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

California-themed United Airlines Plane Soars into The Friendly Skies

October 13, 2019

SAN FRANCISCO, Oct. 13, 2019 /PRNewswire/ -- United has officially welcomed a one-of-a-kind, California-themed aircraft livery to its fleet – a Boeing 757 created by a San Francisco resident as part of the airline's national Her Art Here competition. Designed by artist Tsungwei Moo, the eye-catching plane is a tribute to the Golden State where United operates two major hubs – one in Los Angeles and the other in San Francisco – and features quintessential California imagery including sunglasses, palm trees and the Golden Gate Bridge.

Launched in February, United's Her Art Here contest gave female artists like Tsungwei the chance to use an airplane as their canvas, inspiring women around the world who may be interested in careers in the arts. A labor of passion, Tsungwei's creation was also shaped by her personal journey. The talented artist grew up in Taipei, Taiwan before emigrating to San Francisco 14 years ago aboard a United Airlines flight.

"It's truly a dream come true. The vibrant colors, sunshine and subject matter make it California. I could never imagine one day my art will be displayed on a United Airlines plane which brought me to the United States. There are no culture borders in art and it doesn't matter my status is an emigrant female artist. This plane has its mission now, to bring more joy into people's life, connecting people and uniting the world through experience art," noted Ms. Moo

Before taking to the skies, United's Her Art Here California plane spent time in Amarillo, Texas where it took 17 days for painters to transform the Boeing 757 into Tsungwei's winning design.

For video of the painting process and still images of the aircraft please visit https://app.box.com/s/nz0s3v3u1dwm5dkrhxahppwq6ni6va2r

Her Art Here Contest

Her Art Here is the 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. According to the National Museum of Women in the Arts, while 51 percent of today's artists are women less than 13 percent of art on display in U.S. museums is by female artists. Having their designs painted on a Boeing 757 provides artists with a traveling canvas that flies on average 1.6 million miles a year and 476 cross-country trips. The aircraft is roughly 3,666 times larger than the typical 18" x 24" canvas.

The Her Art Here contest was open to those who identify as a woman, including cisgender, transgender, woman-aligned or non-binary, and reside in the United States, and asked artists to visually represent either New York/New Jersey or California, two key markets for the airline, in their own style, while combining the company's mission and what the communities in each region mean to the artist. Entries were scored by a panel of judges based on contest criteria and winners were determined based on a combination of judging scores and public voting.

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 Airlines CRJ-550 Tickets Available for Purchase Beginning Saturday, Oct. 12

October 10, 2019

CHICAGO, Oct. 10, 2019 /PRNewswire/ -- United Airlines today announced tickets for its newest regional fleet member, the Bombardier CRJ-550, will be available for purchase starting Saturday, October 12 for travel beginning Sunday, October 27. The initial schedule includes 15 cities from Chicago O'Hare.

The CRJ-550 is the world's only 50-seat regional aircraft to offer true first-class seating and other premium amenities, including:

  • Space for every customer to bring a roller bag on board.
  • A self-serve refreshment center for United First customers featuring a wide assortment of snacks and beverages.
  • More overall legroom per seat than any other 50-seat aircraft flown by a U.S. airline.
  • The ability to stay connected while in flight with United Wi-Fi.

Initially, the CRJ 550 will fly between Chicago O'Hare and:

    • Allentown, Pennsylvania (ABE)
    • Bentonville, Arkansas (XNA).
    • Cedar Rapids, Iowa (CID)
    • Cincinnati (CVG)
    • Columbus, Ohio (CMH)
    • Des Moines, Iowa (DSM)
    • Grand Rapids, Michigan (GRR)
    • Greensboro, North Carolina (GSO)
    • Harrisburg, Pennsylvania (MDT)
    • Indianapolis, Indiana (IND),
    • Madison, Wisconsin (MSN)
    • Oklahoma City (OKC)
    • Richmond, Virginia (RIC)
    • St. Louis, Missouri (STL)
    • Tulsa, Oklahoma (TUL)

Additional cities will be added over the coming weeks from United hubs in Chicago, New York/Newark and Washington Dulles.

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 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, 872.825.8640, media.relations@united.com

United Airlines Launches New Pilot Recruitment and Development Program

October 03, 2019

CHICAGO, Oct. 3, 2019 /PRNewswire/ -- United Airlines today announced the launch of Aviate, its new pilot recruitment program and career website, offering aspiring and established pilots more opportunities and the fastest paths to achieving their dreams and becoming a United First Officer and, ultimately, Captain. The program's signature, structured career pathways offer pilots at all stages of their journey – from college training to regional airline flying – the most direct path to flying for United, as well as the quickest progression from college to the rank of first officer of any major airline program in the industry. Due to retirements, attrition and projected growth, the company anticipates hiring more than 10,000 pilots by 2029.

