year: $14.1
+15.4%
Gross Profit
$1.29B
Previous year: -$1.38B
-193.5%
Cash and Equivalents
$18.3B
Previous year: $11.3B
+62.2%
Free Cash Flow
-$945M
Total Assets
$68.2B
Previous year: $59.5B
+14.5%

United Airlines

United Airlines

United Airlines Revenue by Segment

Forward Guidance

Expects first quarter 2022 capacity to be down 16% to 18% versus first quarter 2019. Expects first quarter 2022 total operating revenue to be down 20% to 25% versus first quarter 2019. Expects first quarter 2022 CASM-ex1 to be up 14% to 15% compared to first quarter 2019.

Positive Outlook

  • Remains on track to achieve long-term financial targets from United Next plan.
  • Scaled-back schedule, reflecting the impact of the Omicron spike on demand.
  • Expects to nimbly ramp up capacity by ungrounding 52 Pratt & Whitney-powered Boeing 777s, as demand returns
  • CASM-ex1 will decline significantly over the course of 2022.
  • Continues to prioritize matching capacity to demand producing expected network peer-leading full-year 2021 TRASM down 9.2% versus 2019

Challenges Ahead

  • Omicron is impacting near term demand
  • Now expects full year 2022 capacity to be down versus 2019.
  • Now expects full year 2022 CASM-ex1 to be higher than 2019.
  • Estimates first quarter 2022 fuel price of approximately $2.51 per gallon.
  • Expects 2022 adjusted capital expenditures to be around $4.2 billion, plus approximately $1.7 billion in 2021 deferred capital expenditures mainly due to the timing of certain aircraft deliveries delayed to 2022, for a total of $5.9 billion.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View United Airlines