United Airlines Reports Third-Quarter 2017 Net Income

United Airlines (UAL) reported third-quarter net income of US$637m, pre-tax earnings of approximately US$1.0bn and pre-tax margin of 9.9%.

Excluding special charges, UAL reported third-quarter net income of US$669m, pre-tax earnings of US$1.0bn and pre-tax margin of 10.4%. UAL repurchased US$556m of its common shares in the third quarter, bringing the year-to-date share repurchases to US$1.3bn.

During the quarter, the company cancelled approximately 8,300 flights as a result of severe weather in southeast Texas, Florida and parts of the Caribbean. The operational disruption reduced third-quarter pre-tax income by an estimated US$185m. For the third quarter of 2017, revenue was US$9.9bn, roughly flat year-over-year including an estimated US$210m loss of revenue from severe weather during the quarter.

Third-quarter 2017 consolidated passenger revenue per available seat mile (PRASM) was down 3.7% compared to the third quarter of 2016. Cargo revenue was US$257m in the third quarter of 2017, an increase of 14.7% year-over-year primarily due to higher international freight volume.