United Airlines 2016 passenger revenue off 5.4%

United Airlines (NYSE: UAL) reported full-year net income of USD 2.3 billion, diluted earnings per share of USD 6.85, pre-tax earnings of USD 3.8 billion, and pre-tax margin of 10.4%, the ailine said.

Excluding special items, UAL reported full-year net income of USD 2.9 billion, diluted earnings per share of USD 8.65, pre-tax earnings of USD 4.5 billion, and pre-tax margin of 12.2%.

The airline reported fourth-quarter net income of USD 397 million, diluted earnings per share of USD 1.26, pre-tax earnings of USD 884 million, and pre-tax margin of 9.8%. Excluding special items, UAL reported fourth-quarter net income of USD 562 million, diluted earnings per share of USD 1.78, pre-tax earnings of USD 857 million and pre-tax margin of 9.5%.

UAL employees earned USD 628 million in profit sharing for 2016.

For the fourth quarter of 2016, total revenue was USD 9.1 billion, an increase of 0.2% year-over-year. Fourth-quarter 2016 consolidated passenger revenue per available seat mile (PRASM) decreased 1.6% and consolidated yield decreased 1.2% compared to the fourth quarter of 2015. This outperformance versus the company´s initial guidance was due to stronger close-in bookings and yields in November and December.

For the full-year 2016, consolidated PRASM declined 5.4% compared to the prior year driven by factors including a strong US dollar, lower surcharges, reductions from energy-related corporate travel, and declining yields.

United Airlines and United Express operate more than 4,500 flights a day to 339 airports across five continents. In 2016, United and United Express operated more than 1.6 million flights carrying more than 143 million customers. United´s route network, including US mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, DC. United operates 737 mainline aircraft and the airline´s United Express partners operate 483 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 192 countries via 28 member airlines.