United Airlines leverages cost convergence for profitability

UNITED Airlines ( UAL) has reported fourthquarter and full- year 2023 financial results, with profit margin for investors.

The company delivered full- year diluted earnings per share of $ 7.89 and adjusted full- year diluted earnings per share of $ 10.05, achieving its initial full- year target of $ 10 - $ 12 set at the beginning of 2023.

According to the management, United's diversified revenue strategy proved, once again, to be a critical, differentiated, and competitive advantage. United' s premium cabin sa w an increase in revenue of 16 per cent for the quarter year- over- year, while its Basic Economy offering again saw a substantial revenue increase of 20 per cent for the quarter yearover- year.

United also benefited from cost con vergence across the industry. This cost convergence resulted in a stronger relationship between United's unit costs and unit revenue performance. Combined with durable demand for tra vel and an increasing preference for United' s reliable operational performance and premium offerings, the company delivered on its initial full- year 2023 earnings per share guidance despite a wide range of headwinds.

United Airlines CEO, Scott Kirby, said their plans came together in 2023, and “I want to thank the United team for all of the hard work it took to get us there".

"Despite unpredictable headwinds, we delivered on our ambitious EPS target that few thought possible – and set new operational records for our customers.

"Looking ahead, we expect these trends to continue and United is incredibly well positioned to capitalise on them and to deliver on our short and longterm financial targets," Kirby said.