United Airlines' third-quarter business revenue increased 22 percent year over year, chief commercial officer Andrew Nocella said during a Wednesday morning earnings call, with yields up 15 percent. Contracted business revenue increased by 26 percent.
Increased airfares haven't deterred business demand, he said, "which we believe is a result of fares lagging inflation along with other aspects of travel costs for many years."
Premium-class revenue, including Economy Plus, increased 17 percent on a 2.5 percent capacity increase, Nocella said, with non-premium revenue up 18.4 percent on a 0.5 percent capacity increase.
"Premium business continues to be strong, with load factors in premium cabins up a little over half a point year over year and up 3.6 points since 2019," Nocella noted, adding that the business load factor in the quarter increased by almost a point.
Nocella also said that loyalty revenue "had another strong quarter" and was up 17 percent year over year.
In response to an analyst's question about United's recently unveiled premium-class tiered fare categories, which include a "base" fare in each cabin, Nocella said, "The buy-up rates are incredibly high. Consumers know what they are buying, and we disclose it very carefully. … It's been really monumental for us, more so than people realize."
Earlier this month, United also announced that the carrier has installed Starlink Wi-Fi on more than 635 United mainline and United Express aircraft and nearly half of its daily flights. It plans to complete installations by the end of 2027.
"While Starlink is important for all of our customers, it is critical for our business customers, which we believe will be a key driver of revenue and share growth in 2027," Nocella said.
United Q3 Metrics
United third-quarter passenger revenue increased nearly 18 percent year over year to more than $16.2 billion. Total revenue was up more than 17 percent to about $17.9 billion. Net income exceeded $1 billion, up from the $949 million reported a year prior.
Third-quarter domestic passenger revenue was up nearly 20 percent year over year to $9.7 billion, while international passenger revenue climbed more than 14 percent to $6.5 billion. Europe's passenger revenue increased more than 13 percent to more than $3.3 billion. Latin America passenger revenue was up 24 percent to more than $1.3 billion.
Capacity in the third quarter increased 1.3 percent year over year. The average fuel cost for the quarter was $3.90 per gallon, up from $2.43 a year earlier. United estimates that the fourth-quarter average fuel cost will be $4.80 per gallon.
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