UAL - Earnings call transcript Q4 2024 | United Airlines Holdings, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to United Airlines Holdings' Earnings Conference Call for the Fourth Quarter and Full Year 2024. My name is Regina, and I will be your conference facilitator today. [Operator Instructions] This call is being recorded and is copyrighted. Please note that no portion of the call may be recorded, transcribed or rebroadcast without the company's permission.

Your participation implies your consent to our recording of this call.

agree terms, not the drop do line. you with simply these off If

turn to Relations. presentation today's will the I now over Edwards, Director ahead. call, Managing your of go Investor Please Kristina for host

Kristina Munoz

you, website Full XXXX our at and earnings ir.united.com. Good Fourth we is which Call. Year and to Earnings welcome Thank United's Regina. available Quarter release, Yesterday, Conference issued morning, on our

differ current to conference expectations, yesterday's Airlines of Information United these results Airlines XX-Q our are and company. represent the call and this refer Please may and during which other thorough the factors. contain release for information in reports a the Holdings factors to and upon more the expectations. made description United our materially company's which based filed of release, to by actual currently statements, XX-K forward-looking remarks could available from earnings Form cause number A with current SEC

Unless on financial otherwise definitions in noted, we a our the press call. and refer this non-GAAP related reconciliations release. our to on metrics Please will be discussing basis

of reconciliation comparable end to our the the most tables a measures, please For non-GAAP refer measures GAAP the release. earnings of at these to directly

are Officer, Vice President to and call our us on Andrew Executive and President Officer, today Leskinen. Nocella; Executive Joining the and Chief Scott Brett Vice Officer, results Chief and Hart; discuss President, outlook Executive Kirby; Chief Mike Commercial Financial

online the of team members available Q&A. other have executive we addition, for In

over Scott. And like now the I'd turn to to call

Scott Kirby

monitor those area. them continue can help. the and in Kristina, see I our the communities are with saying us our want by are area today. thanks to wildfires for more with to to by everyone Angeles touch we support. that We've offer joining situation Los in that Thanks, begin there if thoughts the close been to ways and employees to We'll affected the in

industry fall By have of XXXX been how the to COVID after and XXXX, that And vision to had our expected. we from airline gained struck, going another as double-digit proof others United several XXXX the the we evolve. of the on out solid way our were Turning vision is year to we recognition point at months was playing earnings. broad margins. clear that seems a to

Our irreversible change economics a outlook and based the has always on drive view have realistic to changes how been entire changes the the those going in were industry. permanent of potential and to how structural, the industry of

years actions developed plan XXXX that of and our planning, thoughtful and culmination investments. from Our strategic bold were of vision, the results

for in that I'd thank And sharing like employees out to our I'm proud profit these $XXX paying be million say year. stellar this results. we'll to

Next In range. continued United XXXX, to once our and make our plan progress within original earnings delivered United again with

further of years the United the last Our from industry customer led a strong the the have brand. several rest investments over and United differentiated preference for

point bigger call Cost years about to the changes here are which United first to United. moat irreversible the product and for time customers with and United effective revenue is publicly convergence, that in But we ever service, competitive for talked on that are that ago, combined diversity changes and causing durable. this led choose a created at this X industry-leading first have structural structural Houston just moment the

But Answering tailwinds X much today, very I will which even time Wide-body than of analyst and for the are the stronger around. detail, more constraints in engines, airframes discuss XXXX supply, international of narrow-bodies. longer environment, are challenged additional to because add to be this ago, structural like an far going X is that rest supply for decade. last at going feels there question Andrew how is more about this that talked least quarters this both The I'll XXXX. to

the of very from happening to seeds the the to XXXX hard were ULCCs. It's again. time XX% see And to [indiscernible] second, growth shown demise XXXX with the at that XX% being domestically,

necessity of flying airline have they advantage. industry primarily this economic each all focused post-COVID competitive be means different in Importantly, that the competitive will where and an equilibrium have is a into on weaknesses the Different by era. driven evolving airlines strengths where

of of $XX could it's in they airline the Cost imagine airports airports. airports. ULCC convergence for per hard me has in costs, is X airports the their average fare at those compared in airport XX% high-cost an is in those on been York The fare most the that impactful country. $XX City the ever X When passenger to spending to cost profitable big the be New

an the At low-cost leading profitable able have a point-to-point is more to than airports. the than and really is United It always be will and more industry, in same advantage anyone time, LCCs transformed United do be way.

our advantage. curve We have great the We in in ahead for X investing in hubs. well hubs have competitive of we efforts where we're got focusing the growth all the of our and future,

of culture who The and our make our know are. know competitive We a combined juggernaut. virtues us strengths. innovative our We side we

weaknesses, focus also and on and we're strength going know to our our We nothing else.

on rest laurels. our won't we But

be or will continue our our customers. the even results. better We'll We complacent leads good satisfied to by on way airline where focusing with ways airline be be never an to for

iceberg. most really of the obvious of just Starlink for high-profile that's the investments the visible customers tip is one

further digital to technology by expanding the with. and do improvements our to more team business making Our best-in-the-world airline transparent is easy make even

to no that ops on and employees the has in a in trying changing alike. and we'll to problems is to pride fix. the in that customers world unchangeable ever our even tried solve inspires team focused other brand airline continue And invest And

by industry-leading up professionals our to we'll deliver continuing EPS which midpoint. That free This team, flow cash expect includes while grow XX% And best strong to in future. in approximately contracts the the at United year, the is our of we invest made aviation with world. the signing

for continue and our raise to been bar. our going will continue best are airline to That's good of customers history and that the and aviation, We employees, increasingly shareholders. be in the we're to

it I'll And that, with to Brett. turn over

Brett Hart

our you, our was reliability XXX operational finished morning. and exceptional year customers an and driven Thank first resilience results. to million nearly last Scott, have the at The departures served all X made and and for record of good United. We year improve investments XXXX a year hubs. on-time top-tier we've

had out were departures. the for December them busiest we so safely December to on We ranked when get day. in flying on XXX,XXX people #X month our a customers in history, us holidays, of home of the closed the And our on-time average many counting

