United Airlines Reaches 2020 Adjusted Earnings Per Share Target One Year Ahead Of Schedule - United Hub

United Airlines Reaches 2020 Adjusted Earnings Per Share Target One Year Ahead Of Schedule

Full year 2019 diluted EPS of $11.58; full year 2019 adjusted diluted EPS of $12.05[1]
January 21, 2020

CHICAGO, Jan. 21, 2020 /PRNewswire/ -- United Airlines (UAL) today announced it reached its 2020 goal -- first announced in January 2018 -- to achieve adjusted diluted earnings per share (EPS) target2 of $11 to $13 a full year ahead of schedule. The company also achieved full year pre-tax margin growth of 2.6 points, which is expected to outpace its largest competitors for 2019.

  • Reported fourth quarter net income of $641 million, diluted EPS of $2.53, up 50% versus the fourth quarter of 2018, pre-tax earnings of $844 million and pre-tax margin of 7.8 percent, expanding pre-tax margin 2.5 points versus the fourth quarter of 2018.
  • Reported fourth quarter adjusted net income of $676 million, adjusted diluted EPS of $2.67, up 11% versus the fourth quarter of 2018, adjusted pre-tax earnings of $889 million and adjusted pre-tax margin of 8.2 percent, expanding adjusted pre-tax margin 0.5 points versus the fourth quarter of 2018.1
  • Reported full year net income of $3.0 billion, diluted EPS of $11.58, up 51% versus full year 2018, pre-tax earnings of $3.9 billion and pre-tax margin of 9.0 percent, expanding pre-tax margin 2.6 points versus full year 2018.
  • Reported full year adjusted net income of $3.1 billion, adjusted diluted EPS of $12.05, up 32% versus full year 2018, adjusted pre-tax earnings of $4.1 billion and adjusted pre-tax margin of 9.4 percent, expanding adjusted pre-tax margin 1.7 points versus full year 2018.1
  • Consolidated fourth quarter passenger revenue per available seat mile (PRASM) increased 0.8 percent year-over-year.
  • Consolidated fourth quarter unit cost per available seat mile (CASM) decreased 1.3 percent year-over-year and consolidated full year unit cost per available seat mile (CASM) decreased 1.2 percent year-over-year.
  • Consolidated fourth quarter CASM, excluding special charges, third party business expenses, fuel and profit sharing, increased 2.7 percent year-over-year. Consolidated full year CASM, excluding special charges, third-party business expenses, fuel and profit sharing, increased 1.0 percent year-over-year.
  • Repurchased $216 million of its common shares in the fourth quarter of 2019, at an average purchase price of $88.95 per share, bringing share repurchases for full year 2019 to $1.6 billion.

"2019 was a great year for our United team -- highlighted by achieving our $11 to $13 adjusted EPS target a full year ahead of schedule," said Oscar Munoz, CEO of United Airlines. "With a four-quarter streak of expanding profit margins, when all the results are in we expect our full year 2019 pre-tax margin growth to be the highest amongst our largest competitors. When I look at United's fundamental strength, I could not be prouder of what we've accomplished in such a short time. This is the New United we set out to build more than four years ago. As we embark on a new year and decade, I believe the outlook for United's future has never been brighter."

1 Excludes special charges, unrealized gains and losses on investments and imputed interest on certain finance leases. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in the tables accompanying this release.
2 Excludes special charges and unrealized gains and losses on investments, the nature of which are not determined at this time. Accordingly, UAL does not provide earnings guidance on a GAAP basis.

For more information on UAL's first quarter and full year 2020 guidance, please visit ir.united.com for the company's investor update.

2019 Highlights

Operations and Employees

  • Flew most revenue passengers in company history.
  • Set new company record for most mainline departures with nearly 800,000 departures.
  • Number one in on-time departures at all hubs with direct competitors -- Chicago, Denver and Los Angeles.
  • Hosted Backstage 2019, which brought all 25,000 flight attendants to Chicago for an event which was designed to underscore the important role flight attendants play in delivering great service.
  • Profit sharing for 2019 was on average 45 percent higher per participating employee year-over-year.
  • Launched Aviate, a new pilot recruiting and development program and career website to establish a more structured career path to becoming a United pilot.
  • Hired nearly 9,000 aviation professionals in well paying careers with great benefits in 2019.

Customer Experience

  • Introduced ConnectionSaver, a new tool dedicated to improving the experience for customers connecting from one United flight to the next, saving nearly 100,000 connections to be made in 2019.
  • Became the first U.S. airline to offer non-binary gender options throughout all booking channels in addition to providing the option to select the title "Mx." during booking.
  • Announced MileagePlus award miles never expire, giving members a lifetime to use miles on flights, experiences, hotels and more.
  • Announced free live DIRECTV on 211 Boeing 737 United aircraft equipped with seat back TV, providing more than 100 channels of live television.
  • Introduced a re-imagined mobile app to customers featuring a more dynamic experience that updates customers at each step of their travel journey.
  • Customers are now provided three inflight snack options on domestic flights regardless of departure time, including the Stroopwafel.
  • MileagePlus members between the ages of 18 to 22 received a discount on domestic flights when booked through the United mobile app through the end of 2019.
  • Opened the fifth of its award-winning United Polaris Lounges at Los Angeles International Airport.
  • Opened three new United Clubs at Fort Lauderdale-Hollywood International Airport, LaGuardia Airport and Raleigh-Durham International Airport.
  • Announced the addition of more than 1,600 United Polaris® business class and United First seats to nearly 250 international and domestic aircraft.
  • Began flight operations at LaGuardia Airport's new Terminal B Eastern Concourse.
  • Customers can now pre-pay for bags as soon as their ticket is issued. Previously customers had to wait until check-in to pay for their bags.
  • Announced partnership with CLEAR which includes a free or discounted CLEAR membership for U.S.-based MileagePlus members.

Network

  • Announced a total of nine new international routes and two new expanded routes beginning in 2020, including four new daily nonstop flights to Tokyo Haneda Airport.
  • Strengthened the domestic route network with 69 new routes including launching 54 new routes and announcing 15 routes beginning in 2020.
  • Launched 11 new international routes in 2019, including direct flights from Newark Liberty International Airport to Cape Town, South Africa; Prague, Czech Republic; and Naples, Italy.

Fleet

  • Took delivery of 49 aircraft in 2019, including eight Boeing 787-10 aircraft, becoming the first carrier in the world to operate all three Dreamliner models.
  • Signed agreements to purchase 50 Airbus A321 XLR, 20 used Boeing 737-700 aircraft and 20 Embraer E175 aircraft operated by our regional partners.
  • Introduced a brand new and revolutionary regional flying experience with the addition of the two-cabin, 50-seat Bombardier CRJ 550 aircraft.
  • Unveiled next paint design, which brings a refreshed look to its fleet, serving as a visual representation of the airline's ongoing brand evolution.
  • Launched Boeing 767-300ER ultra-premium United Polaris business class configuration on all flights between New York/Newark and Chicago to London-Heathrow.

