United Airlines Net Worth: Weathering 9/11, Bankruptcy, and COVID-19

United Airlines is the largest airline in the world in terms of revenue passenger miles. Using its fleet of over 900 aircraft, United transports some 140 million customers annually to almost 350 destinations worldwide.

As of October 2024, United Airlines Holdings, Inc.’s net worth, or market cap, was $19.47 billion, demonstrating its position as a key player in the aviation sector.

At Business2Community, we’ve drawn from various sources to offer a comprehensive look into United Airlines’ financial standing and history. Keep reading to explore the airline’s major milestones, revenue figures, challenges, and more.

What is United Airlines’ Net Worth?

As of October 2024, United Airlines’ holding company, United Airlines Holdings, Inc., had a net worth, or market cap, of $19.47 billion. This figure is based on a share price of $55.62 and 334 million shares outstanding.

Driven by a hesitance to travel by air after 9/11 and ongoing disputes with labor unions, United Airlines filed for bankruptcy in 2002. It emerged from bankruptcy in 2006 and resumed trading on the NASDAQ under the ticker symbol UAL.

When it filed for bankruptcy, United Airlines Holdings, Inc. reported assets of $22.8 billion and liabilities totaling $21.2 billion. It was the biggest airline bankruptcy in history at the time and one of the biggest bankruptcies ever in the USA.

However, United is also credited with one of the most successful comebacks of all time. Its ability to survive bankruptcy and move forward was driven by a range of smart cost-cutting measures, such as headcount reduction, route cuts, and fleet consolidation.

Following its return to the stock market in 2006, United’s net worth steadily increased, barring a dramatic drop in 2008 when rumors of another bankruptcy sent its share price down by 99% in fifteen minutes. The story was found to have been an old article about the 2002 bankruptcy which had been picked up incorrectly and reported by Bloomberg as breaking news.

United’s share price peaked at $27.92 in January 2015. This was in response to encouraging financials in 2014 – full-year adjusted profit almost doubled from $1.04 billion to $1.97 billion – and a sharp drop in oil prices.

With oil prices creeping up again over the following years, United’s market cap fluctuated until 2020 when the COVID-19 pandemic wiped around $18 billion off its value in less than six months. Since then the airline’s net worth has recovered but is yet to return to its pre-pandemic highs.

The company’s financial year ends on 31 December and its full year and fourth quarter results are typically released in the following January.

United Airlines Revenue

A key driver in United’s bankruptcy was a drop off in air travel caused by the 9/11 terror attacks. As the operator of two of the four hijacked planes, United Airlines was perhaps shunned even more than other airlines by anxious travelers. As a result, United’s revenue from domestic passengers dropped dramatically, and incoming passengers to the US also declined. While many other airlines secured a share of a $10 billion loan package from the US government, United’s request was declined and it was forced to file for bankruptcy.

Emerging from bankruptcy in 2006, United began to regain its position fairly quickly. In its first year, the airline reported operating revenue of $17.88 billion. However, United also reported operating expenses of $17.38 billion, leaving it with a small net income of $25 million.

2011 was important for United, as its merger with Continental Airlines was finally approved that October. The holding company’s financials for that year, such as revenue, included combined results from both United and Continental for the pre-merger period. As such, revenue more than doubled from $16.3 billion in 2009 to $37.1 billion in 2011, with net income of $840 million.

United’s revenue remained fairly flat between 2011 and 2019, with growth of just 17%. The 2015 slump in oil prices led to an annual profit of $7.34 billion.

Of course, this steady performance was halted by the COVID-19 pandemic in 2020. International and domestic air transportation was effectively banned in peak periods of the pandemic, and airlines such as United had to ground more or less all of their aircraft. United announced total annual revenue of $15.36 billion and a loss of $7.07 billion for 2020 against net income of $3 billion in 2019. This was United’s first loss since its emergence from bankruptcy.

Since the easing of pandemic-related restrictions, United has bounced back to profitability with revenue of $53.72 billion and net income of $2.62 billion in 2023.

“Our plans really came together in 2023, and I want to thank the United team for all of the hard work it took to get us there,” said CEO Scott Kirby. “Despite unpredictable headwinds, we delivered on our ambitious EPS target that few thought possible – and set new operational records for our customers. Looking ahead, we expect these trends to continue and United is incredibly well positioned to capitalize on them and to deliver on our short and long-term financial targets.”

The table below shows United Airlines Holdings, Inc.’s total annual revenue for the past 10 years:

United Airlines Dividend History

United’s current dividend policy is not to pay cash dividends to shareholders. In its annual report, United states that any future decisions to pay cash dividends are at the discretion of the Board and dependent on profitability expectations, net income, operating performance, financial conditions, capital expenditure requirements, and other relevant factors.

United Airlines Holdings, Inc. has not made any stock splits. Before 2020, the company had a history of stock buybacks. Since the pandemic, United has only completed one stock buyback in January 2021.

Who Owns United Airlines?

