United Airlines sees drop in Atlantic PRASM in 1Q2019: CCO

    United Airlines EVP and CCO Andrew Nocella stated (17-Apr-2019) passenger revenue per available seat mile (PRASM) in the domestic market was up 0.6% in 1Q2019, due to strong close in bookings (Seeking Alpha, 17-Apr-2019). Domestic ASMs also increased by 57%. The following markets also experienced changes:

    • Atlantic:
      • PRASM: -2.8%, due to weak economy cabin pricing;
      • ASM: +18%;
    • Pacific:
      • PRASM: +4.5%, due to healthy economy cabin demand;
      • ASM: +16%;
    • Latin America:
      • PRASM: +2.6%, due to continued improvement in Mexico and the Caribbean;
      • ASM: +9%.

    Consolidated PRASM in 2Q2019 is expected to up 0.5% to 2.5%. 2Q2019 performance in the Pacific is expected to be “strong” at “more moderate levels”, while a “significant inflection” in economy cabin yields is expected in the Atlantic in May-2019. Mr Nocella said Europe “looks strong”, but will experience difficulties in Apr-2019 due to the Easter shift. Latin America is expected to be “even stronger” in 2Q2019, partly due to the Easter shift. Mr Nocella also noted PRASM in Brazil is expected to become positive “for the first time” since 2Q2018, while Argentina continues to “look negative”. [more – original PR]