United Airlines Holdings Inc. (NASDAQ:UAL)

Over the five-year period, a consistent upward trend is observed in property, plant, and equipment. This growth is primarily driven by increases in flight equipment, which represents the largest component of the company’s assets in this category. Other property and equipment also demonstrates growth, albeit at a slower pace. Purchase deposits for flight equipment also show an increasing trend, though with a slight decrease in 2024.

Flight Equipment

Flight equipment increased steadily from US$39,584 million in 2021 to US$56,876 million in 2025, representing a cumulative increase of approximately 43.7%. The largest year-over-year increase occurred between 2022 and 2023, suggesting a period of significant investment in the fleet. Growth rates decelerated slightly in 2024 and 2025, but remained positive.

Other Property and Equipment

Other property and equipment also exhibited growth, rising from US$8,764 million in 2021 to US$13,204 million in 2025, a cumulative increase of approximately 50.5%. While consistently increasing, the absolute growth in this category is smaller than that of flight equipment.

Purchase Deposits

Purchase deposits for flight equipment increased from US$2,215 million in 2021 to US$3,550 million in 2023, indicating a growing commitment to future flight equipment acquisitions. A slight decrease to US$3,427 million was noted in 2024, followed by a modest increase to US$3,506 million in 2025. This suggests potential adjustments in delivery schedules or contract terms.

Gross vs. Net Property, Plant, and Equipment

Operating property and equipment, gross, increased from US$50,563 million in 2021 to US$73,586 million in 2025. Simultaneously, accumulated depreciation and amortization increased from -US$18,489 million to -US$27,465 million over the same period. The net effect is an increase in operating property and equipment, net, from US$32,074 million to US$46,121 million. The consistent increase in accumulated depreciation reflects the ongoing utilization and aging of the asset base.

The consistent growth in both gross and net property, plant, and equipment suggests ongoing investment in the company’s operational capacity. The increasing depreciation expense is a natural consequence of this investment and the passage of time. The trends indicate a commitment to fleet modernization and expansion, alongside investments in supporting infrastructure.

The average age ratio exhibits a relatively stable pattern over the five-year period examined. While fluctuations are present, they remain within a narrow range, suggesting a consistent approach to asset replacement or depreciation.

Average Age Ratio Trend

The average age ratio began at 36.57% in 2021. A slight increase was observed in 2022, reaching 37.29%. This was followed by a decrease to 36.32% in 2023. Subsequent years show incremental increases, with the ratio reaching 36.93% in 2024 and 37.32% in 2025.

The observed fluctuations do not indicate a significant shift in the composition or age of the asset base. The ratio consistently remains below 40%, which could suggest a proactive asset management strategy, although further context regarding industry benchmarks is needed for a definitive assessment. The gradual increase from 2021 to 2025, while modest, warrants monitoring to determine if it represents the beginning of a longer-term trend.

Year-over-Year Changes

The largest year-over-year change occurred between 2021 and 2022, with an increase of 0.72 percentage points. The change between 2022 and 2023 was a decrease of 0.97 percentage points, representing the largest single-year decline. Changes in other years were less pronounced, remaining below 0.4 percentage points.

Overall, the average age ratio demonstrates a pattern of stability with minor variations. Continued monitoring of this ratio, alongside other relevant financial metrics, is recommended to gain a more comprehensive understanding of the company’s asset management practices and potential future capital expenditure requirements.

The values for accumulated depreciation and amortization, operating property and equipment (gross), and the average age ratio are presented over a five-year period. A consistent upward trend is observed in both accumulated depreciation and amortization, and operating property and equipment (gross) throughout the period. The average age ratio exhibits relative stability with minor fluctuations.

Accumulated Depreciation and Amortization

Accumulated depreciation and amortization increased steadily from US$18,489 million in 2021 to US$27,465 million in 2025. This represents a cumulative increase of approximately 48.6% over the five-year period. The largest year-over-year increase occurred between 2022 and 2023, with an increase of US$2,229 million. The rate of increase appears to be slowing slightly in the later years, but remains positive.

Operating Property and Equipment, Gross

Operating property and equipment (gross) also demonstrated consistent growth, rising from US$50,563 million in 2021 to US$73,586 million in 2025. This signifies a cumulative increase of approximately 45.5% over the five years. Similar to accumulated depreciation, the most substantial year-over-year growth was between 2022 and 2023, with an increase of US$7,604 million. The growth rate remains positive, though it shows a slight deceleration towards the end of the period.

Average Age Ratio

The average age ratio remained relatively stable, fluctuating between 36.32% and 37.32% during the observed period. It began at 36.57% in 2021, increased to 37.29% in 2022, decreased slightly to 36.32% in 2023, and then increased again to 36.93% in 2024 and 37.32% in 2025. These fluctuations suggest a consistent, but not dramatically changing, age profile of the company’s property, plant, and equipment. The ratio’s stability indicates a balanced approach to asset replacement and depreciation.

The concurrent increases in both gross property, plant, and equipment and accumulated depreciation suggest ongoing investment in assets coupled with the expected depreciation of those assets. The stable average age ratio implies that the company is effectively managing the lifecycle of its assets, maintaining a consistent age profile despite continued investment.