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JammyBritton27
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United Airlines posts Q2 results, fuel expense rose 43%

Tue Jul 17, 2018 8:38 pm

UAL reported second quarter net income of $684 million and diluted earnings per share of $2.48.

Earnings report glimpses:

https://news.alphastreet.com/united-air ... uel-costs/

PRASM increased 3% year-over-year.

CASM increased 7.1% year-over-year.

Aircraft fuel expense jumped 43% to $2.4 billion.


Link to official press release:

https://www.prnewswire.com/news-release ... 82459.html
Last edited by JammyBritton27 on Tue Jul 17, 2018 8:53 pm, edited 1 time in total.
 
RvA
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Re: United Airlines posts Q2 results

Tue Jul 17, 2018 8:43 pm

43% is eye watering
 
ScottB
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Tue Jul 17, 2018 9:11 pm

Compared to DAL, which reported last week, the numbers are a bit underwhelming. A billion less in revenue for UAL, even with about 1% higher RPMs and 3% higher ASMs. To UAL's credit, their operating expenses came in below Delta's even with the higher capacity.
 
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LAXintl
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Tue Jul 17, 2018 9:15 pm

Despite surging jet fuel costs, they beat earnings forecasts while also raising its outlook for the remainder of the year.
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RKDFlier
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Tue Jul 17, 2018 9:17 pm

iahcsr wrote:
Rather disappointing no major aircraft order .. the 175/789 being minor.


Do they have a large fleet to replace which doesn't already a orders for?
I never profesed to be perfict
 
iahcsr
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Tue Jul 17, 2018 9:19 pm

Rather disappointing no major aircraft order .. the 175/789 being minor.
Working Hard, Flying Right Friendly....
 
tphuang
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Tue Jul 17, 2018 9:21 pm

This actually look good. They came in on the high end of their rasm projection in spite of the capacity increase. Casm ex looked good. I think they are going to look good compared to aa.

There is no need to always compare ua to dl. They have some work to do. No question. But the gap between ua and dl in the margin department is only 3.6% this quarter. Which is an improvement over last year when it was 4.2%.
 
codc10
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Tue Jul 17, 2018 9:24 pm

ScottB wrote:
Compared to DAL, which reported last week, the numbers are a bit underwhelming. A billion less in revenue for UAL, even with about 1% higher RPMs and 3% higher ASMs. To UAL's credit, their operating expenses came in below Delta's even with the higher capacity.


Some of that can be explained by the difference in average length of haul... United has higher ASMs driven mostly by longer hauls, which are cheaper to operate on a CASM basis. Delta, OTOH, carried about 9 million more pax over the quarter, driven mostly by its larger gauge and greater number of departures, though mostly shorter flights. RASM tends to be higher on shorter flights, which contributes to Delta's advantage in this regard.
 
ScottB
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Tue Jul 17, 2018 9:40 pm

codc10 wrote:
Some of that can be explained by the difference in average length of haul... United has higher ASMs driven mostly by longer hauls, which are cheaper to operate on a CASM basis. Delta, OTOH, carried about 9 million more pax over the quarter, driven mostly by its larger gauge and greater number of departures, though mostly shorter flights. RASM tends to be higher on shorter flights, which contributes to Delta's advantage in this regard.


True, but the numbers are still underwhelming in that UAL's operating profit was just over half a billion lower than DAL's, as was their pre-tax income. DAL's net was about $350 million higher than UAL mostly due to higher tax expense at the former.
 
codc10
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Tue Jul 17, 2018 9:48 pm

ScottB wrote:
codc10 wrote:
Some of that can be explained by the difference in average length of haul... United has higher ASMs driven mostly by longer hauls, which are cheaper to operate on a CASM basis. Delta, OTOH, carried about 9 million more pax over the quarter, driven mostly by its larger gauge and greater number of departures, though mostly shorter flights. RASM tends to be higher on shorter flights, which contributes to Delta's advantage in this regard.


True, but the numbers are still underwhelming in that UAL's operating profit was just over half a billion lower than DAL's, as was their pre-tax income. DAL's net was about $350 million higher than UAL mostly due to higher tax expense at the former.


