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United profit soars 548pc to US$7.3 million on income tax reversal

UNITED Airlines (UAL) posted a 548 per cent net year-on-year profit increase in 2015 to US$7.3 million, though this was dismissed by the company a "not meaningful" as it was result of a one-off "reversal of the company's income tax valuation".

UAL reported fourth-quarter net income of $934 million, or $2.54 per diluted share, excluding special items. Including special items, UAL reported fourth-quarter net income of $823 million.

UAL also announced it reached an agreement to acquire 40 new Boeing 737-700 aircraft which will enter the fleet beginning in mid-2017, replacing a portion of the capacity currently operated by regional partners.

"We improved our operational performance, continued to invest in our products and services and achieved record financial performance," said Brett Hart, UAL's acting chief executive officer.

For the fourth quarter of 2015, total revenue was $9 billion, a decrease of three per cent year on year. Fourth-quarter 2015 consolidated PRASM (passenger revenue per available seat mile) decreased six per cent and consolidated yield decreased 7.2 per cent compared to the fourth quarter of 2014.

For the full-year 2015, consolidated PRASM declined 4.4 per cent versus the prior year. The declines in PRASM and yield were driven largely by a strong US dollar, lower surcharges, travel reductions from customers impacted by declining oil prices and softening domestic and international yields.