United Airlines Earnings Disappoint As Operating Costs Bite

https://apple.news/A9gjypaTLTYy0scpOMyQLAA

So when are United getting that 5% raise again???

Earnings missed. Profit margin during the best quarter of the year, during a year with stronger demand than normal, was only 7.2%. Stock price down 6.5% after hours.

As supply of ASM’s increase as airlines staff back up, demand decreases now that the summer of COVID revenge travel is ending, and possibly a small drop in demand due to inflation and/or mild economic slowdown, that profit margin is likely to decrease.

At this rate, it’s very likely United won’t hit the profit margin threshold in 4Q22 and 1Q23. So best case in my opinion is after 3Q23, but it’s very possible it could drag out another quarter, which would push the 5% raise out after 4Q23 earnings into early 2024.

I’m glad the Union paused the vote and the company was willing to come back to the table. Fix a couple items fast and send it our way so we can get that raise in our pockets now.