High flying
United Airlines had a strong Q2, all things considered, with revenues soaring to record highs and profits up more than 3x year-over-year, as the carrier continues to capitalize on the reinvigorated post-pandemic appetite for international travel.
The impressive earnings, which beat analysts’ estimates, cap off a particularly busy time for the airline. A turbulent end to June saw United cancel hundreds of flights and delay thousands more, all while the airline was navigating a pay dispute with its union — which eventually resulted in a $10 billion deal that could see its pilots' wages rise up to 40%.
On course
With demand for travel now almost fully recovered, as we charted around Memorial Day weekend, United is keen to make the most of the renewed American wanderlust. Indeed, last year the airline carried over 144 million flyers, reportedly making it the second-biggest US carrier in terms of passenger volume. United is now on course to beat that figure in 2023, having already flown some 78.7 million passengers, up 17.1% on this time last year.
The financials are clearly on the same flight path too. On Wednesday, the airline reported that its revenue had risen to $14.2 billion — that's above even 2019 levels when earnings for the same period sat at $11.4 billion. Profit for the quarter also showed strong growth, up ~226% to $1.1 billion from $0.3 billion in 2022. Competitor American Airlines also reported record revenue of $14.1 billion yesterday, another clear sign that much of the industry could be flying high again.
