United Airlines Holdings Inc (UAL)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	4,885,000	5,148,000	5,466,000	5,198,000	5,161,000	5,537,000	5,188,000	4,207,000	2,663,000	647,000	100,000	-917,000	-980,000	-2,604,000	-5,641,000	-7,305,000	-7,854,000	-4,781,000	-1,260,000	2,088,000
Interest expense (ttm)	US$ in thousands	1,455,000	1,516,000	1,635,000	1,719,000	1,774,000	1,791,000	1,774,000	1,721,000	1,673,000	1,632,000	1,635,000	1,641,000	1,577,000	1,505,000	1,403,000	1,178,000	992,000	799,000	639,000	630,000
Interest coverage		3.36	3.40	3.34	3.02	2.91	3.09	2.92	2.44	1.59	0.40	0.06	-0.56	-0.62	-1.73	-4.02	-6.20	-7.92	-5.98	-1.97	3.31

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,885,000K ÷ $1,455,000K
= 3.36

The interest coverage ratio of United Airlines Holdings Inc provides insight into the company's ability to meet its interest obligations with its operating income.

Based on the provided data, United Airlines had fluctuating interest coverage ratios over the period analyzed. The interest coverage ratio was low and even negative for several quarters, indicating that the company's operating income was not sufficient to cover its interest expenses during those periods.

However, there has been a gradual improvement in United Airlines' interest coverage ratio in recent quarters. From a low of -7.92 in December 2020, the ratio has steadily increased to 3.36 by December 2024. This improvement suggests that the company's operating performance has strengthened, enabling it to better meet its interest obligations.

Overall, the trend in United Airlines' interest coverage ratio demonstrates the company's progress in managing its financial obligations and suggests a more sustainable financial position compared to earlier periods. Despite the volatility in the airline industry, the positive trajectory in the interest coverage ratio indicates a favorable outlook for United Airlines' financial health.