I prior through Thanks deliver operation during and weather [ reduction crew-related to in enhance through for want incredible holidays tough worked recovering [indiscernible] an crews cancellations regular at who We United, achieved processes to X our the customers. years. events. our thank the to ] too professionals XX% compared for

we Additionally, and operational speed post-pandemic continued customers. components XXXX, process, both performance. turn on In improved results and and refining cleaner turn the reducing time we efficiency, driving company's key as better such aircraft efficiency, in much best a overall focusing meaningfully execution, and cut turnaround our costs had aircraft our boarding experience improving cancellations for

with that XXXX, were most traveling technology sky United and industry FAA XX% Despite blue and on driven remains challenge In delays even airline for the a of days, at clear public. importantly, ATC need. the the achieve by remain progress, Washington and challenges leaders staffing opportunities goal. the to We And to in look work new get engaged new parties the for both in resources and we'll FAA administration to with Congress staffing. they that and the

data last Over several months, just the capabilities our Air as premises they award-winning our And soon prefer enhancements customers countless to moved our culture innovation experiences. us as empower Apple integrating our app bags of and several last get customers' the seat to technology fueled the to reunite allowing it for so becomes employees years, automatically improve with their like has tag select that help has new customers they seat team developed available. and and for can

now other half automated app experienced customers into Spanish and XX% of these a enhancements higher. usage our app XX% enable on travel. channels even of to to they entire method customers Translating drove on In cancellation utilize back And digital XXXX, way, year-over-year. a or our self-service a with the get day engage our increase their who nearly

their to more who United, have differentiate control At need culture proud and customers even our industry-leading innovation brand to the because most good choose who this customers our reasons United. happier leads our app it. who over we're employees, and of help has led more to of Our customers, effort it's way to to travels time more have central give

XXXX for in it to strong performance hand in expectations revenue XXXX. our to I'll and revenue that, With discuss review Andrew our over environment

Andrew Nocella

revenue day fourth capacity. record a after backdrop the as improved history, constructive. industry by the X.X% TRASM Sunday shattering increased revenue the Thanks, The in QX Brett. our became environment for was Thanksgiving best materially XX%. The more X.X% year-over-year on quarter United's increase former in capacity

with as RASM in QX project domestic as with capacity sales down prevalent United's will are in are profitability. capacity discount domestic underperforming rate is environment QX. accelerates. The RASM and airlines less increasing improving pricing at X.X%. X.X% business unprofitable We airlines turn remove growth traffic an Industry positive fare increased solidly domestic prioritizing lower rates

best pretax profitable were XXXX. difference hubs the last recorded a spread narrowest and the since between XX the performing months, United only a with we worst All the QX hub, in margin X-point in and quarter for

strong plan. network with as margin is we expansion our Next room United very Our for health continue

us critical larger of After on execute to narrow-body terms our was to to years star mass which RASM growth to international a gauge. the in relative of increase waiting, starting we're quarter United aircraft, also the clearly allows finally of capacity gain QX. of plans

the to to double right outpace international move. during international result, the continue domestic it's United's XXXX. a to and was margins down pandemic be margins As plan on in proven client,

now X.X%. capacity last and for the flipping digested QX single reinstated XX.X% from QX quarter prepandemic we now last with PRASM slowed China margins are X/X Pacific and Pacific year. the of down high in capacity across headwinds averages. in levels PRASM moderated, Pacific the digits fully increase to was in our resulting United XXXX, a versus above versus has region up capacity up system that profitably have XX%

as XXXX our into margins mature. head capacity [indiscernible] past, the added half the to Pacific We plan in we first In the of Pacific routinely XXXX lagged. moderate growth

our made flights are possible in assets extend XXXs the network to Japan from recovered unique We demand and Guam that number lead of do support initiative XXXX, load from going launch has scope. service new U.S. to to to U.S. operate a grow the the excited base will factors Asia this During redeploy origin we to unmatchable anticipate to efficiently initiative not pandemic. our a We're by on Narita build fully trans-Pac local destinations largest an as where to carrier nonstop still the not underperforming small

capacity [indiscernible] Atlantic for year also X.X% XXXX up QX United a Atlantic growth year growth no a on in the was rapid network, the the for We great after flat pandemic. the XXXX region capacity. PRASM with and exception in was entered post

From positive the Our extremely double ASMs. are up low I history. RASM in XXXX to December we capacity United result And continued plan the be growth U.S. Atlantic RASM company's first carrier middle well. the worked months Atlantic to best flying largest to support All QX in quarter QX to quarter over financial by XXXX, plan see year-over-year expect for we have today, with the strength. our what in digit. PRASM is first in

the regions other America trailed throughout Latin XXXX.

important it's in was early challenges. positive. in profitably PRASM XXXX note to is the continued operate these to for the and QX, despite outlook United region However, slightly up that

[indiscernible] was with international exceptionally the really the delivery up reset flying. Overall, for quarter jets rate years come We strong. flying new sets momentum wide-body fourth sluggish global of along to well believe international industry the the for a era in in long-haul

revenues was nearly up Cargo for for very cargo. the also in almost year up versus a a XXXX. very quarter XX% XX% were and strong year. It QX good Cargo showing had last and year in

QX in in The business this our clearly QX for shows outlook and nice corporate volumes. strength was in tailwind traffic recovery traffic a yield QX. higher Results

XX% Flown in year-over-year. business revenue QX grew

expect sales all were We for quarter in year-over-year. QX, up in business business-focused for that trend our network. the tailwind travel Contracted which is a future to continue XX%

to premium positive. no year. in and basic Both year-over-year, our We increased XX% experiences, most revenues trends increased have we also see cabin revenues unit but premium the product. persisted seeking behavior throughout were committed passenger Premium remain out consumer change

million versus increased QX, X X% healthy now at passengers, pace Economy domestic acquisitions. grew points Basic X spend a new revenues and In XXXX. Co-brand Loyalty was in passengers up XX% year-over-year of X% at card represents up with XXXX. XX%

