This week, United Air Lines, Inc, which is a principal subsidiary of United Continental Holdings, Inc. (NYSE: UAL), announced its financial results for the fourth quarter 2016.
According to company, net income in the fourth quarter dropped 52% to $397 million, compared to $823 million in the same period last year. Diluted earning per share of the fourth quarter is $1.26 per share. For the full year 2016, net income was $2.3 billion, with diluted earnings per share of $6.85.
Total revenue for the fourth quarter increased 0.2% to $9.1 billion. Consolidated passenger revenue per available seat mile dropped 1.6%, and consolidated yield declined 1.2% year-over-year. The better-than-expected performance was due to stronger close-in bookings and gains in the last two months of 2016. For the full year 2016, consolidated passenger revenue per available seat mile dropped 5.4%, which was caused by several factors, including lower surcharges, declining yields, and strong U.S. dollar.
“Our fourth quarter financial and operating performance capped an outstanding year for United Airlines,” Oscar Munoz, the chief executive officer of United Airlines, said in the statement. “In 2016, we put into action our plan to become the best airline in the world, and last year's results demonstrate we are on our way to achieving that ambition. We will continue delivering on this commitment by investing in our employees, elevating our customer experience and driving strong and consistent returns for our shareholders.”