How Did United Continental Perform Operationally In September?
In the month of September 2016, the legacy carrier, United Continental, saw its capacity increase slightly at 3.6%, higher than August, causing the year to date capacity to grow by approximately 1.3%. 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 also stated an improved outlook for its unit revenues which are now expected to decline 5.5%-6% in the quarter, as opposed to the previous guidance of 5.5%-7.5%.
In terms of passenger traffic, revenue passenger miles only grew 3.6%, while passengers boarded grew by a significant 5.9%. The growth is far more significant as compared to August.
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- How Has United Continental Utilized Its Cash Flows Over The Last Three Years?
- How Have Plummeting Crude Oil Prices Impacted United Continental’s Operating Margin?
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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