United Airlines Expects To Deliver Peer-Leading - United Hub

United Airlines Expects To Deliver Peer-Leading Pre-Tax Margin Growth During First-Quarter 2019

April 16, 2019

CHICAGO, April 16, 2019 /PRNewswire/ -- United Airlines (UAL) today announced that a combination of strong top-line revenue performance and effective cost management led to first-quarter pre-tax margin growth that is expected to lead its peers. The company remains confident that it will deliver on its long-term adjusted diluted earnings per share2 (EPS) targets of $10 to $12 in 2019 and $11 to $13 in 2020.

  • Reported first-quarter net income of $292 million, diluted EPS of $1.09, pre-tax earnings of $367 million and pre-tax margin of 3.8 percent, expanding pre-tax margin 1.8 points versus the first quarter of 2018.
  • Reported first-quarter adjusted net income of $309 million, adjusted diluted EPS of $1.15, adjusted pre-tax earnings of $389 million, adjusted pre-tax margin of 4.1 percent, expanding adjusted pre-tax margin 2.1 points versus the first quarter of 2018.1
  • Total passenger revenue increased 7.1 percent versus the first quarter of 2018.
  • First-quarter passenger revenue per available seat mile (PRASM) increased 1.1 percent year-over-year.
  • Consolidated first-quarter unit cost per available seat mile (CASM) decreased 2.1 percent year-over-year.
  • Consolidated first-quarter CASM, excluding special charges, third-party business expenses, fuel and profit sharing, decreased 1.8 percent year-over-year.
  • Repurchased $527 million of its common shares in the first-quarter of 2019, at an average purchase price of $83.68 per share.
  • For the second consecutive quarter the airline reported adjusted pre-tax margin expansion.

"We delivered another strong financial quarter in which we made important progress on our customer investments while making strategic decisions to manage our costs and producing pre-tax margin growth that we expect will lead our peers," said Oscar Munoz, chief executive officer of United Airlines. "That's why we are more confident than ever that we'll reach our long-term adjusted EPS targets we unveiled last year. I want to thank all 93,000 of our employees for their incredible work as we overcame some unique challenges and refocused our efforts in 2019 toward elevating the United experience for our customers."

For more information on UAL's second-quarter and full-year 2019 guidance, please visit ir.united.com for the company's investor update.

First-Quarter 2019 Highlights

Operations and Employees

  • Flew the most revenue passengers ever for a first quarter in company history.
  • Despite a weather-challenged first quarter, achieved second-highest mainline on-time departures rate performance versus the major U.S. airlines.
  • Launched Backstage 2019 which will bring all 25,000 flight attendants to Chicago for an event which will help us elevate the way customers feel about their United experience.
  • Earned 100 percent score on Human Rights Campaign Foundation's annual scorecard on LGBTQ workplace equality.
  • Broke ground on a state-of-the-art Technical Operations Center at Los Angeles International Airport that will enable the airline to provide exceptional service for all of its aircraft fleets.
  • Announced headquarters will remain at the iconic Willis Tower in the airline's hometown of Chicago, while making investments to completely transform the current workspace and experience.

Customer Experience

  • Introduced a re-imagined mobile app to customers around the world featuring a more dynamic experience that updates customers at each step of their travel journey while adding enhancements that make managing travel easier.
  • Announced free live DIRECTV on 211 Boeing 737 United aircraft equipped with seat back TV, providing more than 100 channels of live television.
  • Introduced the relaunch of the United MileagePlus X app, which offers United MileagePlus® members a unique opportunity to earn award miles for everyday purchases.
  • Opened the fifth of its award-winning United Polaris Lounges at Los Angeles International Airport.
  • Opened a brand-new 5,000-square-foot United Club at Fort Lauderdale-Hollywood International Airport - the first of four new United Club locations set to open in 2019.
  • Announced next step in airline's commitment to making customers more comfortable by adding more than 1,600 United Polaris® business class and United First seats to nearly 250 international and domestic aircraft.
  • Launched new state-of-the-art United Meetings product, available on the airline's business portal, United Jetstream, which makes managing travel and redeeming rewards for meetings and events quicker and more streamlined.
  • 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 and in a MileagePlus customer profile, providing customers the ability to identify themselves corresponding with what is indicated on their passports or identification.

Network

  • Began new service from four hubs to 18 cities in 12 states and one province and launched new nonstop seasonal service between San Francisco and Amsterdam.
  • Announced 11 new domestic routes.
  • Filed an application with the U.S. Department of Transportation for a total of six daily nonstop flights to Tokyo Haneda Airport from six of the airline's hubs.

Fleet

  • Announced a brand new and revolutionary regional flying experience with the addition of the two-cabin, 50-seat Bombardier CRJ 550 aircraft, offering customers on key regional routes more legroom, storage and amenities than any other 50-seat regional aircraft operating today.
  • Became first carrier in the world to operate all three Dreamliner models as its first 787-10 began regular service in January from Los Angeles International Airport to Newark Liberty International Airport.
  • Took delivery of four Boeing 737 MAX 9 aircraft (prior to the March 13, 2019 Federal Aviation Administration order grounding U.S.-registered 737 MAX aircraft) and four Boeing 787-10 aircraft.

Community and Environment

  • Donated $1 million to Feeding America's Shutdown Response Fund to directly support the food banks providing food for families of federal workers.
  • Launched Her Art Here, a first-of-its-kind contest designed to find and uplift underrepresented women artists by providing a chance to paint a canvas like no other - a United Airlines aircraft.

Earnings Call

UAL will hold a conference call to discuss its first-quarter 2019 financial results and its financial and operational outlook for second-quarter and full-year 2019 on Wednesday, April 17, 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.

Every customer. Every flight. Every day.

In 2019, United is focusing more than ever on its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's announcement, United recently announced that luxury skincare line Sunday Riley will make products exclusively for United customers to experience in amenity kits, released a re-imagined version of the most downloaded app in the airline industry and made DIRECTV free for every passenger on 211 aircraft, offering more than 100 channels on seat back monitors on more than 30,000 seats.

