United Airlines reports fourth-quarter and full-year 2017 performance

UAL reported that fourth quarter 2017 revenue was US$9.4bn, an increase of 4.3% year-over-year. Fourth-quarter 2017 consolidated passenger revenue per available seat mile (PRASM) was up 0.2% compared to the fourth quarter of 2016. Cargo revenue was US$304m in the fourth quarter of 2017, an increase of 21.6% year-over-year primarily due to higher international freight volume and yields. For the full year of 2017, total revenue was US$37.7bn, an increase of 3.2% year-over-year. UAL reported fourth-quarter net income of US$580m, pre-tax earnings of US$600m and pre-tax margin of 6.4%. Full-year net income of US$2.1bn, pre-tax earnings of US$3.0bn and pre-tax margin of 7.9%.
Total operating expense was US$8.7bn in the fourth quarter, up 8.2% year-over-year. Consolidated unit cost per available seat mile (CASM) increased 4.0% compared to the fourth quarter of 2016 due largely to higher fuel and labor expense. Fourth-quarter consolidated CASM, excluding special charges, third-party business expenses, fuel and profit sharing, increased 1.5% year-over-year, driven mainly by higher labor expense. For the full year, consolidated CASM increased 2.8% compared to full-year 2016 due largely to higher fuel and labor expense. Excluding special charges, third-party business expenses, fuel and profit sharing, consolidated CASM increased 3.1% compared to the prior year primarily due to expenses resulting from labor agreements ratified in 2016. UAL generated US$728m in operating cash flow during the fourth quarter of 2017 and ended the quarter with US$5.8bn in unrestricted liquidity, including US$2.0bn of undrawn commitments under its revolving credit facility. UAL generated US$3.4bn in operating cash flow for the full year.