United Airlines recorded a $256 million pre-tax loss for the first quarter of 2023 (Q1 2023), even as revenue grew 51.% year-on-year to $11.4bn.
The loss was "consistent with expectations provided in March", the carrier said, reporting a net loss of $194 million and adjusted net loss of $207 million.
Revenue per available seat mile (TRASM) climbed by 22.5%, cost per available seat mile (CASM) increased 4.%, which the company said were "better than guidance due to strong operational reliability". Available seat miles (ASMs) were 23.4% higher than the first quarter of 2022 and capacity was up 23.4%.
Despite the 63 cents per share loss for Q1 2023, United said it "remains confident in the 2023 United Next adjusted diluted earnings per share target of $10 to $12."
"I am extremely proud of the United team's performance during the first quarter of 2023. Our industry-leading operational performance contributed to an all-time high operating cash flow in the first quarter and keeps us on track to achieve our cost targets for the full year," said chief executive Scott Kirby.
By the end of Q1 2023, the carrier said it had cut adjusted total debt by $4.6bn since the end of Q1 2022.
Fuel prices remained high, with the airline reporting an average per-gallon outlay of $3.33 for the quarter. The carrier said that despite challenges such as weather, it had the lowest flight cancellation rate of the major US carriers and its best result on that score since Q1 2012.
"We are watching the macroeconomic risks carefully, but demand remains strong, especially internationally, where we are growing at twice the domestic rate. We expect all of these factors will keep us on track to achieve our full-year adjusted diluted EPS1 target," Kirby added.
During the quarter, the carrier, as previously reported, launched the United Airlines Ventures Sustainable Flight FundSM," a first-of-its-kind investment vehicle designed to support start-ups focused on decarbonising air travel by accelerating the research, production and technologies associated with sustainable aviation fuel".
Another highlight for the period, the carrier said, was the launching of routes between Dubai, United Arab Emirates, and Newark/New York and between Tokyo-Haneda, Japan, and Newark/New York, Los Angeles, and Washington DC.
After the reporting period, and hours before publishing its Q1 2023 results, United announced what it said again in its results report was the biggest-ever "south Pacific network expansion from the continental US".