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 Airlines and United Express operate approximately 4,900 flights a day to 355 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 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 779 mainline aircraft and the airline's United Express carriers operate 569 regional aircraft. United is a founding member of Star Alliance, which provides service to 193 countries via 28 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 Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

1 Excludes special charges, the mark-to-market impact of financial instruments 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.
2Excludes special charges and the mark-to-market impact of financial instruments, the nature of which are not determined at this time, and imputed interest on certain finance leases. Accordingly, UAL is not providing earnings guidance on a GAAP basis.

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, 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 Continental 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 CONTINENTAL HOLDINGS, INC.

STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)




Three Months Ended
March 31,


%
Increase/
(Decrease)


(In millions, except per share data)


2019


2018



Operating revenue:








Passenger


$

8,725



$

8,149



7.1



Cargo


286



293



(2.4)



Other operating revenue


578



590



(2.0)



Total operating revenue


9,589



9,032



6.2











Operating expense:








Salaries and related costs


2,873



2,726



5.4



Aircraft fuel


2,023



1,965



3.0



Regional capacity purchase


688



630



9.2



Landing fees and other rent


588



579



1.6



Depreciation and amortization


547



524



4.4



Aircraft maintenance materials and outside repairs


408



440



(7.3)



Distribution expenses


360



342



5.3



Aircraft rent


81



127



(36.2)



Special charges (B)


18



40



NM



Other operating expenses


1,508



1,397



7.9



Total operating expense


9,094



8,770



3.7











Operating income


495



262



88.9











Operating margin


5.2

%


2.9

%


2.3


pts.

Adjusted operating margin (Non-GAAP) (A)


5.3

%


3.3

%


2.0


pts.









Nonoperating income (expense):








Interest expense


(188)



(162)



16.0



Interest capitalized


22



18



22.2



Interest income


29



17



70.6



Miscellaneous, net (B)


9



47



(80.9)



Total nonoperating expense


(128)



(80)



60.0











Income before income taxes


367



182



101.6











Pre-tax margin


3.8

%


2.0

%


1.8


pts.

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


4.1

%


2.0

%


2.1


pts.









Income tax expense (D)


75



37



102.7



Net income


$

292



$

145



101.4











Diluted earnings per share


$

1.09



$

0.51



113.7



Diluted weighted average shares


268.3



284.9



(5.8)











NM Not meaningful








UNITED CONTINENTAL HOLDINGS, INC.

PASSENGER REVENUE INFORMATION AND STATISTICS


Passenger revenue information is as follows:




1Q 2019
Passenger
Revenue
(millions)


Passenger
Revenue
vs.
1Q 2018


PRASM
vs.
1Q 2018


Yield
vs.
1Q 2018


Available
Seat Miles
vs.
1Q 2018


1Q 2019
Available Seat
Miles (millions)

Domestic


$

5,367



8.0%


0.6%


0.9%


7.4%


36,726















Atlantic


1,331



6.3%


(2.8%)


(4.8%)


9.4%


10,626


Pacific


1,121



4.9%


4.5%


2.2%


0.3%


10,923


Latin America


906



5.3%


2.6%


2.3%


2.6%


7,370


International


3,358



5.6%


1.4%


(0.1%)


4.1%


28,919















Consolidated


$

8,725



7.1%


1.1%


0.5%


5.9%


65,645















Select operating statistics are as follows:




Three Months Ended
March 31,


%
Increase/
(Decrease)




2019


2018




Passengers (thousands)


36,454



34,495



5.7



Revenue passenger miles (millions)


53,097



49,849



6.5



Available seat miles (millions)


65,645



61,977



5.9



Passenger load factor:








Consolidated


80.9

%


80.4

%


0.5


pts.

Domestic


82.6

%


82.8

%


(0.2)


pts.

International


78.7

%


77.5

%


1.2


pts.

Passenger revenue per available seat mile (cents)


13.29



13.15



1.1



Total revenue per available seat mile (cents)


14.61



14.57



0.3



Average yield per revenue passenger mile (cents)


16.43



16.35



0.5



Aircraft in fleet at end of period


1,348



1,295



4.1



Average stage length (miles)


1,448



1,443



0.3



Average full-time equivalent employees


88,730



85,561



3.7



Average aircraft fuel price per gallon


$

2.05



$

2.11



(2.8)



Fuel gallons consumed (millions)


985



932



5.7




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 CONTINENTAL HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)


(In millions)

March 31, 2019


December 31, 2018

ASSETS




Current assets:




Cash and cash equivalents

$

1,848



$

1,694


Short-term investments

2,219



2,256


Receivables, less allowance for doubtful accounts

1,789



1,426


Aircraft fuel, spare parts and supplies, less obsolescence allowance

972



985


Prepaid expenses and other

780



733


Total current assets

7,608



7,094






Total operating property and equipment, net

28,586



27,399


Operating lease right-of-use assets

5,065



5,262






Other assets:




Goodwill

4,523



4,523


Intangibles, less accumulated amortization

3,144



3,159


Restricted cash

103



105


Notes receivable, net

512



516


Investments in affiliates and other, net

1,098



966


Total other assets

9,380



9,269


Total assets

$

50,639



$

49,024






LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Advance ticket sales

$

6,006



$

4,381


Accounts payable

2,707



2,363


Frequent flyer deferred revenue

2,388



2,286


Accrued salaries and benefits

1,660



2,184


Current maturities of long-term debt

1,201



1,230


Current maturities of finance leases

133



123


Current maturities of operating leases

639



719


Other

601



553


Total current liabilities

15,335



13,839






Other long-term liabilities and deferred credits:




Long-term debt

12,734



12,215


Long-term obligations under finance leases

236



224


Long-term obligations under operating leases

5,145



5,276


Frequent flyer deferred revenue

2,750



2,719


Postretirement benefit liability

1,287



1,295


Pension liability

1,454



1,576


Deferred income taxes

898



828


Other

998



1,010


Total other long-term liabilities and deferred credits

25,502



25,143


Stockholders' equity

9,802



10,042


Total liabilities and stockholders' equity

$

50,639



$

49,024


UNITED CONTINENTAL HOLDINGS, INC.

