United Airlines Sees Decline in Revenues
UAL reported third-quarter net income of $1.7 billion, or $4.53 per diluted share, excluding special items.
For the third quarter of 2015, total revenue was $10.3 billion, a decrease of 2.4 percent year-over-year. In the quarter, the company amended its co-branded credit card marketing services agreement, which led to approximately $100 million of incremental revenue. This was more than offset by the declines in passenger revenue.
«I want to thank all of our employees for their hard work, professionalism and contributions to another successful quarter. The United family has had a challenging few weeks, but we have never felt more unified and are committed to making the right investments in our people and providing them the tools they need to deliver excellent service to our customers,»said Brett Hart, acting CEO of United.«With Oscar Munoz on medical leave, this leadership team and I are working to push forward the agenda we laid out over the past six weeks by focusing on our employees, improving our processes and investing in our systems to further improve our margins.»
Third-quarter 2015 consolidated PRASM decreased 5.8 percent and consolidated yield decreased 5.6 percent compared to the third quarter of 2014. The declines in PRASM and yield were driven largely by a strong U.S. dollar, lower surcharges, travel reductions from corporate customers in the energy sector and softening in domestic yields. «Fourth-quarter pre-tax margin is expected to be between 9.5 and 11.5 percent, excluding special items,»Hart added.
Passenger revenue for the third quarter of 2015 and period-to-period comparisons of related statistics for UAL’s mainline and regional operations are included in the tables in the back of this document.
