How Did United Continental Perform Operationally In August?

by Trefis Team
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UAL
United Airline Holdings
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In the month of August 2016, the legacy carrier, United Continental, saw its capacity increase slightly at 1.9%, causing the year to date capacity to grow by approximately 0.2%. This is in sharp contrast to carriers like JetBlue, who have taken advantage of low fuel prices to expand their capacity by as much as 10% in the year so far. The cut in capacity growth at United is likely an effort to control the negative headwinds its unit revenues are suffering from. The company said that it expects its unit revenues in the third quarter to fall in the 5.5%-7.5% range.

In terms of passenger traffic, revenue passenger miles only grew marginally, while passengers boarded grew by 2.4%. This indicates that demand for United’s short-haul flights has increased in comparison to long-distance flights.

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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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