United Airlines Holdings Inc (UAL)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 3,387,000 | 990,000 | -2,557,000 | -8,822,000 | 3,914,000 |
| Revenue | US$ in thousands | 51,951,000 | 43,302,000 | 23,067,000 | 13,673,000 | 42,560,000 |
| Pretax margin | 6.52% | 2.29% | -11.09% | -64.52% | 9.20% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $3,387,000K ÷ $51,951,000K
= 6.52%
United Airlines Holdings Inc's pretax margin has shown significant fluctuations over the past five years. In 2019, the company reported a healthy pretax margin of 9.05%, indicating strong profitability before accounting for taxes. However, in 2020, the pretax margin plummeted to -57.45%, reflecting substantial financial challenges, possibly due to the impact of the COVID-19 pandemic on the airline industry.
The following year, in 2021, the pretax margin remained negative at -10.38%, suggesting ongoing financial difficulties. However, by 2022, there was a noticeable improvement, with the pretax margin increasing to 2.20%, indicating a recovery in profitability. This positive trend continued into 2023, as the pretax margin further improved to 6.31%.
The fluctuating pretax margin figures imply that United Airlines Holdings Inc has experienced both profitability and financial struggles in recent years. The positive trend in pretax margin from 2020 to 2023 suggests that the company may be implementing effective cost management or revenue enhancement strategies to improve its financial performance. However, further analysis of the company's financial statements and operational performance would be needed to better understand the factors driving these changes in pretax margin.
Peer comparison
Dec 31, 2023