XX% now, milestone deployment by be product. the interior complete to we installation Turning our signature of of of to at expect the nearly moving year-end XXXX. the quickly We with reached of work fleet XX% end XXXX. a With as were of

of we seat content the to United to XXXX. full available ability all to rich end everyone's the personalize a XXX,XXX of of by Across better passengers expect experience with entire network, our have [indiscernible],

quarter make Southern deployment effective. you the to hubs, and the quarter. is to a time of can in we the first day traffic that more week of European also continue of improving the outlook, very As from performance see across our tailwind. progress our vacation desirability winter financial days Changes on corporate capacity have to Return and been of

more our versus announced we weeks be tracking As Starlink U.S. schedule elevate yet plan our creating product, other a offered a and we're Wi-Fi often. customers on one for-pay material few more Starlink services use is United's brand slower of will which advantage we ago, installation, ahead more to think a by action carriers.

in year, lead. product more share optimization the will We coming capacity merchandising our and furthering innovation, on

talk we creating enhancing expertise. will our shareholders. We winning our believe also Starlink is our and these new the complexity a products and proven digital how and choice, for more Merchandising, of We believe multiple that sell-in unlock is managing will experiences benefits the of customers about segmentation host more formula.

for say I our thanks United to Mike I'll entire it off hand XXXX, want to and that, amazing to the about Mike? an With talk to results. financial team

Michael Leskinen

of We above earnings pretax expectations ahead and $X.XX year-over-year. guidance brought with share per initial fourth X.X midpoint record $XX. Andrew. our $X per the strong quarter of earnings delivered quarter These to $XX.XX, results share to range our of a earnings quarter margin year up fourth of X.X%, full of points Thanks, fourth

incredibly the Much the strong Andrew discussed. for tremendous the to performance quarter. I'm of due grateful success success But revenue of this just of is a our is operation, operations that efforts team foundation strong our this and

still in operational Our and the airspace some we of performance the congested delivered during most industry-leading world, hubs quarter. are in the

also time on with few runs that and cancellations operation more an operation. Importantly, cost-efficient is a

XXXX, Finally, the [indiscernible] market S&P for rate the we XX the fourth in last over the I'd stock recognize that In months. like the in believed we've to business. nice performance is in delivered. shareholder potential long I've celebrate our beginning best-performing stock to our given were the value XXX. improvements structural It's the

to earnings approximately For the per the improvement $X.XX quarter first of expect million quarter $X.XX, year at the midpoint, XXXX, share from implying last a X.X of team $XXX approximately what we The first our an an to pretax in margin. job historically to shape match point great network improvement the commercial been has of demand in seasonally done has quarter. of continuing weakest

Further be year per building XX% in off represents momentum, expect full share share versus midpoint, the first quarter and XXXX XXXX. growth earnings $XX.XX per between At this we to earnings $XX.XX.

air -- toward of march We decommoditized is growth We've expect earnings similar have we low pace pretax double-digit as a we a decommoditized sustainable travel. margin.

Our United operation both the continues plan deliver is strong profits. and sustainable to and Next more higher

United and offerings competitive setup less we with cutting better, industry Airlines believe to been succeed. never and routes uniquely are is frequencies. has money-losing The positioned

the was quarter year. On capacity last on X.X% versus of CASM-ex up growth fourth X% costs,

we look are enabling while we improvements at the throughout also employees be business efficiency on to customers XXXX, As to driving for their effective focused experience our more ahead and improving jobs. our the

year, we agreements expect not continue pressure to points yet the X of For signed. from labor our X to CASM-ex

AXXXneo fourth X to aircraft Boeing planning to of and aircraft. quarter, Airbus Shifting MAX XX aircraft Boeing we narrow-body the are XX XXXs. aircraft, In of gears XX we XXXX, In delivery wide-body took the delivery fleet. X take and

full the That's spend But we to below which below multiyear the been billion less, delays, in year our our had $X leads expected $X to planning approximately are to of XXXX. end be narrow-body CapEx XXX $X production billion for planning billion. aircraft low due guidance. to we OEM Recall, deliveries for

generated balance Turning free sheet. to the including our We the $X.X undrawn billion We $XX.X billion liquidity, in ended year cash of with flow. revolver.

remaining or high-cost XXXX, X.X%. of refinanced which down down cost $X.X now debt we prepaid to our prepaid. debt, billion of billion paid In $X.X bringing we our debt, [indiscernible] We've of COVID total voluntarily

of was Xx. our than at Our leverage to year-end, long-term less target we improvement as X.Xx net progress net an leverage make

In undervalued for with in firm $X.X year earnings we $XX We expansion. On buybacks. leaving the authorization. believers and of United quarter, stock to margins we continue as year remain million multiple shares, over left is grow further to billion worth the that repurchased after room

to billion in advantages to the XXXX. in build we Finally, flow Airlines beyond. I at and to I'm priority. the United excited around growing want upon continue reiterate consistent $X.X free brighter, future and cash The and free And we generation top in our flow a XXXX, remains XXXX competitive never looked targeting has delivered cash are

back Q&A. Now to start the to Kristina

Kristina Munoz

Thank you, Mike.

We will the Instructions] from Regina, ask to questions analyst community. [Operator please the procedure question. take now describe a

Operator

the first David [Operator Our from Bernstein. with comes line Instructions] question of Vernon

David Vernon

how how contemplates could improvement of bit of to year into about Mike, the talk you get that So guide? in little kind the seeing you're a out range a trend sense us trying reflection maybe are I'm and where putting for much XQ for there the a full extends we get just the we things of year to where you're kind or whether today from of better today? are continuing that for

Michael Leskinen

and with question. Thanks, points David. the had of and to We points us I X of setting expansion well. policy margin philosophy, expansion long-standing margin in QX. I of that delivered love a deliver over X guidance served has no-excuses a expect X in again We've to QX,

half that even even of guidance. easy, do kind our could continue strategy. so of the to us imperfect our longer-term single and year sit pretty and God hallmark build better guidance That's of deliver back full that opportunity here It's than guidance think a we we for in in into our however, We'll to conditions. act of the year there's a

David Vernon

that of intended range incorporation about course the clear to All potential the right. of well, And just some the as correct? then includes deals in guidance the be [indiscernible] year,

Michael Leskinen

always does, it Yes, it and does.

