United Airlines reports first-quarter 2017 performance

For the first quarter of 2017, United Airlines reported that revenue was US$8.4bn, an increase of 2.7% year-over-year. First-quarter 2017 consolidated pssenger revenue per available seat mile (PRASM) was flat and consolidated yield increased 0.4% compared to the first quarter of 2016. Operating expense was US$8.1bn in the first quarter, up 7.9% year-over-year. Excluding special charges, operating expense was US$8.1bn, a 10.0% increase year-over-year. Consolidated unit cost per available seat mile (CASM) increased 5.1% compared to the first quarter of 2016 due largely to higher fuel expense and the impact of labor agreements ratified in 2016. First-quarter consolidated CASM, excluding special charges, third-party business expenses, fuel and profit sharing, increased 5.0% year-over-year, driven mainly by higher labor expense. In the first quarter of 2017, UAL increased its revolving credit facility by US$650m to a total capacity of US$2.0bn with the full amount currently undrawn and increased its existing term loan by approximately US$440m with more favorable terms and rates. Also in the first quarter, the company raised US$300m of unsecured debt at 5%.
UAL generated US$547m million in operating cash flow and ended the quarter with US$6.4bn in unrestricted liquidity, including its US$2.0bn revolving credit facility. The company’s capital expenditures were US$691m in the first quarter. Including assets acquired through the issuance of debt and airport construction financing and excluding fully reimbursable projects, the company invested US$1.4bn during the first quarter in adjusted capital expenditures. The company contributed US$80m to its pension plans and made debt and capital lease principal payments of US$346m in the first quarter.