United Airlines Holdings Inc (UAL, Financial) released its third-quarter 2023 financial results on October 17, 2023, reporting a strong performance with a pre-tax income of $1.5 billion, marking a 29% increase year-over-year. On an adjusted basis, the pre-tax income rose by 37%.
Financial Performance
The company's total third-quarter revenue was up 12.5% year-over-year, marking a record revenue quarter and near the high end of guidance. UAL experienced a strong and steady domestic demand environment in the quarter, with 9% revenue growth year-over-year, outpacing second quarter results.
In the international space, UAL reported record-setting profits in both the Atlantic and Pacific regions. Revenue in the Atlantic region was up 15% versus the same quarter in 2022, and 70% versus the same quarter in 2019. Pacific revenue exceeded third-quarter 2019 levels despite capacity remaining 24% below third-quarter 2019 levels.
Operational Highlights
United Airlines reported strong operational performance, with September marking the best on-time performance of the year. The company's segmentation strategy proved to be a competitive advantage, with demand for premium products remaining high. Revenue from premium products was up 20% year-over-year in the quarter and accounted for more than half of all passenger revenue.
The company's loyalty program, MileagePlus®, continued to show a multi-year trend of new member growth, setting a record for third quarter enrollments and nearly doubling the number of new members versus the third quarter five years ago.
Management Commentary
Thank you to our extraordinary United team who delivered a record-setting operational performance for our customers in August and September," said United Airlines CEO Scott Kirby. “Our strategy to diversify our revenue streams, capitalize on growth opportunities and constantly innovate to enhance our products for our customers is paying off. Our United Next strategy is working and we remain on track to hit our financial targets."
Looking Ahead
United Airlines remains committed to its strategic operating plan and continues to innovate to enhance its products for customers. The company's strong third-quarter performance demonstrates its resilience and ability to adapt to the changing market dynamics. As the company moves forward, it will continue to focus on diversifying its revenue streams, capitalizing on growth opportunities, and enhancing its products for customers.
