NASDAQ$UAL

United Airlines Holdings Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

United Airlines achieved fourth quarter financial targets despite headwinds from the Omicron variant.

United Airlines announced fourth quarter and full year 2021 financial results, achieving every major financial guidance target for the fourth quarter and setting a new Net Promoter Score (NPS) record in 2021, despite the Omicron variant impact. Bookings for spring travel and beyond remain strong, maintaining confidence in the 2023 and 2026 CASM-ex1 United Next targets.

  • Reported fourth quarter 2021 capacity down 23% compared to fourth quarter 2019.
  • Reported fourth quarter 2021 net loss of $0.6 billion, adjusted net loss of $0.5 billion.
  • Reported fourth quarter 2021 total operating revenue of $8.2 billion, down 25% compared to fourth quarter 2019.
  • Reported fourth quarter 2021 Total Revenue Per Available Seat Mile (TRASM) of down 3% compared to fourth quarter 2019.

Headline financials

Total Revenue

$8.19B

Previous: $3.41B+140.1%
EPS (adj)

-$1.60

Previous: -$7.00+77.1%
CASM

15.69

No prior period
Load Factor

77.0%

Previous: 55.6%+38.5%
Passenger Yield

16.3

Previous: 14.12+15.4%
ASMs

54.8B

Previous: 30.7B+78.6%
RPMs

42.2B

Previous: 17.1B+147.1%
Free Cash Flow

-$945M

No prior period
Net Income

-$646M

Previous: -$1.9B+65.9%
Operating Income

-$408M

Previous: -$2.14B+80.9%
Gross Profit

$1.29B

Previous: -$1.38B+193.5%
Cash & Equivalents

$18.3B

Previous: $11.3B+62.2%
Total Assets

$68.2B

Previous: $59.5B+14.5%

Revenue & EPS history

United Airlines · Revenue · Quarterly

$8.19B

Q4 2021+140.1%vs Q4 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

United Airlines · $8.19B total across 3 segments · Q4 2021

  • Passenger
    $6.88B+185.4%
  • Cargo
    $727M+29.8%
  • Other Operating
    $587M+32.8%

Forward guidance

Expects first quarter 2022 capacity to be down 16% to 18% versus first quarter 2019. Expects first quarter 2022 total operating revenue to be down 20% to 25% versus first quarter 2019. Expects first quarter 2022 CASM-ex1 to be up 14% to 15% compared to first quarter 2019.

Tailwinds

  • Remains on track to achieve long-term financial targets from United Next plan.
  • Scaled-back schedule, reflecting the impact of the Omicron spike on demand.
  • Expects to nimbly ramp up capacity by ungrounding 52 Pratt & Whitney-powered Boeing 777s, as demand returns
  • CASM-ex1 will decline significantly over the course of 2022.
  • Continues to prioritize matching capacity to demand producing expected network peer-leading full-year 2021 TRASM down 9.2% versus 2019

Headwinds

  • Omicron is impacting near term demand
  • Now expects full year 2022 capacity to be down versus 2019.
  • Now expects full year 2022 CASM-ex1 to be higher than 2019.
  • Estimates first quarter 2022 fuel price of approximately $2.51 per gallon.
  • Expects 2022 adjusted capital expenditures to be around $4.2 billion, plus approximately $1.7 billion in 2021 deferred capital expenditures mainly due to the timing of certain aircraft deliveries delayed to 2022, for a total of $5.9 billion.

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 Q4 2021

Historical avgQ4 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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