United Airlines Highest Second-Quarter Pre-Tax Income - United Hub

United Airlines Achieves Highest Second-Quarter Pre-Tax Income In Company History

July 16, 2019

CHICAGO, July 16, 2019 /PRNewswire/ -- United Airlines (UAL) today announced that the continued successful implementation of its strategy led to the company delivering two straight quarters of solid pre-tax margin growth - three quarters on an adjusted basis1 - and the highest second-quarter pre-tax income in the airline's history.2

"Thanks to the outstanding and sustained efforts of 95,000 United team members, United is now consistently delivering results for our customers as well as investors as we raise the mid-point of our full-year 2019 adjusted diluted EPS3 guidance with a new range of $10.50 to $12.00," said Oscar Munoz, CEO of United Airlines. "By once again delivering strong EPS over the last three months, top-tier results are now the expectation, not the exception for United."

  • Reported second-quarter net income of $1.1 billion, diluted earnings per share (EPS) of $4.02, pre-tax earnings of $1.4 billion and pre-tax margin of 11.9 percent, expanding pre-tax margin 4.0 points versus the second quarter of 2018.
  • Reported second-quarter adjusted net income of $1.1 billion, adjusted diluted EPS of $4.21, adjusted pre-tax earnings of $1.4 billion and adjusted pre-tax margin of 12.4 percent, expanding adjusted pre-tax margin 2.0 points versus the second quarter of 2018.1
  • Total passenger revenue increased 6.1 percent versus the second quarter of 2018.
  • Consolidated second-quarter passenger revenue per available seat mile (PRASM) increased 2.5 percent year-over-year.
  • Consolidated second-quarter unit cost per available seat mile (CASM) decreased 0.4 percent year-over-year.
  • Consolidated second-quarter CASM, excluding special charges, third-party business expenses, fuel and profit sharing, increased 0.6 percent year-over-year.
  • Repurchased $536 million of its common shares in the second quarter of 2019, at an average purchase price of $84.07 per share.
  • On July 15, 2019, the company's Board of Directors authorized a new $3 billion share repurchase program.

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.

2 Airline history defined as post-2010 merger.

3Excludes 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.

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

Second-Quarter 2019 Highlights

Customer Experience

  • United Polaris lounge at San Francisco International Airport voted best business class lounge in the world by the 2019 World Airline Awards from Skytrax.
  • Introduced ConnectionSaver, a new tool dedicated to improving the experience for customers connecting from one United flight to the next, while ensuring those who have already boarded the aircraft arrive at their destination on time.
  • Began flight operations at LaGuardia Airport's new Terminal B Eastern Concourse and opened newest United Club - conveniently located inside security with more than 10,500 square feet with sweeping views of the tarmac.
  • Awarded the "People's Voice" Webby Award in the "Business and Finance" category for reimagined mobile app, which debuted earlier this year.
  • Partnered with luxury skincare line Sunday Riley on new United Polaris amenity kits.
  • Awarded the Crystal Cabin Award for Inflight Entertainment and Connectivity for new onboard entertainment.
  • Received IDG's CIO 100 Award for innovative customer volunteer solicitation program.

Operations

  • Served nearly 43 million passengers, the most ever for United in the second quarter.
  • Achieved top-tier on-time departures rate performance versus the major U.S. airlines, despite headwinds caused by unusually high weather and ATC delays.
  • For the second quarter United had the second-best completion factor and the second fewest cancellations among the major U.S. airlines.

Employees

  • Received "Best-of-the-Best" award for commitment to diversity and inclusion by the National LGBT Chamber of Commerce (NGLCC) and the National Business Inclusion Consortium (NBIC), demonstrating the airline's industry-leading results across all diverse segments and its commitment to building a more diverse economy.
  • Honored with the "DiversityInc Top 50" designation, lauding the airline's leadership in promoting diversity through talent development, leadership accountability and a top supplier diversity program.
  • Expect profit sharing for 2019 to be about 20 percent higher per participating employee year-over-year.
  • Hosted more than half of the company's 25,000 flight attendants at 17 separate Backstage 2019 events, which are designed to underscore the important role flight attendants play in delivering great service.