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)


(In millions)

Three Months Ended
March 31,


2019


2018

Cash Flows from Operating Activities:




Net cash provided by operating activities

$

1,915



$

1,709






Cash Flows from Investing Activities:




Capital expenditures

(1,609)



(944)


Purchases of short-term and other investments

(724)



(596)


Proceeds from sale of short-term and other investments

768



840


Loans made to others



(10)


Investment in affiliates

(27)




Other, net

12



15


Net cash used in investing activities

(1,580)



(695)






Cash Flows from Financing Activities:




Proceeds from issuance of long-term debt

646



673


Payments of long-term debt

(250)



(189)


Repurchases of common stock

(513)



(529)


Principal payments under finance leases

(20)



(18)


Capitalized financing costs

(17)



(16)


Other, net

(29)



(16)


Net cash used in financing activities

(183)



(95)


Net increase in cash, cash equivalents and restricted cash

152



919


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

1,799



1,591


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

$

1,951



$

2,510






Investing and Financing Activities Not Affecting Cash:




Property and equipment acquired through the issuance of debt

$

92



$

60


Operating lease conversions to finance lease

36




Right-of-use assets acquired through operating leases

51



103


Property and equipment acquired through finance leases

8




UNITED CONTINENTAL 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)

Twelve Months Ended
March 31, 2019

Net Operating Profit After Tax ("NOPAT")


Pre-tax income

$

2,833


Adjustments:


Special charges and mark-to-market ("MTM") losses on financial instruments:


Impairment of assets

362


Termination of a maintenance service agreement

64


Severance and benefit costs

33


MTM losses on financial instruments

33


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

6


Pre-tax income excluding special charges and MTM losses on financial instruments (Non-GAAP)

3,331


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

693


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

193


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

(12)


less: Income taxes paid

(14)


NOPAT (Non-GAAP)

$

4,191






Average Invested Capital (five-quarter average)


Total assets

$

49,392


less: Non-interest bearing liabilities (b)

(16,966)


Average invested capital (Non-GAAP)

$

32,426




ROIC (Non-GAAP)

12.9

%



(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 MTM gains on financial instruments. For the twelve months ended March 31, 2019, the effective cash tax rate was 0.4%.

(b)

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

UNITED CONTINENTAL 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 MTM gains and losses on financial instruments 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

March 31,


%
Increase/
(Decrease)




2019


2018



CASM (cents)








Cost per available seat mile (CASM) (GAAP)


13.85



14.15



(2.1)



Special charges (B)


0.02



0.07



NM



Third-party business expenses


0.05



0.05





Fuel expense


3.08



3.17



(2.8)



Profit sharing, including taxes


0.05



0.02



150.0



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


10.65



10.84



(1.8)




NM Not Meaningful

UNITED CONTINENTAL HOLDINGS, INC.

NON-GAAP FINANCIAL RECONCILIATION (Continued)




Three Months Ended
March 31,


$
Increase/
(Decrease)


%
Increase/
(Decrease)


(in millions)


2019


2018



Operating expenses (GAAP)


$

9,094



$

8,770



$

324



3.7



Special charges (B)


18



40



(22)



NM



Operating expenses, excluding special charges


9,076



8,730



346



4.0



Adjusted to exclude:










Third-party business expenses


30



31



(1)



(3.2)



Fuel expense


2,023



1,965



58



3.0



Profit sharing, including taxes


33



17



16



94.1



Adjusted operating expenses (Non-GAAP)


$

6,990



$

6,717



$

273



4.1













Operating income (GAAP)


$

495



$

262



$

233



88.9



Adjusted to exclude:










Special charges (B)


18



40



(22)



NM



Adjusted operating income (Non-GAAP)


$

513



$

302



$

211



69.9













Pre-tax income (GAAP)


$

367



$

182



$

185



101.6



Adjusted to exclude:










Special charges (B)


18



40



(22)



NM



MTM gains on financial instruments (B)


(17)



(45)



28



NM



Interest expense on ERJ 145 finance leases (C)


21





21



NM



Adjusted pre-tax income (Non-GAAP)


$

389



$

177



$

212



119.8













Net income (GAAP)


$

292



$

145



$

147



101.4



Adjusted to exclude:










Special charges (B)


18



40



(22)



NM



MTM gains on financial instruments (B)


(17)



(45)



28



NM



Interest expense on ERJ 145 finance leases (C)


21





21



NM



Income tax expense (benefit) related to adjustments above


(5)



1



(6)



NM



Adjusted net income (Non-GAAP)


$

309



$

141



$

168



119.1













Diluted earnings per share (GAAP)


$

1.09



$

0.51



$

0.58



113.7



Adjusted to exclude:










Special charges (B)


0.07



0.14



(0.07)



NM



MTM gains on financial instruments (B)


(0.07)



(0.16)



0.09



NM



Interest expense on ERJ 145 finance leases (C)


0.08





0.08



NM



Income tax benefit related to adjustments


(0.02)





(0.02)



NM



Adjusted diluted earnings per share (Non-GAAP)


$

1.15



$

0.49



$

0.66



134.7




NM Not Meaningful

UNITED CONTINENTAL 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
March 31,


Capital Expenditures (in millions)


2019


2018


Capital expenditures (GAAP)


$

1,609



$

944



Property and equipment acquired through the issuance of debt


92



60



Property and equipment acquired through finance leases


8





Adjusted capital expenditures (Non-GAAP)


$

1,709



$

1,004









Free Cash Flow (in millions)






Net cash provided by operating activities (GAAP)


$

1,915



$

1,709



Less capital expenditures


1,609



944



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


$

306



$

765









Net cash provided by operating activities (GAAP)


$

1,915



$

1,709



Less adjusted capital expenditures (Non-GAAP)


1,709



1,004



Free cash flow (Non-GAAP)


$

206



$

705



UNITED CONTINENTAL HOLDINGS, INC.

