United Airlines has reported third quarter 2022 financial results that beat expectations on top-line operating revenue, unit costs and adjusted operating margin. As a result, United achieved operating revenue growth of 13.2% versus third quarter 2019, with a 25.5% TRASM improvement in the quarter versus 2019, while CASM-ex1 (cost per available seat mile) came in better than expected, resulting in 11.3% operating margin; 11.5% operating margin on an adjusted basis.
United’s third quarter 2022 net income was $942 million, with total operating revenue of $12.9 billion, up 13.2% compared to third quarter 2019. Capacity reduced by 9.8% in the third quarter compared to the prior-year period.
United paid down $810million in long-term debt, finance leases and other financing liabilities during the third quarter. The airline ended the period with available liquidity of $20.4bn.
Looking forward through the end of the year, the airline said that it expects the strong COVID recovery trends to continue to overcome the recessionary pressures in the macroeconomic environment. The airline now expects fourth quarter adjusted operating margin to be above 2019 for the first time. The company also remains confident in the 2023 United Next adjusted pre-tax margin target of ~9%.
The company believes there are three durable trends for air travel demand that are more than fully offsetting any economic headwinds: air travel is still in the COVID recovery phase, hybrid work gives customers the freedom and flexibility to travel for leisure more often, and external supply challenges will limit industry supply for years to come.
United delivered one of its best third-quarter operational performances of any third quarter in the company's history, outside of 2020.
"I am grateful to United employees who delivered an incredible performance this quarter taking care of our customers and producing, by most metrics, the best operational quarter in our history," said United Airlines CEO Scott Kirby. "Despite growing concerns about an economic slowdown, the ongoing COVID recovery trends at United continue to prevail and we remain optimistic that we'll continue to deliver strong financial results in the fourth quarter, 2023 and beyond."