UA receives Audubon International's Green Hospitality Award - United Hub

United Airlines Becomes First Carrier to Receive Audubon International's Green Hospitality Award

United achieves gold certification for its United Club lounge in Los Angeles, will work with Audubon International to ensure all airport lounges meet the organization's high standards
June 12, 2018

LOS ANGELES, June 12, 2018 /PRNewswire/ -- United Airlines reached yet another milestone in its role as the world's most environmentally conscious airline by becoming the first carrier to achieve certification through the new Audubon International Green Hospitality Program for the airline's United Club location in Terminal 7 of Los Angeles International Airport. Audubon International awarded United its gold-level certification in recognition of the airport lounge's exemplary indoor air quality, innovative composting program and overall dedication to environmental stewardship.

United and Audubon International, the not-for-profit environmental education organization dedicated to sustainable natural resource management, will continue to work together to further improve the sustainability of the airline's airport lounges around the globe, including its new United Polaris lounge locations at several major U.S. hubs. United has already achieved separate "Green Business" certifications for United Club locations from the cities of Los Angeles, Denver and San Diego.

United's achievement at Los Angeles International Airport follows the airline's historic launch of service in 2016 using commercial-scale volumes of sustainable aviation fuel at the Los Angeles hub for regularly scheduled departures.

"As an industry-leading airline in green initiatives, we are constantly pursuing ways to reduce our footprint, whether through our use of low-carbon, sustainable aviation biofuel or our revaluation of onboard materials that resulted in keeping 30,000 metric tons of carbon dioxide out of the air each year," said Gavin Molloy, United's vice president of corporate real estate and environmental affairs. "Teaming up with Audubon International enables us to further reduce our impact on the environment not just in the air but also at our facilities across our system."

"We're very happy to welcome United Airlines into our Green Hospitality program," said Christine Kane, Audubon International's chief executive officer. "United's focus on minimizing the environmental impact of its operation aligns perfectly with our mission to foster the sustainable use of natural resources in all the places people live, work and play. This partnership is a great example of how working together to improve individual aspects of one's daily life or business operation will result in a larger, and more positive, cumulative impact."  

"At Los Angeles International Airport, being at the forefront of environmental sustainability is a top priority not only for our airport, but for our airline partners as well," said Samantha Bricker, Los Angeles World Airports' deputy executive director for environmental programs. "We are pleased that United chose this Los Angeles United Club lounge to be the first to achieve certification through the new Audubon International Green Hospitality Program and we look forward to continuing to work with United on environmental stewardship efforts."

Last year, United teamed up with Audubon International to protect raptors – including hawks, kestrels and owls – in and around New York-area airports and resettle the birds of prey at suitable golf course habitats where the species are more likely to thrive. The Raptor Relocation Program helps minimize risk to wildlife, reduce damage to aircraft and enable the airline to operate more efficiently within some of the world's busiest airspace.

United's award-winning Eco-Skies program represents the company's commitment to the environment and the actions taken every day to create a sustainable future. In 2017, Air Transport World (ATW) magazine named United the Eco-Airline of the Year for the second time since the airline launched the Eco-Skies program. This year, United Airlines ranked No. 1 among global carriers in Newsweek's Global 500 Green Rankings, one of the most recognized environmental performance assessments of the world's largest publicly traded companies.

For more information on United's commitment to environmental sustainability, visit united.com/ecoskies.

About United
United Airlines and United Express operate approximately 4,600 flights a day to 354 airports across five continents. In 2017, United and United Express operated more than 1.6 million flights carrying more than 148 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, Newark/New York, San Francisco and Washington, D.C. United operates 750 mainline aircraft and the airline's United Express carriers operate 545 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 191 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the NYSE under the symbol "UAL".

 

SOURCE United Airlines

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

United Releases Second-Quarter Financial Results; Expects Profitability* in the Third Quarter and Beyond

Airline projects positive adjusted pre-tax income(1) in second half of 2021
July 20, 2021

CHICAGO, July 20, 2021 /PRNewswire/ -- United Airlines (UAL) today announced second-quarter 2021 financial results. The company now expects positive adjusted pre-tax income¹ in the third and fourth quarters of 2021 as travel demand rebounds.

