United Airlines Soars in 2023 with Record Earnings and Operational Milestones

23 Jan

United Airlines (UAL) today unveiled its full-year and fourth-quarter financial results for 2023, marking a year of significant achievements and robust financial performance. The airline reported a full-year diluted earnings per share (EPS) of $7.89 and an adjusted full-year EPS of $10.05, aligning with its initial target of $10 - $12 set at the start of the year.

United's diversified revenue strategy was a key driver of its success. Notably, revenue from its premium cabin increased by 16% in the fourth quarter year-over-year, while the Basic Economy offering saw a substantial 20% rise. The airline's cost management strategies, combined with strong demand for travel and preference for United's reliable operations and premium services, contributed to meeting its ambitious EPS target despite various challenges.

Scott Kirby, CEO of United Airlines, expressed gratitude towards the United team for their hard work in achieving these results. "Despite unpredictable headwinds, we delivered on our ambitious EPS target that few thought possible – and set new operational records for our customers," Kirby stated.

Fourth-Quarter Financial Highlights:

A 14.7% increase in capacity compared to Q4 2022.
Total operating revenue of $13.6 billion, up 9.9% from Q4 2022.
Pre-tax income of $0.8 billion, resulting in a pre-tax margin of 5.7%; adjusted pre-tax income of $0.8 billion, yielding a 6.2% adjusted pre-tax margin.
Net income of $0.6 billion; adjusted net income of $0.7 billion.
Diluted EPS of $1.81; adjusted diluted EPS of $2.00.
Average fuel price per gallon at $3.13.

Full-Year Financial Highlights:

Net income of $2.6 billion; adjusted net income of $3.3 billion.
Pre-tax income of $3.4 billion, with a pre-tax margin of 6.3%; adjusted pre-tax income of $4.3 billion, resulting in an 8.0% adjusted pre-tax margin.
Diluted EPS of $7.89; adjusted diluted EPS of $10.05.
Ending liquidity of $16.1 billion.
Total debt and finance lease obligations of $29.3 billion at year-end.
Adjusted net debt to adjusted EBITDAR of 2.9x.

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