Wall Street Times

United Airlines one of the few companies tipped for positive 2023

Image source: United Cargo

United Airlines: Profit is difficult to determine because several established businesses feel inflation’s repercussions.

United Airlines has a strong 2023 because of the rising need for travel, while other companies are still debating their forecast for the year.

The news

The major airline’s first-half for 2023 and fourth-quarter estimates beat Wall Street expectations.

The good news may be due to rising costs and soaring travel demand.

Due to increased demand for air travel and consumer willingness to pay more, airlines are once more profitable.

Due to increased demand for air travel, the cost of expanding new networks—including people, fuel, and other expenses—has significantly lowered.

Aircraft backlogs and delays have also impeded airlines’ growth and increased ticket prices.


In the last quarter of 2022, United Airlines made $843 million on $12.4 billion in revenue, an improvement of 31% over the same period in the past three months.

Compared to the same period in 2019, 9% fewer flights were taken, but there were almost 14% more revenues.

Despite a 21% rise in unit costs from 2020, the airline could still turn a profit from its sales.

During Tuesday’s extended session, United Airlines’ stock price increased by just 2%.

Despite the winter storms and delays during the busy holiday travel season, the quarterly update is another positive sign that airlines will end the year positively.

Other airlines

One of the many big airlines, United, is anticipating a successful year.

Revenue and earnings for Delta Air Lines last week topped expectations on Wall Street.

However, a larger expense caused by an unanticipated pilot labor agreement weighs its anticipated first-quarter profits.

American Airlines raised its profit and sales projections for the fourth quarter.

On January 26, a report will be made available to the public.

Read also: Zero-fare starts gaining traction with Washington setting plans to follow

Fourth quarter

Refinitiv looked at United Airlines’ fourth-quarter results and the consensus forecasts.

  • Adjusted earnings per share: $2.46
  • Total revenue: $12.4 billion

These estimates originate from Wall Street.

  • Adjusted earnings per share: $2.10
  • Total revenue $12.2 billion

2023 expectations

According to United Airlines, its profit from January through March 2023 will grow by 50% over the same time last year.

The airline also anticipates first-quarter earnings per share of between 50 cents and $1.

It surpasses the 25-cent analyst expectation, claims Refinitiv.

United Airlines projects a 20% increase in flight volume in the first quarter against the same time last year.

In contrast to 2022, the airlines expect capacity growth for the whole year in the high digits.

The research assumes that the substantial price increase may continue to level out when airlines add additional flights since unit revenues (revenue per available seat mile) are the same as they were in 2022.

In a presentation to investors, United said that a scarcity of pilots, old technology, and labor concerns will restrict the industry’s capacity.

Staff plans

Several airlines want to increase the number of pilots and crew members they employ this fiscal year, even though the aviation business continues to have a workforce shortage caused by Covid.

Tuesday saw the introduction of the United Aviate Academy and the Calibrate apprenticeship program in November and early 2022, respectively, according to United Airlines.

According to the airline, a significantly upgraded and expanded flight attendant training center has opened in Houston.

United and its pilots have not yet struck a new labor agreement.

The pilots’ union has not approved a proposed wage rise deal between Delta and the pilots.

United pilot union

After the previous leader departed, the pilots’ union for United Airlines is getting ready to pick a new leader.

According to CEO Scott Kirby, the election will be over this month.

Kirby predicts that discussions will start up again around February 7 once the new leader is chosen.

He urged that a contract for a pilot be finalized as soon as possible.

In its investor presentation, United said it expected new contracts with pilots, flight attendants, technicians, and airport staff to keep non-fuel costs more stable than the previous year.

According to Scott Kirby, the Federal Aviation Administration’s most recent system failure demonstrates how the industry’s supply limits are a symptom of a larger infrastructure issue.

He said that the resources usually used to maintain aviation infrastructure were being taxed by the FAA’s use for space and drones.

“They’ve had to rob Peter to pay Paul,” said Kirby. “They just don’t have enough resources.”

Kirby noted that he makes two trips a month to Washington, DC, to lobby for more resources.


United results top estimates a demand remains resilient despite high fares

Opinions expressed by The Wall Street Times contributors are their own.