United Releases First-Quarter Financial Results - Rebounding Demand is Driving Clear Path to Profitability - United Hub

United Releases First-Quarter Financial Results - Rebounding Demand is Driving Clear Path to Profitability

Expects positive adjusted EBITDA margins* later this year
April 19, 2021

CHICAGO, April 19, 2021 /PRNewswire/ -- United Airlines (UAL) today announced first-quarter 2021 financial results. The company has its eyes on the future, making continued progress on its commitment to remove $2 billion in structural costs and investing in key customer programs that will position the airline to capitalize on the recovery of business travel and long-haul international demand.

Following its return to positive core cash flow1 in the month of March, the company is focused on returning to positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margins, even if business and long-haul international demand remain as much as 70% below 2019 levels. United is already moving to capitalize on emerging pent-up demand for travel to countries where vaccinated travelers are welcome. In fact, the company announced new international flying to Greece, Iceland and Croatia earlier today, subject to government approval. These opportunistic steps help position United to return to positive net income even if business and long-haul international demand only returns to about 35% below 2019 levels.

"The United team has now spent a year facing down the most disruptive crisis our industry has ever faced and because of their skill and dedication to our customers, we're poised to emerge from this pandemic with a future that is brighter than ever," said United Airlines CEO Scott Kirby. "We've shifted our focus to the next milestone on the horizon and now see a clear path to profitability. We're encouraged by the strong evidence of pent-up demand for air travel and our continued ability to nimbly match it, which is why we're as confident as ever that we'll hit our goal to exceed 2019 adjusted EBITDA margins in 2023, if not sooner."

United's efforts to improve the customer experience resulted in the company achieving its highest ever customer satisfaction in the first quarter. Looking ahead, the company is planning continued investment in customers, including continuing the United Polaris® retrofit program and starting retrofit on narrowbody aircraft, modernizing gates, upgrading and expanding United Club℠ locations in Newark and Denver, and rolling out tools that give customers the opportunity to pre-order onboard meals.



* Adjusted EBITDA margin is a non-GAAP financial measure calculated as Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), excluding special charges and unrealized (gains) losses on investments, divided by total operating revenue. We are not providing a target or a reconciliation to profit margin (net income/total operating revenue), the most directly comparable GAAP measure, because we are unable to predict certain items contained in the GAAP measure without unreasonable efforts. Adjusted EBITDA margin does not reflect certain items, including special charges and unrealized (gains) losses on investments, which may be significant. For a reconciliation of adjusted EBITDA to net income for the three months ended March 31, 2021 and 2019 and the 12 months ended December 31, 2020 and 2019, please see the accompanying tables to this release.

First-Quarter Financial Results

  • Reported first-quarter 2021 net loss of $1.4 billion, adjusted net loss2 of $2.4 billion.
  • Reported first-quarter total operating revenue of $3.2 billion, down 66% versus first-quarter 2019.
  • Reported first-quarter operating expenses down 49% versus first-quarter 2019, down 34% excluding special charges.
  • Reported first-quarter 2021 ending available liquidity3 of $21 billion.
  • Reported first-quarter capacity down 54% versus first-quarter 2019.
  • Reported first-quarter average core cash burn of $9 million per day, an improvement of about $10 million per day versus the fourth-quarter 2020.

Second-Quarter 2021 Outlook

  • Based on current trends, the company expects second quarter 2021 Total Revenue Per Available Seat Mile (TRASM) to be down approximately 20% versus the second quarter 2019.
  • Expects second quarter 2021 capacity to be down around 45% versus the second quarter 2019.
  • Expects second quarter operating expenses excluding special charges4 to be down approximately 32% versus the second quarter 2019, with second quarter 2021 fuel price per gallon estimated to be approximately $1.83.
  • Expects second quarter 2021 adjusted EBITDA margin5 of around (20%).

Key Highlights

  • Set a new diversity goal and plan for 50% of the 5,000 students the airline has committed to train by 2030 at the new United Aviate Academy to be women and people of color.
  • Created the Eco-Skies Alliance℠, a first-of-its-kind program, offering United's corporate customers the opportunity to help reduce their environmental impact by allowing them to pay the additional cost for sustainable aviation fuel (SAF). Additionally, United is giving customers the ability to contribute funds for additional SAF purchases by United or for use on initiatives United believes will help decarbonize aviation – the first of any U.S. airline to do so.
  • Launched industry-exclusive "Travel-Ready Center" to ease the burden of COVID-19 travel restrictions. Customers can review COVID-19 entry requirements, find local testing options and upload any required testing and vaccination records for domestic and international travel, all in one place. United is the first airline to integrate all these features into its mobile app and website.
  • Announced an agreement to work with air mobility company Archer as part of the company's broader effort to invest in emerging technologies that decarbonize air travel rather than relying on traditional combustion engines.
  • Returned to John F. Kennedy Airport after a five-year absence, and are now operating direct service to the airline's West Coast hubs – Los Angeles International Airport and San Francisco International Airport.
  • Announced a new luxury bus collaboration 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.

Taking Care of Our Customers

  • The only airline that lets customers upload travel documents to the United app and have them certified allowing customers to get their boarding pass before arriving at the airport.
  • Announced plans to introduce United Premium Plus® service on seven Hawaii routes to Honolulu (Oahu), Kahului (Maui), and Kona (Hawaii) beginning in May 2021.
  • Expanded COVID-19 testing and pre-clearance program to make Hawaii travel easier.
  • Reducing stress of international travel by starting a test on Houston to Brazil flights, allowing customers to take an Abbott BinaxNOW test prior to their re-entry into the United States.
  • In partnership with the Centers for Disease Control and Prevention (CDC), launched a program to collect information from passengers, allowing them to be contacted in the event they are near a Covid-19 positive passenger while on a United aircraft.
  • Expanded rollout of virtual, on-demand customer service, now available at all U.S. hub airports.
  • Recognized by the Airline Passenger Experience Association (APEX) and SimpliFlying for providing a hospital-grade standard of cleanliness and safety during the travel journey. United is the first airline among the four largest U.S. carriers to receive the highest possible certification.

Reimagining the Route Network

  • In the first quarter, announced 41 new domestic routes and two new international routes and launched six domestic routes and four international routes, with 13 more international routes planned to launch in 2021.
  • The company resumed nonstop service on 12 domestic routes and five international routes compared to the fourth quarter of 2020.
  • Compared to December 2020, United had nonstop service in 12 more domestic and three more international routes in March 2021.
  • Announced plans to fly roughly 52% of its full schedule in May 2021 compared to May 2019.
  • Announced plans to expand the company's global route network with new, nonstop service between Boston Logan International Airport and London Heathrow – the only U.S. carrier to offer nonstop service between the nation's top seven business markets and London Heathrow.

Assisting the Communities We Serve

  • More than 7 million miles donated to charities in need of travel through United's Miles on a Mission program.
  • Over 65,000 lbs. of food and beverages ($322,549 value) donated to Houston Food Bank for winter storm relief.
  • Unique Black History Month campaign raised over $255,000 for The Thurgood Marshall College Fund, The Leadership Conference Education Fund, The NAACP Legal Defense and Educational Fund, and United Negro College Fund.
  • In the first quarter of 2021, through a combination of cargo-only flights and passenger flights, United has transported nearly 290 million pounds of freight, which includes nearly 60 million pounds of vital shipments, such as medical kits, PPE, pharmaceuticals, and medical equipment, and more than 800,000 pounds of military mail and packages.

Additional Noteworthy Accomplishments

  • For the tenth consecutive year received a perfect score of 100% on the Corporate Equality Index (CEI), a premier benchmarking survey and report on corporate policies and practices related to LGBTQ+ workplace equality, administered by the Human Rights Campaign (HRC) Foundation.
  • Teamed up with Chase and Visa in honor of Black History Month to encourage and reward United Credit Cardmembers to make donations to non-profits focused on providing access to educational opportunities for Black students and supporting human and civil rights policies.

