Latest news with #MikeLeskinen
Yahoo
3 days ago
- Business
- Yahoo
Griffin Global Asset Management Announces the Delivery of Six Boeing 737 MAX 9 Aircraft to United Airlines
DUBLIN, June 12, 2025 (GLOBE NEWSWIRE) -- Griffin Global Asset Management ('Griffin') is pleased to announce that it has entered into long-term lease agreements for six new Boeing 737 MAX 9 aircraft to United Airlines. The aircraft delivered over the course of April and May 2025. 'We are thrilled to partner with United and welcome them as a new customer. These six new technology Boeing 737 MAX 9 aircraft are key to United's fleet plan and we look forward to building on our long-term partnership with the United team in the years ahead,' said Eric Hild, Senior Vice President of Marketing for Griffin Global Asset Management. 'We are pleased to work with Griffin on this transaction, as we grow our Boeing MAX 9 fleet in accordance with our United Next plan. They provide increased gauge, a great customer experience and will contribute to higher margins,' said Mike Leskinen, Chief Financial Officer of United Airlines. This transaction is consistent with United's fleet plan and aircraft delivery expectations as outlined in its 1Q25 investor update on April 15th, 2025. About Griffin Global Asset Management Griffin is a commercial aviation leasing and alternative asset management business with offices in Dublin, Ireland, Puerto Rico, and Los Angeles, CA. Griffin's team of professionals works closely with airlines, manufacturers, maintenance providers, and financiers to deliver innovative capital solutions globally. For more information visit or Investor Inquiries Media Inquiries James MoriartyHead of Investor Relationsjmoriarty@ Lauren Groomlgroom@
Yahoo
24-04-2025
- Business
- Yahoo
UAL Q1 Earnings Call: Brand Loyalty and Capacity Adjustments Drive Outperformance in Uncertain Market
Airline company United Airlines Holdings (NASDAQ:UAL) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 5.4% year on year to $13.21 billion. Its non-GAAP profit of $0.91 per share was 23.8% above analysts' consensus estimates. Is now the time to buy UAL? Find out in our full research report (it's free). Revenue: $13.21 billion vs analyst estimates of $13.13 billion (5.4% year-on-year growth, 0.6% beat) Adjusted EPS: $0.91 vs analyst estimates of $0.74 (23.8% beat) Adjusted EBITDA: $1.23 billion vs analyst estimates of $1.28 billion (9.3% margin, 4% miss) Operating Margin: 4.6%, up from 0.8% in the same quarter last year Free Cash Flow Margin: 18.7%, up from 11.8% in the same quarter last year Revenue Passenger Miles: 59.52 billion, up 2.09 billion year on year Market Capitalization: $22.22 billion United Airlines delivered financial results for Q1 that exceeded Wall Street's revenue and non-GAAP profit expectations, despite what management described as a softer macroeconomic environment and weaker demand for travel. Executives highlighted the company's focus on winning and retaining brand-loyal customers as the key factor supporting margin resilience and operational stability. CEO Scott Kirby stated, 'United's performance is strong even in this weak environment because we've won the battle for brand loyal customers,' emphasizing investments in customer experience, premium cabins, and operational reliability as central to the company's competitive strategy. Looking forward, management maintained guidance for the year, citing confidence in the durability of its customer base and the flexibility of its business model. However, leadership acknowledged ongoing risks, including a potential recession and industry-wide cost pressures such as tariffs and supply chain constraints. CFO Mike Leskinen noted that United's guidance incorporates scenarios for both stable demand and a recession, explaining, 'Even in that world, we expect full-year earnings per share to be between $7 and $9.' The company plans to continue adjusting capacity and costs prudently while prioritizing free cash flow and maintaining a disciplined approach to capital allocation. United Airlines' leadership attributed Q1 performance to a combination of brand loyalty, targeted capacity management, and ongoing investments in customer experience. Management repeatedly referenced its strategic focus on capturing and retaining premium travelers while responding to weaker demand in certain segments. Brand Loyalty Gains: Management emphasized United's position as a leader in brand loyalty across six of its seven hub markets. Executives pointed to increases in local passenger share in cities such as Chicago and Denver, and highlighted the stickiness of customers driven by loyalty programs and co-branded credit cards. Premium Product Performance: The company saw continued strength in premium cabin products, with international premium unit revenues rising, particularly in the Polaris and Premium Plus cabins. Leadership attributed this to sustained demand from high-end leisure and business travelers, even as main cabin demand softened. Capacity Adjustments: United reduced utilization and canceled off-peak domestic flights to better align with demand. The removal of lower-yield flying and selective capacity cuts were implemented in response to demand volatility, especially in the main cabin segment. Operational Investments: The rollout of Starlink Wi-Fi installations across the fleet, expansion of airport lounges, and enhancements to the company's travel app were highlighted as key ongoing investments aimed at differentiating the customer experience and reinforcing brand loyalty. Cost Management and Free Cash Flow: Leadership pointed