Third Quarter Financial Results
- Reported third quarter 2021 capacity down 28% compared to third quarter 2019.
- Reported third quarter 2021 net income of $0.5 billion, adjusted net loss of $0.3 billion.
- Reported third quarter 2021 total operating revenue of $7.8 billion, down 31.9% compared to third quarter 2019.
- Reported third quarter 2021 Total Revenue Per Available Seat Mile (TRASM) of down 5.1% compared to third quarter 2019.
- Reported third quarter 2021 operating expenses down 32.2%, down 20.9% excluding special charges (credits), compared to third quarter 2019.
- Reported third quarter 2021 Cost Per Available Seat Mile (CASM) of down 5.6%, CASM, excluding fuel, profit sharing, third-party business expenses and special charges (CASM-ex) of up 14.9% compared to third quarter 2019.
- Reported third quarter 2021 pre-tax margin of 7.8%, negative 6.1% on an adjusted basis.
- Reported third quarter 2021 adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) margin of 7.4%.
- Reported third quarter 2021 ending available liquidity of approximately $21 billion.
Outlook
- Expects fourth quarter 2021 capacity to be down approximately 23% versus fourth quarter 2019.
- Expects fourth quarter 2021 total revenue to be down 25% to 30% versus the fourth quarter 2019.
- Expects fourth quarter 2021 CASM-ex to be up 12% to 14% compared to fourth quarter 2019.
- Estimates fourth quarter 2021 fuel price of approximately $2.39 per gallon.
- Continues to expect 2022 CASM-ex to be lower than 2019.
- Expects 2022 capacity to be up approximately 5% versus 2019 driven by international growth.
- Expects adjusted capital expenditures to be around $3 billion in full year 2021.
- Expects adjusted diluted earnings per share in 2026 of around $20 assuming the same number of diluted shares outstanding as of September 30, 2021. United Next assumes 2026 TRASM remains down around 1% versus 2019.
- Remains on track to achieve long term financial targets from United Next plan.
