United Releases 4Q Earnings Report
January 19, 2023
This week, United reported fourth-quarter earnings and full-year 2022 financial results topping Wall Street estimates due to strong demand and higher airfares.
According to news reports, United reported an $843 million profit for the last three months of 2022, a 31% increase compared with the same period three years earlier (2019), on revenue of $12.4 billion. That revenue was almost 14% higher than the same period in 2019, before the pandemic, despite flying approximately 9% less. Also, United expects to expand flying 20% in the first quarter from a year ago it said in the filing.
In its report, United forecast capacity growth in the high teens for the full year over 2022. It forecast unit revenues, or revenue per available seat mile, for the full year to come in flat compared with 2022, a sign that the sharp rise in air fares this year could cause revenue to become smaller as airlines add back more flights.
United also stated in their presentation to financial analysts this week that staffing issues, plane shortages and outdated technology could restrict industry capacity this year.
As we addressed in Tuesday’s edition of Debrief earlier this week, Profit Sharing, as provided for in Section 4.N. of our Contract, is based on our full year financial results and may vary based on corporate performance in the fourth quarter. While this was the final variable in determining the Profit-Sharing payment calculation, the corporation is forecasting pre-tax profits above the $10 million threshold for the full 2022 year. The final result of the Profit-Sharing payout is based on corporate costs relative to corporate revenue.