Network

  • Started 34 new domestic and international routes, including brand-new summer service between New York/Newark and Prague, and the only nonstop service between the United States and Naples, Italy.
  • Resumed popular seasonal service on 28 routes offering customers more access than ever before to connect to 54 countries around the world on United's industry-leading global network.
  • Announced the only nonstop service from the United States to Cape Town, South Africa, and announced a second daily nonstop service between San Francisco and Hong Kong.
  • Launched ninth daily nonstop flight between the United States and Germany from its hub at Denver International Airport, becoming the only U.S. airline connecting Denver to Frankfurt nonstop.
  • Tentatively granted a total of four daily nonstop flights to Tokyo Haneda Airport from United's hubs at Newark Liberty International Airport, Chicago O'Hare International Airport, Washington Dulles International Airport and Los Angeles International Airport.
  • Unveiled 2019 college football flying schedule, adding around 10,000 seats between its hubs and popular game destinations and, for the first time, adding several point-to-point flights enabling fans to fly nonstop from one college town to another.
  • Entered into a new alliance agreement with New Delhi-based airline Vistara - further expanding the airline's global route network to more than 20 destinations throughout India and expected to begin in the fall.

Fleet

  • Unveiled next paint design, which brings a refreshed look to its fleet, serving as a visual representation of the airline's ongoing brand evolution while staying true to the history it has developed over the past 93 years of proudly serving customers around the world.
  • Took delivery of two Boeing 787-10 aircraft, two used Airbus A319 aircraft, and seven Embraer E175 aircraft operated by our regional partners.
  • Signed agreement to purchase 19 used Boeing 737-700 aircraft with deliveries expected beginning in December.

Community and Environment

  • Made history with the departure of the "Flight for the Planet," the most eco-friendly commercial flight of its kind in the history of aviation, becoming the first known airline to demonstrate all of the following key actions on a single commercial flight: utilization of sustainable aviation biofuel, zero cabin waste efforts, carbon offsetting, and operational efficiencies.
  • Became the first public company to be inducted into Pride Live's Stonewall Ambassador program in recognition of the airline's commitment to LGBTQ+ equality.
  • Reached a milestone of 1 million meals packed for charity partner Rise Against Hunger, a global nonprofit, working to end hunger by providing food and life-changing aid to the world's most vulnerable and creating a global commitment to mobilize critical resources.
  • Renewed contract with Boston-based World Energy, agreeing to purchase up to 10 million gallons of cost-competitive, commercial-scale, sustainable aviation biofuel over the next two years.
  • Revealed the two winning designs for Her Art Here, a first-of-its-kind contest designed to find and uplift underrepresented women artists by providing a chance to have their work painted on a canvas like no other - a United Airlines aircraft. The painted aircraft will begin flying in the fall.
  • Announced new and exciting opportunities to help customers celebrate Pride Month through MileagePlus Exclusives benefiting United charity partner The Trevor Project.

Earnings Call

UAL will hold a conference call to discuss its second-quarter 2019 financial results and its financial and operational outlook for third-quarter and full-year 2019 on Wednesday, July 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, introduced ConnectionSaver, a new tool dedicated to improving the experience for customers connecting from one United flight to the next 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 356 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 783 mainline aircraft and the airline's United Express carriers operate 561 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 Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

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

-tables attached-

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

UNITED AIRLINES HOLDINGS, INC.

STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)



Three Months Ended
June 30,


%
Increase/



Six Months Ended

June 30,


%
Increase/


(In millions, except per share data)

2019


2018


(Decrease)



2019


2018


(Decrease)

Operating revenue:














Passenger

$

10,486



$

9,880



6.1




$

19,211



$

18,030



6.6



Cargo

295



314



(6.1)




581



607



(4.3)



Other operating revenue

621



583



6.5




1,199



1,172



2.3



Total operating revenue

11,402



10,777



5.8




20,991



19,809



6.0

















Operating expense:














Salaries and related costs

3,057



2,878



6.2




5,930



5,604



5.8



Aircraft fuel

2,385



2,390



(0.2)




4,408



4,355



1.2



Regional capacity purchase

715



693



3.2




1,403



1,323



6.0



Landing fees and other rent

660



625



5.6




1,248



1,204



3.7



Depreciation and amortization

560



538



4.1




1,107



1,062



4.2



Aircraft maintenance materials and outside repairs

421



438



(3.9)




829



878



(5.6)



Distribution expenses

442



393



12.5




802



735



9.1



Aircraft rent

73



119



(38.7)




154



246



(37.4)



Special charges (B)

71



129



NM




89



169



NM



Other operating expenses

1,546



1,429



8.2




3,054



2,826



8.1



Total operating expense

9,930



9,632



3.1




19,024



18,402



3.4

















Operating income

1,472



1,145



28.6




1,967



1,407



39.8

















Operating margin

12.9

%


10.6

%


2.3


pts.