_________________________________________________________________________

1. Core cash burn is defined as: Net cash from operations, investing and financing activities, adjusted to remove proceeds from the issuance of new debt (excluding expected aircraft financing), government grants associated with the Payroll Support Program of the CARES Act, issuance of new stock, net proceeds from the sale of short-term and other investments, changes in certain restricted cash balances, debt principal payments, timing of certain payments, capital expenditures (net of flight equipment purchase deposit returns), and investments in the recovery and severance payments. Core cash flow is defined in the same manner as core cash burn, except that the result is positive. The company's management views "core cash burn" or "core cash flow" as an important measure in monitoring liquidity in order to assess the company's operational cash needs without the impact of certain extraordinary actions or events, and the company believes this measure provides useful information to investors about the company's core operational performance. See the tables accompanying this release for further information.

2. Excludes operating and non-operating special charges, and unrealized gains and losses on investments. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in the tables accompanying this release.

3. Includes cash, cash equivalents, short-term investments, undrawn credit facilities and $7 billion available under the CARES Act loan program.

4. Excludes operating special charges. We are not providing a reconciliation to operating expenses, the most directly comparable GAAP measure, because we are unable to predict certain items contained in the GAAP measure without unreasonable efforts.

5. Adjusted EBITDA margin is a non-GAAP financial measure calculated as Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), excluding special charges and unrealized (gains) losses on investments, divided by total operating revenue. We are not providing a reconciliation to profit margin (net income/total operating revenue), the most directly comparable GAAP measure, because we are unable to predict certain items contained in the GAAP measure without unreasonable efforts.

Earnings Call

UAL will hold a conference call to discuss first-quarter 2021 financial results as well as its financial and operational outlook for the second-quarter 2021, 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 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." 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 in this release, including statements regarding our outlook for the second quarter 2021 and our adjusted EBITDA margin targets, 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," "intends," "anticipates," "indicates," "remains," "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: the adverse impacts of the ongoing COVID-19 global pandemic, and possible outbreaks of another disease or similar public health threat in the future, on our business, operating results, financial condition, liquidity and near-term and long-term strategic operating plan, including possible additional adverse impacts resulting from the duration and spread of the pandemic; unfavorable economic and political conditions in the United States and globally; the highly competitive nature of the global airline industry and susceptibility of the industry to price discounting and changes in capacity; high and/or volatile fuel prices or significant disruptions in the supply of aircraft fuel; our reliance on technology and automated systems to operate our business and the impact of any significant failure or disruption of, or failure to effectively integrate and implement, the technology or systems; our reliance on third-party service providers and the impact of any failure of these parties to perform as expected, or interruptions in our relationships with these providers or their provision of services; adverse publicity, harm to our brand; reduced travel demand and potential tort liability as a result of an accident, catastrophe or incident involving us, our regional carriers, our codeshare partners, or another airline; terrorist attacks, international hostilities or other security events, or the fear of terrorist attacks or hostilities, even if not made directly on the airline industry; increasing privacy and data security obligations or a significant data breach; disruptions to our regional network and United Express flights provided by third-party regional carriers; further changes to the airline industry with respect to alliances and joint business arrangements or due to consolidations; changes in our network strategy or other factors outside our control resulting in less economic aircraft orders, costs related to modification or termination of aircraft orders or entry into less favorable aircraft orders; our reliance on single suppliers to source a majority of our aircraft and certain parts, and the impact of any failure to obtain timely deliveries, additional equipment or support from any of these suppliers; the impacts of union disputes, employee strikes or slowdowns, and other labor-related disruptions on our operations; extended interruptions or disruptions in service at major airports where we operate; the impacts of the United Kingdom's withdrawal from the European Union on our operations in the United Kingdom and elsewhere; the impacts of seasonality and other factors associated with the airline industry; our failure to realize the full value of our intangible assets or our long-lived assets, causing us to record impairments; any damage to our reputation or brand image; the limitation of our ability to use our net operating loss carryforwards and certain other tax attributes to offset future taxable income for U.S. federal income tax purposes; the costs of compliance with extensive government regulation of the airline industry; costs, liabilities and risks associated with environmental regulation and climate change; our inability to accept or integrate new aircraft into our fleet as planned; the impacts of our significant amount of financial leverage from fixed obligations, the possibility we may seek material amounts of additional financial liquidity in the short-term and the impacts of insufficient liquidity on our financial condition and business; failure to comply with the covenants in the MileagePlus financing agreements, resulting in the possible acceleration of the MileagePlus indebtedness, foreclosure upon the collateral securing the MileagePlus indebtedness or the exercise of other remedies; failure to comply with financial and other covenants governing our other debt; changes in, or failure to retain, our senior management team or other key employees; current or future litigation and regulatory actions, or failure to comply with the terms of any settlement, order or arrangement relating to these actions; increases in insurance costs or inadequate insurance coverage; 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, 2020, 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-

UNITED AIRLINES HOLDINGS, INC
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)




Three Months Ended

March 31,


%

Increase/

(Decrease)


(In millions, except per share data)


2021


2020



Operating revenue:








Passenger revenue


$

2,316



$

7,065



(67.2)



Cargo


497



264



88.3



Other operating revenue


408



650



(37.2)



Total operating revenue


3,221



7,979



(59.6)











Operating expense:








Salaries and related costs


2,224



2,955



(24.7)



Aircraft fuel


851



1,726



(50.7)



Depreciation and amortization


623



615



1.3



Landing fees and other rent


519



623



(16.7)



Regional capacity purchase


479



737



(35.0)



Aircraft maintenance materials and outside repairs


269



434



(38.0)



Distribution expenses


85



295



(71.2)



Aircraft rent


55



50



10.0



Special charges (credits)


(1,377)



63



NM


Other operating expenses


874



1,453



(39.8)



Total operating expense


4,602



8,951



(48.6)











Operating loss


(1,381)



(972)



42.1











Nonoperating income (expense):








Interest expense


(353)



(171)



106.4



Interest capitalized


17



21



(19.0)



Interest income


7



26



(73.1)



Unrealized losses on investments, net


(22)



(319)



(93.1)



Miscellaneous, net


(19)



(699)



(97.3)



Total nonoperating expense, net


(370)



(1,142)



(67.6)











Loss before income tax benefit


(1,751)



(2,114)



(17.2)











Income tax benefit


(394)



(410)



(3.9)



Net loss


$

(1,357)



$

(1,704)



(20.4)











Diluted loss per share


$

(4.29)



$

(6.86)



(37.5)



Diluted weighted average shares


316.6



248.5



27.4











NM Not meaningful








UNITED AIRLINES HOLDINGS, INC.
PASSENGER REVENUE INFORMATION AND STATISTICS


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



1Q 2021

Passenger

Revenue


Passenger

Revenue

vs.

1Q 2020


PRASM vs.
1Q 2020


Yield vs.
1Q 2020


Available

Seat Miles

vs.

1Q 2020


Available

Seat Miles

vs.

1Q 2019


1Q 2021
Available
Seat Miles


1Q 2021
Revenue
Passenger
Miles

Domestic

$

1,712



(62.0%)


(27.6%)


(21.1%)


(47.5%)


(48.6%)


18,871



12,290


















Atlantic

206



(80.8%)


(54.4%)


(33.6%)


(57.8%)


(59.3%)


4,329



2,031


Pacific

89



(87.1%)


(49.9%)


86.3%


(74.2%)


(81.6%)


2,013



380


Latin America

309



(61.4%)


(48.0%)


(20.9%)


(25.7%)


(30.0%)


5,157



2,547


International

604



(76.4%)


(48.7%)


(15.7%)


(54.0%)


(60.2%)


11,499



4,958


















Consolidated

$

2,316



(67.2%)


(34.2%)


(17.8%)


(50.2%)


(53.7%)


30,370



17,248


















Select operating statistics are as follows:




Three Months Ended

March 31,


%

Increase/

(Decrease)




2021


2020



Passengers (thousands)


14,674



30,359



(51.7)



Revenue passenger miles (millions)


17,248



43,229



(60.1)



Available seat miles (millions)


30,370



60,938



(50.2)



Passenger load factor:








Consolidated


56.8

%


70.9

%


(14.1)


pts.

