United Q2 cargo revenue up 14.4%

United Airlines today reported $15 billion in operating revenue for the second quarter, up 5.7% from Q2 2023. The airline’s cargo revenue was up 14.4% year over year to $414 million. [caption id="attachment_95084" align="alignright" width="300"] (Courtesy/United Cargo)[/caption] THE BIG PICTURE: United’s improved cargo revenue indicates growth in the sector, which was hampered in 2023 by high capacity and low demand. The carrier’s cargo revenue had fallen 1.8% YoY in Q1 2024 and 31% YoY for full-year 2023. Throughout 2023, analysts were optimistic that the market would normalize in 2024. Delta Air Lines last week reported Q2 cargo revenue growth of 16% YoY to $199 million. BY THE NUMBERS: United reported a Q2 operating income of $1.9 billion, up 27.2% YoY. United also reported for Q2: Income before income tax of $1.7 billion, up 25.4% YoY; Diluted earnings per share of $3.96, up 22.2% from Q2 2023; and 890 million cargo revenue ton miles, up 15.9% YoY. WHAT THEY’RE SAYING: While cargo demand grew considerably in Q2, passenger capacity outpaced passenger demand, leading to a smaller passenger revenue growth than in prior quarters, according to the earnings report. “Cargo yields have also stabilized at higher levels than forecasted, which is helping cushion some of the PRASM [passenger revenue per available seat mile] declines we have seen,” Chief Commercial Officer Andrew Nocella said on today’s earnings call. Nevertheless, United has led the industry in domestic PRASM growth for three consecutive years, Chief Executive Scott Kirby said on the call. STATE OF PLAY: “We’re running the best operation in our history despite operating in the most difficult hubs in the world — Chicago, Newark and San Francisco — and despite having more exposure to the issues at Boeing than any other airline in the world,” Kirby said. United executives attributed the company’s Q1 net loss to the impact of the Boeing 737 Max 9 groundings. The FAA grounded the carrier’s 79 B737 Max 9 aircraft in January after a door partially blew off midflight on a Max 9 operated by Alaska Airlines , forcing an emergency landing. United estimated an impact of about $200 million from the grounding. FLASHBACK: United Airlines ranks 19th on Air Cargo Next ’s Freight 50 list of top cargo carriers, flying 4.4 billion cargo tonne kilometers in 2022. NOTEWORTHY: As of June 30, United’s fleet contained 1,369 aircraft, up from 1,325 on June 30, 2023. United transported about 145,000 tonnes of cargo in Q2, including approximately 15,000 tonnes of medical shipments and 13 tonnes of military shipments, with about 100 tonnes of humanitarian aid flown to Gaza, Brazil following flooding, Maui following wildfires and other areas in need. FUTURE LOOK: United is expanding its cargo operations at Newark Liberty International Airport (EWR) and opened a 165,000-square-meter cargo facility near the airport in April. United’s cargo throughput at EWR totals 13.6 tonnes of cargo each month, making EWR the carrier’s busiest cargo facility, Chris Ward , United Cargo’s senior regional manager of cargo operations for the U.S. East at EWR and Dulles International Airport (IAD), previously told Air Cargo Next . The new facility will allow United to grow its perishables and pharmaceutical offerings, he said. MARKET REACTION: Shares of United Airlines ( NASDAQ: UAL ) were down 1.19% from market open to $46.38 as of market close today. United has a market capitalization of $15.4 billion.

United Q2 cargo revenue up 14.4%

Carrier transported about 145,000 tonnes of cargo in Q2

Haite Tianjin begins 2nd A320 family P2F line

Podcast: AI tools broaden Alibaba’s network

Related Posts

Saudia Cargo lowers Air Atlanta 747-400F ACMI support

AVi8 plans for Cambodian A321F launch in 2027

Cathay Pacific profit rises as strong demand offsets war, fuel impact

Podcast: AI tools broaden Alibaba’s network

Cargo Facts Free Newsletters

Cargo Facts Connect Podcast

Follow Us

Welcome Back!

Retrieve your password