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United Airlines (UAL) Q2 Earnings Top Estimates, Revenues Lag
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United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2024 earnings per share (EPS) (excluding 18 cents from non-recurring items) of $4.14, which surpassed the Zacks Consensus Estimate of $3.97. Earnings decreased 17.7% on a year-over-year basis.
Operating revenues of $14.98 billion missed the Zacks Consensus Estimate of $15.13 billion. The top line increased 5.7% year over year due to upbeat air-travel demand. This was driven by a 5.2% rise in passenger revenues (which accounted for 91.2% of the top line) to $13.680 billion. Almost 44,375 passengers traveled on UAL flights in the second quarter, up 5.8% year over year.
Cargo revenues grew 14.4% year over year to $414 million. Revenues from other sources jumped 9.6% from the second quarter of 2023 to $892 million.
United Airlines Holdings Inc Price, Consensus and EPS Surprise
Below, we present all comparisons (in % terms) with the second quarter of 2023 figures unless otherwise stated.
Airline traffic, measured in revenue passenger miles, grew 5.5%. Capacity, measured in available seat miles, expanded 8.3%. As traffic failed to outpace capacity expansion, the consolidated load factor (percentage of seat occupancy) fell 2.2 percentage points to 84.2%.
Consolidated passenger revenue per available seat mile (a key measure of unit revenues) inched down 2.9%. Total revenue per available seat mile fell 2.4% to 18.81 cents. The average yield per revenue passenger mile fell 0.3% to 20.40 cents.
Average aircraft fuel price per gallon grew 3.8% to $2.76. Fuel gallons consumed were up 6.8%.
Operating expenses (on a reported basis) increased 3.1% to $13.057 billion. Consolidated unit cost or cost per available seat mile (CASM), excluding fuel, third-party business expenses, profit-sharing and special charges, increased 2.1% to 12.10 cents.
UAL exited the second quarter with cash and cash equivalents of $10.864 billion compared with $8.401 billion at the first-quarter end. Long-term debt was $21.687 billion compared with $23.059 billion at the end of the prior quarter.
Outlook
For the third quarter of 2024, UAL expects adjusted EPS in the range of $2.75-$3.25. The Zacls Consensus Estimate is pegged at $3.61.
For 2024, adjusted EPS is expected to be between $9 and $11. The Zacls Consensus Estimate is pegged at $9.75.
Adjusted capital expenditures are expected to be around $6.5 billion.
Zacks Rank and Price Performance
Currently, UAL carries a Zacks Rank #3 (Hold).
So far this year, shares of United Airlines have gained 15.3%, outperforming the industry’s decline of 12.7%.
Image Source: Zacks Investment Research
Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported second-quarter 2024 EPS (excluding 35 cents from non-recurring items) of $2.36, which marginally missed the Zacks Consensus Estimate of $2.37. Earnings decreased 11.9% on a year-over-year basis. Apart from high costs, the carrier blamed the discounting pressure at the low end of the market, which hurt its pricing power, for the disappointing performance.
Revenues of $16.65 billion surpassed the Zacks Consensus Estimate of $16.25 billion and increased 6.9% year over year, driven by upbeat air travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $15.41 billion, up 5.4% year over year.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported disappointing second-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate.
JBHT’s EPS of $1.32 missed the Zacks Consensus Estimate of $1.51 and declined 27% year over year.
JBHT’stotal operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $3.03 billion and fell 7% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.The downfall was owing to a 5% decrease in gross revenue per load in Intermodal (JBI) and a decline in load volume of 25% in Integrated Capacity Solutions (ICS), 9% in Truckload (JBT), and 9% in Dedicated Contract Services (DCS). These were partially offset by the 5% revenue growth of Final Mile Services (FMS), primarily driven by new contracts implemented over the past year, and a 5% increase in revenue per load in ICS.