NOTES (UNAUDITED)


(B) Special charges and MTM gains on financial instruments include the following:



Three Months Ended
March 31,


(In millions)


2019


2018


Operating:






Impairment of assets


$

8



$

23



Severance and benefit costs


6



14



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


4



3



Total special charges


18



40



Nonoperating MTM gains on financial instruments


(17)



(45)



Total special charges and MTM gains on financial instruments


1



(5)



Income tax expense related to special charges and MTM gains on financial instruments




1



Total special charges and MTM gains on financial instruments, net of income taxes


$

1



$

(4)



Impairment of assets: During the three months ended March 31, 2019, the company recorded an $8 million fair value adjustment for aircraft purchased off lease. During the three months ended March 31, 2018, the company recorded a $23 million fair value adjustment for aircraft purchased off lease and impairments related to certain fleet types and certain international slots no longer in use.


Severance and benefit costs: During the three months ended March 31, 2019 and 2018, the company recorded $2 million and $8 million, respectively, of severance and benefit costs primarily 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. Also during the three months ended March 31, 2019 and 2018, the company recorded $4 million and $6 million, respectively, of management severance.


MTM gains on financial instruments: During the three months ended March 31, 2019 and 2018, the company recorded gains of $14 million and $45 million, respectively, for the change in market value of its investment in Azul Linhas Aéreas Brasileiras S.A. During the first quarter of 2019, the company recorded gains of $3 million for the change in fair value of certain derivative assets related to equity of Avianca Holdings S.A. For equity investments and derivative assets subject to MTM accounting, the company records gains and losses as part of Nonoperating income (expense): Miscellaneous, net in its statements of consolidated operations.


(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. The company recognized $21 million of additional interest expense in the three months ended March 31, 2019 as a result of this change.


(D) Effective tax rate


The company's effective tax rate for the three months ended March 31, 2019 and 2018 was 20.4% and 20.3%, 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.

SOURCE United Airlines

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

United Airlines Puts Jet Lag to Rest with Timeshifter App Partnership

November 13, 2019

CHICAGO, Nov. 13, 2019 /PRNewswire/ -- United Airlines customers now have a new, scientific way to battle jet lag through a first-of-its-kind partnership with Timeshifter®, an app that outlines the best time to see and avoid light, sleep and enjoy caffeine to adjust quickly to a new time zone.

Starting today, all MileagePlus members receive access to a free Timeshifter jet lag plan and Premier 1K members receive a complimentary subscription with unlimited plans. The app is targeted at customers flying across three or more time zones and will be a helpful tool for them to manage their jet lag as they travel throughout United's global route network.

"We want to do everything we can to help improve the experience of traveling across time zones, whether it's a business trip to Tel Aviv or a vacation to Tahiti, our customers should arrive feeling fresh and ready to hit the ground running," said Vice President of Loyalty and President of MileagePlus, Luc Bondar. "Timeshifter takes all the guesswork out of avoiding jet lag and instead uses science and algorithms to design a customized, step-by-step trip across time zones. I was a believer the first time I used the app and I think our customers will love it too."

Timeshifter was developed by top researchers in sleep and circadian neuroscience and is aimed at customers crossing three or more time zones. The app uses an algorithm to customize plans for customers based on a number of factors including normal sleep pattern, flight details and individual preferences, creating a personalized jet lag alleviation plan. Each plan includes:

  • Instructions for when travelers should prioritize exposure to bright light or avoid it.
  • A sleep and napping schedule based on his or her own sleep preferences.
  • A plan to optimize caffeine intake for alertness and sleep.
  • Optional timing for taking melatonin, should travelers choose to do so.

MileagePlus members will receive a free jet lag plan for a flight plan of their choosing in addition to the complimentary trial Timeshifter offers customers for a total of two free flight plans. MileagePlus Premier 1K members will be able to sign up for complimentary annual subscriptions for unlimited access to jet lag plans when they travel. Individual plans for the app retail at $9.99 for a round trip plan and yearly memberships are $24.99.

United's partnership with Timeshifter is an additional step in improving the travel experience for MileagePlus members. Earlier this year, United announced that MileagePlus miles no longer expire and partnered with CLEAR to provide members with free or deeply discounted memberships to help make travel easier and more predictable.

United flies some of the longest routes in the world, including the two longest flights operated by a U.S. carrier with non-stop service between Houston and Sydney and between San Francisco and Singapore. In December, United will become the only airline to fly direct from North America to Cape Town, South Africa with the start of brand-new service from New York/Newark. United flies 320 routes to 120 international destinations from the U.S.

Every customer. Every flight. Every day.

In 2019, United is focusing more than ever on its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's announcement, this year United:

  • Announced that MileagePlus award miles will never expire
  • Gave Economy customers a choice of complimentary snacks on domestic flights
  • Made DIRECTV free for every customer on more than 200 aircraft
  • Released a new version of the award-winning, most downloaded app in the airline industry
  • Launched a new tool called ConnectionSaver, dedicated to improving the experience for customers with connecting flights
  • Partnered with CLEAR on free or discounted memberships for MileagePlus members
  • Announced PlusPoints, new upgrade benefits for MileagePlus Premier members
  • And introduced products in its amenity kits made exclusively for the airline by luxury skincare line Sunday Riley

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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 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 788 mainline aircraft and the airline's United Express partners operate 560 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".

SOURCE United Airlines

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

United Airlines Supports Local Relief Efforts for Communities Impacted by California Wildfires

November 01, 2019

SAN FRANCISCO, Nov. 1, 2019 /PRNewswire/ -- Today, United Airlines reaffirmed its commitment to California and to lifting up communities in crisis by announcing $165,000 in direct donations to three funds that provide assistance to those impacted by the California wildfires – Center for Disaster Philanthropy's 2019 California Wildfires Recovery Fund, Community Foundation of Sonoma County's Resilience Fund and California Community Foundation's Wildfire Relief Fund. The funds will provide immediate assistance to those impacted, along with long-term health services and housing solutions.

"The effects of the wildfires on our communities in California are heartbreaking, and we want to do our part to support the organizations that are on the ground, helping those in need," said Janet Lamkin, United's president for California.

In addition to supporting these funds, United is working with the American Red Cross to provide approximately 5,000 blankets to shelters across the state of California. Today's announcement builds on United's continued commitment to California and recent campaigns to aid in response to wildfires and other disasters. United has strong partnerships with the American Red Cross, the California State Fire Foundation (Cal Fire) and the California State Parks Foundation to support California year-round, not just when disasters strike.