9.4

%


7.1

%


2.3


pts.

Adjusted operating margin (Non-GAAP) (A)

13.5

%


11.8

%


1.7


pts.


9.8

%


8.0

%


1.8


pts.















Nonoperating income (expense):














Interest expense

(191)



(163)



17.2




(379)



(325)



16.6



Interest capitalized

21



12



75.0




43



30



43.3



Interest income

38



25



52.0




67



42



59.5



Miscellaneous, net (B)

14



(164)



NM




23



(117)



NM



Total nonoperating expense

(118)



(290)



(59.3)




(246)



(370)



(33.5)

















Income before income taxes

1,354



855



58.4




1,721



1,037



66.0

















Pre-tax margin

11.9

%


7.9

%


4.0


pts.


8.2

%


5.2

%


3.0


pts.

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

12.4

%


10.4

%


2.0


pts.


8.6

%


6.5

%


2.1


pts.















Income tax expense (D)

302



172



75.6




377



209



80.4



Net income

$

1,052



$

683



54.0




$

1,344



$

828



62.3

















Diluted earnings per share

$

4.02



$

2.48



62.1




$

5.07



$

2.95



71.9



Diluted weighted average shares

261.6



275.6



(5.1)




264.9



280.2



(5.5)




NM Not meaningful

UNITED AIRLINES HOLDINGS, INC.

PASSENGER REVENUE INFORMATION AND STATISTICS


Passenger revenue information is as follows:



2Q 2019

Passenger

Revenue

(millions)


Passenger

Revenue

vs.

2Q 2018


PRASM

vs.

2Q 2018


Yield

vs.

2Q 2018


Available

Seat Miles

vs.

2Q 2018


2Q 2019
Available Seat
Miles (millions)

Domestic

$

6,547


5.9%


1.9%


1.5%


4.0%


41,484













Atlantic

1,927


5.6%


0.6%


(1.5%)


5.0%


14,114

Pacific

1,135


2.9%


2.8%


(1.1%)


0.1%


10,753

Latin America

877


13.6%


9.1%


6.5%


4.1%


6,889

International

3,939


6.5%


3.2%


0.4%


3.1%


31,756













Consolidated

$

10,486


6.1%


2.5%


1.0%


3.6%


73,240

Select operating statistics are as follows:



Three Months Ended

June 30,


%

Increase/

(Decrease)



Six Months Ended

June 30,


%

Increase/

(Decrease)



2019


2018





2019


2018




Passengers (thousands)

42,592



41,058



3.7




79,046



75,553



4.6



Revenue passenger miles (millions)

63,001



59,945



5.1




116,098



109,794



5.7



Available seat miles (millions)

73,240



70,702



3.6




138,885



132,679



4.7



Passenger load factor:














Consolidated

86.0

%


84.8

%


1.2


pts.


83.6

%


82.8

%


0.8


pts.

Domestic

87.5

%


87.1

%


0.4


pts.


85.2

%


85.1

%


0.1


pts.

International

84.0

%


81.7

%


2.3


pts.


81.5

%


79.7

%


1.8


pts.

Passenger revenue per available seat mile (cents)

14.32



13.97



2.5




13.83



13.59



1.8



Total revenue per available seat mile (cents)

15.57



15.24



2.2




15.11



14.93



1.2



Average yield per revenue passenger mile (cents)

16.64



16.48



1.0




16.55



16.42



0.8



Cargo ton miles (millions)

831



855



(2.8)




1,636



1,672



(2.2)



Aircraft in fleet at end of period

1,344



1,308



2.8




1,344



1,308



2.8



Average stage length (miles)

1,469



1,460



0.6




1,459



1,452



0.5



Average full-time equivalent employees

90,779



86,743



4.7




89,761



86,157



4.2



Average aircraft fuel price per gallon

$

2.16



$

2.26



(4.4)




$

2.11



$

2.19



(3.7)



Fuel gallons consumed (millions)

1,102



1,058



4.2




2,087



1,990



4.9




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

UNITED AIRLINES HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)


(In millions)

June 30, 2019


December 31, 2018

ASSETS




Current assets:




Cash and cash equivalents

$

3,221



$

1,694


Short-term investments

2,223



2,256


Receivables, less allowance for doubtful accounts

1,762



1,426


Aircraft fuel, spare parts and supplies, less obsolescence allowance

996



985


Prepaid expenses and other

708



733


Total current assets

8,910



7,094






Total operating property and equipment, net

28,918



27,399


Operating lease right-of-use assets

4,908



5,262






Other assets:




