United Airlines (UAL) has reported its full-year and fourth-quarter 2024 financial results, and CEO Scott Kirby is buoyed by the figures. For the full year, the company operated the most flights and carried the most customers in its 98-year history (nearly 174 million system-wide).
The airline also brought online more than 300 new and retrofit aircraft in 2024, featuring United’s signature cabin interiors with larger overhead bins, as well as seatback IFE screens at every seat and Bluetooth connectivity, which resulted in a 4.5-point improvement in customer satisfaction with inflight entertainment. In Q4 2024 United achieved a 6% increase year-over-year of customers providing a perfect score of 10 on the customer satisfaction scale the Net Promoter Score.
There is more to come, as United has announced an agreement with SpaceX to bring Starlink wi-fi service to more than 1,000 of the airline’s mainline and regional aircraft, providing MileagePlus members with free, fast, reliable internet connectivity on some passenger flights as soon as spring 2025. The airline has also launched Kinective MediaSM by United Airlines – the first media network to use insights from travel behaviours to connect customers to personalised advertising, experiences and offers from leading brands.
In hard figures, the airline had full-year pre-tax earnings of US$4.2 billion, with a pre-tax margin of 7.3%; and adjusted pre-tax earnings of $4.6 billion, with an adjusted pre-tax margin of 8.1%. The company also achieved full-year diluted earnings per share of $9.45; and adjusted diluted earnings per share of $10.61 – in line with the 2024 guidance provided at the start of the year of $9.00 to $11.00. Total operating revenue was $14.7 billion, up 7.8% compared to Q4 2023.
In the fourth quarter of 2024, set a company record for number of passengers carried in a single quarter. In December, the airline recorded its busiest three days in company history, based on customers carried.
The success has been partly attributed to the ongoing ‘United Next’ initiative, with major investments in aircraft, cabin interiors and IFEC, which United says have set the airline apart in the market, with customers continuing to show more preference for the United brand with strong demand for all products. Capacity is now up 6.2% compared to Q4 2023.
In Q4 2024 premium cabin revenues were up 10%, corporate revenue was up 7%, and revenue from Basic Economy was up 20% year-over-year. Other revenue streams like loyalty and cargo also saw growth in the quarter, with revenues up 12% and 30% year-over-year, respectively.
Looking ahead to 2025 United sees “robust demand” trends in the first quarter, with domestic Revenue per Available Seat Mile (RASM) expected to turn “solidly positive” year-over-year, as well as continued improvement in international RASM.
United also finished first in on-time performance at all seven of its US hubs as a result of investments in its people, airports and technology, resulting in year-over-year improvement in customer satisfaction.
“United had a unique strategy coming out of Covid and our people have delivered for customers, leading to a structurally and permanently changed industry,” said United Airlines CEO, Scott Kirby. “2024 was a strong year across the board for United as we’ve become the leading global airline, and we enter 2025 with demand trends continuing to accelerate, which puts us on the path to double-digit pre-tax margins.”