Community and Environment

  • Launched Miles on a Mission, a first-of-its-kind crowdsourcing platform which gives customers a simple way to donate miles to non-profit organizations and charities in need of air travel.
  • Pledged on Giving Tuesday to match up to 10 million MileagePlus miles to featured Miles on a Mission partners.
  • Committed $40 million toward a new investment initiative focused on accelerating the development of sustainable aviation fuels and other decarbonization technologies.
  • Made history with the departure of the "Flight for the Planet," the most eco-friendly commercial flight of its kind in the history of aviation.
  • Renewed contract with Boston-based World Energy to purchase up to 10 million gallons of cost-competitive, commercial-scale, sustainable aviation biofuel.
  • Launched Her Art Here, a contest where two women artists were chosen to have their work painted on California- and New York/New Jersey-themed Boeing 757s to uplift underrepresented women artists.
  • Celebrated Women in Aviation International's annual Girls in Aviation Day by hosting more than 500 girls in 14 locations around the world.
  • Became the first public company to be inducted into Pride Live's Stonewall Ambassador program in recognition of the airline's commitment to LGBTQ+ equality.
  • Reached a milestone of 1 million meals packed for charity partner Rise Against Hunger.
  • Donated $1 million to Feeding America's Shutdown Response Fund to directly support the food banks providing food for families of federal workers.

Earnings Call

UAL will hold a conference call to discuss its fourth quarter and full year 2019 financial results as well as its financial and operational outlook for first quarter and full year 2020 on Wednesday, January 22, at 9:30 a.m. Central time / 10:30 a.m. Eastern time. A live, listen-only webcast of the conference call will be available at ir.united.com. The webcast will be available for replay within 24 hours of the conference call and then archived on the website for three months.

About United

United's shared purpose is "Connecting People. Uniting the World." We are more focused than ever on our commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United and United Express operate approximately 4,900 flights a day to 362 airports across six continents. In 2019, United and United Express operated more than 1.7 million flights carrying more than 162 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 791 mainline aircraft and the airline's United Express partners operate 581 regional aircraft. United is a founding member of Star Alliance, which provides service to 195 countries via 26 member airlines. For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements included in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as "expects," "will," "plans," "anticipates," "indicates," "believes," "estimates," "forecast," "guidance," "outlook," "goals," "targets" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: our ability to execute our strategic operating plan, including our growth, revenue-generating and cost-control initiatives; general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aircraft fuel and energy refining capacity in relevant markets); risks of doing business globally, including instability and political developments that may impact our operations in certain countries; demand for travel and the impact that global economic and political conditions have on customer travel patterns; our capacity decisions and the capacity decisions of our competitors; competitive pressures on pricing and on demand; changes in aircraft fuel prices; disruptions in our supply of aircraft fuel; our ability to cost-effectively hedge against increases in the price of aircraft fuel, if we decide to do so; the effects of any technology failures or cybersecurity breaches; disruptions to services provided by third-party service providers; potential reputational or other impact from adverse events involving our aircraft or operations, the aircraft or operations of our regional carriers or our code share partners or the aircraft or operations of another airline; our ability to attract and retain customers; the effects of any terrorist attacks, international hostilities or other security events, or the fear of such events; the mandatory grounding of aircraft in our fleet; disruptions to our regional network; the impact of regulatory, investigative and legal proceedings and legal compliance risks; the success of our investments in other airlines, including in other parts of the world; industry consolidation or changes in airline alliances; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; costs associated with any modification or termination of our aircraft orders; disruptions in the availability of aircraft, parts or support from our suppliers; our ability to maintain satisfactory labor relations and the results of any collective bargaining agreement process with our union groups; any disruptions to operations due to any potential actions by our labor groups; labor costs; an outbreak of a disease that affects travel demand or travel behavior; the impact of any management changes; extended interruptions or disruptions in service at major airports where we operate; U.S. or foreign governmental legislation, regulation and other actions (including Open Skies agreements, environmental regulations and the United Kingdom's withdrawal from the European Union); the seasonality of the airline industry; weather conditions; the costs and availability of aviation and other insurance; the costs and availability of financing; our ability to maintain adequate liquidity; our ability to comply with the terms of our various financing arrangements; our ability to realize the full value of our intangible assets and long-lived assets; and other risks and uncertainties set forth under Part I, Item 1A., "Risk Factors," of our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, our Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission.

-tables attached-

On January 1, 2019, United Airlines Holdings, Inc. ("UAL") adopted Accounting Standards Update No. 2016-02, Leases ("Topic 842"). As such, certain previously reported 2018 figures are adjusted in this report on a basis consistent with Topic 842.

UNITED AIRLINES HOLDINGS, INC,

STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)




Three Months Ended
December 31,


%
Increase/
(Decrease)



Year Ended
December 31,


%
Increase/
(Decrease)


(In millions, except per share data)


2019


2018




2019


2018



Operating revenue:















Passenger


$

9,933



$

9,556



3.9




$

39,625



$

37,706



5.1



Cargo


316



334



(5.4)




1,179



1,237



(4.7)



Other operating revenue


639



601



6.3




2,455



2,360



4.0



Total operating revenue


10,888



10,491



3.8




43,259



41,303



4.7


















Operating expense:















Salaries and related costs


3,078



2,924



5.3




12,071



11,458



5.3



Aircraft fuel


2,249



2,380



(5.5)




8,953



9,307



(3.8)



Regional capacity purchase


725



650



11.5




2,849



2,649



7.6



Landing fees and other rent


650



627



3.7




2,543



2,449



3.8



Depreciation and amortization


606



558



8.6




2,288



2,165



5.7



Aircraft maintenance materials and outside repairs


475



434



9.4




1,794



1,767



1.5



Distribution expenses


417



396



5.3




1,651



1,558



6.0



Aircraft rent


67



78



(14.1)




288



433



(33.5)



Special charges (B)


130



301



NM




246



487



NM



Other operating expenses


1,630



1,508



8.1




6,275



5,801



8.2



Total operating expense


10,027



9,856



1.7




38,958



38,074



2.3


















Operating income


861



635



35.6




4,301



3,229



33.2


















Operating margin


7.9

%


6.1

%


1.8

pts.



9.9

%


7.8

%


2.1

pts.

















Nonoperating income (expense):















Interest expense


(161)



(173)



(6.9)




(731)



(670)



9.1



Interest capitalized


20



19



5.3




85



65



30.8



Interest income


30



31



(3.2)




133



101



31.7



Unrealized gains (losses) on investments, net (B)


81



56



44.6




153



(5)



NM


Miscellaneous, net


13



(15)



NM




(27)



(72)



(62.5)



Total nonoperating expense


(17)



(82)



(79.3)




(387)



(581)



(33.4)


















Income before income taxes


844



553



52.6




3,914



2,648



47.8


















Pre-tax margin


7.8

%


5.3

%


2.5

pts.



