United(UAL)2025-01-21 20:59Financial Performance - Q4 pre-tax margin increased by 3.2 points year-over-year, and 3.5 points on an adjusted basis[1] - Full-year pre-tax earnings of $4.2 billion with a pre-tax margin of 7.3%, and adjusted pre-tax earnings of $4.6 billion with an adjusted pre-tax margin of 8.1%[1] - Full-year diluted earnings per share of $9.45, and adjusted diluted earnings per share of $10.61[1] - Q4 total operating revenue of $14.7 billion, up 7.8% compared to Q4 2023[8] - Q4 pre-tax earnings of $1.3 billion with a pre-tax margin of 8.9%, and adjusted pre-tax earnings of $1.4 billion with an adjusted pre-tax margin of 9.7%[8] - Q4 net income of $1.0 billion, and adjusted net income of $1.1 billion[8] - Q4 diluted earnings per share of $2.95, and adjusted diluted earnings per share of $3.26[8] - Full-year operating cash flow of $9.4 billion and free cash flow of $3.4 billion[8] - United Airlines reported a 6.9% increase in passenger revenue to $13.275 billion in Q4 2024 compared to Q4 2023[38] - Total operating revenue for Q4 2024 increased by 7.8% to $14.695 billion, driven by growth in passenger, cargo, and other operating revenues[38] - Operating income for Q4 2024 surged by 50.6% to $1.503 billion, reflecting improved operational efficiency[38] - Net income for Q4 2024 rose by 64.2% to $985 million, with diluted earnings per share increasing by 63.0% to $2.95[38] - Net income (GAAP) for Q4 2024 increased to $985 million, up 64.2% from $600 million in Q4 2023[55][57] - Adjusted EBITDA (non-GAAP) for Q4 2024 rose to $2,335 million, a 33.3% increase from $1,752 million in Q4 2023[55] - Adjusted EBITDA margin (non-GAAP) for Q4 2024 improved to 15.9%, up from 12.9% in Q4 2023[55] - Operating income (GAAP) for Q4 2024 grew to $1,503 million, a 50.6% increase from $998 million in Q4 2023[57] - Adjusted operating margin (non-GAAP) for Q4 2024 increased to 10.7%, up from 7.7% in Q4 2023[57] - Adjusted net income (Non-GAAP) for Q4 2024 rose to $1,090 million, a 64.2% increase from $664 million in Q4 2023[57] - Adjusted diluted earnings per share (Non-GAAP) for Q4 2024 increased to $3.26, up 63.0% from $2.00 in Q4 2023[57] - Total assets as of December 31, 2024, grew to $74,083 million, up from $71,104 million in 2023[59] - Total stockholders' equity as of December 31, 2024, increased to $12,675 million, up from $9,324 million in 2023[59] - Net cash provided by operating activities increased to $9,445 million in 2024 from $6,911 million in 2023, a growth of 36.7%[61] - Capital expenditures decreased to $5,615 million in 2024 from $7,171 million in 2023, a reduction of 21.7%[61] - Proceeds from sale of short-term and other investments decreased to $8,661 million in 2024 from $10,519 million in 2023, a decline of 17.7%[61] - Net cash used in investing activities decreased to $2,651 million in 2024 from $6,106 million in 2023, a reduction of 56.6%[61] - Proceeds from issuance of debt and other financial liabilities increased to $6,139 million in 2024 from $2,388 million in 2023, a growth of 157.1%[61] - Total operating and nonoperating special charges and unrealized (gains) losses on investments, net of income taxes, decreased to $385 million in 2024 from $719 million in 2023, a reduction of 46.5%[63] - The company recorded $128 million of charges related to the prepayment of the MileagePlus financing agreements and refinancing of term loans in 2024[65] - The effective tax rate increased to 24.4% in 2024 from 22.7% in 2023[66] - Labor contract ratification bonuses in 2023 amounted to $814 million[64] - Nonoperating unrealized (gains) losses on investments, net, increased to $199 million in 2024 from $(27) million in 2023[63] Revenue Growth - Cargo revenue saw a significant increase of 29.6% to $521 million in Q4 2024 compared to the same period in 2023[38] - Domestic passenger revenue increased by 5.7% to $8.138 billion in Q4 2024, while international passenger revenue grew by 8.7% to $5.137 billion[40] - Europe passenger revenue increased by 9.5% to $2.092 billion in Q4 2024, with a 7.1% rise in revenue per available seat mile (PRASM)[40] - Pacific passenger revenue grew by 11.2% to $1.477 billion in Q4 2024, despite a 2.3% decline in yield[40] - Passengers increased by 6.1% to 44,344 thousand in Q4 2024 compared to 41,779 thousand in Q4 2023[41] - RPMs (Revenue Passenger Miles) grew by 6.3% to 64,463 million in Q4 2024 from 60,671 million in Q4 2023[41] - ASMs (Available Seat Miles) rose by 6.2% to 78,298 million in Q4 2024 compared to 73,727 million in Q4 2023[41] - Cargo revenue ton miles increased by 9.7% to 981 million in Q4 2024 from 894 million in Q4 2023[41] Operational Efficiency - Aircraft fuel expenses decreased by 19.3% to $2.676 billion in Q4 2024, contributing to lower operating costs[38] - Salaries and related costs increased by 12.6% to $4.325 billion in Q4 2024, reflecting higher labor expenses[38] - CASM (Cost per Available Seat Mile) decreased by 1.6% to 16.85 cents in Q4 2024 from 17.13 cents in Q4 2023[41] - CASM-ex (excluding fuel, profit sharing, etc.) increased by 5.0% to 12.89 cents in Q4 2024 from 12.28 cents in Q4 2023[53] - Average aircraft fuel price per gallon decreased by 23.3% to $2.40 in Q4 2024 from $3.13 in Q4 2023[41] - Fuel gallons consumed increased by 5.3% to 1,115 million in Q4 2024 from 1,059 million in Q4 2023[41] - Aircraft in fleet increased by 3.5% to 1,406 at the end of 2024 compared to 1,358 at the end of 2023[41] Customer and Fleet Growth - Full-year record of nearly 174 million customers carried system-wide, with an average of 4,340 daily flights[8] - United expects to serve more international destinations across the Atlantic and Pacific than all other U.S. carriers combined in 2025, with 800 daily flights to and from 147 international destinations[16] - Employee headcount grew by 3.9% to 107.3 thousand as of December 31, 2024, compared to 103.3 thousand in 2023[41] Cash Flow and Investments - Free cash flow (Non-GAAP) for Q4 2024 was $(16) million, compared to $(3,076) million in Q4 2023[55]