The company's second quarter performance largely exceeded original expectations as international long haul and business travel accelerated even faster than anticipated, together with continued yield improvement. Looking ahead, the company expects continued gains as more businesses return by end of summer and into 2022, with a full recovery in demand anticipated by 2023.

"Thanks to the professionalism and perseverance of the United employees who have worked so hard to take care of our customers through the pandemic, our airline has reached a meaningful turning point: we're expecting to be back to making a profit once again," said United Airlines CEO Scott Kirby. "As we emerge from the most disruptive crisis our company has faced, we're now focused squarely on our United Next strategy that will transform our customers' onboard experience and help fulfill United's incredible potential."

*For purposes of this release, profitability refers to positive adjusted pre-tax income, which is a non-GAAP financial measure calculated as pre-tax income excluding special charges (credits), unrealized gains and losses on investments, net. We are not providing a target for or a reconciliation to pre-tax income, the most directly comparable GAAP measure, because we are unable to predict certain items contained in the GAAP measure without unreasonable efforts.

Second Quarter Financial Results

  • Reported second quarter 2021 capacity down 46% compared to second quarter 2019.
  • Reported second quarter 2021 net loss of $0.4 billion, adjusted net loss3 of $1.3 billion.
  • Reported second quarter 2021 total operating revenue of $5.5 billion, down 52% compared to second quarter 2019.
  • Reported second quarter 2021 Total Revenue per Available Seat Mile (TRASM) of down 11.3% compared to second quarter 2019.
  • Reported second quarter 2021 operating expenses down 42%, down 32% excluding special charges (credits)4, compared to second quarter 2019.
  • Reported second quarter 2021 pre-tax margin of negative 10.3%, negative 29.2% on an adjusted5 basis.
  • Reported second quarter 2021 adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) margin6 of negative 10.7%.
  • Raised secured financing collateralized by substantially all of United's network of slots, routes, and gates — made up of $4 billion in a private offering of bonds, a $5 billion term loan, and a $1.75 billion revolving credit facility. This is a first of its kind financing and the largest non-merger financing transaction in airline history.
  • Reported second quarter 2021 ending available liquidity7 of approximately $23 billion.

Outlook

  • Expects third quarter 2021 capacity to be down around 26% compared to third quarter 2019, up 39% quarter over quarter.
  • Based on current trends, the company expects third quarter 2021 TRASM growth to be positive compared to the third quarter 2019, the first quarter of positive TRASM growth since the second quarter of 2020.
  • Expects third quarter 2021 cost per available seat mile, excluding fuel, profit sharing, third-party business expenses, and special charges (CASM-ex)2 to be up approximately 17% compared to third quarter 2019 (includes a 6-point headwind largely driven by lower stage length and lower gauge of our network, including the temporary grounding of 52 Boeing Pratt & Whitney powered 777 widebody aircraft).
  • Third quarter 2021 estimated fuel price of approximately $2.17 per gallon.
  • Expects third quarter 2021 adjusted pre-tax income1 to be positive, the first quarter of positive adjusted pre-tax income since fourth quarter 2019. Additionally, expects fourth quarter 2021 adjusted pre-tax income1 to be positive.
  • Expects 2022 cost per available seat mile, excluding fuel, profit sharing, third-party business expenses, and special charges (CASM-ex)2 to be lower than 2019.

Key Highlights

  • Announced the purchase of 270 new Boeing and Airbus aircraft – the largest combined order in the airline's history and the biggest by an individual carrier in the last decade.
  • As part of "United Next" announced plans to retrofit 100% of the mainline, narrow-body fleet to transform the customer experience and create a new signature interior with a roughly 75% increase in premium seats per departure, larger overhead bins, seatback entertainment in every seat and the industry's fastest available WiFi.
  • Established a new diversity goal by striving to have 50% of students at the new United Aviate Academy be women and people of color.
  • Launched the first-of-its-kind Eco-Skies Alliance℠ program through which corporate customers contributed to the purchase of approximately 3.4 million gallons of sustainable aviation fuel (SAF) in 2021.
  • Entered into a commercial agreement with Denver-based aerospace company Boom Supersonic to add aircraft to United's global fleet as well as a cooperative sustainability initiative — a move that facilitates a leap forward in returning supersonic speeds to aviation.
  • Provided customers the ability to schedule COVID-19 tests and have results reviewed in advance through United's industry-leading Travel-Ready Center.
  • Teamed up with more than a dozen new environmental, nonprofit partners to strengthen the company's sustainability commitment to become 100% green by reducing its greenhouse gas emissions 100% by 2050.
  • Launched a new, corporate venture fund – United Airlines Ventures – which will allow the airline to continue investing in emerging companies that have the potential to influence the future of travel.
  • Offered loyalty program members the chance to win free flights for a year's worth of travel through "Your Shot to Fly" sweepstakes to encourage COVID-19 vaccinations in support of the Biden administration's national effort to encourage people to get vaccinated.
  • Announced a first-of-its-kind collaboration to use Abbott's BinaxNOW™ COVID-19 Home Test and Abbott's NAVICA app to help make the international travel experience more seamless.