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United Airlines (UAL) Q2 Earnings Top Estimates, Revenues Lag
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2024 earnings per share (EPS) (excluding 18 cents from non-recurring items) of $4.14, which surpassed the Zacks Consensus Estimate of $3.97. Earnings decreased 17.7% on a year-over-year basis.
Operating revenues of $14.98 billion missed the Zacks Consensus Estimate of $15.13 billion. The top line increased 5.7% year over year due to upbeat air-travel demand. This was driven by a 5.2% rise in passenger revenues (which accounted for 91.2% of the top line) to $13.680 billion. Almost 44,375 passengers traveled on UAL flights in the second quarter, up 5.8% year over year.
Cargo revenues grew 14.4% year over year to $414 million. Revenues from other sources jumped 9.6% from the second quarter of 2023 to $892 million.
United Airlines Holdings Inc Price, Consensus and EPS Surprise
United Airlines Holdings Inc price-consensus-eps-surprise-chart | United Airlines Holdings Inc Quote
Other Details of Q2
Below, we present all comparisons (in % terms) with the second quarter of 2023 figures unless otherwise stated.
Airline traffic, measured in revenue passenger miles, grew 5.5%. Capacity, measured in available seat miles, expanded 8.3%. As traffic failed to outpace capacity expansion, the consolidated load factor (percentage of seat occupancy) fell 2.2 percentage points to 84.2%.
Consolidated passenger revenue per available seat mile (a key measure of unit revenues) inched down 2.9%. Total revenue per available seat mile fell 2.4% to 18.81 cents. The average yield per revenue passenger mile fell 0.3% to 20.40 cents.
Average aircraft fuel price per gallon grew 3.8% to $2.76. Fuel gallons consumed were up 6.8%.
Operating expenses (on a reported basis) increased 3.1% to $13.057 billion. Consolidated unit cost or cost per available seat mile (CASM), excluding fuel, third-party business expenses, profit-sharing and special charges, increased 2.1% to 12.10 cents.
UAL exited the second quarter with cash and cash equivalents of $10.864 billion compared with $8.401 billion at the first-quarter end. Long-term debt was $21.687 billion compared with $23.059 billion at the end of the prior quarter.
Outlook
For the third quarter of 2024, UAL expects adjusted EPS in the range of $2.75-$3.25. The Zacls Consensus Estimate is pegged at $3.61.
For 2024, adjusted EPS is expected to be between $9 and $11. The Zacls Consensus Estimate is pegged at $9.75.
Adjusted capital expenditures are expected to be around $6.5 billion.
Zacks Rank and Price Performance
Currently, UAL carries a Zacks Rank #3 (Hold).
So far this year, shares of United Airlines have gained 15.3%, outperforming the industry’s decline of 12.7%.
Image Source: Zacks Investment Research
Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported second-quarter 2024 EPS (excluding 35 cents from non-recurring items) of $2.36, which marginally missed the Zacks Consensus Estimate of $2.37. Earnings decreased 11.9% on a year-over-year basis. Apart from high costs, the carrier blamed the discounting pressure at the low end of the market, which hurt its pricing power, for the disappointing performance.
Revenues of $16.65 billion surpassed the Zacks Consensus Estimate of $16.25 billion and increased 6.9% year over year, driven by upbeat air travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $15.41 billion, up 5.4% year over year.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported disappointing second-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate.
JBHT’s EPS of $1.32 missed the Zacks Consensus Estimate of $1.51 and declined 27% year over year.
JBHT’stotal operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $3.03 billion and fell 7% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.The downfall was owing to a 5% decrease in gross revenue per load in Intermodal (JBI) and a decline in load volume of 25% in Integrated Capacity Solutions (ICS), 9% in Truckload (JBT), and 9% in Dedicated Contract Services (DCS). These were partially offset by the 5% revenue growth of Final Mile Services (FMS), primarily driven by new contracts implemented over the past year, and a 5% increase in revenue per load in ICS.