It's no secret... to match DL's numbers (both in terms of magnitude and relative %) UA needs to add scale.
 
ual777
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Tue Jul 17, 2018 10:07 pm

ScottB wrote:
codc10 wrote:
Some of that can be explained by the difference in average length of haul... United has higher ASMs driven mostly by longer hauls, which are cheaper to operate on a CASM basis. Delta, OTOH, carried about 9 million more pax over the quarter, driven mostly by its larger gauge and greater number of departures, though mostly shorter flights. RASM tends to be higher on shorter flights, which contributes to Delta's advantage in this regard.


True, but the numbers are still underwhelming in that UAL's operating profit was just over half a billion lower than DAL's, as was their pre-tax income. DAL's net was about $350 million higher than UAL mostly due to higher tax expense at the former.


UA raised EPS for the full year by $.25 and DL slashed by a full $1.00.

A very solid quarter for UA, and it looks like Kirby's expansion plan is beginning to bear fruit.
It is always darkest before the sun comes up.
 
aerohottie
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Tue Jul 17, 2018 10:11 pm

ScottB wrote:
Compared to DAL, which reported last week, the numbers are a bit underwhelming. A billion less in revenue for UAL, even with about 1% higher RPMs and 3% higher ASMs. To UAL's credit, their operating expenses came in below Delta's even with the higher capacity.

All of which is a consequence of operating more longer range flights
What?
 
MSPNWA
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Wed Jul 18, 2018 4:42 am

YOY change I expect this to be the best result of the Legacy 3. Good job by UA, and it's becoming more and more clear that Kirby is doing a great job with leveraging UA's network. One of the simplest ways one can see this is with load factors. Traditionally UA is a laggard at LF, and that is improving. Getting more butts in seats isn't fancy, but it's how you earn revenue. UA is also really doing well on the cost side (this is where DL has been weakest). He has more work to go, but he's got the ship going in the right direction.
 
727200
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Wed Jul 18, 2018 5:37 am

I will give Kirby credit because he is one of the few guys at UA that knows what the operational side is. Plus he is working with less planes than either DL (-100) and AA (-200). His numbers are trending upward and so are the earnings. Let him get even in aircraft and this can be a real fight. I would rather be in his position where he has nowhere to go but continue on the up trend, than DL and AA which can only drop.
 
Prost
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Wed Jul 18, 2018 6:08 am

From the PR is this:

https://finance.yahoo.com/news/united-2 ... 35678.html

Ranked first among largest competitors in on-time departures in the quarter.

I have never heard this, I thought DL was #1 of the largest carriers.
 
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tlecam
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Wed Jul 18, 2018 6:38 am

Nice quarter, UA.
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mcdu
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Wed Jul 18, 2018 12:26 pm

Prost wrote:
From the PR is this:

https://finance.yahoo.com/news/united-2 ... 35678.html

Ranked first among largest competitors in on-time departures in the quarter.

I have never heard this, I thought DL was #1 of the largest carriers.


That’s what DL attempts to spin.
 
codc10
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Wed Jul 18, 2018 12:39 pm

Prost wrote:
From the PR is this:

https://finance.yahoo.com/news/united-2 ... 35678.html

Ranked first among largest competitors in on-time departures in the quarter.

I have never heard this, I thought DL was #1 of the largest carriers.


That’s actually been the case pretty often over the past year or so. Still, the perception continues that UA is not as reliable as DL.

DL still consistently has a higher completion factor, and its regional operation performs better in most metrics than UA or AA, which is meaningful given that a higher % of UA pax are on regional partners than AA or DL.

No doubt UA has made tremendous operational strides since the post-merger nadir.
 
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fanoftristars
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Wed Jul 18, 2018 1:22 pm

codc10 wrote:
Prost wrote:
From the PR is this:

https://finance.yahoo.com/news/united-2 ... 35678.html

Ranked first among largest competitors in on-time departures in the quarter.

I have never heard this, I thought DL was #1 of the largest carriers.


That’s actually been the case pretty often over the past year or so. Still, the perception continues that UA is not as reliable as DL.

DL still consistently has a higher completion factor, and its regional operation performs better in most metrics than UA or AA, which is meaningful given that a higher % of UA pax are on regional partners than AA or DL.