Taking Care of Our Customers

  • Introduced three new promotions that let eligible MileagePlus® Premier® members "Pick Your Path" depending on their upcoming travel plan giving members the chance to fast track their Premier status or earn bonus miles.
  • Expanded beer, wine, and snacks to nearly all flights over two hours including new options like White Claw® Hard Seltzer, Breckenridge Brewery Juice Drop Hazy IPA, and Kona Brewing Co. Big Wave Golden Ale.

Reimagining the Route Network

  • Announced seven new domestic routes and three new international routes and launched 39 domestic routes and five international routes, with 10 more international routes planned to launch in 2021.
  • New route announcements included Dubrovnik, Croatia to Newark/New York; Athens, Greece to Washington, D.C.; and Reykjavik, Iceland to Chicago.
  • New route launches included two new long-haul international routes from Accra, Ghana to Washington, DC, and Johannesburg, South Africa to Newark/New York, and three new routes to Hawaii including Maui/Kahului to Newark/New York, Honolulu to Orange County, and Kona to Chicago.
  • Resumed nonstop service on 33 domestic routes and 14 international routes compared to the first quarter of 2021.
  • Compared to March 2021, United had nonstop service in 55 more domestic and 24 more international routes in June 2021.
  • Announced plans to fly roughly 80% of its full schedule in July 2021 compared to July 2019.

Assisting the Communities We Serve

  • Announced a program with the Golden State Warriors to launch the Franchise Fund, a program designed to support minority-owned Bay Area small businesses.
  • More than 5 million miles donated from United's customers to charities in need of travel through United's Miles on a Mission program.
  • Over 18,200 pounds of food and beverages ($66,400 value) donated to local food banks.
  • Over $326,000 raised for Airlink, World Central Kitchen, Americares, and Global Giving via CrowdRising to support COVID-19 relief efforts in India, including a $40,000 donation by United Airlines.

Additional Noteworthy Accomplishments

  • Celebrated the 40th anniversary of the MileagePlus program by giving away 4 million miles to essential healthcare workers.
  • Recently redesigned United mobile app was voted the Best Travel App in the 25th annual Webby Awards.
  • Joined forces with Chase and Visa to offer eligible United MileagePlus Visa cardmembers the ability to earn five total miles for every dollar donated to select charities supporting the LGBTQ+ community.
  • Became the first corporation in at least five years to be presented with the "Volunteer Group of the Year" award from Food Bank of the Rockies. Also, helped Food Bank of the Rockies raise the equivalent of 30,400 meals via a fundraiser.
  • In the second quarter of 2021, through a combination of cargo-only flights and passenger flights, United has transported nearly 298 million pounds of freight, which includes nearly 48 million pounds of vital shipments, such as medical kits, PPE, pharmaceuticals, and medical equipment, and more than 765,000 pounds of military mail and packages.
  • In the second quarter of 2021, there was an uptick in COVID-19 vaccine shipments, where United shipped 225,000 pounds of vaccines.

_________________________________________________________________________

1. Adjusted pre-tax income is a non-GAAP financial measure calculated as pre-tax income excluding special charges (credits), unrealized (gains) losses on investments, net. We are not providing a target for or a reconciliation to pre-tax income, the most directly comparable GAAP measure, because we are unable to predict certain items contained in the GAAP measure without unreasonable efforts.