9.0

%


6.4

%


2.6

pts.

















Income tax expense (D)


203



92



120.7




905



526



72.1



Net income


$

641



$

461



39.0




$

3,009



$

2,122



41.8


















Diluted earnings per share


$

2.53



$

1.69



49.7




$

11.58



$

7.67



51.0



Diluted weighted average shares


253.4



272.7



(7.1)




259.9



276.7



(6.1)


















NM Not meaningful
















 

UNITED AIRLINES HOLDINGS, INC.

PASSENGER REVENUE INFORMATION AND STATISTICS


Passenger revenue information is as follows (in millions, except for percentage changes):



4Q 2019

Passenger

Revenue


4Q 2018

Passenger

Revenue (a)


Reporting Adjustments (b)


4Q 2018

Passenger

Revenue (b)


Passenger

Revenue

vs.

4Q 2018 (b)


PRASM vs. 4Q 2018 (b)


Yield vs. 4Q 2018 (b)


Available

Seat Miles

vs.

4Q 2018


4Q 2019 Available Seat Miles


4Q 2019 Revenue Passenger Miles

Domestic

$

6,338



$

6,088



$

52



$

6,140



3.2%


0.6%


1.5%


2.6%


40,612


34,051





















Atlantic

1,616



1,535



(30)



1,505



7.4%


(0.2%)


(1.3%)


7.6%


12,649


10,373

Pacific

1,088



1,139



(31)



1,108



(1.8)%


(1.2)%


(1.9)%


(0.7%)


11,098


8,653

Latin America

891



794



9



803



11.0%


6.3%


5.8%


4.4%


6,679


5,556

International

3,595



3,468



(52)



3,416



5.2%


1.5%


0.5%


3.8%


30,426


24,582





















Consolidated

$

9,933



$

9,556



$



$

9,556



3.9%


0.8%


1.0%


3.1%


71,038


58,633






















(a) As previously reported.

(b) During the third quarter of 2019, United implemented a new revenue accounting software system which allowed it to more precisely determine the geographic regions associated with certain ancillary passenger revenue items. Prior to July 2019, those ancillary revenue items were determined using an allocation method that was based on revenue from passenger travel. While the total passenger revenue is not impacted, the geographic totals for each period are not comparable year-over-year due to the change. The fourth quarter 2018 passenger revenue presented in the table above reallocates these ancillary items using the 2019 allocation.

 

Select operating statistics are as follows:




Three Months Ended
December 31,


%

Increase/

(Decrease)



Year Ended
December 31,


%

Increase/

(Decrease)




2019


2018




2019


2018



Passengers (thousands)


40,306



39,891



1.0




162,443



158,330



2.6



Revenue passenger miles (millions)


58,633



56,968



2.9




239,360



230,155



4.0



Available seat miles (millions)


71,038



68,902



3.1




284,999



275,262



3.5



Passenger load factor:















    Consolidated


82.5

%


82.7

%


(0.2)

pts.



84.0

%


83.6

%


0.4

pts.


    Domestic


83.8

%


84.6

%


(0.8)

pts.



85.2

%


85.4

%


(0.2)

pts.


    International


80.8

%


80.1

%


0.7

pts.



82.4

%


81.3

%


1.1

pts.


Passenger revenue per available seat mile (cents)


13.98



13.87



0.8




13.90



13.70



1.5



Total revenue per available seat mile (cents)


15.33



15.23



0.7




15.18



15.00



1.2



Average yield per revenue passenger mile (cents)


16.94



16.77



1.0




16.55



16.38



1.0



Cargo ton miles


889



902



(1.4)




3,329



3,425



(2.8)



Aircraft in fleet at end of period


1,372



1,329



3.2




1,372



1,329



3.2



Average stage length (miles)


1,446



1,426



1.4




1,460



1,446



1.0



Average full-time equivalent employees


90,264



87,315



3.4




90,116



86,641



4.0



Average aircraft fuel price per gallon


$

2.10



$

2.30



(8.7)




$

2.09



$

2.25



(7.1)



Fuel gallons consumed (millions)


1,071



1,036



3.4




4,292



4,137



3.7





























Note: See Part II, Item 6, Selected Financial Data, of UAL's Annual Report on Form 10-K for the fiscal year ended December 31, 2018, for definitions of these statistics.       


 

UNITED AIRLINES HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)


 (In millions)

December 31, 2019


December 31, 2018

ASSETS




Current assets:




Cash and cash equivalents

$

2,762



$

1,694


Short-term investments

2,182



2,256


Receivables, less allowance for doubtful accounts

1,364



1,426


Aircraft fuel, spare parts and supplies, less obsolescence allowance

1,072



985


Prepaid expenses and other

814



733


Total current assets

8,194



7,094






Total operating property and equipment, net

30,170



27,399


Operating lease right-of-use assets

4,758



5,262






Other assets:




Goodwill

4,523



4,523


Intangibles, less accumulated amortization

3,009



3,159


Restricted cash

106



105


Notes receivable, net

671



516


Investments in affiliates and other, net

1,180



966


Total other assets

9,489



9,269


Total assets

$

52,611



$

49,024






LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Advance ticket sales

$

4,819



$

4,381


Accounts payable

2,703



2,363


Frequent flyer deferred revenue

2,440



2,286


Accrued salaries and benefits

2,271



2,184


Current maturities of long-term debt

1,407



1,230


Current maturities of finance leases

46



123


Current maturities of operating leases

686



719


Other

566



553


Total current liabilities

14,938



13,839






Other long-term liabilities and deferred credits:




Long-term debt

13,145



12,215


Long-term obligations under finance leases

220



224


Long-term obligations under operating leases

4,946



5,276


Frequent flyer deferred revenue

2,836



2,719


Postretirement benefit liability

789



1,295


Pension liability

1,446



1,576


Deferred income taxes

1,736



828


Other

1,024



1,010


Total other long-term liabilities and deferred credits

26,142



25,143


Stockholders' equity

11,531



10,042


Total liabilities and stockholders' equity

$

52,611



$

49,024



 

UNITED AIRLINES HOLDINGS, INC.

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)


 (In millions)

Year Ended
December 31,


2019


2018

Cash Flows from Operating Activities:




Net cash provided by operating activities

$

6,909



$

6,164






Cash Flows from Investing Activities:




Capital expenditures

(4,528)



(4,070)


Purchases of short-term and other investments

(2,897)



(2,552)


Proceeds from sale of short-term and other investments

2,996



2,616


Loans made to others

(174)



(466)


Investment in affiliates

(36)



(139)


Other, net

79



156


Net cash used in investing activities

(4,560)



(4,455)






Cash Flows from Financing Activities:




Proceeds from issuance of long-term debt and airport construction financing

1,847



1,594


Payments of long-term debt

(1,240)



(1,727)


Repurchases of common stock

(1,645)



(1,235)


Principal payments under finance leases

(151)



(79)


Capitalized financing costs

(61)



(37)


Other, net

(30)



(17)


Net cash used in financing activities

(1,280)



(1,501)


Net increase in cash, cash equivalents and restricted cash

1,069



208


Cash, cash equivalents and restricted cash at beginning of the year

1,799



1,591


Cash, cash equivalents and restricted cash at end of the year

$

2,868



$

1,799






Investing and Financing Activities Not Affecting Cash:




Property and equipment acquired through the issuance of debt

$

493



$

143


Right-of-use assets acquired through operating leases

498



663


Property and equipment acquired through finance lease

22



17


Lease modifications and lease conversions

(2)



52


Debt associated with termination of a maintenance service agreement



163






 

 UNITED AIRLINES HOLDINGS, INC.

