United Delivers Record 17% Revenue Growth in Q3, and Expects Record Q4 Revenue Growth, Underpinned by Accelerating Customer Investments
United reported record Q3 operating revenue of $17.9 billion, up 17.4% year-over-year, with TRASM up 15.9% — its best quarterly unit revenue growth since the pandemic — and GAAP diluted EPS of $3.14. Adjusted EPS of $2.54 came in within guidance but declined 8.6% year-over-year as fuel expense jumped $1.8 billion (62%), compressing the adjusted pre-tax margin to 6.2% from 8.0%. Free cash flow was negative $1.8 billion in the quarter on heavy capital spending. Management expects Q4 revenue growth to accelerate to over 20% year-over-year, another record, and highlighted Starlink Wi-Fi now on more than 640 aircraft as a customer-acquisition differentiator.
Key figures
- Eps
- 3.14
- Revenue
- 17875000000
- Guidance
- Q4 total operating revenue growth expected to accelerate versus Q3 and set another record with an over 20% year-over-year increase
- Revenue Yoy
- 17.4%
- Liquidity
- 17700000000
- Trasm yoy
- 15.9%
- Net income
- 1029000000
- Passengers
- 49527000
- Total debt
- 26400000000
- Adjusted eps
- 2.54
- Net leverage
- 2.4
- Pretax income
- 1311000000
- Pretax margin
- 7.3%
- Adjusted eps yoy
- -8.6%
- Fuel expense yoy
- 61.6%
- Starlink aircraft
- 640
- Adjusted net income
- 833000000
- Adjusted pretax margin
- 6.2%
- Avg fuel price per gallon
- 3.9
AI analysis
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