No doubt UA has made tremendous operational strides since the post-merger nadir.


I didn't see in the article where it mentioned #1 for on time departures. Still more important is on time arrivals. How is UA making out with on time arrivals compared to the big three? Still UA's results are on the heels of Delta and Delta will need to continue to up its game to stay on top.
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jayunited
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Wed Jul 18, 2018 1:25 pm

MSPNWA wrote:
YOY change I expect this to be the best result of the Legacy 3. Good job by UA, and it's becoming more and more clear that Kirby is doing a great job with leveraging UA's network. One of the simplest ways one can see this is with load factors. Traditionally UA is a laggard at LF, and that is improving. Getting more butts in seats isn't fancy, but it's how you earn revenue. UA is also really doing well on the cost side (this is where DL has been weakest). He has more work to go, but he's got the ship going in the right direction.


I 100% agree if not for Kirby and the decisions he has made this probably would have been a disastrous quarter for UA especially with a 43% increase in fuel cost. Munoz and other executives were reluctant to launch basic economy and in some ways were reluctant to fight for market share. Kirby comes in and said while he was at AA he didn't understand why UA took the stance it did but he loved it and AA benefited from UA's cowardice. But now that he is at UA he is determined to fight for market share at all the hubs he is determined to fight for lucrative corporate contracts all the way down to the price sensitive basic economy customer. I think Kirby really understands in todays market an airline can't be successful and profitable if it only fights for business traffic and ignores all other traffic and customers. It seems as though Kirby has finally gotten UA on the right track and I'm hoping this success will and he'll turn CLE into a strong focus city and make UA more competitive in leisure markets, markets UA has traditionally ignored or underserved.

In the month of June UA set a personal record I believe we flew over 15 million passengers during that month UA has never flown that many passengers in a single month.

I don't think anyone could have asked much more of UA in this quarter both AA and DL have over 1,000 mainline aircraft UA only has 757 mainline aircraft it is going to be interesting to see where Kirby takes this airline as he is able to get his hands on more narrow body aircraft.
 
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Wed Jul 18, 2018 1:27 pm

codc10 wrote:
Prost wrote:
From the PR is this:

https://finance.yahoo.com/news/united-2 ... 35678.html

Ranked first among largest competitors in on-time departures in the quarter.

I have never heard this, I thought DL was #1 of the largest carriers.


That’s actually been the case pretty often over the past year or so. Still, the perception continues that UA is not as reliable as DL.

DL still consistently has a higher completion factor, and its regional operation performs better in most metrics than UA or AA, which is meaningful given that a higher % of UA pax are on regional partners than AA or DL.

No doubt UA has made tremendous operational strides since the post-merger nadir.



Good points. Controllable CF can still improve, but ontime perf and baggage performance is solid. Changing perception is a tough thing, especially with some of the PR issues UA has had.

But dang near 85% load factor? Yeesh. That's crazy high.

Quietly, UA is running quite a good operation, the focus on fixing network is bearing fruit--and more importantly--they can run an operation supported by tech ops, etc, more reliably now. Investor call should be a good listen.
 
codc10
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Wed Jul 18, 2018 1:57 pm

jayunited wrote:
I don't think anyone could have asked much more of UA in this quarter both AA and DL have over 1,000 mainline aircraft UA only has 757 mainline aircraft it is going to be interesting to see where Kirby takes this airline as he is able to get his hands on more narrow body aircraft.


Well, close. DL has 888 aircraft (and growing) in its mainline fleet, while AA is 956 (and shrinking).

