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United Continental Holdings posts 2Q net income of $545 million

United Continental Holdings, Inc. (United Airlines) (Chicago) today reported second-quarter 2012 net income of $545 million or $1.41 per diluted share, excluding $206 million of net special charges. Including special charges, UAL reported second-quarter 2012 net income of $339 million or $0.89 per diluted share.

  • UAL second-quarter consolidated passenger revenue increased 2.3 percent year-over-year. Second-quarter consolidated passenger revenue per available seat mile (PRASM) increased 3.0 percent compared to the same period in 2011.
  • Second-quarter consolidated fuel expense increased 5.6 percent, or $181 million, year-over-year.
  • Consolidated unit costs (CASM) holding fuel rate and profit sharing constant and excluding special charges and third-party business expense for second-quarter 2012 increased 2.1 percent year-over-year. Second-quarter consolidated CASM increased 4.6 percent year-over-year.
  • UAL ended the second quarter with $8.2 billion in unrestricted liquidity.
  • UAL accrued $54 million for profit sharing, based on year-to-date profitability.

Second-Quarter Revenue and Capacity

For the second quarter of 2012, total revenue was $9.9 billion, an increase of 2.4 percent year-over-year excluding special items. Including special items in 2011, second-quarter total revenue increased 1.3 percent year-over-year. Second-quarter consolidated passenger revenue rose 2.3 percent to $8.8 billion, compared to the same period in 2011.

Consolidated revenue passenger miles (RPMs) increased 0.5 percent on a consolidated capacity (available seat miles) decrease of 0.6 percent year-over-year for the second quarter, resulting in a second-quarter consolidated load factor of 84.3 percent.

Consolidated yield for the second quarter of 2012 increased 1.8 percent year-over-year.  Second-quarter 2012 consolidated PRASM increased 3.0 percent compared to the same period in 2011.

Mainline RPMs in the second quarter of 2012 increased 0.5 percent on a mainline capacity decrease of 0.2 percent year-over-year, resulting in a second-quarter mainline load factor of 84.7 percent. Mainline yield for the second quarter of 2012 increased 1.0 percent compared to the same period in 2011.  Second-quarter 2012 mainline PRASM increased 1.8 percent year-over-year.

“We continued redeploying domestic aircraft in the second quarter and are pleased with the early financial results on those routes,” said Jim Compton, UAL’s executive vice president and chief revenue officer. “Our extensive fleet and industry-leading global network enable us to reallocate aircraft to provide customers with more options.”

Passenger revenue for the second quarter of 2012 and period-to-period comparisons of related statistics for UAL’s mainline and regional operations are as follows:

2Q 2012
Passenger
Revenue

(millions)

Passenger
Revenue vs.

2Q 2011

PRASM  vs.
2Q 2011
Yield vs.
2Q 2011
ASMs  vs.

2Q 2011

Domestic $3,441 0.6% 1.1% 1.3% (0.5%)
Atlantic 1,589 (1.9%) 2.3% 1.1% (4.1%)
Pacific 1,257 12.5% 6.6% 4.9% 5.6%
Latin America 657 (3.4%) (3.4%) (7.2%) 0.1%
International $3,503 2.6% 2.6% 0.7% 0.0%
Mainline $6,944 1.6% 1.8% 1.0% (0.2%)
Regional 1,824 5.2% 8.5% 5.0% (3.0%)
Consolidated $8,768 2.3% 3.0% 1.8% (0.6%)

Cargo and other revenue in the second quarter of 2012 increased 3.4 percent, or $39 million, year-over-year to $1.2 billion.

Second-Quarter Costs

Total operating expenses, including special charges, increased $363 million, or 4.0 percent, in the second quarter compared to the same period of 2011. Second-quarter 2012 operating expenses, excluding fuel, profit sharing, special charges and third-party business expense, increased $158 million, or 2.9 percent, year-over-year.

Third-party business expense was $60 million in the second quarter. Consolidated and mainline CASM, excluding special charges and third-party business expense, increased 4.1 percent and 4.5 percent, respectively, in the second quarter of 2012 compared to the same period of 2011. Second-quarter consolidated and mainline CASM, including special charges, increased 4.6 and 5.2 percent year-over-year, respectively.

In the second quarter, consolidated and mainline CASM, excluding special charges and third-party business expense and holding fuel rate and profit sharing constant, increased 2.1 percent and 1.7 percent, respectively, compared to the results for the same period of 2011.

Second-Quarter Liquidity and Cash Flow

UAL ended the second quarter with $8.2 billion in unrestricted liquidity, comprised of $7.7 billion of cash, cash equivalents and short-term investments and $500 million of undrawn commitments under a revolving credit facility. During the second quarter, the company generated $959 million of operating cash flow and had gross capital expenditures of $500 million. The company made debt and net capital lease payments of $258 million including $69 million of prepayments in the second quarter.

Copyright Photo: Tony Storck. Airbus A320-232 N475UA (msn 1495) displays the 1972 “A320 Friend Ship” retrojet livery.

United Airlines: 

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