United Airlines finally has some good news in the press.
Earlier this morning, the carrier reported a second-quarter 2013 net income of $521 million, or $1.35 per diluted share.
From a P&L standpoint, Q2 total revenue rose 0.6 percent year-over-year to $10.0 billion. Total operating expenses decreased $133 million, or 1.4%, year-over-year.
Other high-level details:
- United reported a Q2 on-time arrival rate (domestic and international) of 76.7%
- United launched 3 new intercontinental routes between San Francisco and Paris, Denver and Tokyo and Chicago and Shannon.
- United welcomed back its 787 fleet in Q2, and will be deploying the aircraft on its Houston to Lagos and Los Angeles to Tokyo and Shanghai routes in August.
- United announced an overhaul to its MileagePlus premier status program by adding in a revenue spend requirement for the 2015 program year
- United opened its new Terminal B south concourse at Houston Bush intercontinental airport, a $97 million, 225,000 sq ft facilitiy exclusively for its United Express flights.
“I am encouraged by the progress we made in the second quarter – in our operations, in our customer service and in our financial performance,” said Jeff Smisek, chairman, president and chief executive officer. “I’d like to thank my co-workers for working together as we build the world’s leading airline.”
Yesterday, rival carrier Delta Air Lines reported a profit of $685 million for Q2 2013, or 80 cents per share, compared to a $168 million loss during the same quarter in 2012. US Airways reported a $287 million profit, or $1.40 per share, for Q2 2013, down from a $306 million profit a year earlier.
While great news for United, one must remember the carrier is still largely in catch-up mode. Indeed, the time is ripe for United to start posting stronger financial results as a result of merger synergies. Delta is still in the lead in terms of generating higher profit margins, and has some formidable strengths to leverage in the future with its forthcoming transatlantic joint-venture agreement with Virgin Atlantic.
I’ll try and post a more in-depth analysis once I have a bit more time, but congrats to United for a solid performance this quarter! Hopefully, things continue in an upward trend.