Domestic


65.1

%


71.0

%


(5.9)


pts.

International


43.1

%


70.9

%


(27.8)


pts.

Passenger revenue per available seat mile (cents)


7.63



11.59



(34.2)



Total revenue per available seat mile (cents)


10.61



13.09



(18.9)



Average yield per revenue passenger mile (cents)


13.43



16.34



(17.8)



Cargo revenue ton miles (millions)


765



695



10.1



Aircraft in fleet at end of period


1,320



1,388



(4.9)



Average stage length (miles)


1,282



1,399



(8.4)



Employee headcount, as of March 31 (in thousands)


84.1



95.2



(11.7)



Average aircraft fuel price per gallon


$

1.74



$

1.90



(8.4)



Fuel gallons consumed (millions)


490



910



(46.2)
















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, 2020, for definitions of these statistics.

Core cash flow (burn): The company's management views "core cash burn" or "core cash flow" as an important measure in monitoring liquidity in order to assess the company's cash needs without the impact of certain extraordinary actions or events, and the company believes this provides useful information to investors about the company's core operational performance.

(in millions except for the number of days in the period)

Three Months Ended

March 31, 2021

Net cash provided by operating activities

$

447


Cash flows used by investing activities

(329)


Cash flows provided by financing activities

1,278



1,396


Adjusted to remove:


CARES Act Payroll Support Program ("PSP") grant and note

2,610


Secured debt (net of discount and fees)

600


Equity issuances

532


Net proceeds from sale of short-term and other investments and increase in certain restricted cash balances

105


Total adjustments

3,847


Cash Flow (Burn)

$

(2,451)


Days in the period

90


Average daily cash flow (burn)

$

(27)


Further adjusted to remove:


Debt principal and severance payments (a)

(615)


Timing of certain payments (b)

(152)


Capital expenditures, net of flight equipment purchase deposit returns

(444)


Investments in the recovery (c)

(396)


Total additional adjustments

(1,607)


Cash flow (burn)

$

(844)


Days in the period

90


Average daily core cash flow (burn)

$

(9)




(a) Debt principal payments and severance includes principal payments on indebtedness, payments related to the workforce reduction and voluntary plans for employee severance, pay continuance from voluntary retirements, vacation payouts and benefits-related costs.

(b) Timing of certain payments refers to exclusion of payments in the quarter that had been deferred from prior periods or additions of payments that were deferred to a future period to maximize cash preservation.

(c) Investments in the recovery primarily include, but are not limited to, spending on engine and airframe maintenance and pay and benefits for recalled employees in excess of operational need due to PSP.

UNITED AIRLINES HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION

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 earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), 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 (credits) and for nonoperating credit losses and nonoperating special termination benefits is useful to investors because these items 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.

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 (credits), third-party business expenses, fuel and profit sharing. UAL believes that adjusting for special charges (credits) is useful to investors because special charges (credits) 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, 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

March 31,


%

Increase/

(Decrease)



2021


2020


CASM (cents)







Cost per available seat mile (CASM) (GAAP)


15.15



14.69



3.1


Special charges (credits)


(4.54)



0.10



NM

Third-party business expenses


0.09



0.08



12.5


Fuel expense


2.80



2.83



(1.1)


Profit sharing






NM

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


16.80



11.68



43.8



Adjusted EBITDA

Three Months Ended

March 31,


Twelve Months Ended
December 31,


2021



2019


2020


2019

Net income (loss)

$

(1,357)




$

292



$

(7,069)



3,009


Adjusted for:









Depreciation and amortization

623




547



2,488



2,288


Interest expense, net of capitalized interest and interest income

329




137



942



513


Income tax expense (benefit)

(394)




75



(1,753)



905


Special charges (credits)

(1,377)




18



(2,616)



246


Nonoperating special termination benefits and settlement losses

46






687




Nonoperating unrealized (gains) losses on investments, net

22




(17)



194



(153)


Nonoperating credit loss on BRW term loan and guarantee






697




Adjusted EBITDA, excluding operating and nonoperating special charges (credits)
and unrealized losses on investments

$

(2,108)




$

1,052



$

(6,430)



$

6,808


Adjusted EBITDA margin

(65.4)

%



11.0

%


(41.9)

%


15.7

%


















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, finance leases and other financial liabilities 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, adjusted capital expenditures, and aircraft operating lease additions 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

March 31,


Capital Expenditures (in millions)

2021


2020


Capital expenditures, net of flight equipment purchase deposit returns (GAAP)

$

444



$

1,959



Property and equipment acquired through the issuance of debt, finance leases, and other financial liabilities

509



128



Adjustment to property and equipment acquired through other financial liabilities (a)

(40)





Adjusted capital expenditures (Non-GAAP)

$

913



$

2,087








Free Cash Flow (in millions)





Net cash provided by operating activities (GAAP)

$

447



$

63



Less capital expenditures, net of flight equipment purchase deposit returns

444



1,959



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

$

3



$

(1,896)








Net cash provided by operating activities (GAAP)

$

447



$

63



Less adjusted capital expenditures (Non-GAAP)

913



2,087



Less aircraft operating lease additions

142



21



Free cash flow (Non-GAAP)

$

(608)



$

(2,045)








(a) United entered into agreements with third parties to finance through sale and leaseback transactions new Boeing model 787-9 aircraft and Boeing model 737 MAX aircraft subject to purchase agreements between United and Boeing. In connection with the delivery of each aircraft from Boeing, United assigned its right to purchase such aircraft to the buyer, and simultaneous with the buyer's purchase from Boeing, United entered into a long-term lease for such aircraft with the buyer as lessor. Ten Boeing model aircraft were delivered in 2021 under these transactions (and each is presently subject to a long-term lease to United). Upon delivery, the company accounted for the aircraft, which have a repurchase option at a price other than fair value, as part of Flight equipment on the company's balance sheet and the related obligation as Other current liabilities and Other financial liabilities from sale-leasebacks (noncurrent) since they do not qualify for sale recognition. If the repurchase option is not exercised, these aircraft will be accounted for as leased assets at the time of the option expiration and the related assets and liabilities will be adjusted to the present value of the remaining lease payments at that time. This adjustment reflects the difference between the recorded amounts and the present value of future lease payments at inception.

UNITED AIRLINES HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION (Continued)



Three Months Ended

March 31,


Increase/

(Decrease)


%

Increase/

(Decrease)

(in millions)

2021


2020


Operating expenses (GAAP)

$

4,602



$

8,951



$

(4,349)



(48.6)


Special charges (credits)

(1,377)



63



(1,440)



NM

Operating expenses, excluding special charges

5,979



8,888



(2,909)



(32.7)


Adjusted to exclude:








Third-party business expenses

26



44



(18)



(40.9)


Fuel expense

851



1,726



(875)



(50.7)


Adjusted operating expenses (Non-GAAP)

$

5,102



$

7,118



$

(2,016)



(28.3)










Operating loss (GAAP)

$

(1,381)



$

(972)



$

(409)



42.1


Adjusted to exclude:








Special charges (credits)

(1,377)



63



(1,440)



NM

Adjusted operating loss (Non-GAAP)

$

(2,758)



$

(909)



$

(1,849)



203.4










Operating margin

(42.9)

%


(12.2)

%


(30.7)



pts.

Adjusted operating margin (Non-GAAP)

(85.6)

%


(11.4)

%


(74.2)



pts.









Pre-tax loss (GAAP)

$

(1,751)



$

(2,114)



$

(363)



(17.2)


Adjusted to exclude:








Special charges (credits)

(1,377)



63



(1,440)



NM

Special termination benefits

46





46



NM

Unrealized losses on investments, net

22



319



(297)



NM

Credit loss on BRW term loan and guarantee



697



(697)



NM

Adjusted pre-tax loss (Non-GAAP)

$

(3,060)



$

(1,035)



$

2,025



195.7










Pre-tax margin

(54.4)

%


(26.5)

%


(27.9)



pts.

