United reports August results

Eleanor Steed
By Eleanor Steed September 12, 2016 11:38

United reports August results

United Airlines consolidated traffic, measured in revenue passenger miles (RPKs) increased 0.6 percent and consolidated capacity (available seat miles) increased 1.9 percent during August 2016 compared to the prior-year month. During the reporting period, United’s load factor decreased 1.1 points compared to August 2015.

United Airlines states that it continues to expect third-quarter 2016 consolidated passenger unit revenue per available seat mile (PRASM) to decline 5.5 to 7.5 percent compared to the third quarter of 2015. The year-over-year performance, United said, is “primarily impacted by demand growth not keeping pace with capacity growth, soft close-in yields, competitive actions and travel reductions in the energy sector.”

On August 12, 2016, UAL flight attendants ratified a new contract. While there is a modest increase to third-quarter non-fuel expense from this contract, the company still expects it will be within its original third-quarter guidance for consolidated unit cost per available seat mile (CASM) excluding fuel, profit sharing and third-party business expenses. For the full-year 2016, the company now expects CASM excluding fuel, profit sharing and third-party business expenses to increase 2.5 to 3.5 percent compared to the full-year 2015, with the increase versus prior guidance due to the flight attendant agreement.

Eleanor Steed
By Eleanor Steed September 12, 2016 11:38