United Airlines Announces Q1 2024 Financial Results

‍DALLAS — On April 16, 2024, United Airlines (UA) released its financial results for the first quarter of 2024. According to the press statement, the carrier achieved its second-best-ever Q1 on-time departure performance.

Despite the challenges, UA demonstrated its resilience by reporting a pre-tax loss of $164 million, a US$92 million improvement over the same quarter last year, and an adjusted pre-tax loss of US$79 million, a US$187 million improvement over the same quarter last year. 

These figures, which include the estimated US$200 million impact of the Boeing 737-9 grounding, show that the company was on track to post a quarterly profit. In that period, the company earned US$2.8 billion in operational cash flow and US$1.5 billion in free cash flow. 

The airline expects adjusted diluted profits per share of US$9 to US$11 for the full year of 2024. The Atlantic and Domestic markets both showed significant increases in passenger revenue per available seat mile (PRASM) year on year, with 11% and 6% growth, respectively.

United's Nimbleness

United made strategic decisions to adapt to the changing circumstances of Q1. The airline converted their Boeing 737-10 orders to 737-9 beginning 2025 to 2027, keeping the right to convert more 737-10 into 737-8 or 737-9 aircraft. UA also signed letters of intent with two lessors to lease 35 new Airbus A321neos with CFM engines, anticipated in 2026 and 2027. 

Despite manufacturing and certification delays in previous years, the airline's contractual aircraft obligations for 2024 had climbed to 183 narrowbody aircraft by the end of 2023. These delays were likely to continue in early 2024, with the business anticipating 101 narrowbody deliveries. 

Following the Boeing 737-9 grounding and the FAA's announcement of substantial manufacturing capacity limits on Boeing, UA now expects 61 narrowbody and 5 widebody aircraft to be delivered in 2024.

Comments from CEO

"I want to thank the United team for working so hard this quarter to deliver strong operational metrics for our customers and sharpen our focus on safety, while producing excellent financial results for our shareholders," said United Airlines CEO Scott Kirby.

"We've adjusted our fleet plan to better reflect the reality of what the manufacturers are able to deliver. And, we'll use those planes to capitalize on an opportunity that only United has: profitably grow our mid-continent hubs and expand our highly profitable international network from our best in the industry coastal hubs."