Operator

Sheila next Jefferies. comes question Kahyaoglu of line Our from with the

Sheila Kahyaoglu

on great Congrats, results. team,

for maybe $XX you one is since the in script stock Mike, you is QX. with back this So million only ended undervalued, but your bought

earnings for free $X.X So in The is cash is less XX% growth XXXX, up flow guide great expected. CapEx billion. than and

So with it thinking prepayments your billion free versus $X.X billion flow priorities repurchases? to leverage in How north your cash deployment are as well targets suggest share 'XX. voluntary you of would the $X towards about

Michael Leskinen

Thank you.

invested also performance business strong soon our The Let the years, me our the it billion been authorization our remind was over announced that late in our everyone central has people, increase as we've share success. to a in X last $XX valuation, just last year. which steep buyback as and we

And of the balance It conservatively. out to shares. started in we so our buyback, approach. seems this first balance reasonable now, regarding and like sheet a improvement Right gate have repurchasing quarter the we our

I right approach. that the so think And was

We're year. my to out really stock were see continue of mentioned so the XXXX. And last to an see shares S&P I pleased strongly. the as through you'll forward moving that move repurchase opportunistic we XXX #X We in script. of

$X.X this I'll multiple that. that on, really I'll that authorization, be during add we're also reach We're Xx deliberate got about in calendar billion continued deleveraging year. net really, we we've leverage to you expansion. -- going that to we remind journey expect below expect that this the

Operator

with from comes the of Our Conor Research. next Melius question line Cunningham

Conor Cunningham

going from lot to how Economy, Basic there's bit obviously how you Basic of in on a the years guys. you that changed the of seems that discounting Economy? just Can the I evolution It talk is this maybe how structurally you evolves the equation in the approach big be premium couple really On an Basic a had the how move talked industry there's side before less, barbell and going there in about about low-cost script, talk a just deploy Economy overall. Is the you -- is deploy you can to -- that you're like -- about little industry changes? mean, last

Andrew Nocella

don't the the effectiveness grow would next gauge. Andrew. to out with Economy, we It's particularly Conor. XX as incredibly change happy months, our Thanks, as of intend we I look that, we're into that Basic say we

what seem it do, of there done we off it's to to a me exactly it more points. we it better does competitive tool, the do. wanted we Obviously, the actually As are. And are

to of of here believe through but We And in balancing are offer being fly where product the many signature United entertainment, to also we're recipe. spectrum and a interior go and that broad types free XXXX. seatback premium, is choice Wi-Fi the for lowest get possible multiple our in basic you as that quiver it recipe a fare change consumers able not and truly winning clearly going to we

Conor Cunningham

performance speaks to maybe a there's And ton your relative [indiscernible], a upgauging. the on. lot to obviously, we Okay. Next and talked so environment delivery adapt to big your And margin the about picture, obviously overall. then But of willingness United delays been

seems level just to Do understand still United uniquely from strategy. a lot opportunities that your I'm into that It points multiple that So trying there's you forward. you baked of XXXX? have the have like on these you around upgauging have going just conviction margin

any Just thoughts there.

Andrew Nocella

not a think really important I gauge is think, -- it's Look, secret us. to but it is, I weapon, Yes.

XXXX, moving lot. for utilization delivery proved back have our not been extensive, be is For gauge to put and The decision to the full XXXX. ability right to delays RJs a

decade, the great to we is them customers our highest as these incredibly out gauge for be of say possibilities, can because as have great through the bring I the scores look the end business, for we aircraft high-end cost online. test great I is our unit believe have going for What and we which new

aircraft. they're there's us We use So we gigantic an but now related local base, hubs from a base, allowing are that gigantic from of to these larger in think also gauge. runway incredible operate to gauge amount connectivity population obviously

on behind this. We're

AXXXs we summer, XXX seat people. had this think that I XX

we XXs. United's and are XXXX. gauge [indiscernible] to in over over have, is competitor again. line head aircraft as aircraft still be our narrow-body tailwind that's XXX the going probably meaningful we think, highest-margin into summer, XXXX behind large to margin country, that acceleration The I and aircraft the And the Next and a nearest

the pause bandwagon a we bit look back forward year, gauge beyond. and but a on XXXX getting XXXX So to in of is

Michael Leskinen

Mike. add there. point This is just to want an extra I

starts look Andrew the we to 'XX said, really accelerate. into As gauge and 'XX, as

so an United benefit idiosyncratic really in, and start And it becomes kick 'XX in to 'XX. CASM-ex in for

that coming benefit the seeing in for see not it any guidance will years. of You're in of but calendar this year, our you

Operator

comes next Brandon of the Barclays. line from Oglenski with question Our

Brandon Oglenski

Congratulations, team, on looking is with obviously, just was gauge, here. year what ahead, comment that's out a great expectation outlook maybe up Mike, following that, presume and years including And some a that on in I about the good XX that MAX mix?

Michael Leskinen

We We MAX that X. will some the but the United. real be MAX is are improving gauge important more XX becoming hopeful Boeing the are progress with XX. on more The That's an becoming correct. starting their We're aircraft, business. MAX X to bullish like a in make for we MAX great

Andrew Nocella

X add, increase the or going our XX, just I'll whether gauge MAX it's to is a lot.

us, If described AXXX ago. XX helps So the only have what do it few I further. X be available the the I'm to would on the and minutes great. to a counting that we XX But even

Brandon Oglenski

little constraints the on the for elevated What in And those as with a gauge? follow-up, maybe Andrew, look bit those is lines, here. especially on capacity growth XXXX domestic domestically, are your you network priorities my in

And the comment domestic like solidly on bullish it is looks for PRASM XQ. positive pretty

elaborate you can on So those?