RETURN ON INVESTED CAPITAL (ROIC)—Non-GAAP


ROIC is a non-GAAP financial measure that UAL believes provides useful supplemental information for management and investors by measuring the effectiveness of the company's operations' use of invested capital to generate profits.


(in millions)

Year Ended
December 31, 2019

Net Operating Profit After Tax ("NOPAT")


Pre-tax income

$

3,914


Adjustments:


  Special charges and unrealized (gains) losses on investments, net:


    Impairment of assets

171


    Severance and benefit costs

16


    Unrealized (gains) losses on investments, net

(153)


    (Gains) losses on sale of assets and other special charges

59


Pre-tax income excluding special charges and unrealized (gains) losses on investments, net (Non-GAAP)

4,007


    add: Interest expense  (net of income tax benefit) (a)

726


    add: Interest component of capitalized aircraft rent  (net of income tax benefit) (a)

154


    add: Net interest on pension (net of income tax benefit) (a)

(19)


    less: Income taxes paid

(29)


NOPAT (Non-GAAP)

$

4,839






Average Invested Capital (five-quarter average)


Total assets

$

51,325


less: Non-interest bearing liabilities (b)

(18,113)


Average invested capital (Non-GAAP)

$

33,212




ROIC (Non-GAAP)

14.6

%




(a)  Income tax benefit measured based on the effective cash tax rate. The effective cash tax rate is calculated by dividing cash taxes paid by pre-tax income excluding special charges and unrealized (gains) losses on investments, net. For the year ended December 31, 2019, the effective cash tax rate was 0.7%.

(b)  Non-interest bearing liabilities include advance ticket sales, frequent flyer deferred revenue, deferred income taxes and other non-interest bearing liabilities.

 

UNITED AIRLINES HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION


(A)  UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and Non-GAAP financial measures, including adjusted operating income (loss), adjusted operating margin, adjusted pre-tax income (loss), adjusted pre-tax margin, adjusted net income (loss), adjusted diluted earnings (loss) per share and CASM, excluding special charges, third-party business expenses, fuel, and profit sharing, among others. UAL believes that adjusting for special charges is useful to investors because special charges are not indicative of UAL's ongoing performance. UAL believes that adjusting for unrealized (gains) losses on investments, net is useful to investors because those unrealized gains or losses may not ultimately be realized on a cash basis. UAL believes that adjusting for interest expense related to finance leases of Embraer ERJ 145 aircraft is useful to investors because of the accelerated recognition of interest expense.


CASM is a common metric used in the airline industry to measure an airline's cost structure and efficiency. UAL reports CASM excluding special charges, third-party business expenses, fuel and profit sharing. UAL believes that adjusting for special charges is useful to investors because special charges are not indicative of UAL's ongoing performance. UAL also believes that excluding third-party business expenses, such as maintenance, ground handling and catering services for third parties and fuel sales, provides more meaningful disclosure because these expenses are not directly related to UAL's core business. UAL also believes that excluding fuel costs from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence. UAL excludes profit sharing because this exclusion allows investors to better understand and analyze our operating cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.


Reconciliations of reported non-GAAP financial measures to the most directly comparable GAAP financial measures are included below.                          




Three Months Ended
December 31,


%

Increase/

(Decrease)


Year Ended
December 31,


%

Increase/

(Decrease)



2019


2018



2019


2018


CASM (cents)













Cost per available seat mile (CASM) (GAAP)


14.11



14.30



(1.3)



13.67



13.83



(1.2)


Special charges (B)


0.18



0.44



NM



0.09



0.18



NM


Third-party business expenses


0.07



0.03



133.3



0.06



0.04



50.0


Fuel expense


3.16



3.46



(8.7)



3.14



3.38



(7.1)


Profit sharing, including taxes


0.17



0.12



41.7



0.17



0.12



41.7


CASM, excluding special charges, third-party business expenses, fuel, and profit sharing (Non-GAAP)


10.53



10.25



2.7



10.21



10.11



1.0



NM Not Meaningful


 

UNITED AIRLINES HOLDINGS, INC.

NON-GAAP FINANCIAL RECONCILIATION (Continued)



Three Months Ended
December 31,


 

Increase/

(Decrease)


%

Increase/

(Decrease)


Year Ended
December 31,


 

Increase/

(Decrease)


%

Increase/

(Decrease)

(in millions)

2019


2018



2019


2018


Operating expenses (GAAP)

$

10,027



$

9,856



$

171



1.7



$

38,958



$

38,074



$

884



2.3


Special charges (B)

130



301



(171)



NM



246



487



(241)



NM


Operating expenses, excluding special charges

9,897



9,555



342



3.6



38,712



37,587



1,125



3.0


Adjusted to exclude:
















Third-party business expenses

48



32



16



50.0



168



121



47



38.8


Fuel expense

2,249



2,380



(131)



(5.5)



8,953



9,307



(354)



(3.8)


Profit sharing, including taxes

123



82



41



50.0



491



334



157



47.0


Adjusted operating expenses (Non-GAAP)

$

7,477



$

7,061



$

416



5.9



$

29,100



$

27,825



$

1,275



4.6


















Operating income (GAAP)

$

861



$

635



$

226



35.6



$

4,301



$

3,229



$

1,072



33.2


Adjusted to exclude:
















Special charges (B)

130



301



(171)



NM



246



487



(241)



NM


Adjusted operating income (Non-GAAP)

$

991



$

936



$

55



5.9



$

4,547



$

3,716



$

831



22.4


Operating margin

7.9

%


6.1

%


1.8



pts.



9.9

%


7.8

%


2.1



pts.


Adjusted operating margin (Non-GAAP) (A)

9.1

%


8.9

%


0.2



pts.



10.5

%


9.0

%


1.5



pts.


















Pre-tax income (GAAP)

$

844



$

553



$

291



52.6



$

3,914



$

2,648



$

1,266



47.8


Adjusted to exclude:
















Special charges (B)

130



301



(171)



NM



246



487



(241)



NM


Unrealized (gains) losses on investments, net (B)

(81)



(56)



(25)



NM



(153)



5



(158)



NM


Interest expense on ERJ 145 finance leases (C)

(4)



13



(17)



NM



64



26



38



NM


Adjusted pre-tax income (Non-GAAP)

$

889



$

811



$

78



9.6



$

4,071



$

3,166



$

905



28.6


Pre-tax margin

7.8

%


5.3

%


2.5



pts.



