United Airlines Report $256 Million Pre-Tax Loss in Q1-2023

United Airlines (UAL) has reported a $256 million pre-tax loss, consistent with expectations provided in March, during the first quarter of 2023.

Announcing the financial results for Q1 of 2023, the US-based airline said that its total operating revenue grew by 51.1% compared with Q1-2022 and total revenue per available seat mile (TRASM) by 22.5%.

Cost per available seat mile (CASM) increased 4%, while CASM-ex2 came in at down 0.1%, better than guidance due to strong operational reliability that produced available seat miles (ASMs) 23.4% higher than the first quarter of 2022.

Commenting on the results, United Airlines CEO Scott Kirby said that he was extremely proud of the United team’s performance during the first quarter of 2023.

“Our industry-leading operational performance contributed to an all-time high operating cash flow in the first quarter and keeps us on track to achieve our cost targets for the full year,” he said.

“We are watching the macroeconomic risks carefully, but demand remains strong, especially internationally, where we are growing at twice the domestic rate. We expect all of these factors will keep us on track to achieve our full year adjusted diluted EPS1 target,” he added.

Key Highlights

United Airlines reached a tentative agreement with the International Association of Machinists & Aerospace Workers (IAM) for a new, industry-leading contract for our nearly 30,000 IAM-represented employees. Voting is expected to complete in early May.

The airline also announced the largest South Pacific network expansion ever to and from the continental U.S., including the first non-stop flight between San Francisco and Christchurch (subject to government approval).

With 66 flights between the US and Australia/New Zealand every week, United will operate nearly 40% more flights from the US to Australia and New Zealand next northern winter versus last year.

Launched the United Airlines Ventures Sustainable Flight FundSM, a first-of-its-kind investment vehicle designed to support start-ups focused on decarbonizing air travel by accelerating the research, production and technologies associated with sustainable aviation fuel.

The newly renovated global Inflight Training Centre in Houston at a cost of $32 million will more than double the available training space and supports the airline’s plan to hire and train a total of 15,000 people in 2023, including 4,000 flight attendants.

United Airlines also announced a new industry-leading family seating policy enabled by dynamic seat map technology that makes it easier for children under 12 to sit next to an adult – since launch United enabled almost 50,000 more families to sit with their children.

The United airlines collaborated with Sesame Workshop to announce Oscar the Grouch as its first Chief Trash Officer as he and the airline celebrate his love of rubbish. United’s campaign is designed to promote the expected benefit of using sustainable aviation fuel more broadly.

Operational Performance

The United Airlines has achieved the lowest first quarter seat cancels rate (1.09%) since the first quarter of 2012, leading the US industry despite the greater impact of weather on United than any other airline.

It also flew the most mainline seats 413,000 in company history and most mainline flights 2,300 daily for the quarter.

New Routes

United Airlines has launched four new international routes between Dubai and Newark/New York and between Tokyo-Haneda and Newark/New York, Los Angeles, and Washington D.C.

It has reintroduced four international routes not flown since the beginning of the pandemic – between Tokyo-Narita and Denver, Osaka (Japan) and San Francisco, Hong Kong, and San Francisco, and Managua and Houston.

United also resumed non-stop service between Shanghai and San Francisco, becoming the first US airline to not require a technical stop between the US and Shanghai since November 2020.