United Airlines (NYSE: UAL) said it has reported third-quarter net income of USD1.7 billion, or USD4.53 per diluted share, excluding special items.
Including special items, UAL reported third-quarter net income of USD4.8 billion. These results include a nonrecurring USD3.2 billion non-cash gain associated with the reversal of the company´s income tax valuation allowance.
For the third quarter of 2015, total revenue was USD10.3 billion, a decrease of 2.4 percent year-over-year. In the quarter, the company amended its co-branded credit card marketing services agreement, which led to approximately USD100 million of incremental revenue. This was more than offset by the declines in passenger revenue.
Third-quarter 2015 consolidated PRASM decreased 5.8 percent and consolidated yield decreased 5.6 percent compared to the third quarter of 2014. The declines in PRASM and yield were driven largely by a strong US dollar, lower surcharges, travel reductions from corporate customers in the energy sector and softening in domestic yields. “Fourth-quarter pre-tax margin is expected to be between 9.5 and 11.5 percent, excluding special items,” Hart added.
Passenger revenue for the third quarter of 2015 and period-to-period comparisons of related statistics for UAL´s mainline and regional operations are included in the tables in the back of this document.
United Airlines and United Express operate an average of nearly 5,000 flights a day to 352 airports across six continents. In 2014, United and United Express operated nearly two million flights carrying 138 million customers.