United Airlines Achieves Record Fourth Quarter Profit

United Airlines Achieves Record Fourth Quarter Profit | United Airlines (UAL) has achieved record financial results for the full year and the fourth quarter of 2024. The company reported pre-tax earnings of $4.2 billion for the full year, with a pre-tax margin of 7.3%. Adjusted pre-tax earnings reached $4.6 billion, translating to an adjusted pre-tax margin of 8.1%. Additionally, United posted diluted earnings per share of $9.45, while adjusted diluted earnings per share stood at $10.61, aligning with their initial guidance of $9.00 to $11.00 for 2024.

In line with its United Next plan, the airline demonstrated strong execution throughout the year. Customer preference for United continued to rise, reflected in significant revenue increases: premium revenue was up 10%, corporate revenue grew by 7%, and Basic Economy revenue saw a remarkable 20% year-over-year increase. Other key revenue streams, such as loyalty and cargo, also experienced robust growth, with increases of 12% and 30% year-over-year, respectively. Looking ahead to 2025, United anticipates strong demand trends in the first quarter, with domestic Revenue per Available Seat Mile (RASM) expected to show solid year-over-year growth, alongside continued improvements in international RASM.

Throughout the year, United operated the highest number of flights and served the most customers in its history. The airline excelled in on-time performance across all seven of its U.S. hubs, thanks to significant investments in its workforce, infrastructure, and technology—resulting in improved customer satisfaction.

“United had a unique strategy coming out of COVID and our people have delivered for customers leading to a structurally and permanently changed industry,” stated United Airlines CEO Scott Kirby. “2024 was a strong year across the board for United as we’ve become the leading global airline, and we enter 2025 with demand trends continuing to accelerate, positioning us for double-digit pre-tax margins.” 

Fourth-Quarter Financial Results

• Capacity up 6.2% compared to fourth-quarter 2023.
• Total operating revenue of $14.7 billion, up 7.8% compared to fourth-quarter 2023.
• TRASM up 1.6% compared to fourth-quarter 2023.
• CASM down 1.6%, and CASM-ex¹ up 5.0%, compared to fourth-quarter 2023.
• Pre-tax earnings of $1.3 billion, with a pre-tax margin of 8.9%; adjusted pre-tax earnings¹ of $1.4 billion, with an adjusted pre-tax margin¹ of 9.7%.
• Net income of $1.0 billion; adjusted net income¹ of $1.1 billion.
• Diluted earnings per share of $2.95; adjusted diluted earnings per share¹ of $3.26.
• Average fuel price per gallon of $2.40.
• Repurchased approximately $81 million of shares; over $1.4 billion remaining in authorization.

Full-Year Financial Results

• Pre-tax earnings of $4.2 billion, with a pre-tax margin of 7.3%; adjusted pre-tax earnings¹ of $4.6 billion, with an adjusted pre-tax margin¹ of 8.1%.
• Net income of $3.1 billion; adjusted net income¹ of $3.5 billion.
• Diluted earnings per share of $9.45; adjusted diluted earnings per share¹ of $10.61.
• Ending available liquidity² of $17.4 billion.
• Total debt, finance lease obligations and other financial liabilities of $28.7 billion at year end.
• Net leverage¹ of 2.4x.
• Generated $9.4 billion of operating cash flow.
• Generated $3.4 billion of free cash flow¹.

United Airlines Achieves Record Fourth Quarter Profit | AviationGhana