9.0

%


6.4

%


2.6



pts.


Adjusted pre-tax margin (Non-GAAP) (A)

8.2

%


7.7

%


0.5



pts.



9.4

%


7.7

%


1.7



pts.


















 Net income (GAAP)

$

641



$

461



$

180



39.0



$

3,009



$

2,122



$

887.0



41.8


Adjusted to exclude:
















Special charges (B)

130



301



(171)



NM



246



487



(241)



NM


Unrealized (gains) losses on investments, net (B)

(81)



(56)



(25)



NM



(153)



5



(158)



NM


Interest expense on ERJ 145 finance leases (C)

(4)



13



(17)



NM



64



26



38



NM


Income tax benefit related to adjustments above

(10)



(58)



48



NM



(35)



(116)



81



NM


Special income tax adjustment (D)



(5)



5



NM





(5)



5



NM


Adjusted net income (Non-GAAP)

$

676



$

656



$

20



3.0



$

3,131



$

2,519



$

612



24.3


















 Diluted earnings per share (GAAP)

$

2.53



$

1.69



$

0.84



49.7



$

11.58



$

7.67



$

3.91



51.0


Adjusted to exclude:
















Special charges (B)

0.52



1.10



(0.58)



NM



0.95



1.76



(0.81)



NM


Unrealized (gains) losses on investments, net (B)

(0.32)



(0.21)



(0.11)



NM



(0.59)



0.02



(0.61)



NM


Interest expense on ERJ 145 finance leases (C)

(0.02)



0.05



(0.07)



NM



0.25



0.09



0.16



NM


Income tax benefit related to adjustments

(0.04)



(0.21)



0.17



NM



(0.14)



(0.41)



0.27



NM


Special income tax adjustment (D)



(0.02)



0.02



NM





(0.02)



0.02



NM


Adjusted diluted earnings per share (Non-GAAP)

$

2.67



$

2.40



$

0.27



11.3



$

12.05



$

9.11



$

2.94



32.3



NM Not Meaningful

 

UNITED AIRLINES HOLDINGS, INC.

NON-GAAP FINANCIAL RECONCILIATION (Continued)


UAL believes that adjusting capital expenditures for assets acquired through the issuance of debt and finance leases is useful to investors in order to appropriately reflect the total amounts spent on capital expenditures. UAL also believes that adjusting net cash provided by operating activities for capital expenditures and adjusted capital expenditures is useful to allow investors to evaluate the company's ability to generate cash that is available for debt service or general corporate initiatives.




Three Months Ended
December 31,


Year Ended
December 31,

Capital Expenditures (in millions)


2019


2018


2019


2018

Capital expenditures (GAAP)


$

1,192



$

1,574



$

4,528



$

4,070


Property and equipment acquired through the issuance of debt


187



18



493



143


Property and equipment acquired through finance leases


14



17



22



17


Adjusted capital expenditures (Non-GAAP)


$

1,393



$

1,609



$

5,043



$

4,230











Free Cash Flow (in millions)









Net cash provided by operating activities (GAAP)


$

1,181



$

1,129



$

6,909



$

6,164


Less capital expenditures


1,192



1,574



4,528



4,070


Free cash flow, net of financings (Non-GAAP)


$

(11)



$

(445)



$

2,381



$

2,094











Net cash provided by operating activities (GAAP)


$

1,181



$

1,129



$

6,909



$

6,164


Less adjusted capital expenditures (Non-GAAP)


1,393



1,609



5,043



4,230


Free cash flow (Non-GAAP)


$

(212)



$

(480)



$

1,866



$

1,934


 

UNITED AIRLINES HOLDINGS, INC.

NOTES (UNAUDITED)


(B)     Special charges and unrealized (gains) losses on investments, net include the following:




Three Months Ended
December 31,


Year Ended
December 31,

(In millions)


2019


2018


2019


2018

Operating:









Impairment of assets


$

102



$

232



$

171



$

377


Severance and benefit costs


2



7



16



41


Termination of an engine maintenance service agreement




64





64


(Gains) losses on sale of assets and other special charges


26



(2)



59



5


     Total special charges


130



301



246



487


Nonoperating unrealized (gains) losses on investments, net


(81)



(56)



(153)



5


     Total special charges and unrealized (gains) losses on investments, net


49



245



93



492


Income tax benefit related to special charges and unrealized (gains) losses on investments, net


(11)



(55)



(21)



(110)


Income tax adjustment (D)




(5)





(5)


     Total special charges and unrealized (gains) losses on investments, net of income taxes


$

38



$

185



$

72



$

377



Impairment of assets:


2019 Routes: During the three months ended December 31, 2019, the company recorded an impairment charge of $90 million associated with its Hong Kong routes. The company conducted its annual impairment review of intangible assets in the fourth quarter of 2019, which consisted of a comparison of the book value of specific assets to the fair value of those assets calculated using the discounted cash flow method. Due to a decrease in demand for the Hong Kong market and the resulting decrease in unit revenue, the company determined that the value of its Hong Kong routes had been fully impaired. Notwithstanding such impairments, the collateral pledged under the company's term loan continues to be sufficient to satisfy the loan covenants.


2019 Other:  During the year ended December 31, 2019, the company recorded a $43 million impairment primarily for surplus Boeing 767 aircraft engines removed from operations, an $18 million charge primarily for the write-off of unexercised aircraft purchase options and $20 million in other aircraft impairments.


2018 Routes: The company conducted its annual impairment review of intangible assets in the fourth quarter of 2018, which consisted of a comparison of the book value of specific assets to the fair value of those assets calculated using the discounted cash flow method. Due to increased costs without sufficient corresponding increases in revenue in the Hong Kong market, the company determined that the value of its Hong Kong routes had been impaired. Accordingly, in the fourth quarter of 2018, the company recorded a special impairment charge of $206 million associated with its Hong Kong routes.


In May 2018, the Brazil–United States open skies agreement was ratified, which provides air carriers with unrestricted access between the United States and Brazil. The company determined that the approval of the open skies agreement impaired the entire value of its Brazil route authorities because the agreement removes all limitations or reciprocity requirements for flights between the United States and Brazil. Accordingly, in the second quarter of 2018, the company recorded a $105 million special charge to write off the entire value of the intangible asset associated with its Brazil routes. This asset was not part of any collateral pledged against any of the company's borrowings. The company continues to maintain its slot assets related to Brazil since airport access is still regulated by slot allocations that are limited by airport facility constraints.


2018 Other: For the three and twelve months ended December 31, 2018, the company also recorded $26 million and $66 million, respectively, of fair value adjustments for aircraft purchased off lease, write-off of unexercised aircraft purchase options and other impairments related to certain fleet types and international slots no longer in use.


