CHICAGO- United Airlines (UA) reported second-quarter 2024 financial results with pre-tax earnings of $1.7 billion and a pre-tax margin of 11.6%. Adjusted pre-tax earnings reached $1.8 billion with a 12.1% margin.
The company achieved diluted earnings per share of $3.96 and adjusted diluted earnings per share of $4.14.
United Airlines Q2 Results
United expects full-year 2024 adjusted diluted earnings per share between $9 and $11. The airline anticipates significant domestic capacity reductions from mid-August 2024, with a 3-point decline in industry capacity growth rate.
Three revenue diversity advantages boosted United’s performance:
- Premium revenue grew 8.5% compared to Q2 2023.
- Basic Economy revenue increased 38% year-over-year.
- Market share among domestic road warriors rose during the quarter.
United reduced costs, delivering CASM down 4.8% and CASM-ex up 2.1%. The airline generated $2.9 billion in net cash from operating activities and $1.9 billion in free cash flow.
In early July 2024, United prepaid the remaining $1.8 billion of its MileagePlus term loan. The company ended Q2 with a trailing twelve months adjusted net debt to EBITDAR ratio of 2.6x.
United plans to reduce domestic capacity by approximately 3 points in Q4 2024 compared to previous plans, adapting to current market trends.
United Airlines CEO Scott Kirby stated,
The revenue diversity advantages that we’ve built with our premium customers, Basic Economy customers, and domestic road warriors, on top of the world’s best loyalty program and leading customer service, have propelled our margins to near the top of the industry.”
United Airlines CEO Scott Kirby
“Looking forward, we see multiple airlines have begun to cancel loss-making capacity, and we expect leading unit revenue performance among our largest peers in the second half of the third quarter. United has long been preparing for the moment when industry wide domestic capacity would adjust – it’s now clear that inflection point is just 30 days away.”
United Airlines CEO Scott Kirby
Record Quarter for UA
United Airlines set new records in Q2 2024. The airline flew 44.4 million passengers, the most for any second quarter in company history. It also achieved a single-day record of 565,000 passengers.
United ranked first among U.S. airlines for on-time departures on 34 days. It finished the quarter-second in on-time departures nationwide. United Express achieved its lowest Q2 cancellation rate ever.
The airline opened a new cargo facility at New York/Newark airport, expanding to 319,000 square feet. United operated its largest schedule ever, with nearly 2,700 daily departures. Its international schedule was 35% larger than the next largest U.S. carrier by available seat miles.
United launched new routes to Georgetown, and Guyana, and added flights to Tulum, Barcelona, Athens, and Tokyo-Haneda. It increased service to Porto, Brussels, and Rome, and resumed flights to Reykjavik.
The airline added or reinstated 12 domestic routes, including connections between major cities and smaller destinations. United also expanded its Canadian network, operating its largest schedule since starting the Air Canada/United joint business agreement.
These developments showcase United’s growth strategy, focusing on expanding both domestic and international routes while improving operational efficiency and customer service.
Employee Contribution to Community
United Airlines employees volunteered over 12,000 hours in hub communities in Q2 2024, including 5,300 hours during the volunteer month.
MileagePlus members donated over 10 million miles to non-profits through the Miles on a MissionSM program. They also provided more than 350 in-kind flights for disaster relief.
The airline transported nearly 320 million pounds of cargo, including 33 million pounds of medical shipments and 29,000 pounds of military shipments. United flew over 110 tons of cargo for various disaster relief efforts.
United’s Aviate Academy partnered with Texas Southern University, awarding over $200,000 in scholarships to its aviation program.
The company donated $100,000 for Houston disaster relief and $50,000 for Brazil flood relief. United and its customers raised nearly 7 million miles for disaster relief organizations.
BEACON, United’s Black Business Resource Group, hosted seven Juneteenth events across hub cities. The LGBTQ+ Business Resource Group EQUAL participated in ten Pride parades in June 2024.
These initiatives demonstrate United’s commitment to community engagement, disaster relief, and diversity inclusion. The airline actively supports various causes through financial contributions, in-kind services, and employee volunteerism.
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Photo By: Caden Henderson (@cado.photo)
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