United Airlines Q4 Profit Misses Estimates; Revenue Down 3%

(RTTNews) - United Airlines (UAL) reported fourth-quarter net income of $823 million or $2.24 per share compared to $28 million or $0.07 per share, prior year. Excluding special items, net income was $934 million, or $2.54 per share, for the quarter. On average, 15 analysts polled by Thomson Reuters expected the company to report profit per share of $2.59 for the quarter. Analysts' estimates typically exclude special items.

Total revenue was $9.04 billion, a decrease of 3.0 percent year-over-year. Analysts expected revenue of $9.08 billion for the quarter. Consolidated PRASM decreased 6.0 percent and consolidated yield decreased 7.2 percent compared to the fourth quarter of 2014.

Total operating expense excluding special charges was $7.8 billion in the fourth quarter, down 8.1 percent year-over-year. Including special charges, total operating expense was $8.0 billion, an 8.4 percent decrease year-over-year. The company said the decrease was largely driven by lower oil prices.

UAL reported full-year net income of $7.3 billion. These results include a nonrecurring $3.1 billion non-cash benefit associated with the reversal of the company's income tax valuation allowance. Full-year net income of $4.5 billion, or $11.88 per share, excluding special items. Employees earned a record $698 million in profit sharing for full-year 2015.

UAL announced it reached an agreement to acquire 40 new Boeing 737-700 aircraft which will enter the fleet beginning in mid-2017. These aircraft will replace a portion of the capacity currently operated by the company's regional partners, as the company expects to reduce by more than half the number of 50-seat aircraft in its fleet by 2019.