United Airlines reports $6.5 billion liquidity, $1.1 billion debt

By Lisa Kerner

Charlotte, N.C., Jan. 21 – United Airlines, Inc. ended the fourth quarter and year with $6.5 billion of unrestricted liquidity, including $1.35 billion of undrawn commitments under its revolving credit facility.

Gross debt was down $1.1 billion year over year at $17 billion, and net income for the quarter doubled year over year, said acting chief financial officer Gerry Laderman during the company’s earnings conference call on Thursday.

United prepaid $1.2 billion of debt in 2015, including $300 million in the fourth quarter.

Also during 2015, United generated $6 billion of operating cash flow and $2.5 billion of free cash flow. For the quarter, the company generated operating cash flow of $1.1 billion and free cash flow of $324 million.

The Chicago-based airline spent $520 million during Q4 and $1.2 billion for the full year to repurchase stock. Laderman expects United to spend at least $750 million during the first quarter of 2016 on share repurchases. United should complete its $3 billion buyback “substantially” ahead of time.

Laderman said 2015 was a very good year for United in nearly every financial metric.

United had full-year net income of $4.5 billion, or $11.88 per diluted share, excluding special items. Fourth-quarter net income was $934 million, or $2.54 per diluted share, also excluding special items, according to the earnings news release.

United Airlines is a subsidiary of United Continental Holdings, Inc.

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