United Airlines has reported its fourth-quarter and full-year 2015 financial results, revealing full-year net income of $4.5 billion, or $11.88 per diluted share, excluding special items.

Including special items, UAL reported full-year net income of $7.3 billion.

These results include a nonrecurring $3.1 billion non-cash benefit associated with the reversal of the company’s income tax valuation allowance.

UAL reported fourth-quarter net income of $934 million, or $2.54 per diluted share, excluding special items.

Including special items, UAL reported fourth-quarter net income of $823 million.

Today, UAL announced it reached an agreement to acquire 40 new Boeing 737-700 aircraft which will enter the fleet beginning in mid-2017, replacing a portion of the capacity currently operated by regional partners.

“We improved our operational performance, continued to invest in our products and services and achieved record financial performance,” said Brett Hart, UAL acting chief executive officer.

“We have great momentum as we head into 2016 and are committed to continuously earning the trust of our customers and employees.

“I’m proud of what we accomplished together, running a reliable airline and making the right investments to deliver shareholder value.

“We expect first-quarter pre-tax margin to be between eight and ten percent, excluding special items.”

For the fourth quarter of 2015, total revenue was $9.0 billion, a decrease of three percent year-over-year.

Fourth-quarter 2015 consolidated PRASM decreased six per cent and consolidated yield decreased 7.2 per cent compared to the fourth quarter of 2014.

For the full-year 2015, consolidated PRASM declined 4.4 per cent versus the prior year.

The declines in PRASM and yield were driven largely by a strong US dollar, lower surcharges, travel reductions from customers impacted by declining oil prices and softening domestic and international yields.

Passenger revenue for the fourth quarter and full year of 2015 and period-to-period comparisons of related statistics for UAL’s mainline and regional operations are included in the tables in the back of this document. 

Total operating expense excluding special charges was $7.8 billion in the fourth quarter, down 8.1 per cent year-over-year.

Including special charges, total operating expense was $8 billion, an 8.4 per cent decrease year-over-year.

The decrease was largely driven by lower oil prices.

Consolidated unit cost, excluding special charges, third-party business expenses, fuel and profit sharing, was flat compared to the fourth quarter of 2014.