Andrew Nocella

with hub. I guidance that is And incredibly and months particularly the and whether it's our hard, back. by been really think see week quarters to capacity, along or in we how the QX, fact working off-peak day for like readjust you been We've coming it or that traffic business deploy effective, Sure. be

and the that So better. really pretty is we margin this moving we're in off-peak periods the can by right close optimistic making direction, gaps

again, the think and are this focused fantastic, connectivity building hubs. Houston and see the said they in our particularly but where hubs our lack past larger Denver, in some level really we XXXX we Chicago, say of connectivity it I've that As structures, OA at on of same better in about I'll our bank and we're

going be I our be And as which materially results to so is forward. close think that really in we to we're for XXXX, going go to good gap RASM able

at So that focus this XXXX will our be in point.

Operator

comes the question Ravi Shanker Morgan with from Stanley. next of Your line

Ravi Shanker

guys remarks. we think question will differentiator a do been has of kind be, How out? like that the Any prepared can thoughts and maybe on mentioned that Obviously, couple a Just a much [indiscernible] on in what that Starlink. that? your how you you of times initial of performance rolling

Andrew Nocella

have we convinced We Sure. And things this going be about of say changer. and United. the ton absolutely most feel game are this the to product to is did one It's an products all I this a XXX% at of a is excellent excited that alternative question. on research and

front. lot and ability you're But question I customers, unique on our free of including think the going things games to MileagePlus, -- a big with [indiscernible] is see Fast Wi-Fi grow this device on and available is ability to here unleash and our the personal going to us, really to think, I game to amazing. your the to -- have on be look,

to can be going in One see our travel fleet. probably doing less I vast in to for screens of future, but in opportunity comes and service personalize screen [indiscernible]. way the are also content factors the going majority need that obviously an And think of customers the United. to we deliver advanced unique service that a have for be better, able our monetize from with others advanced maybe we're make I which a friction, number that we we is think an And the where particular, We don't. to

size then have, competitors do. us our with allows program think that innovative any and And at Second, United, you a that really size with recipe. our do way don't we'll which combine legacy which to I of a here will it very in could major connectivity, a of have, older it not that MileagePlus, I good Starlink spirit think is Wi-Fi services

excited we're possible these front. be and prove do very you can I that it's as on in to investments. we forward. But excited with made need United We're very hope coming years think being this unique we quarters show to this what go the we out this. And to

Ravi Shanker

momentum time long Any those the be Kind the of since point creative hinted a the at really Maybe program. Or year? with giving It's you possibly That's guys this going Investor thoughts Can year great. do kind how helpful. world potentially some updates changed some United is has of with hosting items? with and to follow-up. lots Everything doing options well. you pretty gave a loyalty on Day up about Next, of us been it Obviously, Stock's you at potential greater? for of us a set lot that picture big to story. last think since.

Michael Leskinen

Ravi, the thanks but to disclose it the -- to makes program, question. for see value still start when that continue in for business. we're to on data we sense loyalty And going we the tremendous

We're still Investor of Day. discussing an the timing

However, really getting and calls these all you conferences. of during message we've investor to earnings our effective been

Unlike that. call are manage a And a focus giving our term. flow long to we much Investor free earnings Days. example you guidance. is on closer our a the lot you give our investor today's a more other commentary We cash calls We as like good with business many airlines, long-term well. of We're manage calls

but precise stay is today. no on An timing an update Day Investor tuned. So important tool,

Operator

of line the comes Baker with Our next JPMorgan. question Jamie from

Jamie Baker

a last summer cycle outlook year? thoughts than We're past, model new a last seen Andrew, seeing what been I with think particular maybe for Do that capacity since from that on experiment time, in Or stand? perspective there that that life about original your was we've comments Domestic [indiscernible]. has tightened. airlines. you discounted articulated the Any United's you in enough brighter it little discounters Obviously, talked bankruptcy. the evolution still bit business that? is has

Andrew Nocella

still largely Look, it I think stands.

and lot less each great there's but think we a at as what we're At United, at what a expertises, maybe. we're think I we have of we intend said great few Scott things, don't do we we're do. our to great and at earlier, things don't

premium we But generations complexity to in the came management think from basic and that the product the very and manage me investment of here today. of And I the room team types many space. in premium because of it's before well do

fingers can't investments just snap and you those And your generational overnight. make

remains change the amount but of I'm be bit effectiveness surprised to seen. that So the a change, of by

we've proven. it going in now of XXXX. of to do effectiveness for has putting been We're The in what been more years place

at life So this that see I terms of range experiences level don't going anytime and United we're of still cycle broad And products went through soon. I think of compete holds. that to I airlines the in expect

Jamie Baker

capacity at And And created you'd analyst it that investor several that ago, then exact words, Scott, or remember was it is that up asked equal, be? is and but it for idea clear was you your think what I all equally would one don't all basically, I I said years quickly capacity you if could the a you confront misperception, bad. conference,

you lot answer a in think And in spend time opinions you know time? topic? my would your of clients. Mike if simply terms question and same but where be had do You have are second the front of addressing on asked a capacity this, I I that I of the

Scott Kirby

on Well, definitely what that think answer I would the if I'd a equal. not all have is good say but I is don't been regardless. same, And created answer know capacity the it's

airline is to it doing United, service because you disaggregate that's customers. fourth you is you same, we add -- good different -- industry in at an route a quarter just like is growing. even look if the quarter, reach conclusion the at the in by capacity for And the look Delta difference total than if The if first frequency if tend you'd or look probably you who

been willing load are We factor. integrity. just maintain appropriate, only chase because from and we don't growth run We've much industry carriers who that's some don't lower less lower chase We it RASM on factor. load loads load than running to a factor factors. manage negative And load impact pricing has if

also that to to thesis that, going could it's the correct. it's a is I quarter proved close but continue was to come, years think which in growth for be that think to created discussion, all continue seeing anywhere to years the and you are that long I the -- equal the and so Results and fourth not today. first quarter And come. results for going in