Adjusted pre-tax margin (Non-GAAP)

(95.0)

%


(13.0)

%


(82.0)



pts.









Net loss (GAAP)

$

(1,357)



$

(1,704)



$

(347)



(20.4)


Adjusted to exclude:








Special charges (credits)

(1,377)



63



(1,440)



NM

Special termination benefits

46





46



NM

Unrealized losses on investments, net

22



319



(297)



NM

Credit loss on BRW term loan and guarantee



697



(697)



NM

Income tax expense (benefit) related to adjustments above, net of valuation allowance

291



(14)



305



NM

Adjusted net loss (Non-GAAP)

$

(2,375)



$

(639)



$

1,736



271.7










Diluted loss per share (GAAP)

$

(4.29)



$

(6.86)



$

(2.57)



(37.5)


Adjusted to exclude:








Special charges (credits)

(4.35)



0.25



(4.60)



NM

Special termination benefits

0.15





0.15



NM

Unrealized (gains) losses on investments, net

0.07



1.29



(1.22)



NM

Credit loss on BRW term loan and guarantee



2.81



(2.81)



NM

Income tax expense (benefit) related to adjustments, net of valuation allowance

0.92



(0.06)



0.98



NM

Adjusted diluted loss per share (Non-GAAP)

$

(7.50)



$

(2.57)



$

4.93



191.8


NM Not Meaningful

UNITED AIRLINES HOLDINGS, INC
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)


(In millions)

March 31, 2021


December 31, 2020

ASSETS




Current assets:




Cash and cash equivalents

$

12,666



$

11,269


Short-term investments

309



414


Restricted cash

254



255


Receivables, less allowance for credit losses (2021 — $74; 2020 — $78)

1,389



1,295


Aircraft fuel, spare parts and supplies, less obsolescence allowance (2021 — $502; 2020 — $478)

918



932


Prepaid expenses and other

483



635


Total current assets

16,019



14,800






Total operating property and equipment, net

31,915



31,466


Operating lease right-of-use assets

4,516



4,537






Other assets:




Goodwill

4,527



4,527


Intangibles, less accumulated amortization (2021 — $1,507; 2020 — $1,495)

2,840



2,838


Restricted cash

218



218


Deferred income taxes

520



131


Investments in affiliates and other, less allowance for credit losses (2021 — $526; 2020 — $522)

1,107



1,031


Total other assets

9,212



8,745


Total assets

$

61,662



$

59,548






LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$

1,838



$

1,595


Accrued salaries and benefits

2,267



1,960


Advance ticket sales

5,502



4,833


Frequent flyer deferred revenue

1,251



908


Current maturities of long-term debt

1,783



1,911


Current maturities of operating leases

623



612


Current maturities of finance leases

179



182


Other

724



724


Total current liabilities

14,167



12,725






Long-term liabilities and deferred credits:




Long-term debt

25,849



24,836


Long-term obligations under operating leases

4,985



4,986


Long-term obligations under finance leases

240



224


Frequent flyer deferred revenue

4,858



5,067


Pension liability

2,478



2,460


Postretirement benefit liability

1,013



994


Other financial liabilities from sale-leasebacks

1,568



1,140


Other

1,298



1,156


Total long-term liabilities and deferred credits

42,289



40,863


Total stockholders' equity

5,206



5,960


Total liabilities and stockholders' equity

$

61,662



$

59,548


UNITED AIRLINES HOLDINGS, INC.
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)


(In millions)

Three Months Ended

March 31,


2021


2020

Cash Flows from Operating Activities:




Net cash provided by operating activities

$

447



$

63






Cash Flows from Investing Activities:




Capital expenditures

(444)



(1,959)


Purchases of short-term and other investments



(541)


Proceeds from sale of short-term and other investments

105



927


Other, net

10



1


Net cash used in investing activities

(329)



(1,572)






Cash Flows from Financing Activities:




Proceeds from issuance of debt, net of discounts and fees

1,336



2,813


Proceeds from equity issuance

532




Payments of long-term debt, finance leases and other financing liabilities

(569)



(253)


Repurchases of common stock



(353)


Other, net

(21)



(18)


Net cash provided by financing activities

1,278



2,189


Net increase in cash, cash equivalents and restricted cash

1,396



680


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

11,742



2,868


Cash, cash equivalents and restricted cash at end of the period (a)

$

13,138



$

3,548






Investing and Financing Activities Not Affecting Cash:




Property and equipment acquired through the issuance of debt, finance leases and other

$

509



$

128


Lease modifications and lease conversions

22



439


Right-of-use assets acquired through operating leases

180



30


Warrants received for entering into agreements with Archer Aviation Inc ("Archer")

81




UNITED AIRLINES HOLDINGS, INC.
NOTES (UNAUDITED)


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




Three Months Ended

March 31,

(In millions)


2021


2020

Operating:





CARES Act grant


$

(1,810)



$


Severance and benefit costs


417




Impairment of assets




50


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


16



13


Total operating special charges (credits)


(1,377)



63







Nonoperating special termination benefits


46




Nonoperating unrealized losses on investments, net


22



319


Nonoperating credit loss on BRW Aviation Holding LLC and BRW Aviation LLC ("BRW") term loan and related guarantee




697


Total nonoperating special charges and unrealized losses on investments, net


68



1,016


Total operating and nonoperating special charges (credits) and unrealized losses on investments, net


(1,309)



1,079


Income tax expense (benefit), net of valuation allowance


291



(14)


Total operating and non-operating special charges (credits) and unrealized losses on investments, net of income taxes


$

(1,018)



$

1,065


CARES Act grant. During the three months ended March 31, 2021, the company received approximately $2.6 billion in funding pursuant to the Payroll Support Agreement (the "PSP2 Agreement") with the U.S. Treasury Department, which included a $753 million unsecured loan. The company recorded $1.8 billion as grant income and $47 million for warrants issued to Treasury as part of the PSP2 Agreement, within stockholders' equity, as an offset to the grant income.

Severance and benefit costs: During the three months ended March 31, 2021, the company recorded $417 million related to pay continuation and benefits-related costs provided to employees who chose to voluntary separate from the company. The company offered, based on employee group, age and completed years of service, pay continuation, health care coverage, and travel benefits. Approximately 4,500 employees elected to voluntary separate from the company.

Impairment of assets: Impairment of assets. In February 2021, the company voluntarily and temporarily removed all 52 Boeing 777-200/200ER aircraft powered by Pratt & Whitney 4000 series engines from its schedule due to an engine failure incident with one of its aircraft. The company viewed this incident as an indicator of potential impairment. Accordingly, as required under relevant accounting standards, United performed forecasted cash flow analyses and determined that the carrying value of the Boeing 777-200/200ER fleet is recoverable from future cash flows expected to be generated by that fleet and, consequently, no impairment was recorded.

During the three months ended March 31, 2020, the company recorded a $50 million impairment for its China routes which was primarily caused by the COVID-19 pandemic and the company's subsequent suspension of flights to China.

Gains (loss) on sale of other assets and other special charges:: During the three months ended March 31, 2021, the company recorded $16 million of net charges, driven by charges for the termination of the lease associated with three floors of its headquarters at the Willis Tower in Chicago and utility charges related to the February winter storms in Texas, partially offset by net gains, primarily on sale-leaseback transactions.

During the three months ended March 31, 2020, the company recorded a $10 million one-time special charge related to the wind-down of the capacity purchase agreement with Trans States Airlines, LLC and $3 million for costs related to the transition of fleet types within other regional carrier contracts.

Nonoperating credit loss on BRW term loan and related guarantee: During the three months ended March 31, 2020, the company recorded a $697 million expected credit loss allowance for the company's Term Loan Agreement (the "BRW Term Loan"), with, among others, BRW Aviation Holding LLC and BRW Aviation LLC, and the related guarantee. BRW's equity and BRW's holdings of Avianca Holdings S.A.'s ("AVH") equity are secured as a pledge under the BRW Term Loan, which is currently in default.