Severance and benefit costs:  During the three and twelve months ended December 31, 2019, the company recorded $2 million and $14 million, respectively, of management severance. During the twelve months ended December 31, 2019, the company recorded $2 million of severance and benefit costs related to a voluntary early-out program for its technicians and related employees represented by the International Brotherhood of Teamsters. In the first quarter of 2017, approximately 1,000 technicians and related employees elected to voluntarily separate from the company and received a severance payment, with a maximum value of $100,000 per participant, based on years of service, with retirement dates through early 2019.


During the three and twelve months ended December 31, 2018, the company recorded $3 million and $22 million, respectively, of severance and benefit costs related to the voluntary early-out program for its technicians and related employees, and $4 million and $19 million, respectively, of management severance.


Termination of an engine maintenance service agreement:  In the fourth quarter of 2018, the company recorded a one-time termination charge of $64 million related to one of its engine maintenance service agreements.


(Gains) losses on sale of assets and other special charges: During the three months ended December 31, 2019, the company recorded charges of $14 million for costs related to the transition of fleet types within a regional carrier contract, $10 million for contract terminations and $2 million in other charges.  During the twelve months ended December 31, 2019, in addition to the amounts described above, the company recorded charges of $18 million for the settlement of certain legal matters and $15 million related to contract terminations.


During the three and twelve months ended December 31, 2018, the company recorded $2 million of miscellaneous gains and $5 million of miscellaneous losses, respectively.


Unrealized (gains) losses on investments, net:  During the three and twelve months ended December 31, 2019, the company recorded gains of $63 million and $140 million, respectively, for the change in market value of certain of its equity investments, primarily Azul Linhas Aéreas Brasileiras S.A ("Azul"). Also, during the three and twelve months ended December 31, 2019, the company recorded gains of $18 million and $13 million, respectively, for the change in fair value of certain derivative assets related to equity of Avianca Holdings S.A ("AVH"). For equity investments and derivative assets subject to mark-to-market accounting, the company records gains and losses as part of Nonoperating income (expense): Miscellaneous, net in its statements of consolidated operations.


During the three and twelve months ended December 31, 2018, the company recorded gains of $89 million and $28 million, respectively, for the change in market value of certain of its equity investments, primarily Azul. During the fourth quarter of 2018, the company recorded losses of $33 million for the change in fair value of the derivative assets related to equity of AVH.


(C)    Interest expense related to finance leases of Embraer ERJ 145 aircraft


During the third quarter of 2018, United entered into an agreement with the lessor of 54 Embraer ERJ 145 aircraft to purchase those aircraft in 2019. The provisions of the new lease agreement resulted in a change in accounting classification of these new leases from operating leases to finance leases up until the purchase date. As a result of this change, the company recognized a $4 million reduction in interest expense, and $64 million of additional interest expense, respectively, in the three and twelve months ended December 31, 2019, and $13 million and $26 million, respectively, of additional interest expense in the three and twelve months ended December 31, 2018.


(D)    Effective tax rate


The company's effective tax rate for the three and twelve months ended December 31, 2019 was 24.1% and 23.1%, respectively. The effective tax rate for the three and twelve months ended December 31, 2018 was 16.6% and 19.9%, respectively. The effective tax rate represents a blend of federal, state and foreign taxes and includes the impact of certain nondeductible items and the impact of a change in the company's mix of domestic and foreign earnings. The rates for the 2018 periods were impacted by a one-time benefit of $5 million due to the passage of the Tax Cuts and Jobs Act in December 2017.

 

 

SOURCE United Airlines

For further information: United Airlines Worldwide Media Relations, 872.825.8640, media.relations@united.com

United Airlines to Lead Industry Switch to Sustainable Aviation Fuel with Global Corporations, Customers

New United Eco-Skies Alliance Program includes global corporate leaders who, with United, will pay towards more sustainable aviation fuel, all companies invited to participate
April 13, 2021

CHICAGO, April 13, 2021 /PRNewswire/ -- United Airlines continues to lead the industry towards a more sustainable future with the launch of the first-of-its-kind Eco-Skies Alliance SM  program. Working with the airline, more than a dozen leading global corporations will collectively contribute towards the purchase of approximately 3.4 million gallons of sustainable aviation fuel (SAF) this year. With its nearly 80% emissions reductions on a lifecycle basis compared to conventional jet fuel, this is enough SAF to eliminate approximately 31,000 metric tons of greenhouse gas emissions, or enough to fly passengers over 220 million miles.

As inaugural participants, the following companies are taking a lead within their respective industries, reducing their aviation-related impact on the environment at the source, and creating demand for more SAF production.

  • Autodesk
  • Boston Consulting Group
  • CEVA Logistics
  • Deloitte
  • DHL Global Forwarding
  • DSV Panalpina
  • HP Inc.
  • Nike
  • Palantir
  • Siemens
  • Takeda Pharmaceuticals

"While we've partnered with companies for years to help them offset their flight emissions, we applaud those participating in the Eco-Skies Alliance for recognizing the need to go beyond carbon offsets and support SAF-powered flying, which will lead to more affordable supply and ultimately, lower emissions," said United CEO Scott Kirby. "This is just the beginning. Our goal is to add more companies to the Eco-Skies Alliance program, purchase more SAF and work across industries to find other innovative paths towards decarbonization."

United has made the airline industry's single largest investment in SAF and has purchased more SAF than any other airline in the world. World Energy, a long-term partner of United, will supply the SAF to Los Angeles International Airport (LAX), which makes it conveniently accessible to United's operations.

Customers traveling with United can now purchase SAF

In addition to the Eco-Skies Alliance program, United is giving customers the ability to contribute funds for additional SAF purchase or for use on initiatives United believes will help decarbonize aviation – the first of any U.S. airline to do so. Understanding there is a growing interest among customers for real, lasting solutions, this new capability will be available starting immediately via portal on united.com/ecoskiesalliance.

Advocating for sustainable travel, together with United

Strong federal and state policy leadership will be essential to reducing the climate impacts of air travel, so starting immediately United will help individuals connect with elected representatives to advocate for policies that would make air travel more sustainable for the long term. United will be the first airline in the world to connect customers directly with policy makers to voice the support that is needed to advance and accelerate permanent, scalable solutions that hold the potential to decarbonize the air transportation industry – and not just offset emissions.

 "We know there is a growing demand from a wide range of our customers including corporations, cargo shippers and individuals who share the same concern we do – that climate change is the most pressing issue of our generation," Kirby said.

United's 100% Green Commitment

At United, we believe the airline industry needs to be bolder when it comes to making decisions that confront the climate crisis. That's why we've committed to become 100% green and reduce our greenhouse gas emissions 100% by 2050 by taking the harder, better path of reducing emissions from flying, rather than relying on traditional carbon offsets.