"As many of our neighbors return safely home, we grieve for those families who have lost so much from the Kincade Fire," said Elizabeth Brown, President and CEO, Community Foundation Sonoma County. "We established the Sonoma County Resilience Fund to help our community recover now and in the years to come, and we are incredibly grateful to United Airlines for their steadfast and generous support of Sonoma County."

Every customer. Every flight. Every day.

In 2019, United is focusing more than ever on its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's announcement, this year United:

  • Announced that MileagePlus award miles will never expire
  • Gave Economy customers a choice of complimentary snacks on domestic flights
  • Made DIRECTV free for every customer on more than 200 aircraft
  • Released a new version of the award-winning, most downloaded app in the airline industry
  • Launched a new tool called ConnectionSaver, dedicated to improving the experience for customers with connecting flights
  • Partnered with CLEAR on free or discounted memberships for MileagePlus members
  • Announced PlusPoints, new upgrade benefits for MileagePlus Premier members
  • And introduced products in its amenity kits made exclusively for the airline by luxury skincare line Sunday Riley

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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 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 788 mainline aircraft and the airline's United Express partners operate 560 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".

SOURCE United Airlines

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

United Joins with Marriott International to Offer Industry's First Complimentary Baggage Delivery Service

October 29, 2019

CHICAGO, Oct. 29, 2019 /PRNewswire/ -- Starting November 1, United Airlines will begin offering Polaris customers on flights between New York/Newark and London Heathrow complimentary baggage delivery exclusively to five Marriott International properties. Whether they are bound for the boardroom or Big Ben, this first-of-its-kind service will allow United Polaris customers to start their London journey the moment they clear customs and drop their bags.

United's new baggage delivery benefit coincides with the airline operating its newly reconfigured Boeing 767-300ER on the route – an aircraft that features an extended cabin with 46 United Polaris business seats in the premium cabin and 22 United Premium Plus seats.

"The flight between New York/Newark and London is one of the most serviced routes in the world, and we are continually looking at how we can offer superior services and amenities for our customers traveling between these two major cities," said Andrew Nocella, the airline's chief commercial officer. "And as our customers continue to demand greater convenience and choices, we will be ready to deliver, offering the caring, creative solutions that will keep them choosing United."

The baggage delivery program will be offered to all customers who hold a ticket in United's Polaris business cabin on the New York/Newark to London Heathrow route, including upgraded tickets, and who are staying at select Marriott properties including JW Marriott Grosvenor House London, London Marriott Hotel Canary Wharf, London Marriott Hotel County Hall, Sheraton Grand London Park Lane and St. Pancras Renaissance Hotel London. Customers can proceed through immigration and customs as normal, and follow signs for the bag drop desk in the arrivals area of London Heathrow, which will be open seven days a week from 6:00am – 12:00pm. Customers will not need to pre-register for the service. As an added benefit, passengers who are also members of Marriott Bonvoy, Marriott's travel program, and have booked their hotel stay directly with Marriott will receive a notification on the Marriott Bonvoy app that their bags have arrived at their hotel.

United's reconfigured Boeing 767-300ER features 16 additional United Polaris business class seats – all with direct-aisle-access – bringing the total premium cabin seat count to 46. The aircraft also features 22 United Premium Plus seats – becoming the first United 767-300ER to offer this seat type – 47 Economy Plus seats and 52 Economy seats. United will be the only U.S. carrier to operate a widebody aircraft that features this many premium seats. The aircraft will operate between Newark/New York and London, offering more premium seats in the largest premium route in the world.

United Polaris business class service is designed to bring a new level of quality to every aspect of premium cabin travel – from lounge to landing – and provide the best sleep in the sky. Customers booked in the Polaris cabin will continue to receive signature amenities such as Saks Fifth Avenue bedding, amenity kits featuring custom products from luxury skincare line Sunday Riley, a variety of inflight entertainment options, elevated food and beverages and access to the Polaris lounge at Newark Liberty International Airport and the arrivals lounge and United Club at London Heathrow.

For additional details on the baggage delivery program please visit: https://www.united.com/londonbagdelivery

Every customer. Every flight. Every day.

In 2019, United is focusing more than ever on its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's announcement, this year United:

  • Announced that MileagePlus award miles will never expire
  • Gave Economy customers a choice of complimentary snacks on domestic flights
  • Made DIRECTV free for every customer on more than 200 aircraft
  • Released a new version of the award-winning, most downloaded app in the airline industry
  • Launched a new tool called ConnectionSaver, dedicated to improving the experience for customers with connecting flights
  • Partnered with CLEAR on free or discounted memberships for MileagePlus members
  • Announced PlusPoints, new upgrade benefits for MileagePlus Premier members
  • And introduced products in its amenity kits made exclusively for the airline by luxury skincare line Sunday Riley

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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 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 788 mainline aircraft and the airline's United Express partners operate 560 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".

SOURCE United Airlines

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

United Airlines Launches New Crowdsourcing Platform to Donate Miles to Charity

October 28, 2019

CHICAGO, Oct. 28, 2019 /PRNewswire/ -- Today, United Airlines announced the launch of Miles on a Mission, a first-of-its-kind crowdsourcing platform that gives customers a simple, easy way to donate miles to non-profit organizations and charities in need of air travel. The company has selected 12 launch partners and MileagePlus members can now visit united.com/donate to make contributions to organizations like the Transplant Life Foundation, OperationUSA and Waves for Water.

Each launch partner has 28 days to crowdsource miles from MileagePlus members, with the goal of reaching at least 250,000 miles. New partners will be added to the program as each launch partner reaches its goal.

United is donating two million miles to kick off the Miles on a Mission program, matching the first 50 thousand miles raised for each campaign.

"We want to make a difference in the communities where our customers and employees live, work and fly," said Sharon Grant, vice president and chief community engagement officer at United Airlines. "Miles on a Mission not only allows us to connect with even more organizations than before but also gives our customers a new way to use their miles in a way that supports the charities and causes that mean the most to them."