Nonoperating special termination benefits. During the three months ended March 31, 2021, as part of first quarter voluntary separation leave programs, the company recorded $46 million of special termination benefits in the form of additional subsidies for retiree medical costs for certain U.S. based front-line employees. The subsidies are in the form of additional subsidies for retiree medical costs as a one-time contribution into the employee's Retiree Health Account of $125,000 for full-time employees and $75,000 for part-time employees.

Unrealized losses on investments, net: During the three months ended March 31, 2021, the company recorded losses of $22 million primarily for the decrease in the market value of its investment in Azul Linhas Aéreas Brasileiras S.A. ("Azul").

During the three months ended March 31, 2020, the company recorded losses of $319 million primarily for the $293 million decrease in the market value of its investment in Azul and $24 million for the decrease in fair value of the AVH share call options, AVH share appreciation rights, and AVH share-based upside sharing agreement that United obtained as part of the BRW Term Loan and related agreements with Kingsland Holdings Limited.

Effective tax rate

The company's effective tax rate for the three months ended March 31, 2021 and March 31, 2020 was 22.5% and 19.4%, respectively. The provision for income taxes is based on the estimated annual effective tax rate which represents a blend of federal, state and foreign taxes and includes the impact of certain nondeductible items. The first quarter 2020 rate was impacted by a $66 million valuation allowance related to unrealized capital losses.

SOURCE United Airlines

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

United Plans Largest Transatlantic Expansion in its History, Including 10 New Flights and Five New Destinations Debuting Summer 2022

Airline sets course to destinations not served by any other North American carrier in Amman, Jordan; Azores, Portugal; Bergen, Norway; Palma de Mallorca, Spain and Tenerife, Spain
October 14, 2021

CHICAGO, Oct. 14, 2021 /PRNewswire/ -- United today announced the largest transatlantic expansion in its history, including 10 new flights and five new, vogue destinations – Amman, Jordan; Bergen, Norway; Azores, Portugal; Palma de Mallorca, Spain and Tenerife in the Spanish Canary Islands. All of the new routes – which are set to begin in Spring 2022 – are not served by any other North American carrier. Additionally, next year, United will add new flights to five popular European destinations: Berlin, Dublin, Milan, Munich and Rome. Lastly, United will launch seven routes that were interrupted due to the pandemic to Bangalore, Frankfurt, Tokyo's Haneda Airport, Nice and Zurich. Flights are subject to government approval.

"Given our big expectations for a rebound in travel to Europe for summer, this is the right time to leverage our leading global network in new, exciting ways," said Patrick Quayle, senior vice president of international network and alliances at United. "Our expansion offers the widest range of destinations to discover – introducing new, trendy locales that our customers will love, as well as adding more flights to iconic, popular cities."

Amman, Jordan

United will begin new capital to capital service between Washington, D.C. and Amman, Jordan starting May 5. Customers will be able to explore the numerous historical sites in and around Amman, as well as visit Jordan's other top destinations including Petra, the Dead Sea and the Wadi Rum desert. United will be the only North American carrier flying direct to Amman with service three times weekly with a Boeing 787-8 Dreamliner.

Ponta Delgada, Azores, Portugal

United will add a third Portuguese destination to its global network with brand new flights between New York/Newark and Ponta Delgada in the Azores beginning May 13. The carrier will offer the most flights between the U.S. and Portugal of any North American airline and will be the only airline to fly to the Azores from the New York metro area. This daily service joins United's existing flights to Porto, which will return in March, and Lisbon, which the airline is currently operating from New York/Newark and will resume from Washington, D.C. next summer. United will fly a brand-new Boeing 737 MAX 8 aircraft featuring United's new signature interior with enhanced seat back entertainment with Bluetooth connectivity and overhead bin space for every customer.

Bergen, Norway

Beginning May 20, United will become the only U.S. carrier to fly to Norway with flights launching between New York/Newark and Bergen. United will offer three times weekly service on a Boeing 757-200, allowing customers to experience Bergen's surrounding mountainous landscape and breathtaking fjords. United will be the only carrier to fly to Bergen from the U.S.

Palma de Mallorca, Balearic Islands, Spain

United is expanding its Spanish beach getaway destinations with three times weekly flights between New York/Newark and Palma de Mallorca in the Balearic Islands, launching June 2 with a Boeing 767-300ER. This will be the first and only flight between the U.S. and Mallorca and will add to United's existing service to Madrid and Barcelona.

Tenerife, Canary Islands, Spain

Travelers looking for an additional new beach destination can enjoy the stunning black and white sand beaches of Spain's Canary Islands with United's new flight from New York/Newark to Tenerife. United will be the only airline to fly direct between the Canary Islands and North America with three-times weekly service launching June 9 with a Boeing 757-200. Along with the new service to Palma de Mallorca, United will fly to more Spanish destinations from North America than any other airline.

Expanded European Service

United is also adding flights to some of Europe's most iconic cities in anticipation of a resurgence in visitors. Next spring United will add:

  • New daily flights between Denver and Munich – joining existing service from Denver to Frankfurt and London which is expected to resume in March. United is the only U.S. airline to offer transatlantic service from Denver.
  • New daily flights between Chicago and Milan, joining existing seasonal flights between Chicago and Rome. United will be the only airline to offer a direct flight between Chicago and Milan, adding to its existing service between New York/Newark and Milan.
  • New daily capital to capital service between Washington, D.C. and Berlin, joining our other service to Berlin from New York/Newark. United is the only U.S. airline with direct flights to Berlin.
  • An additional daily flight from New York/Newark to Dublin and Rome.

In addition to these new routes, United will begin seven routes that were interrupted by the pandemic:

  • Daily flights between San Francisco and Bangalore beginning May 26
  • Daily flights between New York/Newark and Nice beginning April 29
  • A second daily flight between New York/Newark and Frankfurt beginning April 23
  • Daily flights between Chicago and Zurich beginning April 23
  • Flights from Washington, D.C., Los Angeles and New York/Newark to Tokyo's Haneda airport by March 26

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. To manage entry requirements in different destinations, and find places to get tests, customer can visit United's Travel Ready Center.

United Next

United is more focused than ever on its commitment to customers and employees. In addition to today's announcement, United has recently:

  • Launched an ambitious plan to transform the United customer experience by adding and upgrading hundreds of aircraft as well as investing in features like larger overhead bins, seatback entertainment in every seat and the industry's fastest available Wi-Fi.
  • Announced a goal to create 25,000 unionized jobs by 2026 that includes careers as pilots, flight attendants, agents, technicians, and dispatchers.
  • Announced that United will train at least 5,000 pilots by 2030 through the United Aviate Academy, with the plan of at least half being women and people of color.
  • Required all U.S. employees to receive a COVID-19 vaccination.
  • Became the first airline to offer customers the ability to check their destination's travel requirements, schedule COVID-19 tests and more on its mobile app and website. 
  • Invested in emerging technologies that are designed to decarbonize air travel, like an agreement to work with urban air mobility company Archer, an investment in aircraft startup Heart Aerospace and a purchase agreement with Boom Supersonic.
  • Committed to going 100% green by 2050 by reducing 100% of our greenhouse gas emissions without relying on traditional carbon offsets, including a recent agreement to  purchase one and a half times the amount of all of the rest of the world's airlines' publicly announced Sustainable Aviation Fuel commitments combined.
  • Eliminated change fees for all economy and premium cabin tickets for travel within the U.S.

About United

United's shared purpose is "Connecting People. Uniting the World." In 2019, United and United Express® carriers operated more than 1.7 million flights carrying more than 162 million customers. United has the most comprehensive route network among North American carriers, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C.  For more about how to join the United team, please visit united.com/careers and more information about the company is at united.com. United Airlines Holdings, Inc. is traded on the Nasdaq under the symbol "UAL".