Goodwill

4,523



4,523


Intangibles, less accumulated amortization

3,129



3,159


Restricted cash

105



105


Notes receivable, net

518



516


Investments in affiliates and other, net

1,139



966


Total other assets

9,414



9,269


Total assets

$

52,150



$

49,024






LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Advance ticket sales

$

6,126



$

4,381


Accounts payable

3,033



2,363


Frequent flyer deferred revenue

2,435



2,286


Accrued salaries and benefits

1,871



2,184


Current maturities of long-term debt

1,255



1,230


Current maturities of finance leases

117



123


Current maturities of operating leases

637



719


Other

604



553


Total current liabilities

16,078



13,839






Long-term debt and other long-term liabilities and deferred credits:




Long-term debt

12,938



12,215


Long-term obligations under finance leases

202



224


Long-term obligations under operating leases

5,034



5,276


Frequent flyer deferred revenue

2,763



2,719


Postretirement benefit liability

1,277



1,295


Pension liability

1,366



1,576


Deferred income taxes

1,192



828


Other

980



1,010


Total long-term debt and other long-term liabilities and deferred credits:

25,752



25,143


Stockholders' equity

10,320



10,042


Total liabilities and stockholders' equity

$

52,150



$

49,024


UNITED AIRLINES HOLDINGS, INC.

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)


(In millions)

Six Months Ended

June 30,


2019


2018

Cash Flows from Operating Activities:




Net cash provided by operating activities

$

4,625



$

4,152






Cash Flows from Investing Activities:




Capital expenditures

(2,467)



(1,671)


Purchases of short-term and other investments

(1,443)



(1,326)


Proceeds from sale of short-term and other investments

1,484



1,455


Investment in affiliates

(27)



(139)


Loans made to others



(10)


Other, net

17



38


Net cash used in investing activities

(2,436)



(1,653)






Cash Flows from Financing Activities:




Proceeds from issuance of long-term debt

996



1,241


Payments of long-term debt

(473)



(1,294)


Repurchases of common stock

(1,062)



(969)


Principal payments under finance leases

(63)



(35)


Capitalized financing costs

(30)



(25)


Other, net

(30)



(17)


Net cash used in financing activities

(662)



(1,099)


Net increase in cash, cash equivalents and restricted cash

1,527



1,400


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

$

3,326



$

2,991






Investing and Financing Activities Not Affecting Cash:




Property and equipment acquired through the issuance of debt

$

220



$

125


Operating lease conversions to finance lease

36




Right-of-use assets acquired through operating leases

99



103


Property and equipment acquired through finance leases

8




UNITED AIRLINES HOLDINGS, INC.

RETURN ON INVESTED CAPITAL (ROIC)—Non-GAAP


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


(in millions)

Twelve Months Ended

June 30, 2019

Net Operating Profit After Tax ("NOPAT")


Pre-tax income

$

3,332


Adjustments:


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


Impairment of assets

312


Termination of a maintenance service agreement

64


Severance and benefit costs

28


MTM gains on financial instruments

(136)


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

3


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

3,603


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

721


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

195


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

(11)


less: Income taxes paid

(13)


NOPAT (Non-GAAP)

$

4,495






Average Invested Capital (five-quarter average)


Total assets

$

50,076


less: Non-interest bearing liabilities (b)

(17,495)


Average invested capital (Non-GAAP)

$

32,581




ROIC (Non-GAAP)

13.8

%



(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 and losses on financial instruments. For the twelve months ended June 30, 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 AIRLINES HOLDINGS, INC.

NON-GAAP FINANCIAL RECONCILIATION


(A) UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and Non-GAAP financial measures, including adjusted operating income (loss), adjusted operating margin, adjusted pre-tax income (loss), adjusted pre-tax margin, adjusted net income (loss), adjusted diluted earnings (loss) per share and CASM, excluding special charges, third-party business expenses, fuel, and profit sharing, among others. UAL believes that adjusting for special charges is useful to investors because special charges are not indicative of UAL's ongoing performance. UAL believes that adjusting for 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

June 30,


%

Increase/


Six Months Ended

June 30,


%

Increase/


2019


2018


(Decrease)


2019


2018


(Decrease)

CASM (cents)












Cost per available seat mile (CASM) (GAAP)

13.56



13.62



(0.4)



13.70



13.87



(1.2)


Special charges (B)

0.10



0.18



NM



0.07



0.13



NM


Third-party business expenses

0.05



0.04



25.0



0.05



0.05




Fuel expense

3.26



3.38



(3.6)



3.17



3.28



(3.4)


Profit sharing, including taxes

0.22



0.15



46.7



0.14



0.09



55.6


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

9.93



9.87



0.6



10.27



10.32



(0.5)



NM Not Meaningful

UNITED AIRLINES HOLDINGS, INC.

