NASDAQ$UAL

United Airlines Holdings Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

United Airlines announced third-quarter 2021 financial results and remained on track to meet 2022 targets.

United Airlines reported a net income of $0.5 billion for the third quarter of 2021, despite the impact of the COVID-19 Delta variant. The company remains on track to achieve its longer-term financial targets and reduce CASM-ex below 2019 levels next year. United plans to increase international capacity by 10% in 2022 while keeping domestic capacity flat to 2019.

  • Airline remains on track to reduce CASM-ex next year below 2019 levels
  • Approximately $2.2 billion in structural cost reductions and returning aircraft to service will fuel strong CASM-ex performance in 2022 and beyond
  • Returning business travelers and re-opening European borders are opportunities United is well positioned to capitalize on
  • Continuing improvements and reliability leads to all-time record Net Promoter Score year-to-date; a nearly 12% increase

Headline financials

Total Revenue

$7.75B

Previous: $2.49B+211.4%
EPS (adj)

-$1.02

Previous: -$8.16+87.5%
CASM

12.46

No prior period
Load Factor

76.1%

Previous: 47.8%+59.2%
Passenger Yield

16.18

Previous: 15.54+4.1%
Passengers

32.1M

Previous: 9.7M+230.1%
ASMs

53.9B

No prior period
RPMs

41.0B

No prior period
Stage Length

1.3K

No prior period
Free Cash Flow

$473M

Previous: -$1.84B+125.7%
Net Income

$473M

Previous: -$1.84B+125.7%
Operating Income

$1.04B

Previous: -$1.62B+164.2%
Gross Profit

-$2.42B

Previous: -$1.06B-128.7%
Cash & Equivalents

$19.3B

Previous: $13.2B+46.4%
Total Assets

$69.3B

Previous: $61.2B+13.2%

Revenue & EPS history

United Airlines · Revenue · Quarterly

$7.75B

Q3 2021+211.4%vs Q3 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

United Airlines · $7.75B total across 3 segments · Q3 2021

  • Passenger
    $6.64B+302.5%
  • Other Operating
    $594M+42.1%
  • Cargo
    $519M+23.0%

Forward guidance

United expects fourth quarter 2021 capacity to be down approximately 23% versus fourth quarter 2019 and total revenue to be down 25% to 30% versus the fourth quarter 2019. The company estimates fourth quarter 2021 fuel price of approximately $2.39 per gallon and continues to expect 2022 CASM-ex to be lower than 2019.

Tailwinds

  • Continues to expect 2022 CASM-ex1 to be lower than 2019.
  • Expects 2022 capacity to be up approximately 5% versus 2019 driven by international growth.
  • Expects adjusted capital expenditures2 to be around $3 billion in full year 2021.
  • Expects adjusted diluted earnings per share2 in 2026 of around $20 assuming the same number of diluted shares outstanding as of September 30, 2021.
  • Remains on track to achieve long term financial targets from United Next plan.

Headwinds

  • Expects fourth quarter 2021 capacity to be down approximately 23% versus fourth quarter 2019.
  • Expects fourth quarter 2021 total revenue to be down 25% to 30% versus the fourth quarter 2019.
  • Expects fourth quarter 2021 CASM-ex1 to be up 12% to 14% compared to fourth quarter 2019.
  • Estimates fourth quarter 2021 fuel price of approximately $2.39 per gallon.
  • United Next assumes 2026 TRASM remains down around 1% versus 2019.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

-0.5%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+3.4%

Avg return

30 days after

48%

33 / 69 earnings

Positive

+18.8%

Q1 2024

Best reaction

-15.4%

Q2 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.7%-5.4%+3.0%
Q4 2025-1.2%-0.7%+4.1%
Q3 2025-5.8%-3.8%-8.7%
Q2 2025+1.8%+0.7%+7.5%
Q1 2025-0.0%-2.5%+16.3%
Q4 2024+0.5%-2.2%-4.6%
Q3 2024+13.4%+16.7%+43.5%
Q2 2024-1.4%+2.4%-10.6%
Q1 2024+18.8%+25.2%+33.5%
Q4 2023+4.3%+9.6%+13.5%
Q3 2023-8.3%-11.2%-0.6%
Q2 2023+3.2%+2.3%-10.4%
Q1 2023+9.2%+4.9%+13.6%
Q4 2022-5.4%-4.2%-5.2%
Q3 2022+8.3%+12.0%+19.8%
Q2 2022-9.7%-12.4%-9.6%
Q1 2022+10.7%+11.6%-5.2%
Q4 2021-6.0%-9.3%+4.0%
Q3 2021-2.6%-0.9%+0.6%
Q2 2021+10.7%+9.4%+1.1%
Q1 2021-10.0%-4.9%-0.1%
Q4 2020-4.8%-9.8%+7.3%
Q3 2020-2.9%+0.7%+10.6%
Q2 2020-2.0%+1.7%+5.3%
Q1 2020-14.7%-22.7%-10.2%
Q4 2019-7.1%-8.7%-10.9%
Q3 2019+3.1%+3.6%+6.4%
Q2 2019+3.8%+2.7%-10.6%
Q1 2019+5.6%+4.4%-2.3%
Q4 2018+8.1%-3.2%+8.6%
Q3 2018+8.8%+7.5%+13.1%
Q2 2018+9.3%+12.0%+13.3%
Q1 2018+4.9%+6.6%+3.2%
Q4 2017-10.2%+14.4%-7.5%
Q3 2017-11.5%-12.5%-13.8%
Q2 2017-6.9%-10.3%-18.9%
Q1 2017-1.9%+0.7%+10.3%
Q4 2016-0.4%+4.3%+2.4%
Q3 2016+0.9%+4.5%+23.1%
Q2 2016+1.2%-0.3%-0.2%
Q1 2016-9.1%
Q4 2015+3.5%
Q3 2015+9.4%
Q2 2015-1.0%
Q1 2015-0.8%
Q4 2014+5.6%
Q3 2014+1.1%
Q2 2014+1.7%
Q1 2014-14.4%
Q4 2013-6.2%
Q3 2013+0.7%
Q2 2013+3.7%
Q1 2013-0.8%
Q4 2012+2.0%
Q3 2012-5.2%
Q2 2012-6.6%
Q1 2012-3.5%
Q4 2011-2.8%
Q4 2008-2.8%
Q3 2011-4.6%
Q4 2010-4.6%
Q2 2011-4.6%
Q1 2010+4.8%
Q1 2011-3.8%
Q2 2010-15.4%
Q3 2009+0.3%
Q3 2010+0.3%
Q2 2009+2.8%
Q4 2009+2.8%

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