SOURCE United Airlines

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

United Announces Promotions and Leadership Changes in Network Planning and Procurement

United promotes Ankit Gupta to SVP of Domestic Planning and United Express, Patrick Quayle to SVP International Network and Alliances
October 11, 2021

CHICAGO, Oct. 11, 2021 /PRNewswire/ -- United Airlines today announced the promotion of Ankit Gupta to Senior Vice President of Domestic Planning and United Express, and Patrick Quayle to Senior Vice President International Network and Alliances. Both Gupta and Quayle will continue to report directly to Andrew Nocella, United's Chief Commercial Officer.

In addition to these promotions, United also named former United Express Senior Vice President Sarah Murphy to lead the airline's new Global Sourcing organization as Senior Vice President of Global Sourcing and Chief Procurement Officer. Murphy will now report to Gerry Laderman, United's Chief Financial Officer.

Ankit Gupta

"As we work to deliver the best customer experience in North America with a dramatic increase in premium seats, Ankit's leadership in developing the United Next vision has us poised to exceed our customers' expectations as we meet the resurgence in air travel," said Nocella. "He has helped us execute network strategies that would ordinarily take years to develop in a matter of months. And as we play an ongoing and key role in the U.S. economic recovery, we will continue to shape our domestic network with a fleet that spans the CRJ-550 to cutting-edge mainline narrowbody aircraft."

Gupta, formerly Vice President of Network Planning and Scheduling, will now assume responsibility for the operation and strategy of the United Express network in addition to leading the domestic planning team. By linking the United Express operation more closely with the airline's domestic planning team, United expects to better optimize its network and deliver a better, more consistent experience with the products and services it offers.

Patrick Quayle

"Patrick continues to be instrumental in enhancing the alliances that benefit both United and our partners by helping us reach destinations each carrier is unable to serve with its fleet alone," said Nocella. "He led the design and interior configuration for more than 1,000 of our aircraft, including United Polaris, United Premium Plus and our high-premium Boeing 767-300ER aircraft and continues to reshape our network in the midst of a radically different demand environment, making the most of rapidly changing economic and passenger trends."

Quayle, also a former Vice President on United's network planning team, played a key role for the airline through the pandemic, leading the airline from just 10 daily international flights in early 2020 to now becoming the flag carrier of the U.S. as the largest international carrier in the country, with the largest trans-Atlantic and trans-Pacific networks, as well as holding the position as the number one carrier to Central America.

Sarah Murphy

As the new leader of the Global Sourcing team, Murphy will leverage her experience leading teams in United's finance and operating groups and will build upon the procurement team's track record of success in driving efficiencies among the airline's vendors and suppliers to deliver for United's employees, customers and the communities it serves.

"With Sarah's extensive operating and capital budget expertise, and her deep knowledge of our operations, she is uniquely positioned to enhance our ability to source the goods and services we need in order to transform the customer experience and change the way people think about United while protecting the company's bottom line," said Laderman.

United Next

United is more focused than ever on its commitment to customers and employees. In addition to today's announcement, United has recently:

  • Launched an ambitious plan to transform the United customer experience by adding and upgrading hundreds of aircraft as well as investing in features like larger overhead bins, seatback entertainment in every seat and the industry's fastest available Wi-Fi.
  • Announced a goal to create 25,000 unionized jobs by 2026 that includes careers as pilots, flight attendants, agents, technicians, and dispatchers.
  • Announced that United will train at least 5,000 pilots by 2030 through the United Aviate Academy, with the plan of at least half being women and people of color.
  • Required all U.S. employees to receive a COVID-19 vaccination.
  • Became the first airline to offer customers the ability to check their destination's travel requirements, schedule COVID-19 tests and more on its mobile app and website. 
  • Invested in emerging technologies that are designed to decarbonize air travel, like an agreement to work with urban air mobility company Archer, an investment in aircraft startup Heart Aerospace and a purchase agreement with Boom Supersonic.
  • Committed to going 100% green by 2050 by reducing 100% of our greenhouse gas emissions without relying on traditional carbon offsets, including a recent agreement to  purchase one and a half times the amount of all of the rest of the world's airlines' publicly announced Sustainable Aviation Fuel commitments combined.
  • Eliminated change fees for all economy and premium cabin tickets for travel within the U.S.

About United

United's shared purpose is "Connecting People. Uniting the World." In 2019, United and United Express® carriers operated more than 1.7 million flights carrying more than 162 million customers. United has the most comprehensive route network among North American carriers, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C.  For more about how to join the United team, please visit united.com/careers and more information about the company is at united.com. 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 Plans Largest Domestic Schedule Since March 2020

December schedule includes new connections between the Midwest and warm weather cities like Las Vegas and Orlando as well as nearly 70 daily flights to ski destinations, including new service between Orange County and Aspen
October 07, 2021

CHICAGO, Oct. 7, 2021 /PRNewswire/ -- United today announced that it will fly its biggest domestic schedule since the start of the pandemic to meet an expected surge in holiday travel, with an emphasis on connecting the Midwest to warm weather cities like Las Vegas and Orlando as well as offering nearly 70 daily flights to ski destinations, including new service between Orange County and Aspen.

According to United, holiday travel flight searches on united.com and the airline's app are up 16%, compared to 2019. The airline expects the busiest travel days for the Thanksgiving holiday will be Wednesday, November 24 and Sunday, November 28, while popular days for winter holiday travel are expected to be Thursday, December 23 and Sunday, January 2.

The airline plans to offer more than 3,500 daily domestic flights in December, representing 91% of its domestic capacity compared to 2019.

"We're seeing a lot of pent-up demand in our data and are offering a December schedule that centers on the two things people want most for the holidays: warm sunshine and fresh snow," said Ankit Gupta, vice president of network planning and scheduling at United. "We know families and friends are eager to reunite this holiday season, which is why we're thrilled to add new flights that will help them connect and celebrate together."

In December, United will begin new direct flights to Las Vegas and Phoenix from Cleveland, and to Orlando from Indianapolis. The carrier also will resume eight popular direct flights from Midwest cities, including routes to Fort Lauderdale, Fort Myers, Orlando and Tampa, offering the most mainline departures the airline has flown from Cleveland since 2014 including direct service to Nassau and Cancun. United will offer up to 195 daily flights to 12 destinations in Florida this winter, the most flights to the Sunshine State in company history. United is also resuming direct flights from Columbus, Indianapolis, Milwaukee and Pittsburgh to Fort Myers – which were some of the airline's most popular point-to-point flights last winter.

Customers who prefer fresh powder can enjoy more flights to ski destinations with United than any other carrier. The airline offers 66 daily flights to over a dozen ski destinations across the U.S., including brand new service beginning this December between Orange County and Aspen. This winter season, United will have flights to Aspen/Snowmass, Bishop/Mammoth, Bozeman/Big Sky, Eagle/Vail, Kalispell, Gunnison/Crested Butte, Hayden/Steamboat Springs, Jackson Hole, Montrose/Telluride, Reno/Tahoe, Sun Valley from its hub airports.

Earlier this year, United announced that it will add 150 flights to warm-weather destinations this winter season. All of these flights and more are available now on united.com and United's mobile app.

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. Customers can review COVID-19 entry requirements, find local testing options and upload any required testing and vaccination records for domestic and international travel, all in United's Travel Ready Center. United was the first airline to integrate all these features into its mobile app and website.

