He is an expert on company news, market news, political news, trading news, investing, and the economy. Analysts estimate adjusted EPS of -$4.18 vs. -$7.50 in Q1 FY 2021. Analysts expect United Airlines' load factor in Q1 FY 2022 to be 77.0%, which is stable on a sequential basis but up considerably from the year-ago quarter. In addition, United is facing higher fuel costs, most of which the carrier is trying to pass on to customers. A high load factor, as opposed to a low load factor, indicates that a high percentage of seats are occupied by passengers. Investopedia requires writers to use primary sources to support their work. United Airlines Holdings Inc. (UAL) is seeing a rapid recovery in revenue after the shock to travel demand triggered by the onset of the COVID-19 pandemic in early 2020. It would be the company's ninth straight quarter of adjusted losses. Analysts expect the company's load factor to rise compared to the year-ago quarter but to be basically flat compared to the previous quarter. United Airlines reported Q4 FY 2021 earnings that beat analysts' expectations. Trailing 12 months (TTM) is the term for the data from the past 12 consecutive months used for reporting financial figures. The carrier reported its seventh straight quarterly adjusted loss per share. In Q3 FY 2021, United Airlines' earnings and revenue beat consensus estimates. It would mark the fourth consecutive quarter of growth but the pace continues to slow. Revenue, however, rose 140.1% year over year (YOY), marking the third straight quarter of growth after five consecutive quarters of declines. It continued to increase throughout FY 2021, reaching 77.0% in the final quarter of FY 2021. The company said that the spread of the Delta variant stalled the recovery in travel demand, but that it remained confident about achieving its 2022 financial targets. They expect the company to report a much wider adjusted loss per share than in recent quarters. ", United Airlines Holdings Inc. "United Airlines Achieves Fourth Quarter Financial Targets and Reiterates Long-Term Commitments -- Despite Headwinds from Omicron Variant. These include white papers, government data, original reporting, and interviews with industry experts. Revenue is expected to rise as travel demand slowly stages a rebound from the pandemic shock. ", United Airlines Holdings Inc. "United to Hold Webcast of First-Quarter 2022 Financial Results. Analysts expect more of the same from United Airlines in Q1 FY 2022. United Airlines Profit Dented by Delta Variant, United Airlines Says Omicron Variant to Slow Travel Rebound, U.S. airline demand, costs soaring as earnings kick off, United to Hold Webcast of First-Quarter 2022 Financial Results, United Airlines Achieves Fourth Quarter Financial Targets and Reiterates Long-Term Commitments -- Despite Headwinds from Omicron Variant, United Airlines Third-Quarter Results; Remains on Track to Meet 2022 Targets; Poised to Capitalize on International Reopening. ", The Wall Street Journal.
He received his bachelor's degree in interdisciplinary studies fromSt. Stephen's Universityand his master's degree in economics at The New School for Social Research. The offers that appear in this table are from partnerships from which Investopedia receives compensation. By clicking Accept All Cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Revenue is expected to expand for the fourth consecutive quarter, but at a slower pace. Because the costs of sending an aircraft into flight are relatively the same whether there are 50 people aboard or 100, airlines have a strong incentive to fill as many seats as possible by selling more tickets. But in FY 2020, its annual load factor sank to 60.2% amid cratering travel demand triggered by the pandemic. A company's trailing 12 months represents its financial performance for a 12-month period. The airline is expected to report its ninth straight adjusted loss per share.
Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock, serving as a profitability indicator. United Airlines' shares have underperformed the broader market over the past year. The airline reported its eighth consecutive adjusted loss per share.
United Airlines is reporting continuing net losses as new variants, such as Delta and Omicron, have slowed the travel rebound and weighed on the carrier's performance in recent quarters. For full-year FY 2022, analysts expect an annual load factor of 81.2%. ", United Airlines Holdings Inc. "United Airlines Third-Quarter Results; Remains on Track to Meet 2022 Targets; Poised to Capitalize on International Reopening.". "United Airlines Profit Dented by Delta Variant. The stock's performance gap has also widened throughout the year. The stock very briefly outperformed the market from late May 2021 to early June 2021, but it has underperformed ever since. A Revenue Passenger Mile is a transportation industry metric that shows the number of miles traveled by paying passengers. The pandemic led to a reduction in air travel, leaving airlines with high fixed costs amid falling load factors and revenues, the combination of which has caused steep losses. Matthew Johnston has more than 5 years writing content for Investopedia. Revenue expanded 211.4% YOY, rising for the second straight quarter but at a decelerating pace compared to the previous quarter. Investopedia does not include all offers available in the marketplace. We also reference original research from other reputable publishers where appropriate.
But the recovery has been bumpy. Revenue is expected to grow at a rapid pace of 138.7% YOY. "United Airlines Says Omicron Variant to Slow Travel Rebound.
That would be the highest level since the start of the pandemic, but still slightly below pre-pandemic levels. ", Reuters. The company said that the Omicron variant of the coronavirus was impacting demand in the near term, but that it remains optimistic about the spring and summer seasons of 2022 and beyond. As mentioned above, investors will also be focused on United Airlines'load factor, a key metric indicating the percentage of a carrier's available seats that are filled with paying passengers. Investors will be watching to see when United Airlines can return to profitability, and how quickly, when it reports earnings after market close on April 20, 2022 for Q1 FY 2022. Annual revenue is expected to grow 66.7%, its fastest pace in at least five years. Continuing to boost its load factor will help United Airlines to return to profitability. He teaches macroeconomics at St. Stephen's University. United Airlines maintained an annual load factor of nearly 84% in the two years prior to the start of the pandemic. Investors will also be watching United Airlines' load factor, a key metric used by air carriers to gauge what percentage of paid-passenger seating capacity is being filled. Shares of United Airlines have provided a total return of -20.7% over the past year, well below the S&P 500's total return of 6.5%. However, it was the smallest such loss out of the seven. As is customary for the company, it will then hold a conference call the next day to discuss its results on the morning of April 21, 2022. This compensation may impact how and where listings appear. The Wall Street Journal.
"U.S. airline demand, costs soaring as earnings kick off. A quarter is a three-month period on a company's financial calendar that acts as a basis for the reporting of earnings and the paying of dividends. Delta Air Lines Earnings: What to Look For, Delta Air Lines Q2 2022 Earnings Report Recap, American Airlines Earnings: What to Look For, JPMorgan Chase Earnings: What to Look For, United Airlines Q1 2022 Earnings Report Recap. Higher load factors mean an airline's fixed costs are spread across a greater number of passengers, making the airline more profitable. Gross domestic product (GDP) is the monetary value of all finished goods and services made within a country during a specific period. Its load factor fell to as low as 33.1% in the second quarter of FY 2020 before rising to 47.8% in the third quarter and then to 55.6% in the fourth. Trailing 12 Months: What Everyone Should Know. For full-year FY 2022, analysts expect United Airlines to report its third straight year of adjusted losses per share, though the losses are expected to narrow dramatically compared to FY 2020 and FY 2021. You can learn more about the standards we follow in producing accurate, unbiased content in our. Year-over-year (YOY) describes how investors can see a difference in financials or information of a company between comparable quarters or years.