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United Airlines: 2016 Year-in-Review

AuthorThe AirHelper

United Airlines’ nose-dive performance this year seems to have hit bottom, according to its president Scott Kirby, who spoke to investors this week to present the airline’s quarterly investor report. “We think the revenue situation has bottomed and we are on the way to recovery,” he was quoted as saying by Business Insider.

Business Insider’s’ Benjamin Zhang attributed the airline industry’s 2016 dip to its “inability to effectively manage supply and demand in the face of currency fluctuations… and weak demand due to economic softness in major markets across Latin America, Asia, and Europe.”

United Airlines’ performance projections for 2017

  • Europe will be the weakest market for United “due to excess capacity and instability caused by Brexit”
  • Latin America will be the first of its markets to recover, anticipating both unit revenue and passenger yield to be in the black by Q1 2017
  • United’s business in China will continue to grow, even as it reaches “caps set forth in bilateral agreements” between the nation and the U.S.

Read the full analysis by Business Insider.

It's been a good year for United Airlines.
It’s been a good year for United Airlines.

On-time arrivals—a key highlight in United Airlines’ 2016 performance

United Airlines’ on-time performance ranking was mentioned as a top highlight in each of its quarterly earnings reports so far this year. In addition to reporting its lowest decrease in year-over-year performance in Q3 2016, United also achieved its highest on-time performance percentage so far this year.

See how other airlines rank in on-time arrivals and punctuality overall with the AirHelp Score.

On-time performance is an important metric for airlines, especially in Europe, because passengers who are delayed while traveling into or departing from EU member states on EU-based air carriers could be entitled to cash back in certain cases. Check to see if you could be entitled to compensation if you’ve been on a delayed, canceled or overbooked flight within the past three years.

A performance overview of United Airlines

Q1 2016

Net income: $435 million
Total revenue: $8.2 billion
Year-over-year performance:– 4.8 percent
Year-over-year consolidated PRASM:*– 7.4 percent
Performance highlight: On-time performance reached its highest point (72 percent) since merging with Continental five years ago.
See the full Earnings Report here.

Q2 2016

Net income: $588 million
Total revenue: $9.4 billion
Year-over-year performance:– 5.2 percent
Year-over-year consolidated PRASM:* – 6.6 percent
Performance highlight: Had its best six-month on-time performance rate and finished either first or second in on-time arrivals compared to its four largest U.S. competitors.
See the fullEarnings Reporthere.

Q3 2016

Net income: $965 million
Total revenue: $9.9 billion
Year-over-year performance:– 3.8 percent
Year-over-year consolidated PRASM:*– 5.8 percent
Performance highlight: Achieved best September, third-quarter and year-to-date on-time performance in company history.
See the full Earnings Report here.

*PRASM, represents the consolidated passenger revenue per available seat mile.

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