United Posts Earnings Beat, CEO Apologizes Once More For Scandal

United Continental Holdings Inc. (UAL – Free Report) released its first quarter fiscal 2017 earnings results, posting diluted earnings of 41 cents per share and revenue of $8.4 billion. Currently, UAL is a Zacks Rank #3 (Hold), and is up 0.82% to $71.35 in trading shortly after its earnings report was released.

Beat earnings estimates. The company posted diluted earnings of 41 cents per share, surpassing the Zacks Consensus Estimate of 37 cents per share. This number excludes 10 cents from non-recurring items. Net income came in at $129 million.

Beat revenue estimates. The company saw revenue figures of $8.4 billion, topping our consensus estimate of $8.362 billion and increasing 2.7% year-over-year. First-quarter 2017 consolidated passenger revenue per available seat mile (PRASM) was flat.

United generated $547 million in operating cash flow and ended Q1 with $6.4 billion in unrestricted liquidity.

Looking ahead, the company expects second-quarter PRASM to be up 1% to 3%.

Oscar Munoz, CEO of United Airlines, said, “In the first quarter of 2017, our financial and operational performance gives us a lot of confidence about the foundation we are building. It is obvious from recent experiences that we need to do a much better job serving our customers.”

“The incident that took place aboard Flight 3411 has been a humbling experience, and I take full responsibility. This will prove to be a watershed moment for our company, and we are more determined than ever to put our customers at the center of everything we do. We are dedicated to setting the standard for customer service among U.S. airlines, as we elevate the experience our customers have with us from booking to baggage claim,” Munoz continued.

Here’s a graph that looks at United Continental’s price, consensus, and EPS surprise:

United Continental Holdings, Inc. Price, Consensus and EPS Surprise