United Airlines carried a record 165 million passengers over the year – Kommersant

United Airlines published reporting for the fourth quarter and all of 2023. A number of important indicators turned out to be record highs, which helped the air carrier somewhat compensate for the negative background associated with the temporary suspension from flights of Boeing 737 MAX aircraft. However, United Airlines warned that the situation with the Boeing 737 MAX, of which it has more than other airlines, would affect the performance of the current quarter and possibly the year.

At the end of the fourth quarter of 2023, United Airlines operating revenue grew by 9.9%, exceeding analysts’ forecasts, and amounted to $13.6 billion. At the end of the year, the increase was 19.5%, to $45 billion. Operating profit in the quarter fell by 27. 5%, to $998 million, and at the end of the year grew by 80.2%, to $4.2 billion. Earnings per share in the quarter also turned out to be higher than expected: $2 versus $1.69.

The company said it carried 165 million passengers in 2023, the highest in United Airlines’ history, and achieved its highest full-year seat load factor of 86.4%. The last two weeks of December also broke the record for the number of passengers carried during such a period for the entire period of operation – 8.2 million passengers, or an average of 483 thousand people per day. In addition, the United Airlines mobile app has become the most downloaded among airlines in the world.

Shares of United Airlines rose 7% in electronic trading on the NASDAQ exchange, reacting to the earnings data, even though the airline’s forecasts for the current quarter and year are pessimistic. Thus, based on the results of the first quarter, United Airlines expects a loss of $0.35–0.85 per share, which is higher than analysts’ forecasts, and adjusted earnings per share for the year will amount to $9–11.

United Airlines is currently unable to operate the 79 Boeing 737 MAX aircraft in its fleet while the US Federal Aviation Administration (FAA) reviews the models for safety following the January 6 incident. There is no time frame for completing the review. United Airlines itself expects its Boeing 737 MAX to be grounded until at least January 26th. The FAA said it will not allow them to be used until they are sure that this model of aircraft is completely safe.

How Boeing is trying to regain the trust of airlines after an incident with a falling hatch plug – in the Kommersant article “With the Doors Wide Open”.

Alena Miklashevskaya