How Did United Continental Perform Operationally In November?
After a lukewarm third quarter due to weakness in passenger yields in the Atlantic (9.7%) and Pacific (2.6%) regions, United Continental maintained strict capacity discipline internationally in October in hopes to turn around its unit revenues. Continuing this trend in November, capacity only grew 1.6% y-o-y. Including this month, so far in the year, capacity is up only 1.3% for United. A marked improvement was also seen in the load factor or occupancy rate in November, owing to a cut in international capacity. The number of passengers onboarded continued to increase by 2.6% y-o-y in November, likely owing to its stellar operational performance in terms of on-time arrival and fewest cancellations.
Going forward, the company expects the pressure on its passenger revenue average seat miles (PRASM) to subside. It has revised its expected guidance from a decline of 4%-6% to 3%-4% in the final quarter of the year, mainly due to strong bookings in the second half of the quarter.
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Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for United Continental
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