Operator

America. next question Didora with from Bank comes of of the Our line Andrew

Andrew Didora

few Maybe product, be connective, in kind spend revenues of Starlink, total each to invest Scott, year to a your little bit. lounges, And coming whether airlines in Andrew, et you a back most That's than that XQ. double year. into per billion loyalty continue dollars cetera. up more digits

these online? next thoughts So maybe speak a can Any investments traveler this over would few maybe as how changes you them opportunity loyalty there provision help be appreciated. value -- these come And years the frame the over to for you into growth the the think and time? drive program

Andrew Nocella

is are well but technology, about incredibly opportunity. way. And on It require bullish I MileagePlus couldn't some we're few I does some connective strong. our foundation be the ago, we and the Look, and -- talked investment on it more whole a minutes

we'll number. percentage in we did, think, goal look, is XX% industry we was last And amazing, Hopefully, with growth But year that for than more I terms. think. And lead our year in pretty revenue. this that show that I the that loyalty

And so momentum at this is we accelerating believe an this point.

double and it prove like beyond. them [indiscernible] media, particular, intend head our year. and double to we again following into need We them media in we XXXX to as sales, the But next year

lot lot work. it's of so a opportunities, And a of

We have execute board on that. on to help a brand-new team us

we do personalize much more, I that as MileagePlus even our more base. the service attractive think customer more that And and and we make all to just

that with are credit We issued. a effect flywheel more cards have

year. million we I think do about this did last year. X We'll more

it's at a more there's come. So time, more. it well, and appropriate and exceedingly we the to, And going think more I lot to look forward just disclose

gave the in intend And interesting I fully the personalized our story. experience this. we are onboard think, I quiver that related friction for a you an delivering, But in when I it's many best we travel particularly customers, that our unique will more our to you're of things the think while which reduce to look, aircraft. think of to exploit the lot, air ability

do more say to going in great the to and we're a to deliver and lot there's use we're So course. these customers, our service screens that on going going we're how how due to to

Scott Kirby

pile that on real quickly. going I'm to

the from of of they not are those the earnings -- Just MileagePlus, only quality a the growing stability high-margin rapidly, business. earnings, the but

all do highlight the going our question. business, think grow that to Thanks that about for in think hard we work to that As something on. it's time and stability, as disclosures differentiated important I it's goes we're you

Operator

comes ISI. with question next line Evercore from of Our Pfennigwerth the Duane

Duane Pfennigwerth

us about you've some for the really of seasonality on over as didn't the years. we relative network made Just breakout United. think quarter margins changes Historically, maybe margins, of of can for you remind the first a quarter

So geographies? pre-COVID? changes maybe changed made? flying? have what Is Is versus you you're how What's it it

Andrew Nocella

buy invest a are how to is But and products an meaningful Well, brand you things lot we experiences. just of often. we're it's I is multiple think airline and across -- look, pretty choosing have would definitely look, multiple more people that I in all, more that. rising we board of say And as first I and the a

So I think like we're really And just foundational. that's of proud that.

nuts careful, changed Now bolts, with and yes, work schedule how utilization. very has in the very, a lot. the in particular, We're we

it. first adding year. doing the last perspective, sake of this that the a Just And for didn't ASMs, we're proved we quarter do not idea industry from and flights not year in it great was we

the actually In lower year fact, this for last our is rate. utilization at current probably rate year than

business it's important. but hub, within day, goes I I think by in very on have and by been best and aircraft quarter, at it's sunshine deploy not being that it's we're But capacity, changes, think, capacity, all the we're And only type. more the those So really by how the it. careful week, we including

always after of point right corporate what And to a see the is obviously the pandemic. we uniquely be pandemic airlines, then traffic exist business-centric thing, last will them. for think is one QX, the strongly traffic during the or strength in corporate coming that United today back beneficial And I very didn't which which QX was

So that's really important.

that year-round is is is thing fact underappreciated destination. maybe think becoming that And the a I then more of the Europe last

And so not just Southern vacation, from through where go XX so did it, particularly so result always and now are a to a great great. mid-March. people we're on way is to And January seeing the polite Europe different say European that's totally willing

all some them it normal, And time And by that by you put really those of and That long industry deseasonalize together, time, created was of better. connectivity business traffic the years a a our Lufthansa the at deseasonalized builds them number to United with same really Heathrow. were a back back same lot that a our at QX come and helps our in through proud way. to look created hubs London of goal we're lot ago, and factors builds Europe, changes, to we've make dynamics schedule the say

to still, long long come a way. but have go We we've way a

Duane Pfennigwerth

path And pre-COVID. margins of which to really a That's just improvement to bit on the helpful, relative Andrew. and implies double-digit then

on again, do this serve international higher maybe and Is next balanced? about touched holding Or see You few it structurally the you over in remarks. XXXX necessarily it prepared on really in years. your a margins answer, not And domestic? but more

Andrew Nocella

to particularly Well, off-peak my the in think higher, but room periods as said I better. opening, by they have are making margins expand, international we

remain we opportunity is but on there So that, international. about excited an

hubs, we're that gauge Mid-Continent from we a opportunity be gauge. where We're off still as also reached seeking. on in want domestic bit on mass There's our bigger on particular, connectivity that a of critical to

pause As a bit we said, is year gauge this year. of a

going which It's focus XXXX gauge, efficient. But to beyond, to in going further. hubs connectivity our starting really in is the on even incredibly and we're unlock

And all actually I'm incredible competitors optimistic putting of gap our given us an start changes more so margin structural to the growth the happening international. we're and that upside. around close in And place domestic in can system, we amount what's the by has with

gap I all at I don't we'll close But close unbelievably don't I strength at think just And we'll gap. we'll -- say the close I the to I look well, -- this have right point. is way of some from of the the now. international it gap. strong

there's as decade wide-body a engines the think supply So through and just And years. international this end of coming we constraint is confidently going at think, the we for when aircraft that wide-body way, to to the to it beginning, I continue significant the point. lead the at last comes said

Operator

Our next question Scott Research. with of the from comes line Wolfe Group

Scott Group

confidence of making I you the said that your in it they little adding guess guess others money as domestic a more in years positive capacity start that Scott, risk think gives and of that story? the maybe turns current pricing one what's mind industry part the go. the to bit questions, what duration and again? I start the on the backdrop earlier chasing you has you

Scott Kirby

has just the by is And economic this answer driven math. been Well, it's short reality.