2. CASM-ex (adjusted operating expense per available seat mile) is a non-GAAP measure that excludes fuel, profit sharing, third-party business expense and special charges. We are not providing a target or reconciliation to CASM, the most directly comparable GAAP measure, because we are unable to predict certain items contained in the GAAP measure without unreasonable efforts.

3. Excludes special charges (credits), unrealized (gains) losses on investments, net, debt extinguishment and modification fees and special termination benefits. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in the tables accompanying this release.

4. Excludes operating special charges (credits). Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in the tables accompanying this release. Second quarter 2019 operating expenses were $9.859 billion, excluding $71 million of special charges. 

5. Adjusted to exclude special charges (credits), unrealized (gains) losses on investments, net, debt extinguishment and modification fees and special termination benefits. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in the tables accompanying this release.

6. Adjusted EBITDA margin is a non-GAAP financial measure calculated as Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), excluding special charges and unrealized (gains) losses on investments, divided by total operating revenue. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in the tables accompanying this release.

7. Includes cash, cash equivalents, short-term investments and undrawn credit facilities.

Earnings Call

UAL will hold a conference call to discuss second-quarter 2021 financial results as well as its financial and operational outlook for the third-quarter 2021 and beyond, on Wednesday, July 21, at 9:30 a.m. CT/10:30 a.m. ET. A live, listen-only webcast of the conference call will be available at ir.united.com.

The webcast will be available for replay within 24 hours of the conference call and then archived on the website for three months.

About United

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

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this release, including statements regarding our outlook for the remainder of 2021, 2022 and 2023, are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as "expects," "will," "plans," "intends," "anticipates," "indicates," "remains," "believes," "estimates," "forecast," "guidance," "outlook," "goals," "targets" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as conditional statements, statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: the adverse impacts of the ongoing COVID-19 global pandemic, and possible outbreaks of another disease or similar public health threat in the future, on our business, operating results, financial condition, liquidity and near-term and long-term strategic operating plan, including possible additional adverse impacts resulting from the duration and spread of the pandemic; unfavorable economic and political conditions in the United States and globally; the highly competitive nature of the global airline industry and susceptibility of the industry to price discounting and changes in capacity; high and/or volatile fuel prices or significant disruptions in the supply of aircraft fuel; our reliance on technology and automated systems to operate our business and the impact of any significant failure or disruption of, or failure to effectively integrate and implement, the technology or systems; our reliance on third-party service providers and the impact of any significant failure of these parties to perform as expected, or interruptions in our relationships with these providers or their provision of services; adverse publicity, harm to our brand; reduced travel demand, potential tort liability and voluntary or mandatory operational restrictions as a result of an accident, catastrophe or incident involving us, our regional carriers, our codeshare partners, or another airline; terrorist attacks, international hostilities or other security events, or the fear of terrorist attacks or hostilities, even if not made directly on the airline industry; increasing privacy and data security obligations or a significant data breach; disruptions to our regional network and United Express flights provided by third-party regional carriers; the failure of our significant investments in other airlines, equipment manufacturers and other aviation industry participants to produce the returns or results we expect; further changes to the airline industry with respect to alliances and joint business arrangements or due to consolidations; changes in our network strategy or other factors outside our control resulting in less economic aircraft orders, costs related to modification or termination of aircraft orders or entry into less favorable aircraft orders, as well as any inability to accept or integrate new aircraft into our fleet as planned; our reliance on single suppliers to source a majority of our aircraft and certain parts, and the impact of any failure to obtain timely deliveries, additional equipment or support from any of these suppliers; the impacts of union disputes, employee strikes or slowdowns, and other labor-related disruptions on our operations; extended interruptions or disruptions in service at major airports where we operate; the impacts of seasonality and other factors associated with the airline industry; our failure to realize the full value of our intangible assets or our long-lived assets, causing us to record impairments; any damage to our reputation or brand image; the limitation of our ability to use our net operating loss carryforwards and certain other tax attributes to offset future taxable income for U.S. federal income tax purposes; the costs of compliance with extensive government regulation of the airline industry; costs, liabilities and risks associated with environmental regulation and climate change; the impacts of our significant amount of financial leverage from fixed obligations, the possibility we may seek material amounts of additional financial liquidity in the short-term and the impacts of insufficient liquidity on our financial condition and business; failure to comply with the covenants in the MileagePlus financing agreements, resulting in the possible acceleration of the MileagePlus indebtedness, foreclosure upon the collateral securing the MileagePlus indebtedness or the exercise of other remedies; failure to comply with financial and other covenants governing our other debt; changes in, or failure to retain, our senior management team or other key employees; current or future litigation and regulatory actions, or failure to comply with the terms of any settlement, order or arrangement relating to these actions; increases in insurance costs or inadequate insurance coverage; and other risks and uncertainties set forth under Part II, Item 1A., "Risk Factors," of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2021, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission.