"With nearly half of our 12,500 pilots retiring in the next decade, combined with a period of strong growth at our airline, United is uniquely positioned to offer pilots the opportunity to get where they want to go in their careers faster than ever," said Bryan Quigley, United's senior vice president of flight operations and chief pilot. "With the most comprehensive global route network in the industry, and the most widebodies of any North American airline, United offers unparalleled opportunity for an exceptional and exciting career as we begin to welcome hundreds of new pilots every year."

Aviate: Love to fly, born to lead

Those who apply to Aviate and are successful in the selection process will receive a conditional job offer with United. Aviate will also provide coaching and development for pilots to develop into leaders whom exemplify the professionalism, level of excellence and commitment to providing safe, caring, dependable and efficient service that United expects from its pilots. Additionally, Aviate provides those who aspire to a career as a United Captain with the fastest, most direct route to achieving that goal. United's Aviate career path program offers pilots competitive benefits, including:

  • The fastest path within the industry to a major airline, with an Aviate regional partner minimum requirement of 24 months and 2,000 hours
  • More options in program entry points throughout a pilot's career and choice of select United Express carrier
  • Increased transparency and clarity along the path from program entry to flying for United
  • Improved career development, coaching and access to United pilots and learning tools
  • Deeper connections with our United family throughout the Aviate journey, with access to senior leadership, site visits and tours, and certain travel privileges

United is partnering with several of its regional United Express carriers, leading universities with established aviation programs, and training centers – including Lufthansa Aviation Training – to ensure pilots have the best opportunities to enroll in the innovative program. Current Aviate United Express partners are Air Wisconsin, ExpressJet, Mesa Airlines and CommutAir.

For more information on Aviate please visit unitedaviate.com.

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 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".

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

United to Host Record Number of Events Promoting Aviation Career Opportunities for Women

October 03, 2019

CHICAGO, Oct. 3, 2019 /PRNewswire/ -- United Airlines is celebrating Women in Aviation International's annual Girls in Aviation Day with an airline record total of 14 locations around the world. On Oct. 2 and Oct. 5, more than 500 girls from various non-profit organizations are joining United for hands-on experiences and to learn from women about various career opportunities available in aviation, with a focus on non-traditionally female roles.

To download photos, visit: https://unitedairlines.smugmug.com/GIAD/

"United is proud to celebrate Girls in Aviation Day, engaging girls around the world as they begin to think about their own futures, so we can ensure a strong future of women in the industry," said Human Resources and Labor Relations Executive Vice President Kate Gebo. "We are proud to have a uniquely diverse workforce, but we recognize we also have more work to do to stay on this path and will continue to do all we can to inspire more women to pursue careers in aviation."

United is committed to leading in advancing women in the aviation industry. As part of the airline's efforts to break down barriers and promote inclusion, United has worked with Women in Aviation for nearly 30 years, joining the organization in recruiting women and providing scholarships for aspiring pilots. The airline employs the most female pilots of any major airline.

"United takes meaningful action in their support of Women in Aviation International all year long. United's Girls in Aviation Day events add forums in countries where the WAI Chapter network hasn't yet reached, lighting the spark of opportunity in aviation for girls in countries all over the globe," said Molly Martin, Outreach Director for Women in Aviation International. "The dedication to showing girls all the possibilities in aviation is real for United, and they are playing an important role in shaping the future face of aviation."

United's efforts to bring more women into aviation extend beyond pilots. United was also the first commercial airline to sponsor an all-female technicians team in the international aerospace skills competition and its cyber security group is comprised of approximately 40% women, which is nearly four times higher than the industry average. Additionally, United's Executive Vice President of Technology and Chief Digital Officer Linda Jojo was recently named one of the Top 50 Most Powerful Women in Technology by the National Diversity Council.

As Girls in Aviation Day is celebrated across the world this week, United Airlines will host events in: Denver; Chicago; Newark; Washington Dulles; Houston; Los Angeles; San Francisco; Orlando; San Diego; Amsterdam; Paris; Edinburgh; Rome; and London.

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".

SOURCE United Airlines

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

United Airlines to Hold Live Webcast of Third-Quarter 2019 Financial Results

October 01, 2019

CHICAGO, Oct. 1, 2019 /PRNewswire/ -- United Airlines will hold a conference call to discuss third-quarter 2019 financial results on Wednesday, October 16, at 9:30 a.m. CT/10:30 a.m. ET. A live, listen-only webcast of the conference call will be available at ir.united.com. The company will issue its third-quarter financial results and fourth-quarter investor update after market close on Tuesday, October 15.

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 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".

SOURCE United Airlines

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

New York/New Jersey Her Art Here Themed Livery Takes Flight on United Airlines

September 26, 2019

NEW YORK, Sept. 26, 2019 /PRNewswire/ -- United Airlines has officially welcomed a one-of-a-kind livery to its fleet that was created by a New Jersey native as a tribute to the New York/New Jersey region the airline serves from its Newark Liberty International Airport hub. Designed by artist Corinne Antonelli, the Boeing 757 features iconic imagery from the two states including the historic Red Mill in New Jersey, the New York City skyline and the Statue of Liberty, as well as a globe signaling United Airlines worldwide connectivity.

