United Airlines (UAL) today reported third-quarter 2014 net income of $1.1 billion which is its highest ever quarterly profit and an increase of 99 per cent year-over-year.
Including special items, the total net income is $924 million for the third quarter of this year, which equates to $2.37 per diluted share.
United’s consolidated passenger revenue per available seat mile (PRASM) increased 3.9 per cent in the third quarter of 2014 compared to the third quarter of 2013.
The company earned a 12.3 per cent return on invested capital for the 12 months ended Sept. 30, 2014. And as such returned US$220 million to shareholders as part of its previously announced $1 billion share buyback program.
United Airlines chairman, president and chief executive officer Jeff Smisek, said that the results demonstrate how well the airline is performing this year.
“Our third-quarter results demonstrate continued progress, and I want to thank our employees for their contributions to our success, we still have significant opportunity ahead to grow our margins and improve the quality and efficiency of everything we do,” Mr Smisek said.
For the third quarter of 2014, total revenue was $10.6 billion, an increase of 3.3 percent year-over-year and along with passenger revenue increasing 4.4 per cent, the third quarter was successful.
United Airlines vice chairman and chief revenue officer Jim Crompton said these results will hopefully spur even better results in upcoming quarters.
“We are seeing good results from our revenue initiatives, and over the next several quarters, we expect to build on our early momentum,” Mr Crompton said.