-tables attached-

 

UNITED AIRLINES HOLDINGS, INC

STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED) 






Three Months Ended

June 30,


%

Increase/

(Decrease)



Six Months Ended

June 30,


%

Increase/

(Decrease)


(In millions, except per share data)


2021


2020




2021


2020



Operating revenue:















Passenger revenue


$

4,366



$

681



541.1




$

6,682



$

7,746



(13.7)



Cargo


606



402



50.7




1,103



666



65.6



Other operating revenue


499



392



27.3




907



1,042



(13.0)



Total operating revenue


5,471



1,475



270.9




8,692



9,454



(8.1)


















Operating expense:















Salaries and related costs


2,276



2,170



4.9




4,500



5,125



(12.2)



Aircraft fuel


1,232



240



413.3




2,083



1,966



6.0



Depreciation and amortization


620



618



0.3




1,243



1,233



0.8



Landing fees and other rent


564



429



31.5




1,083



1,052



2.9



Regional capacity purchase


547



388



41.0




1,026



1,125



(8.8)



Aircraft maintenance materials and outside repairs


302



110



174.5




571



544



5.0



Distribution expenses


139



31



348.4




224



326



(31.3)



Aircraft rent


52



47



10.6




107



97



10.3



Special charges (credits)


(948)



(1,449)



NM




(2,325)



(1,386)



NM



Other operating expenses


957



528



81.3




1,831



1,981



(7.6)



Total operating expense


5,741



3,112



84.5




10,343



12,063



(14.3)


















Operating loss


(270)



(1,637)



(83.5)




(1,651)



(2,609)



(36.7)


















Nonoperating income (expense):















Interest expense


(426)



(196)



117.3




(779)



(367)



112.3



Interest capitalized


22



17



29.4




39



38



2.6



Interest income


12



11



9.1




19



37



(48.6)



Unrealized gains (losses) on investments, net


147



9



NM




125



(310)



NM



Miscellaneous, net


(49)



(207)



(76.3)




(68)



(906)



(92.5)



Total nonoperating expense, net


(294)



(366)



(19.7)




(664)



(1,508)



(56.0)


















Loss before income tax benefit


(564)



(2,003)



(71.8)




(2,315)



(4,117)



(43.8)


















Income tax benefit


(130)



(376)



(65.4)




(524)



(786)



(33.3)



Net loss


$

(434)



$

(1,627)



(73.3)




$

(1,791)



$

(3,331)



(46.2)


















Diluted loss per share


$

(1.34)



$

(5.79)



(76.9)




$

(5.60)



$

(12.59)



(55.5)



Diluted weighted average shares


323.6



280.7



15.3




320.1



264.6



21.0


















NM Not meaningful















 

UNITED AIRLINES HOLDINGS, INC.

PASSENGER REVENUE INFORMATION AND STATISTICS


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



2Q 2021

Passenger

Revenue


Passenger

Revenue

vs.

2Q 2020


PRASM vs.
2Q 2020


PRASM vs.
2Q 2019


Yield vs.
2Q 2020


Available

Seat Miles

vs.

2Q 2020


Available

Seat Miles

vs.

