- United Airlines Holdings Inc (NASDAQ:UAL) reported a first-quarter operating revenue decline of 21% compared to 1Q19 to $7.6 billion, missing the consensus of $7.68 billion.
- Capacity down 19% compared to 1Q19. Cost Per Available Seat Mile (CASM) was up 21%, and CASM-ex3 was up 18%, compared to 1Q19. TRASM of down 3% vs. 1Q19.
- Adjusted EPS was $(4.24), missing the consensus of $(4.21).
- UAL reported a Q1 operating loss of $1.4 billion and an adjusted operating loss of $1.4 billion. The fuel price was ~$2.88 per gallon in the quarter.
- United Airlines ended the quarter with available liquidity of $20 billion. It reported a decline in total debt of over $700 million.
- UAL’s net cash provided by operating activities totaled $1.47 billion for the quarter, compared to $447 million in 1Q21.
- The airline has a bullish outlook on the future – bolstered by this persistent strength of demand and the fact that it is nearing 2019 operating margins – and once again reiterated confidence in its long term United Next targets of an adjusted pre-tax margin of ~9% in 2023 and about 14% in 2026. This confidence is underpinned by the company’s current expectation to report a profit for the full year 2022.
- FY22 Outlook: UAL expects Capacity vs 2019 down ~13%, (TRASM) vs 2019 ~17%, CASM-ex vs 2019 ~16%.
- It expects the average Aircraft Fuel Price per Gallon to be $3.43 and an Operating and Adjusted Operating Margin of ~10%.
- Price Action: UAL shares are trading higher by 7.63% at $50.07 during the post-market session on Wednesday.
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