UA punches above its weight in terms of ASM because of its disproportionate volume of big airplanes flying long haul routes and larger international network. In the quarter, UA earned more passenger revenue in each of the three international regions (Atlantic, Pacific, Latin) than DL, but DL outperformed UA to the tune of about $1.1b in domestic. This bodes well for United going forward, since international (besides Latin) has been outperforming domestic on PRASM growth, though domestic remains healthier in terms of yield, but it still goes to show that United is underweight in the home market and needs to continue to grow in order to close the gap.
 
jetmatt777
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Wed Jul 18, 2018 3:07 pm

Great quarter! Proud of my coworkers!
 
ual763
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Wed Jul 18, 2018 3:12 pm

https://www.cnbc.com/video/2018/07/18/u ... arter.html

Here’s a nice short video with some of Oscar’s takes on the results.
From flying to the NOTAM office
 
LHUSA
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Wed Jul 18, 2018 4:27 pm

The market is happy. Stock up nearly 9% at the moment, nearing $80
 
MIflyer12
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Wed Jul 18, 2018 4:46 pm

mcdu wrote:
Prost wrote:
From the PR is this:

https://finance.yahoo.com/news/united-2 ... 35678.html

Ranked first among largest competitors in on-time departures in the quarter.

I have never heard this, I thought DL was #1 of the largest carriers.


That’s what DL attempts to spin.


Do you want to measure on-time departures, or on-time arrivals? See what BTS says about 2Q on-time arrivals.
 
panamair
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Wed Jul 18, 2018 4:57 pm

mcdu wrote:
That’s what DL attempts to spin.


Nope, Delta has always focused on arrival punctuality rate (and that's what the DOT measures for its monthly report and that's what gets into the media). And DL is indeed still on top (of the major carriers) on the arrivals front; that's why the UA press release talks about departures, and doesn't mention anything about arrivals.

Not to take away from UA's achievements (it has improved significantly on the operational front) but as someone who travels for work every week, it is far more important for me (or many other pax) to arrive on time than to depart on time...
 
flyguy84
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Wed Jul 18, 2018 5:04 pm

Amazing that people wil nitpick any detail to try and denigrate United. Most also forget that United is exposed to exponentially more ATC delays due to their operations in EWR, SFO, and ORD. Even on days that a GDP may not be in place, ATC uses TBFM and metering to manage traffic into these airports. So yes, flights may depart on-time only to be hit with a delay on taxi-out.
SFO
 
Rdh3e
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Wed Jul 18, 2018 5:05 pm

panamair wrote:
Not to take away from UA's achievements (it has improved significantly on the operational front) but as someone who travels for work every week, it is far more important for me (or many other pax) to arrive on time than to depart on time...

The reason to use D:00 is it strips out operation block time padding. A:14 is padded and meaningless if you ticketed arrival time is regularly much later than the normal arrival time.
 
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adamblang
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Wed Jul 18, 2018 5:47 pm

A thing to know about how United talks about on-time performance, publicly and internally:

United stresses departing and arriving exactly on schedule. The Department of Transportation stresses departing and arriving within 14 minutes of schedule.

Sometimes you'll see conflicting claims when United's D:00 or A:00 rank is different than Delta's or anybody else's D:14 or A:14 rank.
 
jetmatt777
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Wed Jul 18, 2018 5:56 pm

panamair wrote:
mcdu wrote:
That’s what DL attempts to spin.


Nope, Delta has always focused on arrival punctuality rate (and that's what the DOT measures for its monthly report and that's what gets into the media). And DL is indeed still on top (of the major carriers) on the arrivals front; that's why the UA press release talks about departures, and doesn't mention anything about arrivals.

Not to take away from UA's achievements (it has improved significantly on the operational front) but as someone who travels for work every week, it is far more important for me (or many other pax) to arrive on time than to depart on time...



United and Delta are 83% and 86% on time arrival for 2018. You’re truthfully just as likely to arrive on time on United as you are Delta.

That small of a difference can easily be swayed either way by one thunderstorm over Atlanta or a foggy day in San Francisco. Both carriers are operating very reliable networks. To claim this as a United “loss” is being too picky.
 
jayunited
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Wed Jul 18, 2018 6:21 pm

codc10 wrote:
jayunited wrote:
I don't think anyone could have asked much more of UA in this quarter both AA and DL have over 1,000 mainline aircraft UA only has 757 mainline aircraft it is going to be interesting to see where Kirby takes this airline as he is able to get his hands on more narrow body aircraft.


Well, close. DL has 888 aircraft (and growing) in its mainline fleet, while AA is 956 (and shrinking).