Non-profit organizations with current live campaigns include:

  • OperationUSA: An international disaster relief organization with a live campaign development agency that helps communities around the world overcome the effects of disaster, disease, violence and endemic poverty abroad.
  • Holocaust Museum Houston: An organization that is looking to fund travel for teachers to provide further education and classroom resources concerning the Holocaust and Human Rights.
  • NJ LEEP: A college access and success program serving first-generation and low-income students from the greater Newark, NJ area. The organization helps students build academic and social-emotional skills, develop the habits necessary for lasting success, and gain exposure to professional role models.
  • Swim Across America: An organization that hosts swimming events across the world to raise money for cancer research and clinical trials at major research institutions to supplement government funded research projects.
  • Watts of Love: A non-profit that provides solar technology and education to the 1 billion people living without electricity. They offer clean and sustainable forms of energy as an alternative to dangerous forms of energy.
  • Waves for Water: An organization that provides access to clean water for communities by creating portable water filter systems, digging/renovating wells and constructing rainwater harvesting and storing solutions.
  • The Transplant Life Foundation: The nation's leading advocacy group for those in the donation and transplantation world, including transplant recipients, living donors and donor families. Transplant Life Foundation strives each day to enhance and improve the lives of its members through its education programs, social networking platforms, TransplantNATION magazine and Transplant Games of America.
  • Off-The-Grid Missions: An organization dedicated to providing the Deaf and Hard-of-Hearing with access to life-saving resources, especially in high-risk and remote regions around the world.
  • Miles4Migrants: Dedicated to using donated frequent flyer miles, points and money to reunite and relocate individuals and families around the world separated by war, persecution, and disaster.
  • Animal Lighthouse Rescue: Dedicated to the rescue, rehabilitation, and finding of loving homes for satos, or stray dogs in Puerto Rico, through their local partner, no-kill shelter El Faro de los Animales, and a team of staff, volunteers, and foster families in NY.
  • Adaptive Cycling Foundation: An organization that supplies, manufactures and adapts bicycles for injured service members, first responders or heroes as a means for recovery and rehabilitation, both mentally and physically, from injuries and traumas.

The Miles on a Mission platform went live on Friday, October 25, and one of the inaugural non-profits, Veterans Community Project, has already reached its crowdsourcing goals. A new campaign will launch on the platform within the coming days.

"The Adaptive Cycling Foundation is very excited and honored to be included in United's Miles on a Mission campaign, continuing our alliance with United of giving back," said Scott Moro, Adaptive Cycling Foundation's mechanic and founder. "We create One of a Kind Bicycles for One of a Kind Heroes, Heroes that have already paid enough. The United Miles from the Miles on a Mission campaign helps us to provide zero cost travel to individually fit and consult with these Hero Veteran and Active Duty Service Members and First Responders. It's exciting, motivating, and we are honored to be involved in United's continuing mission of giving back."

Eligible charities can apply for the opportunity to launch a 28-day campaign to raise miles for their organization through MileagePlus member donations. Approved charities will work with United to reach goals of raising between 250,000 and 5 million miles. Organizations looking to launch a campaign can visit the Miles on a Mission website for full application details.

Every customer. Every flight. Every day.

In 2019, United is focusing more than ever on its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's announcement, this year United:

  • Announced that MileagePlus award miles will never expire
  • Gave Economy customers a choice of complimentary snacks on domestic flights
  • Made DIRECTV free for every customer on more than 200 aircraft
  • Released a new version of the award-winning, most downloaded app in the airline industry
  • Launched a new tool called ConnectionSaver, dedicated to improving the experience for customers with connecting flights
  • Partnered with CLEAR on free or discounted memberships for MileagePlus members
  • Announced PlusPoints, new upgrade benefits for MileagePlus Premier members
  • And introduced products in its amenity kits made exclusively for the airline by luxury skincare line Sunday Riley

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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 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 788 mainline aircraft and the airline's United Express partners operate 560 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".

SOURCE United Airlines

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

Fly the Friendly Galaxy: United Airlines Joins Forces with Star Wars: The Rise of Skywalker to Offer Customers Unforgettable Star Wars Experiences

October 25, 2019

CHICAGO, Oct. 25, 2019 /PRNewswire/ -- United Airlines today announced that the carrier has teamed up with Star Wars: The Rise of Skywalker – the epic conclusion of the Skywalker saga, to offer customers and employees alike exciting opportunities in the coming weeks to experience the Star Wars saga first-hand on the ground, in the air and throughout the airline's galaxy.

Customers will begin flying the friendly galaxy in November when United officially unveils an all-new Star Wars-themed paint design on one of its Boeing 737-800 aircraft with a re-designed onboard experience to celebrate the movie. The airline will also offer Star Wars: The Rise of Skywalker-themed amenity kits and launch its latest inflight safety demonstration video featuring characters from the new film. In addition, the airline will provide once-in-a-lifetime opportunities for MileagePlus members – including access to attend the US premiere of Star Wars: The Rise of Skywalker – through MileagePlus Exclusives, the airline's platform that lets MileagePlus members use miles to bid and buy exclusive items and experiences.

"United Airlines and the Star Wars franchise share a common goal: connect people and unite the world," said Mark Krolick, United's vice president of marketing. "We are thrilled to join forces and help promote the concluding chapter of the Skywalker story, while at the same time enlisting help from our new friends from the Star Wars universe to demonstrate the importance of safety for our customers and colleagues."

United and Star Wars take to the skies

Next month, United will officially introduce into service a special Star Wars-themed Boeing 737-800 aircraft featuring the Star Wars: The Rise of Skywalker-themed paint livery and onboard experience. The new paint design, which the airline teased last spring on its social media channels, captures the exotic atmosphere of the Star Wars galaxy and features imagery of famous Star Wars spacecraft, including the X-wing and TIE fighter starships. The aircraft's tail starkly displays a different colored lightsaber – the weapon of the Jedi – against a black backdrop on each side, reflecting the two sides of the Force.

United will greet customers with classic Star Wars-themed music during the boarding process and distribute commemorative pins throughout December in celebration of the movie's premiere. The aircraft's interior will also feature a special plaque reflecting United's relationship with Star Wars: The Rise of Skywalker and include headrests affixed with the emblems of the film's dueling factions, the Resistance and the First Order.