NON-GAAP FINANCIAL RECONCILIATION (Continued)



Three Months Ended

June 30,


$

Increase/


%

Increase/


Six Months Ended

June 30,


$

Increase/


%

Increase/

(in millions)

2019


2018


(Decrease)


(Decrease)


2019


2018


(Decrease)


(Decrease)

Operating expenses (GAAP)

$

9,930



$

9,632



$

298



3.1



$

19,024



$

18,402



$

622



3.4


Special charges (B)

71



129



(58)



NM



89



169



(80)



NM


Operating expenses, excluding special charges

9,859



9,503



356



3.7



18,935



18,233



702



3.9


Adjusted to exclude:
















Third-party business expenses

41



29



12



41.4



71



60



11



18.3


Fuel expense

2,385



2,390



(5)



(0.2)



4,408



4,355



53



1.2


Profit sharing, including taxes

161



108



53



49.1



194



125



69



55.2


Adjusted operating expenses (Non-GAAP)

$

7,272



$

6,976



$

296



4.2



$

14,262



$

13,693



$

569



4.2


















Operating income (GAAP)

$

1,472



$

1,145



$

327



28.6



$

1,967



$

1,407



$

560



39.8


Adjusted to exclude:
















Special charges (B)

71



129



(58)



NM



89



169



(80)



NM


Adjusted operating income (Non-GAAP)

$

1,543



$

1,274



$

269



21.1



$

2,056



$

1,576



$

480



30.5


















Pre-tax income (GAAP)

$

1,354



$

855



$

499



58.4



$

1,721



$

1,037



$

684



66.0


Adjusted to exclude:
















Special charges (B)

71



129



(58)



NM



89



169



(80)



NM


MTM (gains) losses on financial instruments (B)

(34)



135



(169)



NM



(51)



90



(141)



NM


Interest expense on ERJ 145 finance leases (C)

25





25



NM



46





46



NM


Adjusted pre-tax income (Non-GAAP)

$

1,416



$

1,119



$

297



26.5



$

1,805



$

1,296



$

509



39.3


















Net income (GAAP)

$

1,052



$

683



$

369



54.0



$

1,344



$

828



$

516



62.3


Adjusted to exclude:
















Special charges (B)

71



129



(58)



NM



89



169



(80)



NM


MTM (gains) losses on financial instruments (B)

(34)



135



(169)



NM



(51)



90



(141)



NM


Interest expense on ERJ 145 finance leases (C)

25





25



NM



46





46



NM


Income tax benefit related to adjustments above

(14)



(59)



45



NM



(19)



(58)



39



NM


Adjusted net income (Non-GAAP)

$

1,100



$

888



$

212



23.9



$

1,409



$

1,029



$

380



36.9


















Diluted earnings per share (GAAP)

$

4.02



$

2.48



$

1.54



62.1



$

5.07



$

2.95



$

2.12



71.9


Adjusted to exclude:
















Special charges (B)

0.27



0.47



(0.20)



NM



0.34



0.60



(0.26)



NM


MTM (gains) losses on financial instruments (B)

(0.13)



0.49



(0.62)



NM



(0.19)



0.32



(0.51)



NM


Interest expense on ERJ 145 finance leases (C)

0.10





0.10



NM



0.17





0.17



NM


Income tax benefit related to adjustments

(0.05)



(0.22)



0.17



NM



(0.07)



(0.20)



0.13



NM


Adjusted diluted earnings per share (Non-GAAP)

$

4.21



$

3.22



$

0.99



30.7



$

5.32



$

3.67



$

1.65



45.0



NM Not Meaningful

UNITED AIRLINES HOLDINGS, INC.

NON-GAAP FINANCIAL RECONCILIATION (Continued)


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



Three Months Ended

June 30,


Six Months Ended

June 30,

Capital Expenditures (in millions)

2019


2018


2019


2018

Capital expenditures (GAAP)

$

858



$

727



$

2,467



$

1,671


Property and equipment acquired through the issuance of debt

128



65



220



125


Property and equipment acquired through finance leases





8




Adjusted capital expenditures (Non-GAAP)

$

986



$

792



$

2,695



$

1,796










Free Cash Flow (in millions)








Net cash provided by operating activities (GAAP)

$

2,710



$

2,443



$

4,625



$

4,152


Less capital expenditures

858



727



2,467



1,671


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

$

1,852



$

1,716



$

2,158



$

2,481










Net cash provided by operating activities (GAAP)

$

2,710



$

2,443



$

4,625



$

4,152


Less adjusted capital expenditures (Non-GAAP)

986



792



2,695



1,796


Free cash flow (Non-GAAP)

$

1,724



$

1,651



$

1,930



$

2,356


UNITED AIRLINES HOLDINGS, INC.

