United Airlines reports strong first-quarter 2016 performance

For the first quarter of 2016, total revenue was US$8.2bn, a decrease of 4.8% year-over-year. First-quarter 2016 consolidated passenger revenue per available seat mile (PRASM) decreased 7.4% and consolidated yield decreased 6.1% compared to the first quarter of 2015. The decline in PRASM continues to be driven by economic factors including a strong U.S. dollar and lower oil prices. In addition, the company experienced a larger-than-anticipated decrease in close-in business travel during the weeks surrounding the Easter holiday and spring break. Excluding special items, UAL reported first-quarter net income of US$435m, earnings per share of $1.23 per diluted share and pre-tax earnings of US$688m. Including special items, UAL reported first-quarter net income of US$313m, earnings per share of $0.88 per diluted share and pre-tax earnings of US$494m. In the first quarter, UAL generated US$1.2bn in operating cash flow, US$376m in free cash flow and ended the quarter with US$5.3bn in unrestricted liquidity, including US$1.35bn of undrawn commitments under its revolving credit facility.