Here are some of the ways we're making sustainability the new standard in flight:

United's Award-Winning Eco-Skies Program

United's award-winning Eco-Skies® program represents the company's commitment to the environment and the actions taken every day to create a more sustainable future. The Carbon Disclosure Project (CDP) named United as the only airline globally to its 2020 Climate 'A List' for the airline's actions to cut emissions, mitigate climate risks and develop the low-carbon economy, marking the seventh consecutive year that United had the highest CDP score among U.S. airlines.

In 2017, Air Transport World magazine named United its Eco-Airline of the Year for the second time since the airline launched the Eco-Skies program. Additionally, United ranked No. 1 among global carriers inNewsweek's2017 Global 500 Green Rankings, one of the most recognized environmental performance assessments of the world's largest publicly traded companies. For more information on United's commitment to environmental sustainability, visit united.com/sustainability.

About United

United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of UAL is traded on the Nasdaq under the symbol "UAL."

 

SOURCE United Airlines

For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com

United Sets New Diversity Goal: 50% of Students at New Pilot Training Academy To Be Women and People of Color

United Airlines is only major U.S. airline to own flight school: United Aviate Academy
April 06, 2021

CHICAGO, April 6, 2021 /PRNewswire/ -- United Airlines, the only major U.S. airline to own a flight school, will begin accepting applications today as it embarks on an ambitious plan to train 5,000 new pilots by 2030, at least half of them women and people of color. Backed by scholarship commitments from United Airlines and JPMorgan Chase, United Aviate Academy will create opportunities for thousands of students, including women and people of color to pursue a career as a commercial airline pilot, one of the most lucrative careers in the industry.

United Returns to JFK With Coast-to-Coast Flights and the Most Premium Seats From the NYC Area

Flights feature a reconfigured Boeing 767-300ER airplane with 46 business class seats and 22 United Premium Plus® seats
March 29, 2021

NEW YORK, March 29, 2021 /PRNewswire/ -- United is back at John F. Kennedy Airport (JFK), now operating direct service to the airline's West Coast hubs – Los Angeles International Airport (LAX) and San Francisco International Airport (SFO) from New York City. The airline will use its Boeing 767-300ER aircraft which features 46 business class all-aisle-access seating, and 22 United Premium Plus® seats. The airline operates the most premium seats between the New York City area and Los Angeles and San Francisco combined.

United is currently flying one round-trip flight, five days a week to each West Coast airport, with plans to double the number of flights as demand grows. The carrier is back at JFK following a five-year hiatus and now offers service from all three major airports in the New York City area.

"United's return to JFK reflects not only our strong commitment to the New York City area, but also to increasing service to and from the places our customers want to fly," said Ankit Gupta, Vice President of Domestic Network Planning and Scheduling. "With the addition of JFK, United now offers unmatched service, greater convenience, more choice and a best-in-class product for travelers throughout the New York City region as they return to the skies."

"We're happy to welcome United Airlines back to Kennedy Airport," said Charles Everett, General Manager of John F. Kennedy International Airport. "We remain committed to providing the highest level of safety, accessibility and ease of travel for all of the passengers who use the Port Authority's airport facilities, and United's decision is a great step in that direction."

United's premium cabin features flat-bed seats on all flights similar to the current Newark-Los Angeles and Newark-San Francisco offerings, providing a consistent and comprehensive NYC-West Coast product. This includes the signature cooling gel pillow along with the Saks Fifth Avenue day blanket and pillow. The routes offer seasonal menus crafted by renowned chefs and distinctive amenities. This includes both travelers in United Business and United Premium Plus sections who enjoy a complimentary hot entrée, mixed nuts, salad and dessert, as well as complimentary alcoholic beverages. The Economy Plus® and Economy sections feature the United all-in-one snack bag as well as the airline's buy on board program, which returns on April 12. Eligible customers will have access to the United ClubSM location at either LAX or SFO.

United's operations at JFK's Terminal 7 will provide seamless access for customers. The lobby area offers self-service kiosks, along with eight podiums which are conveniently located steps away from the TSA check point. Just a short walk from security screening, travelers will find the United-operated gates. Customers will also benefit from easy connections to more than a dozen Star Alliance partners at JFK, including access to 15 destinations in 14 countries as of March 2021.

For images and video footage please click here. Tickets are now available for purchase on United.com.

Committed to Ensuring a Safe Journey

United is committed to putting health and safety at the forefront of every customer's journey, with the goal of delivering an industry-leading standard of cleanliness through its United CleanPlusSM program. United has teamed up with Clorox and Cleveland Clinic to redefine cleaning and health safety procedures from check-in to landing and has implemented more than a dozen new policies, protocols and innovations designed with the safety of customers and employees in mind. For more details on all the ways United is helping keep customers safe during their journey, please visit united.com/cleanplus.

About United

United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

 

SOURCE United Airlines

For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com

United to Hold Webcast of First-Quarter 2021 Financial Results

March 26, 2021

CHICAGO, March 26, 2021 /PRNewswire/ -- United Airlines will hold a conference call to discuss first-quarter 2021 financial results on Tuesday, April 20 at 9:30 a.m. CT/10:30 a.m. ET. A live, listen-only webcast of the conference call will be available at ir.united.com. The company will issue its first-quarter financial results after market close on Monday, April 19.

United Airlines Adds New Direct Flights to Coastal Vacation Destinations Starting Memorial Day Weekend

Airline adds 26 new routes between Midwest cities and popular summer getaway destinations in the South and New England
March 25, 2021

CHICAGO, March 25, 2021 /PRNewswire/ -- As more travelers begin to plan long-awaited getaways with family and friends, United Airlines is kicking off summer vacation season with a robust May schedule that includes the addition of 26 new nonstop routes between Midwest cities such as Cleveland, Cincinnati and Milwaukee and popular vacation destinations such as Hilton Head, S.C.; Pensacola, Fla.; and Portland, Maine. The airline also plans to resume more than 20 domestic routes and will start new service between Orange County, Calif., and Honolulu.

Internationally, in May United will fly more than 100% of its pre-pandemic schedule to Latin America compared to what it operated in 2019, including more flights to Mexico, the Caribbean, Central America and South America. The airline also plans to resume flights between Chicago and Tokyo Haneda, resume passenger flights between New York/Newark and Milan and Rome, and restart service between Chicago and Amsterdam. In total, United plans to operate 52% of its overall schedule compared to May 2019, whereas in May 2020 United operated 14% of its overall schedule compared to May 2019.

"In the past few weeks, we have seen the strongest flight bookings since the start of the pandemic," said Ankit Gupta, vice president of United's domestic network planning and scheduling. "As we rebuild our schedule to meet that demand, adding in seasonal point-to-point flying is just one of the ways we are finding opportunities to add new and exciting service. And as we have done throughout the entire pandemic, we will continue being nimble and strategic with our network to add the right service to the destinations our customers want to visit."