NOTES (UNAUDITED)


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



Three Months Ended

June 30,


Six Months Ended

June 30,

(In millions)

2019


2018


2019


2018

Operating:








Impairment of assets

$

61



$

111



$

69



$

134


Severance and benefit costs

6



11



12



25


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

4



7



8



10


Total special charges

71



129



89



169


Nonoperating MTM (gains) losses on financial instruments

(34)



135



(51)



90


Total special charges and MTM (gains) losses on financial instruments

37



264



38



259


Income tax benefit

(8)



(59)



(8)



(58)


Total special charges and MTM (gains) losses on financial instruments, net of income tax

$

29



$

205



$

30



$

201



Impairment of assets: During the three months ended June 30, 2019, the company recorded a $47 million impairment for aircraft engines removed from operations, a $6 million charge for the early termination of several regional aircraft finance leases and $8 million in other miscellaneous impairments. During the six months ended June 30, 2019, in addition to the charges described above, the company recorded an $8 million fair value adjustment for aircraft purchased off lease.


In May 2018, the Brazil–United States open skies agreement was ratified, which provides air carriers with unrestricted access between the United States and Brazil. The company determined that the approval of the open skies agreement impaired the entire value of its Brazil route authorities because the agreement removes all limitations or reciprocity requirements for flights between the United States and Brazil. Accordingly, the company recorded a $105 million special charge to write off the entire value of the intangible asset associated with its Brazil routes. For the three and six months ended June 30, 2018, the company also recorded $6 million and $29 million, respectively, of fair value adjustments related to aircraft purchased off lease and other impairments related to certain fleet types and international slots no longer in use.


Severance and benefit costs: During the three and six months ended June 30, 2019, the company recorded $6 million and $10 million, respectively, of management severance. During the six months ended June 30, 2019, the company recorded $2 million 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.


During the three and six months ended June 30, 2018, the company recorded $6 million and $14 million, respectively, of severance and benefit costs related to the voluntary early-out program for its technicians and related employees, and $5 million and $11 million, respectively, of management severance.


MTM gains and losses on financial instruments: During the three and six months ended June 30, 2019, the company recorded gains of $38 million and $52 million, respectively, for the change in market value of its investment in Azul Linhas Aéreas Brasileiras S.A. ("Azul"). During the three and six months ended June 30, 2019, the company recorded losses of $4 million and $1 million, respectively, 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.


During the three and six months ended June 30, 2018, the company recorded losses of $135 million and $90 million, respectively, for the change in market value of its investment in Azul.


(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 $25 million and $46 million of additional interest expense in the three and six months ended June 30, 2019, respectively, as a result of this change.


(D) Effective tax rate


The company's effective tax rate for the three and six months ended June 30, 2019 was 22.3% and 21.9%, respectively. The effective tax rate for the three and six months ended June 30, 2018 was 20.1% and 20.2%, 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' MileagePlus Named Best Overall Airline Loyalty Program for 16th Year

December 12, 2019

CHICAGO, Dec. 12, 2019 /PRNewswire/ -- For the 16th consecutive year, Global Traveler readers named United Airlines' MileagePlus program the Best Overall Frequent Flyer program in the industry. Global Traveler is a monthly publication with an audience of over half a million business and luxury travelers who vote in the Global Traveler Reader Survey to determine this award. MileagePlus has earned the top spot for loyalty programs since the survey's first year in 2004.

Readers also voted MileagePlus Best Frequent-Flyer Bonus Program for the seventh consecutive year. The airline's co-brand MileagePlus Club Card from Chase was voted Best Overall Credit Card Program and Best Credit Card Rewards Program for the eighth consecutive year. The United Explorer Card from Chase was named Best Frequent-Flyer Affinity Credit Card Redemptions in this year's survey.

"MileagePlus earning the Best Overall Frequent Flyer program for the 16th straight year is a sweet achievement for us, most importantly because it is voted on by members and frequent travelers around the world," said Luc Bondar, president of MileagePlus and vice president of loyalty at United. "This year we made a number of improvements to the MileagePlus program, including announcing that miles never expire, and we know these changes continue to make MileagePlus an award-winning program for our members."