UA punches above its weight in terms of ASM because of its disproportionate volume of big airplanes flying long haul routes and larger international network. In the quarter, UA earned more passenger revenue in each of the three international regions (Atlantic, Pacific, Latin) than DL, but DL outperformed UA to the tune of about $1.1b in domestic. This bodes well for United going forward, since international (besides Latin) has been outperforming domestic on PRASM growth, though domestic remains healthier in terms of yield, but it still goes to show that United is underweight in the home market and needs to continue to grow in order to close the gap.


My apologies I thought DL had over 1,000 mainline aircraft I misread or misunderstood the article I read that stated DL has 1,031 aircraft in their fleet. I assumed they were talking about mainline but I guess its mainline and express.

https://news.alphastreet.com/delta-air- ... estimates/
 
jumbojet
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Fri Jul 20, 2018 10:35 am

Prost wrote:
From the PR is this:

https://finance.yahoo.com/news/united-2 ... 35678.html

Ranked first among largest competitors in on-time departures in the quarter.

I have never heard this, I thought DL was #1 of the largest carriers.


UA is not the first in on-time departures. Go to the DOT website and see for yourself. I did a complete work up on it and posted it in a thread.
 
jumbojet
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Fri Jul 20, 2018 10:56 am

ual777 wrote:
ScottB wrote:
codc10 wrote:
Some of that can be explained by the difference in average length of haul... United has higher ASMs driven mostly by longer hauls, which are cheaper to operate on a CASM basis. Delta, OTOH, carried about 9 million more pax over the quarter, driven mostly by its larger gauge and greater number of departures, though mostly shorter flights. RASM tends to be higher on shorter flights, which contributes to Delta's advantage in this regard.


True, but the numbers are still underwhelming in that UAL's operating profit was just over half a billion lower than DAL's, as was their pre-tax income. DAL's net was about $350 million higher than UAL mostly due to higher tax expense at the former.


UA raised EPS for the full year by $.25 and DL slashed by a full $1.00.

A very solid quarter for UA, and it looks like Kirby's expansion plan is beginning to bear fruit.


Its really has more to do with re-banking IAH and ORD then expansion.
 
United1
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Fri Jul 20, 2018 2:18 pm

jumbojet wrote:
Prost wrote:
From the PR is this:

https://finance.yahoo.com/news/united-2 ... 35678.html

Ranked first among largest competitors in on-time departures in the quarter.

I have never heard this, I thought DL was #1 of the largest carriers.


UA is not the first in on-time departures. Go to the DOT website and see for yourself. I did a complete work up on it and posted it in a thread.


UA is number 1 for network D:00 departures among their peers during the second quarter....you posted Q1 mainline only stats. Perhaps a certain member is right about DL Connection performance dragging their stats down.

UA 70.0%
DL 69.8%
AA 65.2%
WN 46.3%

Source is masFlight
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tphuang
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Fri Jul 20, 2018 2:36 pm

jumbojet wrote:
ual777 wrote:
ScottB wrote:

True, but the numbers are still underwhelming in that UAL's operating profit was just over half a billion lower than DAL's, as was their pre-tax income. DAL's net was about $350 million higher than UAL mostly due to higher tax expense at the former.


UA raised EPS for the full year by $.25 and DL slashed by a full $1.00.

A very solid quarter for UA, and it looks like Kirby's expansion plan is beginning to bear fruit.


Its really has more to do with re-banking IAH and ORD then expansion.


Give it a rest. UA clearly had a good quarter. They are really doing a good job of pushing down AA at ORD. IAH is going to perform well with the high fuel prices.

They are going to be most likely surpassing AA sometimes in margin this year. And if DL keeps taking more domestic adventues, they are going to surpass DL also.
 
toxtethogrady
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Re: United Airlines posts Q2 results

Fri Jul 20, 2018 2:56 pm

RvA wrote:
43% is eye watering


But predictable, given the upward drift of crude prices. On the flip side, maybe more business out of Houston?
 
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atcsundevil
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Fri Jul 20, 2018 4:10 pm

Please stick to the topic. Off topic comments and flame bait will be removed. There's no reason for this to be an inflammatory subject. Users wanting to be critical of UA's customer service or aspects unrelated to their Q2 results should do so in a more appropriate topic.