X on in a get be X said gave people York to Los a will New airports I Angeles quarters. how profitably or back capacity and I like the airports stats As it's at see flying more little things prepared some Chicago won't But fly positive or San the Francisco. that or York, carrier New I some to put in mean big remarks, my more try or expense low-cost doesn't to of and possible just don't

is the Like Like only priced United the entities doesn't and airline math. carriers business that out it's the model just capacity. low-cost Delta it. work to And those way the has just low not margins every in have to that fly has solve don't governments of And that market. look unprofitable because like

and But come mean because that. to be cannot out downs is ego profitable. do didn't going be it involved There'll they'll along is overnight. it it That ups There it will in math, be ultimately, and way. the some

Scott Group

Or Okay. And all unique is numbers year? question. that maybe just, a a the outperforming something clearly has about have RASM Does Mike, XQ spread CASM. guidance then contemplate you there positive X you the to labor. know talked Anything want else on? on side know about X the XQ -- add I cost points color And I don't you strength? from to some

Michael Leskinen

Scott. Thanks,

try about to be clear me it. Let

the year, exceed to RASM full For expect we CASM.

expect well. We expect expansion into margin expansion. margin continued continued 'XX I as

X in I costs buckets. costs, think Regarding about

I the think going Those to to costs pressures, whether that costs, industry-wide consumer, be costs, whether are labor, be airport be passed that through costs. food be inflationary fuel that about XXX%. whether

-- that persistent. #X interfere costs costs, the bucket that have but of It's well frustrating those at been make as those those we profitability. costs inflationary our should do We sure need to long-term that industry with as regarding not least

bucket X will I And do second operation. of efficiency in is largest that into break 'XX. earlier, efficiency into that B. kick The United and what an drive airline at really Gauge we I'll as as said can the in A is to 'XX and the categories and measure in

team with doing efficiency, our got great business driving operation better best in more feel we're app. We've digital in in we job But tech do with to we'll doing ops a that We're and efficiency. than the drive category. the technology the average lots

is XB more is though, a more the flying by driving off-peak. and flying that during There in efficiency red-eye situations,

of it that that our not does some way We that. it flying it that, maximize competitors I doing feel utilization, And in prove are does is to is, down results drive that our and profits. CASM, think -- drive but

United Airlines in see not way. drive will you So efficiency that

for, that, service And to several of then more driving the decommoditize in the think years, and it ever the has it is third higher mission business. that that differentiate I investing a margins bucket been product to is one has and for that this stability decommoditization is on clearer product and than is And United the been to business.

by CASM, will it we So United continued see that think drive expand also but will margins. investment you'll

Operator

next the of Fitzgerald Cowen. comes with question Tom TD Our from line

Thomas Fitzgerald

the in you my how if that on could to business about great AI revenue on side in thinking deploying I'm customer you're release results. other gen Congrats And about wondering us search. already on the AI caught There press the the thinking you're update a expedite impact, utilizing line the the or or on was areas and eye gen in whether operations?

Scott Kirby

leading the digital the team in We do have business.

maybe think, can as all that and And operations. impactful lot big a of as I kinds gen app, not sexy in in ways whole kinds high-profile but really of but using more the some You have all be see we analysis, effort, for been, of [indiscernible] places. AI see you airline the the in

about of them. some talked You

terms communicating better most ever getting we has are One that delays of they are And with and things airline how in we're the of it is much in any understand. in of I'm better at there history proud when than explaining that. and better been customers

the No that. We're even else field. think inning it. trying of to I first one the the ones is on do only we're

other maybe of in one applications. important unlock has that. gen But been AI interesting an All the kinds -- of

back some And of someone unusual decades. over that decades. what have provisions to these [indiscernible] in contracts labor that when up have these XX, mean calls contracts built XX you all We a experience got or that with interpret situation. labor trying years And have people go have old they've the

to to always And -- the interpret right, know. are literally get didn't know of they some try to and always those provisions out figure people and of that hard hard team a and

me and really output But really, is. entire the down that read just team example. is can you answer organization. means of the Amazingly, give the in small contract our gen what That's good AI to is a a what

what's some project embedded like call driving leading talk that It's about but innovator around forum, sexy us the one other technology of in any the part the some question, to isn't be, world. airline really on of This organization. organization, we earnings without or the throughout cool, an

Thomas Fitzgerald

you sunshine XQ. domestic the really Andrew, about I'm broader thinking Florida That's network? color. just you're of talked helpful about in And then capacity And a as adding success follow-up, just curious how and being improving part the

whether if opportunities a -- that themselves if love hub, focus hear a there. city larger to thoughts just present or to possibly region, And in new there's your maybe get

Andrew Nocella

good -- question. We

anywhere on think close we've X those have it making all great focused hubs as as And to my And here, We be. years we're been hubs. don't can that. great for I

want shares country, as us to and look still to the can at relative more, competitors around [indiscernible] rises, increase. is in our our are relative hub low. I gauge our to you market shares hubs can you And fly our and see other going And people think

That's there's very a way. the earlier. will we're Mike And as hubs. margins to our going we earnings that foreseeable in grow hubs, our always be growth. our of say to talked future, to for But continue lot grow for on opportunities and So not it focused and about how be that that's now our

continue what will very is we franchise. But to successful build Florida a on

and of Southeastern least done But in we're for hub a our tilting Florida. capacity it's in it. the incredibly percent plans think I no at there's higher short well, into a term, the

Operator

Catherine Sachs. question will come the O'Brien next with Goldman of Our line from

