Published on : Friday, January 20, 2017
United Airlines saw a rise in the corporate flying demands in 2016 and its push continued in the first weeks of 2017 as well. Both demand and pricing picked up for the airlines as the executives said that during the carrier’s earnings call.
Passenger revenue increased 0.4 percent year over year to $7.8 billion during the quarter, and yield declined 0.3 percent. However, following the U.S. presidential election, the demand for corporate travel maintained its positive growth as said by United president Scott Kirby.
Traffic rose 1.6 percent and capacity increased 2 percent. Load factor declined 0.3 percentage points to 82.4 percent.
A net income of $397 million was reported by United for the quarter, down from $823 million in the fourth quarter of 2015. Net income for the full-year 2016 was $2.3 billion, down from $7.3 billion in 2015. The decline stemmed largely from a tax-related benefit in 2015.
According to the carrier, 2016 was United’s best year in its history in terms of operations. On-time performance improved 3.2 percentage points to 81.3 percent, and United’s completion factor improved 0.3 percentage points to 99 percent.
Tags: United Airlines