United Next

United is more focused than ever on its commitment to customers and employees. In addition to today's announcement, United has recently:

  • Launched an ambitious plan to transform the United customer experience by adding and upgrading hundreds of aircraft as well as investing in features like larger overhead bins, seatback entertainment in every seat and the industry's fastest available Wi-Fi.
  • Announced a goal to create 25,000 unionized jobs by 2026 that includes careers as pilots, flight attendants, agents, technicians, and dispatchers.
  • Announced that United will train at least 5,000 pilots by 2030 through the United Aviate Academy, with the plan of at least half being women and people of color.
  • Required all U.S. employees to receive a COVID-19 vaccination.
  • Became the first airline to offer customers the ability to check their destination's travel requirements, schedule COVID-19 tests and more on its mobile app and website.
  • Invested in emerging technologies that are designed to decarbonize air travel, like an agreement to work with urban air mobility company Archer, an investment in aircraft startup Heart Aerospace and a purchase agreement with Boom Supersonic.
  • Committed to going 100% green by 2050 by reducing 100% of our greenhouse gas emissions without relying on traditional carbon offsets, including a recent agreement to purchase one and a half times the amount of all of the rest of the world's airlines' publicly announced Sustainable Aviation Fuel commitments combined.
  • Eliminated change fees for all economy and premium cabin tickets for travel within the U.S.

About United

United's shared purpose is "Connecting People. Uniting the World." In 2019, United and United Express® carriers operated more than 1.7 million flights carrying more than 162 million customers. United has the most comprehensive route network among North American carriers, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. For more about how to join the United team, please visit united.com/careers and more information about the company is at united.com. 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 Becomes First Airline to Introduce PayPal QR Codes as Inflight Payment Option

Latest touch-free payment offering lets customers buy snacks, drinks, and other inflight purchases while on board by just scanning a QR code - with or without Wi-Fi

October 06, 2021

CHICAGO, Oct. 6, 2021 /PRNewswire/ -- United and PayPal today announced a new way to make touch-free inflight purchases, even in areas without Wi-Fi. Starting next month, United customers on select flights can simply show a flight attendant the PayPal QR Code in the PayPal app and use it to buy snacks, drinks and other inflight purchases while onboard.

United is the first airline to offer PayPal QR Codes, and this partnership is part of United's easy-to-use, industry-leading suite of contactless payment tools. United was the first airline to give customers in economy cabins the option to pre-order snacks and beverages from the airline's app and website, and also offers customers the ability to easily store payment information in a digital wallet.

PayPal QR Codes can be used on select flights departing from Chicago O' Hare International Airport in November and before the end of the year, will extend to all flights across the entire network where contactless payment is available.

"Our contactless payment offering is built on simplicity and choice and it's another way we're improving the overall experience of flying United," said Toby Enqvist, chief customer officer for United. "PayPal is a terrific partner and this technology gives our customers another easy way to make purchases, even when they're not online. We expect to introduce even more new and innovative options for our customers in the future through our collaboration with PayPal."

How It Works

  • If you haven't already, download the PayPal app and set your preferred payment method for QR code payments, prior to leaving the gate
  • To make an inflight purchase, Click the 'Pay with QR codes' button
  • Then click the 'In-flight Purchase' button
  • Show the QR code to the flight attendant to scan
  • Look for an emailed confirmation receipt upon landing

"We're excited to be partnering with United to introduce our new offline QR code functionality, adding more ways for customers to check out with PayPal in more places, especially in offline or low connectivity areas," said Frank Keller, Senior Vice President of Enterprise Segment Solutions and Digital Commerce at PayPal. "Bringing PayPal QR Codes inflight reinforces our commitment to offering customers choice and provides a new level of touch-free convenience for consumers when making in-flight purchases, within the PayPal app they know and trust."

United's New Buy-On-Board Menu

Customers can pay using PayPal QR Codes to enjoy one of many new food and beverage offerings United launched this year. In June, United unveiled its refreshed buy-on-board menu, which includes:

  • Three New Snack Boxes: A Tapas snack box with European-inspired offerings; a Takeoff snack box with high-protein options; a Recline snack box with movie theater themed treats.
  • New A la Carte Snack Options: Including sweet potato "tortilla" chips with roasted pepper salsa, trail mix and chocolate-covered dried fruit.
  • New Adult Beverage Options: Mango White Claw®; red, white and sparkling wine, and new beer options such as Breckenridge Brewery Juice Drop Hazy IPA and Michelob ULTRA®.
  • New Fresh Options: Last month, United also added five new fresh retail offerings to its buy-on-board menu including:
    • Morning Menu:
      • Beatrix Market Chia Seed Pudding: Beatrix Market's signature Chia Seed Pudding with fresh mango and toasted coconut
      • Bacon, Egg and Cheese Spiral Croissant: Shoulder bacon, fried egg patty with black pepper and cheddar cheese on a butter spiral croissant
    • Afternoon/Evening Menu:
      • Beatrix Market Mediterranean Grain Bowl: Protein-packed grain bowl features bulgur, a black lentil and carrot salad, roasted zucchini and bell peppers and is served with a bright lemon vinaigrette
      • Classic Beef Butter Burger with Cheddar: Old fashioned cheeseburger with cheddar and pickles on a buttered brioche bun
      • Kindred Creamery Selection Cheese Tray: Cheddar cheese, gouda cheese, Colby jack cheese, Monterey jack cheese, along with crackers and dried cherry and almond mix

New Domestic Premium Cabin Menu Items

United also introduced brand-new meal offerings to customers seated in domestic premium cabins on flights over 1,500 miles and hub-to-hub flights over 800 miles.

  • The enhanced meal service includes a choice of entrees – including fresher options like egg scramble with plant-based chorizo and grilled chicken breast with orzo and lemon basil pesto – sides and dessert.
  • United has also teamed with Eli's Cheesecake to create a uniquely United chocolate pie flavor called "Pie in the Sky."
  • The meals will be served on one tray, with items individually wrapped, to limit person-to-person contact and further the safety of our employees and customers.

For information on food and beverage options available, United's contactless payment technology and FAQs, visit United.com/snacktime.

United Next

United is more focused than ever on its commitment to customers and employees. In addition to today's announcement, United has recently:

  • Launched an ambitious plan to transform the United customer experience by adding and upgrading hundreds of aircraft as well as investing in features like larger overhead bins, seatback entertainment in every seat and the industry's fastest available Wi-Fi.
  • Announced a goal to create 25,000 unionized jobs by 2026 that includes careers as pilots, flight attendants, agents, technicians, and dispatchers.
  • Announced that United will train at least 5,000 pilots by 2030 through the United Aviate Academy, with the plan of at least half being women and people of color.
  • Required all U.S. employees to receive a COVID-19 vaccination.
  • Became the first airline to offer customers the ability to check their destination's travel requirements, schedule COVID-19 tests and more on its mobile app and website.
  • Invested in emerging technologies that are designed to decarbonize air travel, like an agreement to work with urban air mobility company Archer, an investment in aircraft startup Heart Aerospace and a purchase agreement with Boom Supersonic.
  • Committed to going 100% green by 2050 by reducing 100% of our greenhouse gas emissions without relying on traditional carbon offsets, including a recent agreement to purchase one and a half times the amount of all of the rest of the world's airlines' publicly announced Sustainable Aviation Fuel commitments combined.
  • Eliminated change fees for all economy and premium cabin tickets for travel within the U.S.

About United

United's shared purpose is "Connecting People. Uniting the World." In 2019, United and United Express® carriers operated more than 1.7 million flights carrying more than 162 million customers. United has the most comprehensive route network among North American carriers, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. For more about how to join the United team, please visit united.com/careers and more information about the company is at united.com. United Airlines Holdings, Inc. is traded on the Nasdaq under the symbol "UAL".

About PayPal

PayPal has remained at the forefront of the digital payment revolution for more than 20 years. By leveraging technology to make financial services and commerce more convenient, affordable, and secure, the PayPal platform is empowering more than 400 million consumers and merchants in more than 200 markets to join and thrive in the global economy. For more information, visit paypal.com.

SOURCE United Airlines

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

United to Hold Webcast of Third-Quarter 2021 Financial Results

October 01, 2021

CHICAGO, Oct. 1, 2021 /PRNewswire/ -- United will hold a conference call to discuss third-quarter 2021 financial results on Wednesday, October 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 third-quarter financial results after market close on Tuesday, October 19.

