United Airlines consolidated traffic, measured in revenue passenger miles (RPKs) increased 0.6 percent and consolidated capacity (available seat miles) increased 1.9 percent during August 2016 compared to the prior-year month. During the reporting period, United’s load factor decreased 1.1 points compared to August 2015.
United Airlines states that it continues to expect third-quarter 2016 consolidated passenger unit revenue per available seat mile (PRASM) to decline 5.5 to 7.5 percent compared to the third quarter of 2015. The year-over-year performance, United said, is “primarily impacted by demand growth not keeping pace with capacity growth, soft close-in yields, competitive actions and travel reductions in the energy sector.”
On August 12, 2016, UAL flight attendants ratified a new contract. While there is a modest increase to third-quarter non-fuel expense from this contract, the company still expects it will be within its original third-quarter guidance for consolidated unit cost per available seat mile (CASM) excluding fuel, profit sharing and third-party business expenses. For the full-year 2016, the company now expects CASM excluding fuel, profit sharing and third-party business expenses to increase 2.5 to 3.5 percent compared to the full-year 2015, with the increase versus prior guidance due to the flight attendant agreement.