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United Airlines’ cargo revenue outperforms soft market

Airline posts 3rd-quarter profit, optimistic about travel recovery

A United Airlines 737 jetliner. (Photo: United Airlines)

Lost in the news that United Airlines’ $942 million third-quarter profit and guidance for positive travel trends the next three months sent shares higher Thursday was the continued strong performance of the cargo division amid weakening market conditions for shipping.

United Cargo generated $498 million in revenue, a 4% dip from the same period in 2021 but 76% above the pre-pandemic level in 2019. That the sales drop-off was so minimal is noteworthy since last year was a record for the air cargo industry overall, the market has been in a slump since March and United’s $519 million revenue a year ago was an all-time best for the third quarter. 

And United outperformed the overall market, which has fallen off by 5% to 9% year-over-year depending on the month and data provider.

For the first nine months of 2022, United (NASDAQ: UAL) pulled in $1.7 billion in cargo revenue, $77 million more than during the same period a year ago and nearly double the 2019 take.


Peer Delta Air Lines (NYSE: DAL) last week reported cargo revenue of $240 million, down 8.4% from a year ago and a 27% improvement from 2019. Year-to-date revenue was $840 million, less than half that of United.

The airfreight market has been slowing from last year’s peak because inflation has curbed goods demand, and large companies preshipped goods far ahead of the holiday season to avoid potential supply chain bottlenecks. Global economic growth, industrial production and exports are also slowing. 

Airlines benefitted from record yields the past two years, but rates have dropped significantly this year. According to the Baltic Air Index, global spot rates were down an average of 27.7% in early October compared to a year ago. United has much more of its widebody fleet in the air this year, indicating that sustained revenue performance in cargo is due to flying more volume. 

United shows financial health

United quarterly operating revenue improved 13.2% versus 2019 to $12.9 billion. Adjusted earnings per share of $2.81 and the revenue results beat consensus estimates by a wide margin. Cost controls helped the carrier to an 11.5% adjusted operating margin.


United said it expects consumers’ unabated hunger to travel to override inflationary pressures and a potential recession in the months ahead. It predicted its first fourth-quarter profit since 2019. 

Airlines have several favorable trends boosting the passenger side of the business, United said. Air travel is still in the COVID-19 recovery phase, hybrid work gives customers the freedom and flexibility to travel for leisure more often and capacity will be constrained by slow aircraft production related to supply chain delays, giving airlines pricing power.

United shares lifted 7% in after-hours trading Tuesday.

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

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Eric Kulisch

Eric is the Supply Chain and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. He won Environmental Journalist of the Year from the Seahorse Freight Association in 2014 and was the group's 2013 Supply Chain Journalist of the Year. In December 2022, he was voted runner up for Air Cargo Journalist by the Seahorse Freight Association. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. Eric is based in Portland, Oregon. He can be reached for comments and tips at [email protected]