Q2 results
 

United Airlines Achieves Highest Second-Quarter Pre-Tax Income In Company History
July 16, 2019
CHICAGO, July 16, 2019 /PRNewswire/ -- United Airlines (UAL) today announced that the continued successful implementation of its strategy led to the company delivering two straight quarters of solid pre-tax margin growth - three quarters on an adjusted basis1 - and the highest second-quarter pre-tax income in the airline's history.2

"Thanks to the outstanding and sustained efforts of 95,000 United team members, United is now consistently delivering results for our customers as well as investors as we raise the mid-point of our full-year 2019 adjusted diluted EPS3 guidance with a new range of $10.50 to $12.00," said Oscar Munoz, CEO of United Airlines. "By once again delivering strong EPS over the last three months, top-tier results are now the expectation, not the exception for United."

Reported second-quarter net income of $1.1 billion, diluted earnings per share (EPS) of $4.02, pre-tax earnings of $1.4 billion and pre-tax margin of 11.9 percent, expanding pre-tax margin 4.0 points versus the second quarter of 2018.
Reported second-quarter adjusted net income of $1.1 billion, adjusted diluted EPS of $4.21, adjusted pre-tax earnings of $1.4 billion and adjusted pre-tax margin of 12.4 percent, expanding adjusted pre-tax margin 2.0 points versus the second quarter of 2018.1
Total passenger revenue increased 6.1 percent versus the second quarter of 2018.
Consolidated second-quarter passenger revenue per available seat mile (PRASM) increased 2.5 percent year-over-year.
Consolidated second-quarter unit cost per available seat mile (CASM) decreased 0.4 percent year-over-year.
Consolidated second-quarter CASM, excluding special charges, third-party business expenses, fuel and profit sharing, increased 0.6 percent year-over-year.
Repurchased $536 million of its common shares in the second quarter of 2019, at an average purchase price of $84.07 per share.
On July 15, 2019, the company's Board of Directors authorized a new $3 billion share repurchase program.



Signed agreement to purchase 19 used Boeing 737-700 aircraft with deliveries expected beginning in December.

I’m thrilled to see more aircraft arriving. Yet so disappointed that they’re doing another stock buy back to the tune of $3 billion [emoji849]


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FWIW, the revised investor update still says 45 new Boeings in 2020.

Emphasis on the word new. Looks like UAL is being quite coy about the delivery schedule for used 737s and 319/320s.

Company press release also states:


“Expect profit sharing for 2019 to be about 20 percent higher per participating employee year-over-year.”

Don't sweat the buyback. UAL does not pay a dividend and thus they need to incentive investors to continue to invest. Pick your poison: dividend or buyback.

3rd option: pay down debt.

But why do that if the owners can get the workers to subsidize losses in the next downturn with the inevitable request for concessions?

I agree, but paying down too much debt makes you attractive to hostile takeover.

Billions in buybacks. New livery. New uniforms. New airplanes (Mainline and RJ’s). New ground equipment and lounges. Plus billions in profits. There’s money to go around boys and girls.

Congratulations on a great quarter!


Here's to hoping you get a great contract to go along with it

N-N-Nice!
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