United Airlines is owned by the parent company United Airlines Holdings, Inc. which is publicly traded on the NASDAQ stock exchange. Around 79% of United’s stock is owned by institutional investors, such as The Vanguard Group (11%), Capital Group (9.29%), and Prime Capital (7.22%). A further 20% of the company’s stock is owned by the general public.

United Airlines was first formed when several smaller airlines, including the Boeing Airplane Company, merged to create the United Aircraft Corp in 1928. When the company later acquired Walter Varney’s Varney Air Lines it changed its name to United Air Lines. Varney went on to launch Speed Lines in 1932 which is considered to be the predecessor to Continental Airlines.

The company operated largely in the airmail sector until the Air Mail Act of 1934 brought in tougher regulations. United Air Lines was broken up to prevent it from monopolizing the sector. The Boeing Company focused on the manufacture of aircraft and United Airlines took up its position in the commercial air transportation sector.

Since its 2011 merger with Continental, United has been one of the world’s largest airlines. At the time of writing, it is currently the biggest airline in terms of revenue passenger miles.

Who is the United Airlines CEO?

The CEO of United Airlines, Scott Kirby, was appointed in May 2020. He had previously served as United’s president from 2016 to 2020.

He assumed the top role as the airline grappled with the travel restrictions brought about by the COVID-19 pandemic. While it was an incredibly challenging time to lead United Airlines, Scott Kirby claims it gave him an opportunity to think outside of the box and develop new ways of working.

“It’s not just about dealing with the issue, but finding the opportunity in adversity because there’s always opportunity.” Scott Kirby, United Airlines CEO

Kirby succeeded Oscar Munoz who was credited with completing the integration of United with Continental Airlines, which his predecessor Jeff Smisek had failed to do successfully. Smisek had been CEO of Continental at the time of the merger and assumed the role of the merged company. He stepped down amid a federal investigation in 2015.

Here’s a list of all United’s CEOs and presidents throughout history:

Interestingly, there was a gap in leadership at United between 1966 and 1976. Following William Patterson’s retirement, United moved through a number of temporary leaders as it fought against rising fuel costs, an economic downturn, and increased competition.

United Airlines’ Company History

Since its merger with Continental Airlines in 2011, United has consistently been one of the biggest airlines in the world. Through its subsidiaries, United Airlines provides air transportation services in North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America.

United Airlines is headquartered at the Willis Tower, often known as the Sears Tower, in Chicago, Illinois.

Here’s a rundown of how United grew to become a household name in aviation.

1928-2000: From Airmail to International Passenger Transportation

In 1928, several smaller airlines, including the Boeing Airplane Company, came together to create a subsidiary airline, the United Aircraft Corp. The company expanded its operations from airmail to passenger services through mergers and acquisitions across the US, including First Pacific Air Transport, Pratt & Whitney Aircraft, Stout Air Services, and Varney Air Lines. It became known as the United Air Lines.

The company had a near monopoly in the airmail sector until the Air Mail Act of 1934 brought in tougher regulations. United Air Lines was broken up. Boeing went back to focusing on aircraft manufacture and United Airlines moved firmly into the commercial sector.

In 1967, United became the first airline to achieve more than $1 billion in annual revenue. The following year, the company created a subsidiary called UAL to manage its non-airline business. In 1969, United Airlines became a subsidiary of UAL.

In 1973, United became the only commercial airline to have carried a serving US president, giving it the designation Executive One.

In 1985, United acquired Asian air traffic rights from Pan Am for $715.5 million. The deal included 18 jets, 2,700 employees, and a range of facilities in Asia and added 65,000 route miles and 30 new destinations to United’s network. In 1991, six Pan Am routes to London were also acquired for $400 million, and a $135 million deal was struck to acquire some of Pan Am’s Latin America business.

To fight back against competition from low-cost carriers, in 1994 United employees received a 55% stake in UAL in exchange for pay cuts and more flexible work rules. The deal meant that UAL became one of the largest employee-owned companies in the world. The stock ownership was later wiped out in the company’s bankruptcy.

2000-2024: Navigating Terror Attacks, Bankruptcy, and COVID-19

In 2000, United announced plans to acquire US Airways for $4.3 billion. However, the deal later fell through.

During the 9/11 terror attacks, two United aircraft were hijacked. United Airlines Flight 175 was flown into the South Tower of the World Trade Center. The second plane, United Airlines Flight 93, crashed in a rural area after the passengers fought back. It is thought that this plane was intended to crash into the United States Capitol building. If the heroic passengers on that flight weren’t successful in fighting off the attackers, the crash would have likely killed many more people.

Following a significant decline in air travel in the aftermath of the attacks and worsening labor relations, in December 2002 United Airlines filed for bankruptcy. With assets of $22.8 billion and $21.2 billion in liabilities, it was the biggest airline bankruptcy in history.

After three years, United emerged from bankruptcy in 2006 in much better shape. Its ability to move forward at pace has been credited to CEO Glenn Tilton’s smart cost-cutting measures, including headcount reduction, route cuts, and fleet consolidation.