Catherine O'Brien

you. Mike, for one

guide, the high-level on about we your of should be color different us thoughts you've thinking more for takes given and to puts CASM you a respecting and over give buckets some on of don't 'XX. already years, the next costs the was just couple While hoping get

impact how timing does don't should X to? have instance, And be ratified of a that you aware that If labor to contract, for of lumpy potentially else you've headwind quarter-to-quarter? we of attendant spoken X the points flight anything

Michael Leskinen

timing going headwind. it to thanks for to talked more push about timing of expand points the me of we'd to the left, And question. aren't Catie, XXXX. a it there of today, flight the if to the pushes That expects the X X attendants, let try edges. a which the deal labor labor We we discuss little right, If then that around in with to a be pushes headwind. headwind we anticipates a that were have that would but to bit less of earlier, expect

into even driving that revenue we I point to X would pressure a more are X.X have point of business. investments from the say

or here, feel about pressures peaked started we so abate. longer we they But And really have I have to overall good have as months does X might It industry the well. as sit inflationary the we seem -- at than that have persist started level that like think thought to and XX ago.

that hopefully, helps. So

Catherine O'Brien

Yes, it for one as maybe Andrew, you And well. does.

an cabins, this products more yet? managing this into we adding about helpful. this super for lean Can you more of the would through where the Is of are expertise Is area of else forward? to going cabins? complexity talked being thought team. us more that there help opportunities think Anything more and adding something maybe existing varied more choices You to your haven't products even be the

Andrew Nocella

Well, going product that going say to to than I'm script, said to answer think other I in I day. won as good that's and it question, choice opening today. has not I'm a say, really the my

because some expand understood. of few kind the And to there people choice opposite, ideas the and product product choice a merchandise are ago, has that, forward. go years ever including have the all which we on innovative We you won But we think as it's the I day. back ironic saying go never if

convince that was I talk more. Investor we'll do That to Day, when Mike obviously. And about joke, an a hopefully,

exciting be we But we're going away it things I but the point of to a for of not bunch are give innovative working customers. on very think are today, to that all our that is going

a lot investment a to come. more more there's occurring. lot So There's

and marketplace been today earlier, the said time. We we United to and these multigenerational accelerates wish latter we we've working last few it I head a of part announce bring to could it into lead. the has But And sure years lead think things decade. this take make the And as even sooner. expands I that over

So there's announce, quite a bit more but not today. just to

Operator

the switch We to will question media Bloomberg portion the News. of now Schlangenstein with will Instructions] first [Operator call. from line the of come Our Mary

Mary Schlangenstein

ATC The concerned and that, ordered its of the to rescinding churn exist wanted and critical safety United individuals employees some -- FAA to the their the if Trump considering that issues? secondly, you may if job that are then and positions. review of rescind ask And with own increase cause administration I'm I the DEI is policies? DEI are has staffing problems the policies in wondering performance and DOT

Scott Kirby

United let for for and themselves. DOT answer answer I'll So

DOT that feel air control. we're the the about Although the they -- good have will on impact and and administration traffic

I think upside there's ton of there. a

fortunate net very people we're today that hire efforts we based coming and we're to we'll make merit. wide But cast we in on at a into the always But United, for position continue a employer, high-quality have United. to and have

we we last applications selective can who had take. XX,XXX of fewer than over because year, incredibly that, XXX,XXX we about In fact, positions. be for And

and the Well, best of we the absolute merit. diverse on workforce. hire do hire naturally best We have a can

do So the can proof results. and is the -- in we

in part We the having the the a best reason world. than huge is best other are of last workforce And the performing our years for COVID also in out airline diverse coming any the better the airline we why people world. of are but few a very

Mary Schlangenstein

that the a of say and DOT? you do upside what FAA with administration ton And there's new

Scott Kirby

just customers. our delays because control XX% tackling. even clear year, of and blue That sky of on days, last basic impacted Well, restrictions blocking traffic is And it on were airspace. of the air millions

on a talk And lot to Incoming weekend, even a airplanes. He He Secretary the he to when about level his focused fixing focused President, the is knows Duffy, I spoke fixing on lot also about it. I it. knows at this airspace.

and everything customers we're think everything -- do airline there they that is running think I That combined tackling, for be the basic races big off effectively. to the And else right resources, and is efficiently. And to as FAA bigger else the is that. will as run the And technology than the not like right blocking combined. going effectively get to on I the FAA

Operator

Reuters. come from line the Our question Rajesh next will of with Singh

Rajesh Singh

I to have of calling well X-part question. the discipline this view? are improved age of pricing. people airlines subscribe capacity U.S. some because as as a new golden it Scott, Do the you

but supply from perspective perspective And of due risk interest second, you because the to increased because uncertainty, do tariffs? also trade high from inflation and macro of see rates, for demand in any the and industry increase not the just

Scott Kirby

The age United. golden The airline brand to amount United of the customers the than service, is customers. to array program. are and way ever an the in airline the of is for down we've The the -- like this think all been in history, product I today, for wide So think, loyalty particularly amount Basic bigger at I who premium Economy. loyal products the it's invested

like makes a I And Airlines, for it is customers. well. think customers really United golden good Airlines United so choose That the that customers because because symbiotic it's as age of And and it relationship.

the supply into about Trump chain, administration. we're early question the On

in and entrepreneurialism. -- on of innovation So doing about at focused what's have lot comments happen FAA, to we'll this that things we're But and confidence American the a like I they're see administration just my going unlock that what with such. tariffs happens

create that -- the burdens economy. expand and remove And regulatory

think and is so to for Airlines. economy robust And strong, the United going robust strong, of I my that base is be case net-net a that demand

Operator

I will turn call remarks. over for to And now closing back the Edwards Kristina

Kristina Munoz

Investor we any look you for talking next warm. Media today. call further if the contact Please questions, to quarter. you to Stay Relations have joining and Thanks forward

Operator

and Thank conference. today's ladies gentlemen. concludes you, This

disconnect. You now may

United Airlines (UAL) 22 Jan 252024 Q4 Earnings call transcript