About United

United's shared purpose is "Connecting People. Uniting the World." In 2019, United and United Express® carriers operated more than 1.7 million flights carrying more than 162 million customers. United has the most comprehensive route network among North American carriers, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. For more about how to join the United team, please visit united.com/careers and more information about the company is at united.com. 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 Airlines and Airlink Announce Commercial Agreement to Help Customers Explore Southern Africa

New partnership provides customers with easy travel to more than 40 destinations in Southern Africa and ability to earn or redeem miles on Airlink flights
September 28, 2021

CHICAGO, Sept. 28, 2021 /PRNewswire/ -- Today, United Airlines and Airlink, a South African airline, announced a new codeshare agreement that will offer customers more connections between the U.S. and Southern Africa than any other airline alliance. The new agreement, which is subject to government approval, will offer one stop connections from the U.S. to more than 40 destinations in Southern Africa. Additionally, United will be the first airline to connect its loyalty program with Airlink, allowing MileagePlus members to earn and redeem miles when they travel on Airlink flights. This new cooperation will be in addition to United's existing partnership with Star Alliance member South African Airways.

"United continues to demonstrate our commitment to Africa, starting three brand new flights to the continent this year alone including new service to Accra, Ghana; Lagos, Nigeria and Johannesburg, South Africa," said Patrick Quayle, vice president of international network and alliances at United. "And now through our codeshare agreement with Airlink - which is the most expansive partnership in Southern Africa - customers will be able to easily explore more bucket list destinations across the continent including easy connections to Zambia, Zimbabwe and more."

United has continued to expand its footprint into Africa, with direct service to four African destinations. Earlier this month, United announced flights between Washington, D.C. and Lagos Nigeria will begin November 29, subject to government approval. Earlier this year, United launched new service between New York/Newark and Johannesburg, South Africa and between Washington, D.C. and Accra, Ghana, which is expected to operate daily this December and January. United's popular service between New York/Newark and Cape Town, South Africa will also resume on December 1.

"North America is an important source market for our destinations. This codeshare will make it easy for our North American customers to reach the Okavango Delta, Chobe, the Kruger National Park and adjacent private game lodges, Cape Town, the Garden Route, Swakopmund and the Copperbelt, among others," said Airlink CEO and Managing Director, Rodger Foster. "Similarly, the codeshare means that our customers in the 12 African countries we currently serve, will have fast and seamless access to all of United's network."

This new codeshare will be implemented upon final government approvals

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 SM  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. To manage entry requirements in different destinations, and find places to get tests, customer can visit United's Travel Ready Center.

United Next

United is more focused than ever on its commitment to customers and employees. In addition to today's announcement, United has recently:

  • Launched an ambitious plan to transform the United customer experience by adding and upgrading hundreds of aircraft as well as investing in features like larger overhead bins, seatback entertainment in every seat and the industry's fastest available Wi-Fi.
  • Announced a goal to create 25,000 unionized jobs by 2026 that includes careers as pilots, flight attendants, agents, technicians, and dispatchers.
  • Announced that United will train at least 5,000 pilots by 2030 through the United Aviate Academy, with the plan of at least half being women and people of color.
  • Required all U.S. employees to receive a COVID-19 vaccination.
  • Became the first airline to offer customers the ability to check their destination's travel requirements, schedule COVID-19 tests and more on its mobile app and website. 
  • Invested in emerging technologies that are designed to decarbonize air travel, like an agreement to work with urban air mobility company Archer, an investment in aircraft startup Heart Aerospace and a purchase agreement with Boom Supersonic.
  • Committed to going 100% green by 2050 by reducing 100% of our greenhouse gas emissions without relying on traditional carbon offsets, including a recent agreement to  purchase one and a half times the amount of all of the rest of the world's airlines' publicly announced Sustainable Aviation Fuel commitments combined.
  • Eliminated change fees for all economy and premium cabin tickets for travel within the U.S.

About United

United's shared purpose is "Connecting People. Uniting the World." In 2019, United and United Express® carriers operated more than 1.7 million flights carrying more than 162 million customers. United has the most comprehensive route network among North American carriers, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C.  For more about how to join the United team, please visit united.com/careers and more information about the company is at united.com. United Airlines Holdings, Inc. is traded on the Nasdaq under the symbol "UAL".

About Airlink

Airlink was established in 1992 and is an independent, privately-owned, full-service premium airline.  Choice and reliability are Airlink hallmarks, with the airline serving more than 45 destinations in 12 countries throughout Southern Africa, Madagascar and St Helena Island.  Airlink is ranked as South Africa's most punctual airline, with its fleet of more than 50 modern jetliners achieving a 97.70% average on-time performance for the year to date.  Airlink is an International Air Transport Association (IATA) member and accredited under its safety audit program.

 

SOURCE United Airlines

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

United Makes it Easier for Customers to Find and Use Travel Credits

The airline offers customers the most transparent and user-friendly options in the industry to encourage and simplify using travel credits
September 23, 2021

CHICAGO, Sept. 23, 2021 /PRNewswire/ -- United today announced it is giving customers even more flexibility when they need to rebook their travel by helping them to find and use their travel credits. United is the only airline to make it easy for customers to use their credits by automatically displaying them as a payment option during the checkout process. This functionality will be available for MileagePlus® members first and the airline is working to roll it out to all customers in the near future. Also, beginning next week, United will be the first to let customers use their travel credits for extra legroom seats and to pre-pay for checked baggage.

United Airlines Plans to Begin Flights Between Washington, D.C. and Lagos, Nigeria in November

United to operate the first ever nonstop flight between Washington, D.C. and Lagos and offer more flights between D.C. and Africa than any other carrier
September 17, 2021

CHICAGO, Sept. 17, 2021 /PRNewswire/ -- United Airlines announced today that new service between Washington, D.C. and Lagos, Nigeria will begin November 29 (subject to government approval). The airline will operate three weekly flights connecting the U.S. capital to Nigeria's largest city, which is also the top Western African destination for U.S-based travelers. Tickets will be available for sale on united.com and the United app this weekend.

United, Honeywell Invest in New Clean Tech Venture from Alder Fuels, Powering Biggest Sustainable Fuel Agreement in Aviation History

United agrees to purchase 1.5 billion gallons of sustainable aviation fuel (SAF) over 20 years - which is one and a half times the size of the rest of the world's airlines' publicly announced SAF commitments combined
September 09, 2021

CHICAGO and DES PLAINES, Ill., Sept. 9, 2021 /PRNewswire/ -- United and Honeywell today announced a joint multimillion-dollar investment in Alder Fuels – a cleantech company that is pioneering first-of-its-kind technologies for producing sustainable aviation fuel (SAF) at scale by converting abundant biomass, such as forest and crop waste, into sustainable low-carbon, drop-in replacement crude oil that can be used to produce aviation fuel. When used together across the fuel lifecycle, the Alder technologies, coupled with Honeywell's Ecofining™ process, could have the ability to produce a carbon-negative fuel at spec with today's jet fuel. The goal of the technologies is to produce fuel that is a 100% drop-in replacement for petroleum jet fuel.

United Airlines to Present at the 14th Annual Cowen Global Transportation & Sustainable Mobility Conference

September 01, 2021

CHICAGO, Sept. 1, 2021 /PRNewswire/ -- United (NASDAQ:UAL) will present at the 14th Annual Cowen Global Transportation & Sustainable Mobility Conference on Thursday, September 9. The presentation will begin at 10:30 a.m. CT / 11:30 a.m. ET.

United Invites MileagePlus Members to Donate Miles to Help Afghanistan Evacuee Aid Efforts

MileagePlus®Members can donate miles to non-profits providing air travel, medical care and meals to Afghan evacuees through United's mile crowd-sourcing platform, Miles on a Mission

August 31, 2021

CHICAGO, Aug. 31, 2021 /PRNewswire/ -- United today announced that its MileagePlus members can help in the Afghanistan relief effort by participating in the airline's mile-raising platform, Miles on a Mission, and donate to three non-profit organizations that are using air travel to transport and support Afghan citizens. As part of this campaign, United will match all donations up to five million miles.