United Airlines Predicts Big Bump In Revenue Is On The Way

NEWARK, NJ — Finances are beginning to take off again for United Airlines as it continues its recovery from the coronavirus pandemic, the company says.

United Airlines, which maintains a hub at Newark Liberty International Airport, reported its first quarter 2022 financial results on Wednesday.

United said it expects to return to profitability in the second quarter on a “robust operating revenue outlook,” including total revenue per available seat mile of nearly 17 percent over 2019 – the strongest second quarter revenue guidance in company history.

“The company expects to be solidly profitable in the second quarter with an approximate 10 percent operating margin (on both a GAAP and adjusted basis), just 2.9 points less than 2019 operating margin and 3.5 points less than 2019 adjusted operating margin,” the Chicago-based corporation stated.

United’s prediction comes “despite cost headwinds driven by the recent fuel price spike,” spokespeople said.

United said it is also seeing indications that business travel is “rapidly returning,” and expects further improvement in international travel, including Asia.

Spokespeople said:

“The airline has a bullish outlook on the future – bolstered by this persistent strength of demand and the fact that it is nearing 2019 operating margins – and once again reiterated confidence in its longer term United Next targets of adjusted pre-tax margin of approximately 9% in 2023 and about 14% in 2026. This confidence is underpinned by the company's current expectation to report a profit for the full year 2022.”

“The demand environment is the strongest it's been in my 30 years in the industry – and United and its customers will benefit more than any other airline,” CEO Scott Kirby said.

“We're now seeing clear evidence that the second quarter will be an historic inflection point for our business,” Kirby added.

• See related article: Port Authority Expects Full Recovery From COVID By 2024

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