This year, United made numerous enhancements to MileagePlus to make it a more rewarding loyalty program for members at each level. The airline announced that MileagePlus miles never expire, began offering discounted or free CLEAR memberships for members and introduced an industry leading way for Premier Platinum members and above to manage upgrades with the introduction of PlusPoints. United and Star Alliance offer members more than 1,300 destinations for award travel, more than any other U.S. airline. MileagePlus members also have more ways to earn and use their miles than any other U.S. airline loyalty program including opportunities to use miles for once in a lifetime experiences through MileagePlus Exclusives and opportunities to redeem as low as 1,000 miles for eGift cards.

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 Announces Leadership Transition

December 05, 2019

CHICAGO, Dec. 5, 2019 /PRNewswire/ -- United Airlines (NASDAQ: UAL) today announced that Oscar Munoz, Chief Executive Officer, will transition to the role of Executive Chairman of the Board of Directors of United Airlines Holdings, Inc. in May 2020. As CEO, Munoz has transformed United's culture and set new standards of operational and financial performance. J. Scott Kirby, President, will succeed Munoz as Chief Executive Officer.

"With United in a stronger position than ever, now is the right time to begin the process of passing the baton to a new leader," Munoz said. "One of my goals as CEO was to put in place a successful leadership transition for United Airlines. I brought Scott to United three years ago, and I am confident that there is no one in the world better equipped to lead United to even greater heights. It has been the honor of my career to lead the 95,000 dedicated professionals who serve United's customers every day. I look forward to continuing to work closely with Scott in the months ahead and supporting the company's ongoing success in my new role."

Kirby was recruited to United Airlines by Munoz in August 2016, after a three-decade career in the commercial airline business. His appointment reflects a commitment from Munoz and the Board to preserve leadership continuity and demonstrates confidence in the airline's strategy and current trajectory.

"When I joined United as CEO, I laid out ambitious goals to build a new spirit of United by regaining the trust of our employees and customers – and I'm proud of how far we've come," Munoz said. "Along with the successful implementation of the plan our team laid out in January 2018, United's operational and financial performance isn't just better – it's better than ever. By instilling a culture of 'proof not promise,' we have transformed United even faster than we expected and there's an incredible sense of excitement about the future."

Kirby, a highly-regarded industry leader, has played a pivotal role in enabling United's cultural transformation and successfully executing the company's strategic growth plan.

"I am honored to be named the next CEO of United and to succeed Oscar, whose leadership has been truly transformational for United Airlines," Kirby said. "I look forward to working with Oscar, the Board, our established leadership team and every United employee as we drive forward our proven strategy and focus on being the airline customers choose to fly and return to time and again."

Munoz will serve as Executive Chairman for a one-year term and will continue to work closely with Kirby, the Board and the United team in shaping United's employee and customer-centric culture. He will also lead the company's Board and continue to engage on behalf of United with a range of external stakeholders.

As part of this transition, United's current Chairman, Jane Garvey, will retire from the Board in May 2020 after more than a decade of exceptional service, including serving as Chairman since May 2018. At the request of the Board, Garvey agreed to remain in her role for a year beyond the Board's mandatory retirement age.

"On behalf of the Board of Directors, I cannot thank Oscar enough for his outstanding leadership and commitment to United, and we are pleased that we will continue to benefit from his expertise and experience in his role as Executive Chairman," Garvey said. "Oscar became CEO at one of the most challenging points in United's history, and his focus on putting customers and employees first has transformed United's culture today and successfully positioned the company for tomorrow. One of Oscar's greatest legacies is the best-in-class leadership team he has built, and we have full confidence that Scott is the ideal candidate to lead United into the bright future that lies ahead."

The company also announced that Ted Philip will become Lead Independent Director following the 2020 Annual Meeting of Shareholders. Philip joined the Board in July 2016 and chairs the Nominating/Governance Committee. He also currently serves on the Board of Directors of Hasbro, Inc. and BRP Inc.

"I could not be more excited about the opportunity that we have at United over the next several years to fulfill this airline's incredible potential," Philip said. "I am proud to work alongside Oscar in guiding United's Board and leadership team, and I am eager to get to work on delivering for all of our stakeholders. The entire Board and I want to thank Jane for her many contributions to United over the last decade, including her highly successful tenure as Chairman."

All of the changes announced today will take effect following the company's Annual Meeting of Shareholders, scheduled for May 20, 2020.

