United Airlines Quarterly Profit Drops 52%
Net income for the quarter fell to $397 million, down 52% year over year from $823 million in the same period last year.
Meanwhile, net income for 2016 was $2.3 billion, a decrease of 70% from the prior year.
Revenue for the quarter was up slightly, by 0.2%, to $9.1 billion for the quarter, while revenue for 2016 was down 3.5% to $36.56 billion, down from 2015’s $37.86 billion.
The airline’s consolidated passenger revenue per available seat mile, or Prasm, was down 1.6%, which the carrier attributed to stronger close-in bookings and yields in November and December. For the year, United’s Prasm declined by 5.4%, driven by various factors a strong U.S. dollar, lower surcharges, reductions from energy-related corporate travel, and declining yields.
Despite some of its drops, the airline said that it had achieved its best full-year on-time performance, as well as reported the lowest number of cancellations, delay minutes, and mishandled bags in company history.
(Photo: Accura Media Group)