United Airlines (UAL) has reported its third-quarter 2024 financial results, showing strong performance across various key metrics. The company's pre-tax earnings stood at $1.3 billion, with an adjusted pre-tax margin of 9.7%. Additionally, the airline achieved diluted earnings per share of $2.90 and adjusted diluted earnings per share of $3.33, surpassing the third-quarter 2024 guidance.
Year-to-date, United Airlines generated $7.2 billion of operating cash flow and $3.4 billion of free cash flow. Furthermore, the company's total operating revenue for the third quarter reached $14.8 billion, up 2.5% compared to the same period in 2023.
In terms of capacity, United Airlines saw a 4.1% increase compared to the third quarter of 2023. While total operating revenue experienced growth, revenue per available seat mile (TRASM) was down by 1.6% compared to the same period last year. Cost per available seat mile (CASM) increased by 0.1%, with CASM-ex1 up 6.5% compared to the third quarter of 2023.
United Airlines also reported an average fuel price per gallon of $2.56 and ending available liquidity of $17.1 billion. The company's total debt and finance lease obligations at the end of the quarter amounted to $25.7 billion. Notably, United Airlines voluntarily pre-paid the remaining $1.8 billion outstanding balance of the MileagePlus term loan with an interest rate near 11%.
The airline's net leverage1 stood at 2.7x, and the company aims to target net leverage below 2x in the next few years. As part of its capital allocation strategy, the board of directors authorized a new share repurchase program for up to $1.5 billion of outstanding shares of common stock and warrants, representing approximately 7% of the company's market capitalization.
In terms of customer satisfaction and operations, United Airlines saw a 5.4-point increase in customer satisfaction ratings year over year as measured by the net promoter score scale. The airline also set records for the highest number of passengers carried during the July 4 and Labor Day holidays, as well as for the highest daily customer average in September.
United Airlines also announced various network expansions and enhancements, including an industry-leading agreement with SpaceX to bring Starlink's Wi-Fi service to more than 1,000 of the airline's mainline and regional aircraft, and the largest international expansion in the airline’s history, adding service to eight new Atlantic and Pacific destinations in summer 2025.
Additionally, the company highlighted its commitment to sustainability and community engagement, with initiatives such as purchasing sustainable aviation fuel, partnering with the San Francisco 49ers to purchase sustainable aviation fuel, and mobilizing responders for emergencies and humanitarian crises globally.
The press release indicates that United Airlines will hold a conference call to discuss its financial results and operational outlook for the fourth quarter of 2024 and beyond.
The market has reacted to these announcements by moving the company's shares 0.8% to a price of $64.05. Check out the company's full 8-K submission here.
