UAL Q1 2019 Earnings

Call Details

• Call Title: United Airlines Holdings, Inc. Q1 2019 Earnings Call
• Date: April 17, 2019 at 2:30 PM UTC
• Management Team:
  • Mike Leskinen (Vice President of Corporate Development and Investor Relations)
  • Oscar Munoz (Chief Executive Officer)
  • Scott Kirby (President)
  • Greg Hart (Executive Vice President and Chief Operations Officer)
  • Andrew Nocella (Executive Vice President and Chief Commercial Officer)
  • Jerry Laderman (Executive Vice President and Chief Financial Officer)
  • Mike Westman (Executive Vice President and Chief Financial Officer)

Call Summary

Financial Performance

• The company reported first quarter adjusted pre-tax income of $389 million and an adjusted pre-tax margin of 4.1%.
• Adjusted earnings per share were $1.15 for the quarter, up 135% versus a year ago on a non-GAAP basis.
• Adjusted pre-tax margin expanded more than 200 basis points year over year and marked the second consecutive quarter of margin expansion on an adjusted basis.
• Non-fuel unit costs decreased 1.8% year over year in the first quarter on a non-GAAP basis.
• The company reported consolidated passenger unit revenue guidance for Q2 to be up 0.5% to 2.5% year over year.
• The company stated that the Q2 adjusted pre-tax margin is expected to be between 11% and 13% given the provided fuel, capacity, and revenue ranges.

Guidance

• Full-year 2019 adjusted earnings per share guidance was affirmed at $10 to $12 and the company stated confidence in achieving this range.
• Full-year capacity guidance was reduced to 4% to 5% due to the MAX grounding and suspension of service to Delhi through July 2nd under current assumptions.
• Full-year CASMX guidance was revised to be around flat year over year following the capacity reduction.
• The company assumed MAX aircraft out of schedule until at least early July for planning purposes.
• The company stated that its full-year EPS guidance does not include any benefits from a potential new co-brand agreement with Chase.
• Second quarter non-fuel unit costs are expected to be flat to up 1% versus prior year.