United Airlines (UAL) has 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 margin targets of approximately 9% in 2023 and about 14% in 2026 that are part of the United Next strategy.
For the quarter, United saw operating revenue up 6% versus the same quarter in 2019 and expects to see sequential improvement in the third quarter. The company also had record-setting TRASM (Total Revenue Per Available Seat Mile), up 24% versus the same quarter in 2019 and expects 24 to 26% improvement in the third quarter over third quarter 2019. United stated that second quarter revenue improved at a rapid pace adding that while it anticipates the economy will slow in the near to medium term, “the continuing pandemic recovery is more than offsetting economic headwinds — leading to expected revenue and earnings acceleration in the third quarter”. United stated that it continues to expect to be profitable for the full year 2022.
"I am grateful to the United team that has fought through severe systemic challenges impacting all of global aviation to serve our customers," said United Airlines CEO Scott Kirby. "It's nice to return to profitability – but we must confront three risks that could grow over the next 6-18 months. Industry-wide operational challenges that limit the system's capacity, record fuel prices and the increasing possibility of a global recession are each real challenges that we are already addressing. These fundamental challenges have already led to higher costs, higher fuel prices but, also higher revenue, which means we're as confident as ever we will deliver on our 9 percent adjusted pre-tax margin target in 2023."
United’s second quarter net income was $329 million, with total operating revenue of $12.1 billion, up 6% compared to second quarter 2019. Capacity was down 15% compared to second quarter 2019, with TRASM of up 24%.
Also during the period, United confirmed that it had made payments of long-term debt, finance leases and other financing liabilities of $1.0 billion. The airline ended the quarter with available liquidity of $22 billion.