Later that year, it was reported that United and Continental Airlines were discussing a potential merger. Both companies’ Boards approved the merger in 2010. The agreement was for the new combined carrier to be called United Airlines. With headquarters in Chicago, Continental CEO Jeff Smisek would assume the position of CEO.

In October 2010, the merger was completed and, in November 2011, the airline received a single operating certificate from the Federal Aviation Administration (FAA).

United Airlines headquarters moved to the Willis Tower (formerly Sears Tower) in Chicago in 2012 to consolidate operations and bring key corporate functions together under one roof.

Hard hit by the COVID-19 pandemic, United announced to its staff in 2020 that it planned to cut 16,370 jobs. With next to no commercial air travel permitted during pandemic restrictions, United revealed a total annual revenue of $15.36 billion and a loss of $7.07 billion for the 2020 fiscal year. This was compared to net income of $3 billion in 2019 from $43 billion in revenue and represented United’s first loss post-bankruptcy.

In 2021, the CEO of United Airlines Scott Kirby announced that the company was considering mandatory COVID-19 vaccines for its staff. The policy came into force in August of that year.

In March 2024, the FAA announced that it was about to increase its oversight of United after a number of safety-related incidents.

United Airlines Controversies

United Airlines is a household name, with a mostly positive reputation. However, as with most large corporations, its history is not without some controversy. Below we summarize some of the biggest (and most interesting) scandals in United’s history.

Flight 976 Air Rage

United holds the title for hosting the worst-ever case of air rage on Flight 976 in 1995. An inebriated investment banker became disruptive and the crew refused to serve him any more alcohol. In response, he pushed over a flight attendant, defecated on a service trolley, and locked himself in a toilet. Upon landing, he was arrested and fined $5,000.

2017 Passenger Removal

In 2017, four passengers were selected to leave an overbooked flight to make room for staff members after they had already boarded the plane. Dr David Dao was one of the four passengers and refused to leave his seat. Law enforcement officers were called to the plane to forcibly remove him. The incident was recorded by several passengers which showed Dr Dao leaving the plane with visible injuries, giving United a significant PR issue which ended in an undisclosed settlement for Dr Dao.

Cybersecurity and Privacy

In 2019, a significant data leak known as DataSpii was exposed. Through the leak, passenger information including last names and flight confirmation numbers was released.

That same year, it emerged that United had installed entertainment systems with cameras in the backs of some seats. United argued that the cameras were not active, but privacy concerns arose around hackers’ ability to activate the cameras and spy on passengers. The company later confirmed that it would cover up all cameras.

Federal Investigation into Jeff Smisek

Former CEO Jeff Smisek was investigated in 2015 as part of a federal corruption probe. The investigation was based on a questionable relationship between United and David Samson, then chairman of the Port Authority of New York and New Jersey. It was alleged that United reinstated a loss-making route from Newark to South Carolina, near Samson’s vacation home, in exchange for favorable treatment on its projects at Newark Airport. This raised concerns about unethical business dealings. Smisek resigned as CEO following the investigation, along with several other top United executives involved in the matter.

FAA scrutiny

The FAA increased scrutiny of United Airlines in 2024 following a series of safety-related incidents and operational concerns. Reports of operational disruptions, including flight cancellations and maintenance issues, prompted the FAA to increase its oversight of the airline. The agency aims to ensure compliance with safety regulations and address any gaps in United’s maintenance practices and operational processes.

United Airlines Flight Attendant Strikes

United Airlines flight attendants voted to strike in August 2024 amid ongoing disputes over wages, working conditions, and scheduling flexibility. Almost 30,000 attendants expressed their dissatisfaction with current pay levels and the lack of retroactive pay adjustments. They also called for improvements in on-ground duties, which they argue are increasingly demanding and not adequately compensated for, and more flexible scheduling and enhanced work rules.

The strike authorization came following prolonged negotiations between the attendants’ union and United’s management. Despite the airline’s recovery post-pandemic and improved financial performance, flight attendants feel their compensation and working conditions have not kept up with the company’s success. The move is especially significant, as it’s the first time since bankruptcy that United flight attendants have authorized a strike, perhaps indicating growing tensions between the company’s staff and its management.

What Can We Learn From United Airlines?

United Airlines’ journey to become one of the largest airlines in the world is a stark lesson in the power of resilience and continual evolution. Through its adaptability to meeting market changes, decisive action, and focus on operational streamlining, United has earned its place as a key player in the global aviation industry.

United’s ability to navigate significant challenges, including its bankruptcy and the devastating impact of the COVID-19 pandemic, is testament to its resilience. Strategic moves such as cost-cutting, fleet consolidation, and its merger with Continental Airlines enabled the company to bounce back and expand even further.

Looking to the future, United’s focus on innovation, financial control, and improving the customer experience is likely to give it a sustained competitive edge. The airline is well-positioned to navigate the challenges of the modern world, including fluctuating oil prices, regulatory scrutiny, and evolving passenger needs while maintaining profitability and operational efficiency.

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