✈️ atcsundevil
 
Varsity1
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Fri Jul 20, 2018 4:18 pm

UA is ramping up 50 seat flying and regional block hours. This will drive unproportional fuel expense growth.
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United1
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Fri Jul 20, 2018 4:54 pm

Varsity1 wrote:
UA is ramping up 50 seat flying and regional block hours. This will drive unproportional fuel expense growth.


UA did add some 50 seat RJ capacity over the last year but they also added quite a bit of mainline and 76 seat RJ flying as well. Overall 50 seat RJs make up a small percentage of UAs ASMs and while every little bit helps/hurts those jets don't really have enough of an effect to move the needle much. While 50 seat jets do have a higher CASM on average than a mainline just they also can generate fairly high RASM as smaller markets tend to higher fares.
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LHUSA
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Fri Jul 20, 2018 5:06 pm

Wow, stock price is over $81 at the moment. Wall Street has been very happy over the last 3 days. Nice to see UA's strategy starting to pay off.
 
Benni228
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Fri Jul 20, 2018 5:39 pm

jayunited wrote:

In the month of June UA set a personal record I believe we flew over 15 million passengers during that month UA has never flown that many passengers in a single month.


That’s super interesting to hear... I gotta say, of all the UA flights I took in June I don’t think there was an empty seat on a single one of them, and all with long standby lists. It definitely seemed like a busy period in the terminals too!
 
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SumChristianus
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Re: United Airlines posts Q2 results, fuel expense rose 43%

Mon Jul 23, 2018 2:59 am

Also interesting to note is that ex-fuel CASM actually declined YOY. While the fuel cost increase is bad for profits, for the long term that is good news.
https://hub.united.com/united-airlines- ... 51625.html
Overall passengers are up > 8% YOY in June which is quite stunning growth compared to the past trend for UA.
UA DL LH NW AA WN - Hope I don't have to leave WY for a while
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F9Animal
Posts: 4435
Joined: Thu Dec 16, 2004 7:13 am

Re: United Airlines posts Q2 results, fuel expense rose 43%

Mon Jul 23, 2018 4:38 am

I smell a major downturn in the industry coming, and very soon. Fuel is no doubt going to be another airline killer soon. The weakest are the ones to really keep an eye on.

I am still thankful UA made a profit. On a side note, flew on UA a few weeks ago. Even though it was only a 2.5 hour flight, the overall service was great! My first 757-300 ride by the way! I did chat with some of the crew. They are CO, and well.... Not very happy with how things are going. I know mergers suck, but I hope the employee relations side of things get better.
I Am A Different Animal!!
 
jagraham
Posts: 1131
Joined: Sun Jul 17, 2016 11:10 pm

Re: United Airlines posts Q2 results, fuel expense rose 43%

Mon Jul 23, 2018 6:45 am

ScottB wrote:
Compared to DAL, which reported last week, the numbers are a bit underwhelming. A billion less in revenue for UAL, even with about 1% higher RPMs and 3% higher ASMs. To UAL's credit, their operating expenses came in below Delta's even with the higher capacity.


This is a serious question for anyone who has insight . . How can UA have even 3% more ASMs than DL with about 140 fewer planes?
 
1989worstyear
Posts: 887
Joined: Sun Dec 04, 2016 6:53 pm

Re: United Airlines posts Q2 results, fuel expense rose 43%

Mon Jul 23, 2018 7:09 am

F9Animal wrote:
I smell a major downturn in the industry coming, and very soon. Fuel is no doubt going to be another airline killer soon. The weakest are the ones to really keep an eye on.

I am still thankful UA made a profit. On a side note, flew on UA a few weeks ago. Even though it was only a 2.5 hour flight, the overall service was great! My first 757-300 ride by the way! I did chat with some of the crew. They are CO, and well.... Not very happy with how things are going. I know mergers suck, but I hope the employee relations side of things get better.


Crazy how none of the airlines saw the fuel costs coming - OPEC was pretty adamant for a about getting prices back to 80-90 USD for some time.

Goodbye 757's and 767's in 2023. If they only came out 6 years later (1988) would they be considered fuel efficient by today's standards.

