United Airlines posts second quarter 2024 results

United Airlines released its second quarter 2024 earnings yesterday. With pre-tax earnings of $1.7 billion and a pre-tax margin of 11.6%, the company posted adjusted diluted earnings per share of $4.14, in line with guidance. The company reiterated expectations 

for full-year adjusted diluted earnings per share between $9 and $11.

These earnings come despite domestic overcapacity, which the carrier expects will correct this summer, with mid-August as an inflection point.  Given published schedule changes, a projected 3% decline in capacity should help with domestic yields.  In the second quarter, premium revenue grew 8.5% year over year, basic economy revenue grew 38% YoY, taking share from ULCCs, and market share among domestic road warriors also increased YoY.

Scott Kirby, United’s CEO, stated, “The revenue diversity advantages that we’ve built with our premium customers, Basic Economy customers, and domestic road warriors, on top of the world’s best loyalty program and leading customer service, have propelled our margins to near the top of the industry. Looking forward, we see multiple airlines have begun to cancel loss-making capacity, and we expect leading unit revenue performance among our largest peers in the second half of the third quarter. United has long been preparing for the moment when industry-wide domestic capacity would adjust – it’s now clear that inflection point is just 30 days away.