United Airlines Reports Mixed Q3 Results, Revenue Growth and Increased Cash Reserves

United Airlines Holdings, Inc. reported its financial results for the third quarter and the first nine months of 2024, showing a mixed performance in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, operating revenue reached $14,843 million, a 2.5% increase from $14,484 million in the same period of 2023. Passenger revenue also rose to $13,561 million, up from $13,349 million. However, total operating expenses increased significantly to $13,278 million from $12,745 million, leading to a decrease in operating income to $1,565 million, down from $1,739 million. Net income for the quarter was $965 million, compared to $1,137 million in Q3 2023, reflecting a decline in earnings per share from $3.47 to $2.93.

For the nine months ended September 30, 2024, operating revenue increased to $42,368 million from $40,091 million, while passenger revenue rose to $38,554 million from $36,625 million. Operating income for this period improved to $3,593 million, up from $3,213 million, and net income increased to $2,164 million from $2,018 million, resulting in an increase in basic earnings per share from $6.16 to $6.58.

The company reported a notable increase in cash and cash equivalents, which stood at $8,812 million as of September 30, 2024, compared to $6,058 million at the end of 2023. Total assets also grew to $72,640 million from $71,104 million. Long-term debt decreased to $22,207 million from $25,057 million, while total stockholders' equity rose to $11,437 million from $9,324 million.

In terms of operational metrics, passenger capacity increased by 4.1% in Q3 2024, with cargo revenue rising by 25.2% to $417 million. However, the passenger load factor decreased to 83.3% from 84.4% in the previous year.

Strategically, United Airlines has been active in managing its capital structure, including a new share repurchase program authorized for up to $1.5 billion, with an initial limit of $500 million through 2024. The company also entered into agreements to lease 40 Airbus A321neo aircraft, with deliveries expected in 2026 and 2027.

Overall, while United Airlines experienced growth in revenue and net income for the nine-month period, the third quarter reflected challenges in profitability, driven by rising operational costs and a decrease in net income compared to the prior year.