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Q2 2022 financial results

Q2 2022 financial results

Old Jul 6, 22, 8:52 pm
  #1  
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Q2 2022 financial results

Earnings call 21 July 2022, 9:30 CDT

https://ir.united.com/events/event-d...-earnings-call

Total operating revenue up 6% over same quarter 2019; expects increase of 11% in third quarter versus the same quarter in 2019

Record TRASM of up 24% over same quarter 2019; expects sequential improvement in third quarter versus the same quarter in 2019

Operating margin of 7.2% and adjusted operating margin of 8.2% marking first quarter of profitability since COVID-19 began

https://www.united.com/en/us/newsroo.../cision-125231

Last edited by cesco.g; Jul 20, 22 at 9:04 pm Reason: corrected date
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Old Jul 6, 22, 9:16 pm
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Originally Posted by cesco.g View Post
Earnings call 21 June 2022, 9:30 CDT

https://ir.united.com/events/event-d...-earnings-call
The link shows July 21, 2022.
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Old Jul 20, 22, 9:06 pm
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Results are out > cf links above

Second quarter 2022 net income of $329 million, adjusted net income of $471 million.
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Old Jul 20, 22, 10:40 pm
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Originally Posted by cesco.g View Post
Total operating revenue up 6% over same quarter 2019; expects increase of 11% in third quarter versus the same quarter in 2019
I wonder the sustainability of this. I think the pent up demand and the hot economy has people willing to pay a premium vs pre-pandemic levels. FWIW my willingness to continue to pay these crazy domestic fares is beginning to wane.

Last edited by nexus7556; Jul 21, 22 at 12:13 am
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Old Jul 21, 22, 12:12 am
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Originally Posted by nexus7556 View Post
I wonder the sustainability of this. I think the pent up demand and the hot economy has people willing to pay a premium vs pre-pandemic levels. FWIW willingness to continue to pay these crazy domestic fares is beginning to wane.
It might still hold thru Q3, but then diminish - which would dent Q4 profits.
Bottom line was heavily impacted by some $1,500 million higher fuel expenses / +59.8% vs Q2 2019.
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Old Jul 21, 22, 12:52 am
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Originally Posted by cesco.g View Post
Results are out > cf links above

Second quarter 2022 net income of $329 million, adjusted net income of $471 million.
How about allocate a reasonable percentage (not even double digits) of the net income to improve the quality of catering?
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Old Jul 21, 22, 1:55 am
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Originally Posted by UA_Flyer View Post
How about allocate a reasonable percentage (not even double digits) of the net income to improve the quality of catering?
Amen!!!

PS: It would be really interesting what the additional cost per Q would be, if 2019 catering standards would be reestablished.
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Last edited by cesco.g; Jul 21, 22 at 2:00 am Reason: added PS
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Old Jul 21, 22, 7:48 am
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The top line numbers look good, but in context it was a somewhat disappointing quarter for UA. Its becoming clear the ambitious growth plans discussed in the last few quarters will ultimately prove to be mostly vapor. Near-term projections continue a steady drumbeat of pullback on those aggressive targets. In the meantime, costs continue to rise and a looming recession casts doubt on forecast of the revenue environment.

Its also notable that UA and the pilots went back to the drawing board on the new contract, as it was becoming clear the TA was going to fail. Kirby REALLY wanted to discuss a pilot deal in this earnings call and its not happening as currently conceived.

I appreciate the unbridled optimism of the United team, but its going to be tough for them to deliver on their stated objectives. The only solution will be moving goalposts
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Old Jul 21, 22, 8:16 am
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Originally Posted by nexus7556 View Post
I wonder the sustainability of this. I think the pent up demand and the hot economy has people willing to pay a premium vs pre-pandemic levels. FWIW my willingness to continue to pay these crazy domestic fares is beginning to wane.
Anecdotally, I would expect revenue to fall even in 3Q22, as it seems to me that the fare spike already broke a month or so ago, probably with the current economic weakness.
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Old Jul 21, 22, 9:08 am
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Originally Posted by findark View Post
Anecdotally, I would expect revenue to fall even in 3Q22, as it seems to me that the fare spike already broke a month or so ago, probably with the current economic weakness.
It also seems that flights aren't as full from even a couple of weeks ago.
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Old Jul 21, 22, 9:53 am
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UA Announces Q2 Financial Results -- Returns to Profitability

https://www.united.com/en/us/newsroo.../cision-125231

CHICAGO, July 20, 2022 /PRNewswire/ -- United Airlines (UAL) today reported second quarter 2022 financial results. The company achieved the highest second quarter revenue in its history, delivering its first profitable quarter since COVID-19 began, despite record-high fuel prices. The second quarter results combined with continued progress the company is seeing affirms United's confidence in achieving the long-term adjusted pre-tax margin1 targets of approximately 9 percent in 2023 and about 14 percent in 2026 that are part of the United Next strategy.
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Old Jul 21, 22, 4:27 pm
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Originally Posted by SPLITTERZ View Post
It also seems that flights aren't as full from even a couple of weeks ago.
Wish that were the case on the HD 772 I had to suffer on in a middle seat in Y after my first flight got cancelled. Will be interesting to see if UA can maintain profitability after summer is out. If a recession is indeed coming, business travel could easily get squeezed again. WIth the advent of Zoom / videoconferencing, that is a much easier expense line item to be chopped.
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Old Jul 21, 22, 6:49 pm
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CNBCs Phil LeBeau talks with United CEO Scott Kirby about the companys earnings results and outlook.

https://www.cnbc.com/video/2022/07/2...-earnings.html
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Old Jul 21, 22, 9:17 pm
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Originally Posted by cesco.g View Post
Results are out > cf links above

Second quarter 2022 net income of $329 million, adjusted net income of $471 million.
I expect to see more cuts with those numbers especially on soft product with economy slowing down.
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Old Jul 21, 22, 11:31 pm
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Originally Posted by yyzprincess View Post
CNBCs Phil LeBeau talks with United CEO Scott Kirby about the companys earnings results and outlook.

https://www.cnbc.com/video/2022/07/2...-earnings.html
Surprised no questions about fuel hedging. Seemed pretty softball.
Comments on strong Q3 bookings was interesting.
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