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United Airlines Holdings 8-K Report, Financial Results (Jan 22, 2024)

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed January 22, 2024
Period End
January 22, 2024
Security
UAL
In the record · 2016–202610-K1110-Q338-K265

UAL filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 265 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · May ’18May ’18
  2. Restructuring8-K · Jul ’20Jul ’20
  3. Leadership change8-K · Mar ’22Mar ’22
  4. Material agreement8-K · Feb ’26Feb ’26

01—Abstract

Summary

Summary of the 8-K filed January 22, 2024. Cited figures are marked; the original filing is the authoritative source.

United Airlines Holdings, Inc. (UAL) furnished a press release reporting fourth-quarter and full-year 2023 results, along with an Investor Update posted to its investor relations website, both filed under Items 2.02 and 7.01.

For full-year 2023, the company reported diluted earnings per share of $7.89a and adjusted diluted earnings per share of $10.05, meeting its initial full-year target of $10 to $12 set at the start of 2023. Total operating revenue for the year was $53.7 billion, up 19.5% from 2022, and net income was $2.6 billion. Fourth-quarter diluted EPS was $1.81 and adjusted diluted EPS was $2.00, with total operating revenue of $13.6 billion, up 9.9% year over year.

Ending available liquidity was $16.1 billionb, and adjusted net debt to adjusted EBITDAR was 2.9x. The Investor Update provides preliminary guidance for first-quarter and full-year 2024. Estimated adjusted diluted EPS is ($0.85) to ($0.35) for 1Q 2024 and $9.00 to $11.00 for full-year 2024.

TRASM is estimated to be roughly flat year over year in 1Q 2024, and CASM-ex is estimated to rise by mid-single digits. The company estimates the Boeing 737 MAX 9 grounding will add approximately 3 percentage points of incremental CASM-ex in the first quarter. Full-year 2024 adjusted capital expenditures are estimated at about $9 billionc.

The filing also reports $814 milliond of labor contract ratification bonuses recorded in 2023 under agreements with the Air Line Pilots Association and the International Association of Machinists & Aerospace Workers. Full-year 2023 special charges totaled $949 million, and profit sharing expense was $681 million.

02—Key points

Key Highlights

  1. Full-year 2023 diluted EPS of $7.89 and adjusted diluted EPS of $10.05, meeting the initial target of $10 to $12 set at the start of 2023.
  2. Fourth-quarter 2023 diluted EPS of $1.81 and adjusted diluted EPS of $2.00, with total operating revenue of $13.6 billion, up 9.9% year over year.
  3. Full-year 2023 total operating revenue of $53.7 billion, up 19.5%, and net income of $2.6 billion.
  4. 2024 guidance: adjusted diluted EPS of $9.00 to $11.00 for full-year 2024 and ($0.85) to ($0.35) for 1Q 2024.
  5. First-quarter 2024 outlook includes roughly flat TRASM year over year, CASM-ex up mid-single digits, and an estimated 3 percentage point CASM-ex impact from the Boeing 737 MAX 9 grounding.
  6. Full-year 2023 included $814 million of labor contract ratification bonuses and $949 million of total special charges.
  7. Ending available liquidity of $16.1 billion and adjusted net debt to adjusted EBITDAR of 2.9x at year end 2023.

03—Questions

Frequently Asked Questions

  1. How did United Airlines perform financially in 2023?

    United reported full-year 2023 diluted EPS of $7.89 and adjusted diluted EPS of $10.05, achieving its initial target of $10 to $12. Total operating revenue was $53.7 billion, up 19.5% from 2022, and net income was $2.6 billion.

  2. What is United's guidance for 2024?

    The Investor Update estimates adjusted diluted EPS of $9.00 to $11.00 for full-year 2024 and ($0.85) to ($0.35) for the first quarter of 2024. Estimated adjusted capital expenditures for 2024 are about $9 billion.

  3. What drove the first-quarter 2024 outlook?

    The company expects TRASM to be roughly flat year over year and CASM-ex to rise by mid-single digits. It estimates the Boeing 737 MAX 9 grounding, from January 6 through January 31, 2024, will add about 3 percentage points of incremental CASM-ex.

  4. How did fourth-quarter 2023 results compare with the prior year?

    Fourth-quarter diluted EPS was $1.81, compared with $2.55 in the fourth quarter of 2022, and adjusted diluted EPS was $2.00, compared with $2.46. Total operating revenue rose 9.9% to $13.6 billion, and the company's capacity (ASMs) increased 14.7%.

  5. What one-time costs affected 2023 results?

    The company recorded $814 million of labor contract ratification bonuses tied to agreements with ALPA and IAM, and total operating special charges of $949 million for the full year. These items are excluded from adjusted EPS.

04—Continue

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