While not everyone will have the chance to see the new livery in person, anyone will be able to track United's Star Wars: The Rise of Skywalker-themed aircraft via special icon on FlightAware, the world's largest online flight tracking platform. For the first time, aviation and Star Wars enthusiasts can track past and future flights on both desktop and mobile by entering the plane's tail number and the new livery will appear on FlightAware's flight tracking maps as the X-Wing starship.

Safety is our highest priority

The new inflight safety demonstration video highlights United's lasting commitment to the safety of all the airline's customers and employees traveling to places "far, far away." In addition to United employees providing safety instructions on what do to in the unlikely event of an emergency, the video features special appearances by several iconic Star Wars characters and thrilling, space-themed sequences scored to some of the most recognizable musical themes in both motion picture and commercial aviation history. The safety video also highlights some of the many international destinations United serves within the airline's galaxy. To view the safety video, please visit: united.com/starwars.

Connecting People. Uniting the Worlds

Beginning today, on MileagePlus Exclusives, members will be able to bid award miles on several unique Star Wars experiences including:

  • Access to attend the premieres of Star Wars: The Rise of Skywalker in Los Angeles and London
  • Travel packages for four to visit Star Wars filming locations in Jordan to see how the filmmakers transformed the landscape for the movie
  • Access to exclusive screenings of Star Wars: The Rise of Skywalker in United hub cities on December 19
  • Special collectors package enabling members to take home a piece of Star Wars and United Airlines. The package features commemorative United and Star Wars branded items including Star Wars: The Rise of Skywalker-themed amenity kits, special pins and a model aircraft of United's Star-Wars-themed Boeing 737-800

For more information, please visit: MileagePlus Exclusives.

Every customer. Every flight. Every day.

In 2019, United is focusing more than ever on its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's announcement, this year United:

  • Announced that MileagePlus award miles will never expire
  • Gave Economy customers a choice of complimentary snacks on domestic flights
  • Made DIRECTV free for every customer on more than 200 aircraft
  • Released a new version of the award-winning, most downloaded app in the airline industry
  • Launched a new tool called ConnectionSaver, dedicated to improving the experience for customers with connecting flights
  • Partnered with CLEAR on free or discounted memberships for MileagePlus members
  • Announced PlusPoints, new upgrade benefits for MileagePlus Premier members
  • And introduced products in its amenity kits made exclusively for the airline by luxury skincare line Sunday Riley

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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 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 788 mainline aircraft and the airline's United Express partners operate 560 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".

About Star Wars: The Rise of Skywalker

Lucasfilm and director J.J. Abrams join forces once again to take viewers on an epic journey to a galaxy far, far away with Star Wars: The Rise of Skywalker, the riveting conclusion of the seminal Skywalker saga, where new legends will be born and the final battle for freedom is yet to come.

The film stars Carrie Fisher, Mark Hamill, Adam Driver, Daisy Ridley, John Boyega, Oscar Isaac, Anthony Daniels, Naomi Ackie, Domhnall Gleeson, Richard E. Grant, Lupita Nyong'o, Keri Russell, Joonas Suotamo, Kelly Marie Tran, with Ian McDiarmid and Billy Dee Williams

Star Wars: The Rise of Skywalker is directed by J.J. Abrams and produced by Kathleen Kennedy, Abrams and Michelle Rejwan. Callum Greene, Tommy Gormley and Jason McGatlin serve as executive producers. Star Wars: The Rise of Skywalker was written by J.J. Abrams & Chris Terrio and opens in U.S. theaters on December 20.

Miles, awards and benefits are subject to the rules of the United MileagePlus program. For details, see www.united.com. For details relating to United's MileagePlus Exclusives see https://exclusives.mileageplus.com/Home/Terms

SOURCE United Airlines

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

United Airlines Pledges $40 Million To Further Decarbonize Commercial Air Travel

October 25, 2019

CHICAGO, Oct. 25, 2019 /PRNewswire/ -- United Airlines today further strengthened its reputation as an aviation industry leader in environmental sustainability by committing $40 million toward a new investment vehicle focused on accelerating the development of sustainable aviation fuels and other decarbonization technologies. The carrier, which earlier this year agreed to purchase up to 10 million gallons of sustainable aviation fuel over the next two years, will look to collaborate with other environmentally conscious partners on this extraordinary initiative. Among all airlines around the world, United holds more than 50% of all publicly announced purchase commitments to using sustainable aviation fuels and is the only U.S. carrier to currently use this fuel on a continuous basis.

"United has been an industry leader in environmental sustainability – including being the first U.S. carrier to announce a bold pledge to cut our carbon footprint in half by 2050 relative to 2005," said Scott Kirby, United's president. "However, to achieve this goal, we can't be content as a leading airline undergoing an evolution to adapt to climate change. We aspire to be the airline leading the revolution to fight climate change, and this new initiative will further empower us to reduce our impact on the environment and fly towards a more sustainable future."

United's Commitment to the Environment

United's latest commitment to invest in the development of sustainable aviation fuel and decarbonization technologies, along with its pledge to reduce its greenhouse gas emissions, represents yet another leadership position the airline has undertaken to reduce its impact on the environment. Several of United's most significant environmental achievements include:

  • Becoming the first airline to incorporate sustainable aviation fuel in regular operations on a continuous basis, marking a significant milestone in the industry by moving beyond test programs and demonstrations to the everyday use of low-carbon fuel in ongoing operations.
  • Investing more than $30 million in California-based sustainable aviation fuels producer Fulcrum BioEnergy, which remains the single largest investment by any airline globally in sustainable fuels. United's option to purchase, subject to availability, nearly 1 billion gallons from Fulcrum BioEnergy is the largest offtake agreement for sustainable aviation fuel in the airline industry.
  • Operating the Flight for the Planet last June, which represented the most-eco-friendly commercial flight of its kind in the history of commercial aviation.
  • Becoming the first airline to fly with Boeing's Split Scimitar winglets, which reduce fuel consumption by an additional 2 percent versus standard winglets; United is the largest Scimitar winglet operator today, with nearly 400 aircraft equipped with these winglets.
  • Becoming the first U.S. airline to repurpose items from the carrier's international premium cabin amenity kits and partnering with Clean the World to donate hygiene products to those in critical need.
  • Eliminating non-recyclable plastic stirring sticks and cocktail picks on aircraft and replacing them with a more environmentally friendly product made of 100% bamboo.
  • Continuing to replace its eligible ground equipment with cleaner, electrically powered alternatives, with 40% of the fleet converted to date.