Domestic May Schedule

Starting May 27, United will begin point-to-point service to Charleston, S.C.; Hilton Head, S.C.; Myrtle Beach, S.C.; Pensacola, Fla. and Portland, Maine from seven cities including Cleveland, Cincinnati and Columbus, Ohio; St. Louis, Mo.; Pittsburgh, Pa.; Milwaukee, Wis. and Indianapolis, Ind. United plans to operate these point-to-point routes through Labor Day weekend. Most customers on these flights will experience United's new Bombardier CRJ-550 – the world's first 50-seater aircraft with two cabins. The spacious CRJ-550 is equipped with 10 first class seats, 20 Economy Plus seats, 20 standard economy seats, Wi-Fi, more legroom and enough overhead bin space for every customer to bring a roller bag on board.

For video and photos of the CRJ-550 click here.

United also continues to be a leading airline to Hawaii, offering more than 200 weekly flights, including new service between Orange County and Honolulu. In May, United will begin offering United Premium Plus® service on select Hawaii routes, which includes a bigger, more comfortable seat and a complimentary meal. United Premium Plus will be available for customers traveling to Honolulu and Maui from Chicago and Denver and will be expanded in June to flights between Chicago and Kona, Houston and Honolulu, and New York/Newark and Maui. United allows customers with valid negative COVID-19 tests to pre-clear before departing to Hawaii so they can save time and skip document screening lines upon arrival in the islands.

In addition to the new point-to-point service, United will resume 20 domestic flights to popular destinations and introduce three new domestic routes. This new nonstop service includes flights between Houston and Kalispell, Mont.; Washington, D.C. and Bozeman, Mont.; and between Chicago and Nantucket, Mass. Overall, United plans to operate 58% of its domestic schedule compared to May 2019.

International May Schedule

United will fly 46% of its international schedule compared to its May 2019 schedule. As customers continue to travel to warm beach destinations, United will operate more flights to Mexico, the Caribbean, Central America and South America than the carrier flew in 2019, providing more options to travel to Central America than any other U.S. carrier. Across the Pacific, United will resume flights between Chicago and Tokyo's Haneda airport and increase service from Los Angeles to Sydney and Tokyo Narita. Across the Atlantic, United will resume service between Newark and Milan and Rome as well as between Chicago and Amsterdam, Munich and Tel Aviv.

New Summer Point-to-Point Frequencies


Service from Cleveland to:

Destination

Frequency

Charleston, S.C.

3x weekly

Hilton Head, S.C.

3x weekly

Myrtle Beach, S.C.

3x weekly

Pensacola, Fla.

3x weekly

Portland, Maine

3x weekly


Service from Cincinnati to:

Charleston, S.C.

3x weekly

Hilton Head, S.C.

3x weekly

Pensacola, Fla.

3x weekly

Portland, Maine

3x weekly


Service from Columbus to:

Charleston, S.C.

3x weekly

Hilton Head, S.C.

4x weekly

Portland, Maine

4x weekly


Service from Indianapolis to:

Charleston, S.C.

4x weekly

Hilton Head, S.C.

3x weekly

Portland, Maine

4x weekly


Service from Milwaukee to:

Charleston, S.C.

2x weekly

Myrtle Beach, S.C.

2x weekly

Pensacola, Fla.

2x weekly

Portland, Maine

2x weekly

Savannah, Ga.

2x weekly


Service from St. Louis to:

Hilton Head, S.C.

3x weekly

Myrtle Beach, S.C.

3x weekly


Service from Pittsburgh to:

Charleston, S.C.

3x weekly

Hilton Head, S.C.

3x weekly

Pensacola, Fla.

3x weekly

Portland, Maine

3x weekly

Committed to Ensuring a Safe Journey

United is committed to putting health and safety at the forefront of every customer's journey, with the goal of delivering an industry-leading standard of cleanliness through its United CleanPlus program. United has teamed up with Clorox and Cleveland Clinic to redefine cleaning and health safety procedures from check-in to landing and has implemented more than a dozen new policies, protocols and innovations designed with the safety of customers and employees in mind.

About United

United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of UAL is traded on the Nasdaq under the symbol "UAL".

SOURCE United Airlines

For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com

United Airlines to Present at the 2021 J.P. Morgan Industrials Conference

March 09, 2021

CHICAGO, March 9, 2021 /PRNewswire/ -- United Airlines will present at the J.P. Morgan Industrials Conference on Monday, March 15. United Airlines' Chief Executive Officer Scott Kirby will present at the conference beginning at 8:40 a.m. CT / 9:40 a.m. ET.

The live webcast will be available on the investor relations section of United's website at ir.united.com. The company will archive the audio webcast on the website within 24 hours of the presentation, and the webcast will be available for a limited time.

From Airline to Landline: United Offers Seamless Travel from Denver International Airport to Breckenridge and Fort Collins

New luxury bus collaboration allows customers to fly into DEN, have their bags and ski equipment automatically transferred and be driven to Breckenridge and Fort Collins
February 26, 2021

DENVER, Feb. 26, 2021 /PRNewswire/ -- United announced today that it is making it easier for customers to travel to Breckenridge and Fort Collins, Colorado with convenient year-round ground transportation service connecting through its Denver hub. This is the first time Breckenridge has ever been served by an airline and will be Fort Collins' first global network carrier service in 25 years.

United Airlines Names Laysha Ward to Board of Directors

February 24, 2021

CHICAGO, Feb. 24, 2021 /PRNewswire/ -- United Airlines Holdings, Inc. (UAL) announced today that Laysha Ward is joining its Board of Directors. Ward, currently Executive Vice President and Chief External Engagement Officer of Target Corporation, brings an impressive resume with more than three decades of corporate leadership experience to the UAL Board.

United Announces Plans to Begin New Daily Nonstop Service Between Boston Logan and London Heathrow

United will be the only U.S. carrier to offer nonstop service between the nation's top seven business markets and London Heathrow
February 19, 2021

CHICAGO, Feb. 19, 2021 /PRNewswire/ -- United Airlines today announced plans to expand its global route network with new, nonstop service between Boston Logan International Airport and London Heathrow. This new service builds upon United's growing presence in London and provides customers on the East Coast with another convenient option to get to London. United plans to operate its premium Boeing 767-300ER aircraft on the route, with 46 United Polaris Business Class and 22 United Premium Plus seats. The aircraft features the highest proportion of premium seats on any widebody aircraft operated by a U.S. carrier between London and the United States.

Aloha, Summer! United to Offer the Only Nonstop Flights Between Orange County, California and Honolulu

New Orange County service begins May 6 and new, first-ever nonstop service between Chicago and Kona and between New York/Newark and Maui starts June 3

Customers departing Orange County and United's hub airports can save time by showing proof of negative tests to skip document screening process in Hawaii

February 12, 2021

February 12, 2021 – United Airlines today announced new convenient options for Hawaiian getaways this summer, offering the only nonstop flights between Orange County, California and Honolulu. The new route joins United's previously announced service between Chicago and Kona and New York/Newark and Maui. With the additional new flights, United will offer nonstop service on more than 20 routes between the mainland and Hawaii. United's Orange County – Honolulu service will be available for purchase on united.com beginning Saturday, February 13.