United Airlines (UAL) Sees Q4 EPS of $1.80 or $1.50 Depending on Tel Aviv Flights, Est. $2.06
United Airlines (NASDAQ: UAL) Sees Q4 EPS of $1.80 or $1.50 Depending on Tel Aviv Flights, Est. $2.06
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| Investor Update1 | Issue Date: October 17, 2023 | |||||||
This Investor Update provides guidance and certain other forward-looking statements about United Airlines Holdings, Inc. (the "Company" or "UAL"). The information in this Investor Update contains the preliminary financial and operational outlook for the Company for fourth-quarter 2023, among other items.
| 4Q 2023 (Assumes TLV Flight Suspension October Only) | 4Q 2023 (Assumes TLV Flight Suspension Through Year-End) | |||||||||||||
| Capacity YOY | ~15.5% | ~14.0% | ||||||||||||
Total operating revenue YOY | ~10.5% | ~9.0% | ||||||||||||
Adjusted cost or operating expense per available seat mile (CASM-ex) YOY2 | ~3.5% | ~5.0% | ||||||||||||
| Average aircraft fuel price per gallon3 | ~$3.28 | ~$3.28 | ||||||||||||
| Adjusted diluted earnings per share4 | ~$1.80 | ~$1.50 | ||||||||||||
1 The guidance provided in this Investor Update reflects our current expectations and our actual results and timing may vary materially based on various factors that include, but are not limited to, those discussed below under "Cautionary Statement Regarding Forward-Looking Statements" and in Part I, Item 1A. Risk Factors, and in "Economic and Market Factors" in Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations, of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022. The guidance is only effective as of the date given and should not be considered updated or affirmed unless and until we publicly announce updated or affirmed guidance. Management will also discuss certain business outlook items, including providing an update of full year 2023 financial targets, during its regularly scheduled quarterly earnings conference call on October 18, 2023. This Investor Update should be read in conjunction with the Company's earnings release issued in connection with this Investor Update and its filings with the U.S. Securities and Exchange Commission (the "SEC").
2 CASM-ex (adjusted cost or operating expense per available seat mile) is a measure that is not calculated in accordance with accounting principles generally accepted in the United States of America ("GAAP"). CASM-ex is calculated as cost or operating expense per available seat mile ("CASM") excluding fuel expense, profit sharing, third-party business expenses and special charges. We are not providing a target for or a reconciliation to CASM, the most directly comparable GAAP measure, because we are unable to predict the excluded items noted above contained in the GAAP measure without unreasonable efforts, and therefore we also are not able to determine the probable significance of such items. The Company's estimations include all estimated CASM-ex impact and timing of all new labor contracts.
3 Fuel guidance is based on fuel prices as of October 13, 2023.
4 Adjusted diluted earnings per share is a non-GAAP financial measure that excludes operating and nonoperating special charges and unrealized (gains) losses on investments, net. We are not providing a target for or a reconciliation to diluted earnings per share, the most directly comparable GAAP measure, because we are unable to predict the excluded items noted above contained in the GAAP measure without unreasonable efforts, and therefore we also are not able to determine the probable significance of such items.