UAL Q2 2024 Earnings

Call Details

• Call Title: United Airlines Holdings, Inc. Q2 2024 Earnings Call
• Date: July 18, 2024 at 2:30 PM UTC
• Management Team:
  • Kristina Edwards (Managing Director of Investor Relations)
  • Scott Kirby (Chief Executive Officer)
  • Brett Hart (President)
  • Andrew Nocella (Executive Vice President and Chief Commercial Officer)
  • Mike Leskinen (Executive Vice President and Chief Financial Officer)

Call Summary

Financial Performance

• Company reported total revenues in Q2 of $15B, which was up 5.7% year over year.
• The company delivered pre-tax income of $1.8B and diluted earnings per share of $4.14 for the quarter.
• TRASM was down 2.4% on 8.3% more capacity year over year for the quarter.
• Unit costs excluding fuel were up 2.1% year over year on 8.3% capacity growth versus Q2 last year.
• Free cash flow generation in the quarter was $1.9B while cash capital expenditures were approximately $1.0B.
• Adjusted net debt to EBITDA was 2.6 times at quarter end.

Guidance

• Third quarter earnings per share are expected to be in the $2.75 to $3.25 range.
• The company reiterated full year 2024 EPS guidance of $9 to $11.
• The company expects its own third quarter system capacity plan to moderate by approximately three points year over year versus Q2.
• The company has decided to cut approximately 300 basis points of planned domestic mainline capacity in the fourth quarter.
• The company expects the industry domestic capacity in Q4 to be roughly up 1.5% to 2.5% based on current offered-for-sale schedules.
• Company expects Q3 CASMx to be the high point for the year due to the planned capacity moderation and impacts from Hurricane Beryl.