United Airlines Holdings Inc (UAL)

Operating profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Operating income (ttm)	US$ in thousands	5,145,000	4,687,000	4,861,000	4,413,000	4,258,000	2,014,000	1,733,000	1,094,000	-247,000	544,000	123,000	-1,025,000	-1,022,000	-2,749,000	-5,401,000	-6,768,000	-6,359,000	-3,363,000	-275,000	2,834,000
Revenue (ttm)	US$ in thousands	57,063,000	55,994,000	55,635,000	54,827,000	53,717,000	52,491,000	50,884,000	48,818,000	44,955,000	40,747,000	35,620,000	28,979,000	24,634,000	19,854,000	14,593,000	10,597,000	15,355,000	22,831,000	31,722,000	41,649,000
Operating profit margin		9.02%	8.37%	8.74%	8.05%	7.93%	3.84%	3.41%	2.24%	-0.55%	1.34%	0.35%	-3.54%	-4.15%	-13.85%	-37.01%	-63.87%	-41.41%	-14.73%	-0.87%	6.80%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $5,145,000K ÷ $57,063,000K
= 9.02%

The operating profit margin of United Airlines Holdings Inc has shown a fluctuating trend over the past few years. Starting at 6.80% on March 31, 2020, the margin dipped into negative territory in the subsequent quarters, reaching as low as -63.87% on March 31, 2021. However, there was a gradual recovery seen thereafter, with the margin improving to 8.05% by March 31, 2024.

The negative margins observed in the mid-2020 can be attributed to the severe impact of the COVID-19 pandemic on the airline industry, leading to reduced air travel demand and significant financial losses. The subsequent recovery in margins indicates the company's efforts to adapt to the changing market conditions and implement cost-cutting measures.

The positive trend seen in the later quarters of the data period suggests that United Airlines has made progress in enhancing its operational efficiency and profitability. It is essential for the company to continue monitoring and improving its operating profit margin to ensure long-term financial stability and sustainability in a highly competitive industry.