Ms. Antonelli designed the aircraft as part of United's Her Art Here contest, a competition that gave female artists the chance to use an airplane as their canvas and inspire women around the world who are interested in a career in the arts. According to the National Museum of Women in the Arts, while 51% of today's artists are women less than 13% of art on display in museums in the U.S is by female artists.

"It still feels like I am dreaming! I have seen the design on paper countless times, but now to see it, at its full scale in the physical world, there are no words to describe how proud I feel. My goal as an artist is to have people experience my art rather than just view it in a gallery, therefore having it displayed on an airplane has certainly been the most rewarding feeling I've ever experienced in my art career," noted Antonelli, who lives in Washington, NJ and is studying illustration at Ringling College of Art and Design in Florida.

Her Art Here is the 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. Having their designs painted on a Boeing 757 provides artists with a traveling canvas that flies on average 1.6 million miles a year and 476 cross-country trips. The aircraft is roughly 3,666 times larger than the typical 18" x 24" canvas.

The Her Art Here contest was open to those who identify as a woman, including cisgender, transgender, woman-aligned or non-binary, and reside in the United States, and asked artists to visually represent either New York/New Jersey or California, two key markets for the airline, in their own style, while combining the company's mission and what the communities in each region mean to the artist. Entries were scored by a panel of judges based on contest criteria and winners were determined based on a combination of judging scores and public voting. The California livery will be unveiled in the coming weeks.

For video of the painting process and still images of the aircraft please visit: https://app.box.com/s/s7pt1ohhqss2bf2jtr0bgct9ow8vvpns

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 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 Introduces PlusPoints - New Upgrade Benefits for MileagePlus Premier Members

September 24, 2019

CHICAGO, Sept. 24, 2019 /PRNewswire/ -- Today, United Airlines announced PlusPoints, a new upgrade benefit for Premier Platinum and 1K members that creates more opportunities – and more freedom – for them to be upgraded on flights. Top tier members will receive a bank of points that they can use to upgrade on all flights across United's global network, where they previously would have used Regional Premier Upgrades (RPU) or Global Premier Upgrades (GPU). With PlusPoints, members will be able to access all upgrades through united.com or United's mobile app, two features that make managing upgrades easier and are unique to United. United is the only global U.S. airline that lets members request all upgrades without making a phone call.

"We're making it even easier for our Premier members to use upgrades when and how they want," said Vice President of Loyalty and President of MileagePlus Luc Bondar. "The new PlusPoints program increases the overall number of upgrade opportunities for top tier Premier members, expands the fare classes where they can be used, and lets members request upgrades on multiple flights all at once. We already make it easy for members to manage all of their upgrades online, and the move to PlusPoints is yet another way we are making MileagePlus the best loyalty program in the industry."

How PlusPoints Works

On December 4, United will replace Regional Premier Upgrades and Global Premier Upgrades with PlusPoints. Each RPU will be worth 20 PlusPoints and each GPU will be worth 40 PlusPoints. Members using one RPU today to upgrade from Economy to United First on domestic U.S. and North American flights will use 20 PlusPoints from their banks. A member using one GPU today to upgrade from Economy to United Polaris business class on international long-haul flights will use 40 PlusPoints.

More Flexibility to Request Upgrades

PlusPoints gives members more flexibility to decide how to use their upgrades and creates more opportunities for them to be upgraded. Starting in December, members can use their points to join upgrade waitlists on multiple trips, and points won't be deducted from their accounts until upgrades are confirmed. Spreading upgrade requests across multiple trips makes it more likely that one or more of their trips will be upgraded. Members will still be able to confirm upgrades at booking if space is available.

PlusPoints also makes upgrading to and from premium economy more flexible. Upgrading from Economy to United Premium Plus and from United Premium Plus to United Polaris business class will be possible for less than the value of one GPU.

Fewer Restrictions, More Options

PlusPoints offers members new options to request upgrades and gives them the ability to customize their travel experience. While RPUs were restricted to upgrades in select regions, PlusPoints can be used for any United flight. Additionally, Premier Platinum members will now receive enough PlusPoints to upgrade from Economy to United Polaris business class, while Premier 1K members will be able to upgrade from discounted Economy fares to Polaris. From time to time, United may also allow 1K members the opportunity to use additional PlusPoints to skip the waitlist and receive a confirmed upgrade at booking when traveling on select international long-haul flights, even when upgrade fare classes are closed.

Importantly, PlusPoints does not replace or change United's Complimentary Premier Upgrades benefit. In recognition of their loyalty, all Premier members will continue to be placed on upgrade waitlists for flights operated by United and United Express when available. For more information on PlusPoints visit http://mileageplusupdates.com/.

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 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".