United Airlines reports full-year and fourth-quarter 2016 performance

For the fourth quarter of 2016, total revenue was US$9.1bn, an increase of 0.2% year-over-year. Fourth-quarter 2016 consolidated passenger revenue per available seat mile (PRASM) decreased 1.6% and consolidated yield decreased 1.2% compared to the fourth quarter of 2015. This outperformance versus the company’s initial guidance was due to stronger close-in bookings and yields in November and December. For the full-year 2016, consolidated PRASM declined 5.4% compared to the prior year driven by factors including a strong U.S. dollar, lower surcharges, reductions from energy-related corporate travel, and declining yields. Total operating expense was US$8.0bn in the fourth quarter, up 1.2% year-over-year. Excluding special charges, total operating expense was US$8.1bn, a 3.2% increase year-over-year. Consolidated unit cost (CASM) decreased 0.8% compared to the fourth quarter of 2015 due mainly to lower fuel expense. Fourth-quarter consolidated CASM, excluding special charges, third-party business expenses, fuel and profit sharing, increased 4.1% year-over-year driven largely by the impact of labor agreements ratified in 2016. For the full year, consolidated CASM decreased 2.9% compared to full-year 2015 due to lower fuel expense. Excluding special charges, third-party business expenses, fuel and profit sharing, consolidated CASM increased 2.8% compared to the prior year due primarily to new labor agreements.