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 356 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 783 mainline aircraft and the airline's United Express partners operate 561 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".

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

SOURCE United Airlines

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

United Airlines Sets a Course for the Future With Order of 50 Airbus A321XLR Aircraft

December 03, 2019

CHICAGO, Dec. 3, 2019 /PRNewswire/ -- United Airlines today announced an order to purchase 50 new Airbus A321XLR aircraft, enabling the carrier to begin replacing and retiring its existing fleet of Boeing 757-200 aircraft and further meet the airline's operational needs by pairing the optimal aircraft with select transatlantic routes. The state-of-the-art aircraft, which United expects to introduce into international service in 2024, will also allow United to explore serving additional destinations in Europe from its East Coast hubs in Newark/New York and Washington.

"The new Airbus A321XLR aircraft is an ideal one-for-one replacement for the older, less-efficient aircraft currently operating between some of the most vital cities in our intercontinental network," said Andrew Nocella, United's executive vice president and chief commercial officer. "In addition to strengthening our ability to fly more efficiently, the A321XLR's range capabilities open potential new destinations to further develop our route network and provide customers with more options to travel the globe."

The next-generation A321XLR offers customers an elevated inflight experience and features modern amenities including LED lighting, larger overhead bin space and Wi-Fi connectivity. Additionally, the new aircraft lowers overall fuel burn per seat by about 30% when compared to previous generation aircraft, enabling United to further minimize its environmental impact as the carrier moves towards its ambitious goal of reducing its carbon footprint by 50% relative to 2005 levels by 2050.

United plans to begin taking delivery of the Airbus A321XLR in 2024. Additionally, the airline will defer the delivery of its order of Airbus A350s until 2027 to better align with the carrier's operational needs.

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 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 Pledges Millions of Miles to Non-Profits on Giving Tuesday

December 03, 2019

CHICAGO, Dec. 3, 2019 /PRNewswire/ -- United Airlines continues its successful Miles on a Mission campaign this Giving Tuesday by pledging to match customer donations up to a total of 10 million MileagePlus® miles to featured Miles on a Mission partners. The campaign is a first-of-its-kind crowdsourcing platform that gives customers a simple, and easy way to donate miles to non-profit organizations and charities in need of air travel. Brian Kelly, founder and CEO of The Points Guy, will kick off a holiday donation drive today in Terminal C at Newark Liberty International Airport by meeting and encouraging MileagePlus members to donate miles to the effort.

The inaugural round of Miles on a Mission assisted 12 charity campaigns, which raised more than 11 million MileagePlus miles in just 28 days. MileagePlus members can now visit united.com/donate to make contributions to non-profit organizations in need of air travel.

"As our customers begin to think about ways to give back this holiday season, we are proud to offer more options to use miles in support of causes and charities that are meaningful to our customers," said Sharon Grant, vice president and chief community engagement officer at United Airlines. "We know many of our customers are looking to make a difference and we want to give them opportunities to make the giving of their miles go even further. Donating miles is a powerful way to contribute to an organization."

The following non-profit organizations are participating in the Giving Tuesday campaign:

  • A Walk on Water
    • Surf Therapy organization serving families of children with unique needs by offering transformative experiences at the beach.
  • Compass to Care
    • Chicago-based organization that assists children suffering from cancer with travel to receive life-saving cancer treatment. Thirty percent of children diagnosed with cancer do not have treatment options within 60 miles of their homes.
  • The Extra Mile
    • Chicago-based organization that gives flights to those in need of visiting terminally ill loved ones, who cannot otherwise afford the trip to say their final goodbyes.
  • I AM ALS
    • I AM ALS is uniting patients, advocates, and the scientific community to reshape public understanding of ALS, provide key resources to the community to fight ALS, and empower them to lead the search for treatments and cures for this currently terminal disease.
  • PeaceJam
    • A global peace organization teaching young people the skills they need to tackle today's most pressing issues. Your miles will support youth to work directly with PeaceJam's 14 Nobel Peace Laureates at summits around world.
  • Rainbow Railroad
    • Organization that helps those who identify as LGBTQI seek asylum from their countries of origin. They will use the miles they raise to book flights for individuals they are helping to travel to safety.
  • The Station Foundation
    • Organization committed to protecting and empowering U.S. Special Operations veterans returning from combat, their spouses, families and Gold Star children.
  • Up2Us Sports
    • Organization that works to engage, train and support sports coaches to serve as mentors and role models to youth in underserved communities all across America.

Eligible charities can apply for the opportunity to launch a 28-day rotation 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

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