USA-based United Airlines reported its first-quarter 2016 financial results showing total revenue was US$8.2 billion, a decrease of 4.8 per cent year-over-year.
First-quarter 2016 consolidated passenger revenue per available seat mile (PRASM) decreased 7.4 per cent and consolidated yield decreased 6.1 per cent compared to the first quarter of 2015.
“The decline in PRASM continues to be driven by economic factors including a strong US dollar and lower oil prices,” said Oscar Munoz, president and chief executive officer of United Airlines. “In addition, the company experienced a larger-than-anticipated decrease in close-in business travel during the weeks surrounding the Easter holiday and spring break. The company continues to focus on providing customers options to personalise their travel experience and, this quarter, launched its new bundled products offering, which is exceeding expectations.”
On a positive note the airline reported its best quarterly on-time performance since the merger with a mainline arrival rate of 71.9 per cent and achieved best quarterly mishandled bag rate since the merger.
New international routes were announced including service between San Francisco and Hangzhou, China and San Francisco and Singapore, both with the B787-9 and subject to government approval; launched the first-ever non-stop service between San Francisco and Tel Aviv; confirmed a joint venture revenue-sharing agreement with Air New Zealand; signed a multi-year agreement to strengthen partnership and established a joint strategic initiative with Air China and ordered 65 two-cabin B737-700 aircraft, reducing reliance on 50-seat aircraft.
USA-based United Airlines reported its first-quarter 2016 financial results showing total revenue was US$8.2 billion, a decrease of 4.8 per cent year-over-year.
First-quarter 2016 consolidated passenger revenue per available seat mile (PRASM) decreased 7.4 per cent and consolidated yield decreased 6.1 per cent compared to the first quarter of 2015.
“The decline in PRASM continues to be driven by economic factors including a strong US dollar and lower oil prices,” said Oscar Munoz, president and chief executive officer of United Airlines. “In addition, the company experienced a larger-than-anticipated decrease in close-in business travel during the weeks surrounding the Easter holiday and spring break. The company continues to focus on providing customers options to personalise their travel experience and, this quarter, launched its new bundled products offering, which is exceeding expectations.”
On a positive note the airline reported its best quarterly on-time performance since the merger with a mainline arrival rate of 71.9 per cent and achieved best quarterly mishandled bag rate since the merger.
New international routes were announced including service between San Francisco and Hangzhou, China and San Francisco and Singapore, both with the B787-9 and subject to government approval; launched the first-ever non-stop service between San Francisco and Tel Aviv; confirmed a joint venture revenue-sharing agreement with Air New Zealand; signed a multi-year agreement to strengthen partnership and established a joint strategic initiative with Air China and ordered 65 two-cabin B737-700 aircraft, reducing reliance on 50-seat aircraft.
