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We believe this focus has diversified and made our revenues less cyclical in the long run. Premium passenger revenue mix improved 1.9 points versus Q1 2023 and 3 points versus Q1 2019.
In other words, we're seeing near-term acceleration. Premium revenues were up 14% year-over-year on 10% more capacity, and we estimate that United's premium revenue streams lead the industry.
While our largest focus is on growing premium revenues, we also believe our rollout of Basic Economy is a critical competitive tool and important to attracting customers of all types in our core geography. Basic Economy sales trends in Q1 were up 35% year-over-year.
focus on premium
Transcript
2024 Q1
19 Apr 24
While our underlying costs are consistent with our forecast at the beginning of the year, it's important to understand that the continued reduction in capacity from delivery delays will continue to temporarily pressure our CASM-ex for all of 2024.
As we enter the year, we built a business plan for a larger airline. And deliveries have fallen more than 40 aircraft short of our expectations.
We continue to incur most of the expenses as we hired for that capacity despite flying fewer ASMs and it is driving almost a point of CASM-ex pressure.
We are working diligently to reduce these costs as much as possible, and our higher completion factor has helped offset some of it.
For the second quarter, we expect CASM-ex to be similar on a year-over-year basis versus the first quarter.
Given our expectation for costs and our current outlook for revenue and fuel, we expect second quarter earnings per share to be between $3.75 and $4.25.
casm being impacted by delivery delays too
Transcript
2024 Q1
19 Apr 24
With these changes, we now anticipate taking delivery of approximately 100 narrow-body aircraft on average each year during this 3-year period. This delivery schedule provides fleet renewal, steady growth and addresses the bow wave of aircraft delivery delays that had been building. These changes bring our total adjusted capital expenditures in 2025 through 2027 to the $7 billion to $9 billion range in each of those years.
changed delivery plans
Transcript
2024 Q1
19 Apr 24
Additionally, we have signed letters of intent to lease 35 new Airbus A321neos with CFM engines scheduled for delivery in 2026 and 2027.
leasinh airbuds a321 neos with cfm engines
Transcript
2024 Q1
19 Apr 24
Boeing's repeated delivery delays had created an impractical bow wave of aircraft deliveries that both United to Boeing had to address and we have. In 2024, we now expect to take delivery of 61 narrow-body aircraft and 5 wide-body aircraft. This compares to our contractual deliveries of 183 narrow-body aircraft at year-end and the 101 aircraft we were planning for at the start of the year.
Due to these fleet changes, we now expect full year 2024 total capital expenditures to be approximately $6.5 billion down from $9 billion at the start of the year.
lowered capex due to boeing delivery delats
Transcript
2024 Q1
19 Apr 24
Thanks, Andrew, and thank you to the United team for the tremendous effort as we work through the grounding of the Boeing MAX 9 fleet and enter the peak spring break travel season. In the first quarter, we produced a pretax loss of $79 million, a $187 million improvement over the first quarter of last year.
Our loss per share of $0.15 was better than our guidance, and well ahead of consensus expectations, driven by both strong revenue results and disciplined expense management.
The grounding of the Boeing MAX 9 fleet negatively impacted our earnings by more than $200 million and without it, we would have had a profitable quarter.
We also generated $1.5 billion in free cash flow and our adjusted net debt to EBITDAR of 2.7x is back to pre-pandemic levels. These are strong results in what is our seasonally weakest quarter, and they provide another proof point that our United Next plan is working.
grounding boeing mx 9 fleet
Transcript
2024 Q1
19 Apr 24
Without the ground into the MAX 9, we clearly would have produced a profit in the quarter.
max 9 grounding
Transcript
2024 Q1
19 Apr 24
long-haul international is moving into the lead over domestic
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Transcript
2023 Q1
21 Apr 23
there appears to be a clear change in seasonality that is causing peak leisure demand months, March through October to be even stronger, while months that were historically reliant on business demand are weaker, that particularly impacts January, February, and the first half of November and December
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Transcript
2023 Q1
21 Apr 23
10 to 12 full year EPS
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2023 Q1
21 Apr 23
Our base case therefore remains a mild recession or soft landing which is consistent with what we are currently seeing in our bookings.
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2023 Q1
21 Apr 23
We saw an immediate drop in closing business demand that lasted for about 2 weeks, but now appears to have recovered.
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2023 Q1
21 Apr 23
At airlines, the macroeconomic weakness is being offset with a counter trend as consumer spending continuing to rebalance back to services.
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2023 Q1
21 Apr 23
what we are seeing right now is still strong demand
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Transcript
2023 Q1
21 Apr 23
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