Late 1988 was when jetliner innovation peaked with the certification of the A320-200 - hence why UA won't retire any of theirs in the next 10-15 years.
Stuck at age 15 thanks to the certification date of the A320-200 and my parents' decision to postpone having a kid by 3 years. At least there's Dignitas...
 
sxf24
Posts: 1007
Joined: Wed Aug 15, 2007 12:22 pm

Re: United Airlines posts Q2 results, fuel expense rose 43%

Mon Jul 23, 2018 11:56 am

jagraham wrote:
ScottB wrote:
Compared to DAL, which reported last week, the numbers are a bit underwhelming. A billion less in revenue for UAL, even with about 1% higher RPMs and 3% higher ASMs. To UAL's credit, their operating expenses came in below Delta's even with the higher capacity.


This is a serious question for anyone who has insight . . How can UA have even 3% more ASMs than DL with about 140 fewer planes?


They fly larger planes with higher utilization on longer flights.
 
User avatar
RyanairGuru
Posts: 8419
Joined: Wed Nov 01, 2006 3:59 am

Re: United Airlines posts Q2 results, fuel expense rose 43%

Mon Jul 23, 2018 12:07 pm

jagraham wrote:
ScottB wrote:
Compared to DAL, which reported last week, the numbers are a bit underwhelming. A billion less in revenue for UAL, even with about 1% higher RPMs and 3% higher ASMs. To UAL's credit, their operating expenses came in below Delta's even with the higher capacity.


This is a serious question for anyone who has insight . . How can UA have even 3% more ASMs than DL with about 140 fewer planes?



Delta:
11 A332
31 A333
11 A359
58 763
21 764
18 772
150 widebody aircraft

United:
35 763
16 764
19 77A
55 77E
17 77W
12 788
25 789
179 widebody aircraft

Not only does United have a much higher proportion of widebody aircraft as a percentage of their fleet, their average widebody gauge is larger (767, A330 for Delta vs 777 for United) and United have a lot more flights over 10 hours in their schedule. Delta’s stength is short haul domestic, the sort of routes flown by 717s and M88s; United is a much larger longhaul airline.
Worked Hard, Flew Right
 
mcdu
Posts: 1643
Joined: Thu Apr 28, 2005 5:23 am

Re: United Airlines posts Q2 results, fuel expense rose 43%

Mon Jul 23, 2018 12:07 pm

F9Animal wrote:
I smell a major downturn in the industry coming, and very soon. Fuel is no doubt going to be another airline killer soon. The weakest are the ones to really keep an eye on.

I am still thankful UA made a profit. On a side note, flew on UA a few weeks ago. Even though it was only a 2.5 hour flight, the overall service was great! My first 757-300 ride by the way! I did chat with some of the crew. They are CO, and well.... Not very happy with how things are going. I know mergers suck, but I hope the employee relations side of things get better.


Never ask a FA or a pilot how things are going. They can give you a million reasons why they would hate winning the lottery.

For the FA’s the final integration is looming in October. Many wlll have their schedules and lifestyle changed as a result. It will be the last cog in the integration but well past time for it to be done.
 
Cubsrule
Posts: 14555
Joined: Sat May 15, 2004 12:13 pm

Re: United Airlines posts Q2 results, fuel expense rose 43%

Mon Jul 23, 2018 12:32 pm

United1 wrote:
jumbojet wrote:
Prost wrote:
From the PR is this:

https://finance.yahoo.com/news/united-2 ... 35678.html

Ranked first among largest competitors in on-time departures in the quarter.

I have never heard this, I thought DL was #1 of the largest carriers.


UA is not the first in on-time departures. Go to the DOT website and see for yourself. I did a complete work up on it and posted it in a thread.


UA is number 1 for network D:00 departures among their peers during the second quarter....you posted Q1 mainline only stats. Perhaps a certain member is right about DL Connection performance dragging their stats down.

UA 70.0%
DL 69.8%
AA 65.2%
WN 46.3%

Source is masFlight


It’s interesting that UA boasts about D0 - a statistic about which few passengers care - and not about A0 or A15.
I can't decide whether I miss the tulip or the bowling shoe more

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