Published on : Thursday, April 21, 2016
“I am extremely proud of United’s nearly 86,000 aviation professionals for their contributions to these strong results – including the improvements in our reliability, customer satisfaction and financial performance,” said Oscar Munoz, president and chief executive officer of United Airlines. “As we accelerate United’s path forward, we will continue to focus on running a great airline today while innovating fortomorrow.”
For the first quarter of 2016, total revenue was US$8.2 billion, a decrease of 4.8 percent year-over-year. First-quarter 2016 consolidated passenger revenue per available seat mile (PRASM) decreased 7.4 percent and consolidated yield decreased 6.1 percent compared to the first quarter of 2015. The decline in PRASM continues to be driven by economic factors including a strong U.S. dollar and lower oil prices. In addition, the company experienced a larger-than-anticipated decrease in close-in business travel during the weeks surrounding the Easter holiday and spring break.
The company continues to focus on providing customers options to personalize their travel experience and, this quarter, launched its new bundled products offering, which is exceeding expectations.
Total operating expense excluding special charges was US$7.4 billion in the first quarter, down 5.7 percent year-over-year. Including special charges, total operating expense was US$7.5 billion, a 4.1 percent decrease year-over-year. The decrease was largely driven by lower oil prices. Consolidated unit cost (CASM), excluding special charges, third-party business expenses, fuel and profit sharing, increased 1.3 percent compared to the first quarter of 2015. Consolidated CASM including those items decreased 5.7 percent year-over-year.
Liquidity and Capital Allocation
In the first quarter, UAL generated US$1.2 billion in operating cash flow, US$376 million in free cash flow and ended the quarter with US$5.3 billion in unrestricted liquidity, including US$1.35 billion of undrawn commitments under its revolving credit facility. During the first quarter, the company continued to invest in its business through gross capital expenditures of approximately US$820 million, excluding fully reimbursable projects, and repurchased US$1.5 billion worth of its common stock, representing approximately 8 percent of shares outstanding.
UAL earned a 20.8 percent return on invested capital for the 12 months ended March 31, 2016.
Operations and Employees
Network and Fleet
Source:- United Airlines