How Did United Perform Operationally In April?

by Trefis Team
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United Continental Holdings
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United Continental (NYSE:UAL) posted quite a solid quarter this time around, starting FY 2017 with a bang. This momentum seems to have carried into the second quarter as well. All the key metrics for the month of April grew positively, easily surpassing those reported by the company’s main competitors.

April witnessed a 7.4% growth in traffic (revenue passenger miles) y-o-y, while the consolidated capacity (available seat miles) increased at 4% in comparison to the same quarter last year. Load factor improved significantly to 87% in the month on the back of the higher reported capacity and a 7.6% increase in the number of passengers boarded.

Additionally, the company managed to beat out all major competitors in terms of on-time departures and arrivals, as well as the fewest flight cancellations for the month among the same group of peers. The airline recorded the lowest flight cancellations in its history this month.

Going forward, the company is extremely confident regarding its performance this quarter. With higher capacity growth and positive PRASM expected to kick in this time around, United expects consolidated passenger unit revenue to be up 1% to 3% compared to the second quarter of 2016.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such 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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