to disciplined cost controls and the timing of maintenance events as drivers of improved operating margins. The company generated over $2 billion in free cash flow during the quarter and continued to prioritize debt reduction and share repurchases within set financial guardrails. Management's outlook for the remainder of the year centers on maintaining brand loyalty, adjusting capacity to demand, and managing costs amid macroeconomic uncertainty and potential industry headwinds. Flexible Capacity Planning: The company plans to continue adjusting domestic capacity and aircraft utilization in response to booking trends and recession risk, with further reductions possible if demand weakens. Premium and Loyalty Revenue Resilience: United expects ongoing strength in premium product and loyalty program revenues, supported by high-end leisure demand and co-brand credit card partnerships, even if discretionary travel softens. Industry Supply Constraints: Management highlighted long-term supply limitations for new aircraft and airport infrastructure, especially in international markets, as a structural tailwind for fares and profitability in core routes. Jamie Baker (JPMorgan): Asked how United's margins would evolve after a potential recession; management responded that margins would likely be higher post-recovery, citing structural advantages from brand loyalty and industry supply constraints. Andrew Didora (Bank of America): Inquired about further cost levers in a recession scenario; CFO Mike Leskinen noted ongoing efficiency efforts in procurement and technology, while expecting Q1 to represent the year's best cost performance. David Vernon (Bernstein): Questioned how United balances margin protection versus market share gains in hub markets; CEO Scott Kirby stated the company can focus on running its own strategy due to strong customer loyalty, without needing to respond to competitors. Catherine O'Brien (Goldman Sachs): Asked how non-premium demand softness will impact revenue trends; management indicated ongoing weakness in domestic main cabin but highlighted continued resilience in premium and international segments. Mike Linenberg (Deutsche Bank): Sought clarification on basic economy trends; management said United will be more competitive at the lower end of the fare structure in Q2, with increased inventory for price-sensitive travelers. In the coming quarters, the StockStory team will monitor (1) whether United's capacity adjustments effectively balance demand shifts and margins, (2) the pace and impact of investments in premium products and technology rollouts like Starlink Wi-Fi, and (3) resilience in loyalty and premium revenue streams as macroeconomic uncertainty persists. Additionally, developments in aircraft supply chains and potential tariff impacts remain important factors to watch. Should you load up on UAL, sell, or stay put? Find out in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
16-04-2025
- Business
- Yahoo
United Airlines Finds Growth in Premium, International Offerings
United on Tuesday reported stronger-than-expected results for the first quarter, powered by demand for international flights and premium seats. Premium cabin revenue rose 9.2% year-over-year and international passenger revenue per available seat mile (PRASM) was up 5.2%. Demand for domestic flights fell, however, and the carrier will be cutting for international flights and premium seats is powering growth for United Airlines (UAL). In its first-quarter report released Tuesday, the Chicago-based carrier swung to an adjusted profit of 91 cents per share on revenue that grew more than 5% year-over-year to record $13.21 billion. The stronger-than-expected results were led by growth at the front of the plane and on long-haul flights. Premium cabin revenue rose 9.2% year-over-year, United reported, and international passenger revenue per available seat mile (PRASM) was up 5.2%, including an 8.5% increase in the Pacific. "The market is down in recent months, but the high-end consumer, the more wealthy consumer, the one that takes the global vacations, the one that wants to sit in a premium seat seems to be less impacted so far," Chief Commercial Officer Andrew Nocella said during Wednesday's earnings call, according to a transcript from AlphaSense. "And I think that's really good for our business, and it's consistent with our brand and winning these customers to begin with." CFO Mike Leskinen added, "I think probably at the industry level with a real mix shift in our premium cabins, we have less corporate and we have more premium leisure. And I believe that piece of our business is showing some great resilience as well. So, a lot of secular trends are accruing to our benefit." United shares surged close to 6% in early trading Wednesday, before paring back gains later in the session amid a broader market decline. (Read Investopedia's live coverage of today's markets here.) The gains on international flights are helping make up for declines in the U.S. United reported domestic PRASM fell 3.9% from a year ago amid an "uncertain macroeconomic environment." In response, the carrier said it was "removing 4 points of scheduled domestic capacity starting in the third quarter," and issued "bimodal" guidance. "The bulk of issue we're seeing today is demand for domestic flights, particularly in the main cabin," Nocella said. "And that's where the challenge will be in Q2 as it was in Q1, and it's going to be clearly a negative RASM environment for domestic in Q2 based on everything we see right now." Read the original article on Investopedia