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. In 2017, Air Transport World magazine named United the Eco-Airline of the Year for the second time since the airline launched the Eco-Skies program. Additionally, United Airlines ranked No. 1 among global carriers in Newsweek's 2017 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/ecoskies.

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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 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 788 mainline aircraft and the airline's United Express partners operate 560 regional aircraft. United is a founding member of Star Alliance, which provides service to 193 countries via 27 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".

SOURCE United Airlines

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

United Airlines and Air New Zealand Announce First Ever Nonstop Service Between New York/Newark and Auckland, New Zealand

October 23, 2019

NEWARK, N.J. and AUCKLAND, New Zealand, Oct. 23, 2019 /PRNewswire/ -- Air New Zealand and United Airlines today announced the only nonstop service between New Zealand and the United States East Coast will begin in October 2020. Air New Zealand announced it will begin three-times weekly new nonstop service between Auckland and New York/Newark, further strengthening the joint venture relationship between Air New Zealand and United Airlines.

In 2018, Air New Zealand and United Airlines announced new year-round nonstop Air New Zealand service between Chicago and Auckland.

"Air New Zealand's nonstop flight will cut travel time by around three hours, putting New Zealand in easy reach of New York and the East Coast United States," said Jeff McDowall, Air New Zealand's acting Chief Executive Officer. "It's terrific we can make a seamless journey a reality for Kiwis wanting to experience New York and for U.S. travelers who have added New Zealand to their bucket list and we look forward to partnering with United Airlines to grow travel in both directions."

"United's strong, strategic alliance partnership with Air New Zealand provides our customers with more options to travel between the United States and New Zealand than any other airline in the world and we are proud to partner on this first ever nonstop service connecting New Zealand with our hub at Newark Liberty International Airport," said John Gebo, United's senior vice president of Alliances. "We are excited to offer our shared customers another option when planning travel to beautiful New Zealand while conveniently connecting visitors to more than 90 destinations across the United States with just one-stop connections at our New York hub."

Air New Zealand service between New York/Newark and Auckland

Air New Zealand will operate three times weekly, year-round service with its newly configurated Boeing 787-9 Dreamliner aircraft. Flight time will be approximately 17 hours and 40 minutes southbound and 15 hours 40 minutes northbound.

Air New Zealand code share service will be offered on 90 flights across the U.S. for convenient connections to Auckland via New York/Newark. United Airlines operates more flights from its hub at Newark Liberty International Airport than any other airline, with more than 400 flights in the U.S. and around the world.

Since United and Air New Zealand began their alliance in 2016, the joint venture has opened up more travel options for U.S. and New Zealand travelers than ever before. Overall passenger volumes have grown as customers traveling from New Zealand to the U.S. connect to United's broad domestic network through its hubs in Chicago, Houston, Los Angeles and San Francisco.

Air New Zealand's new flights between New York/Newark and Auckland will be available for purchase beginning in November on united.com:

Flight No.

Operated by

Aircraft

Departs

Arrives

Frequency

NZ1

Air New Zealand

Boeing 787-9
Dreamliner

New
York/Newark

19:05

Auckland

06:45+2 days

Mon,
Thurs, Sat

NZ2

Air New Zealand

Boeing 787-9
Dreamliner

Auckland

19:55

New York/Newark

17:35

Mon,
Thurs, Sat


Subject to Government Approval

The above timings are subject to change

Every customer. Every flight. Every day.

In 2019, United is focusing more than ever on its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's news, United recently announced that MileagePlus miles will now never expire, giving members a lifetime to use miles on flights and experiences. Customers now have more free on board snack options as well, with a choice of Lotus Biscoff cookies, pretzels and the Stroopwafel. The airline also recently released a re-imagined version of the most downloaded app in the airline industry, introduced ConnectionSaver – a tool dedicated to improving the experience for customers connecting from one United flight to the next – and launched PlusPoints, a new upgrade benefit for MileagePlus premier members.

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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 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 788 mainline aircraft and the airline's United Express partners operate 560 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".

About Air New Zealand

Air New Zealand is a multi-award winning international airline which delivers uniquely Kiwi journeys to more than 17 million customers who fly to, from and within New Zealand each year.

The airline operates on average more than 3,500 flights each week, connecting customers to 21 destinations within New Zealand and to international ports across Asia, Europe, Australia, North and South America and the Pacific Islands. For more information, visit www.airnewzealand.co.nz or follow the airline on Facebook or Twitter.

About Star Alliance

The Star Alliance network was established in 1997 as the first truly global airline alliance to offer worldwide reach, recognition and seamless service to the international traveller. Its acceptance by the market has been recognized by numerous awards, including the Air Transport World Market Leadership Award and Best Airline Alliance by both Business Traveller Magazine and Skytrax. The member airlines are: Aegean Airlines, Air Canada, Air China, Air India, Air New Zealand, ANA, Asiana Airlines, Austrian, Avianca, Brussels Airlines, Copa Airlines, Croatia Airlines, EGYPTAIR, Ethiopian Airlines, EVA Air, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Shenzhen Airlines, Singapore Airlines, South African Airways, SWISS, TAP Portugal, Turkish Airlines, THAI and United. Overall, the Star Alliance network currently offers more than 19,000 daily flights to 1,250 airports in 195 countries. Further connecting flights are offered by Star Alliance Connecting Partner, Juneyao Airlines. For more information about Star Alliance visit www.staralliance.com and/or follow Star Alliance on Facebook, Twitter, Youtube, LinkedIn or Instagram.

SOURCE United Airlines

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

United Airlines Raises Full Year 2019 Adjusted Diluted Earnings Per Share Guidance

October 15, 2019