2Q 2019


2Q 2021
Available
Seat Miles


2Q 2021
Revenue
Passenger
Miles

Domestic

$

3,288



506.6%


57.0%


(15.7%)


(32.7%)


286.1%


(40.4%)


24,717


20,587



















Atlantic

323



466.7%


14.4%


(61.0%)


(35.2%)


396.3%


(57.0%)


6,065


2,827

Pacific

132



288.2%


42.7%


(48.8%)


13.8%


172.1%


(77.3%)


2,438


587

Latin America

623



1,197.9%


(10.1%)


(23.4%)


(44.8%)


1,343.1%


(7.2%)


6,393


4,513

International

1,078



675.5%


33.3%


(41.6%)


(32.8%)


481.6%


(53.1%)


14,896


7,927



















Consolidated

$

4,366



541.1%


45.0%


(23.0%)


(33.2%)


342.0%


(45.9%)


39,613


28,514



















 

Select operating statistics are as follows:




Three Months Ended

June 30,


%

Increase/

(Decrease)



Six Months Ended

June 30,


%

Increase/

(Decrease)




2021


2020




2021


2020



Passengers (thousands)


23,909



2,813



749.9




38,583



33,172



16.3



Revenue passenger miles (millions)


28,514



2,970



860.1




45,762



46,199



(0.9)



Available seat miles (millions)


39,613



8,963



342.0




69,983



69,901



0.1



Passenger load factor:















    Consolidated


72.0

%


33.1

%


38.9


pts.


65.4

%


66.1

%


(0.7)


pts.

    Domestic


83.3

%


35.7

%


47.6


pts.


75.4

%


65.6

%


9.8


pts.

    International


53.2

%


26.8

%


26.4


pts.


48.8

%


66.8

%


(18.0)


pts.

Passenger revenue per available seat mile (cents)


11.02



7.60



45.0




9.55



11.08



(13.8)



Total revenue per available seat mile (cents)


13.81



16.46



(16.1)




12.42



13.52



(8.1)



Average yield per revenue passenger mile (cents)


15.31



22.93



(33.2)




14.60



16.77



(12.9)



Cargo revenue ton miles (millions)


892



496



79.8




1,657



1,191



39.1



Aircraft in fleet at end of period


1,315



1,307



0.6




1,315



1,307



0.6



Average stage length (miles)


1,309



1,075



21.8




1,297



1,347



(3.7)



Employee headcount, as of June 30 (in thousands) (a)


84.4



91.8



(8.1)




84.4



91.8



(8.1)



Average aircraft fuel price per gallon


$

1.97



$

1.18



66.9




$

1.87



$

1.76



6.3



Fuel gallons consumed (millions)


625



204



206.4




1,115



1,114



0.1



(a) The 2021 employee headcount includes approximately 4,500 employees who participated in the Company's voluntary leave programs


























Note: See Part II, Item 6, Selected Financial Data, of UAL's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, for definitions of these statistics.       

 

UNITED AIRLINES HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION

UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and Non-GAAP financial measures, including adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), adjusted operating income (loss), adjusted operating margin, adjusted pre-tax income (loss), adjusted pre-tax margin, adjusted net income (loss), adjusted diluted earnings (loss) per share, CASM, excluding special charges, third-party business expenses, fuel, and profit sharing (CASM-ex), and operating expenses excluding special charges, among others. UAL believes that adjusting for special charges (credits), nonoperating debt extinguishment and modification fees, nonoperating special termination benefits and settlement losses and nonoperating credit losses is useful to investors because these items are not indicative of UAL's ongoing performance. UAL believes that adjusting for unrealized (gains) losses on investments, net is useful to investors because those unrealized gains or losses may not ultimately be realized on a cash basis.

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

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



Three Months Ended

June 30,


Six Months Ended

June 30,


Year Ended
December 31,



2021


2020


2019


2021


2020


2019


2019

CASM (cents)















Cost per available seat mile (CASM) (GAAP)


14.49



34.72



13.56



14.78



17.26



13.70



13.67

Special charges (credits)


(2.40)



(16.17)



0.10



(3.32)



(1.98)



0.07



0.09

Third-party business expenses


0.08



0.65



0.05



0.08



0.15



0.05



0.06

Fuel expense


3.11



2.68



3.26



2.97



2.81



3.17



3.14

Profit sharing






0.22







0.14



0.17

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


13.70



47.56



9.93



15.05



16.28



10.27



10.21



Adjusted EBITDA

June


Three Months Ended June 30,


Six  Months Ended June 30,


2021


2021


2020


2019


2021


2020


2019

Net income (loss)

$

183



$

(434)



$

(1,627)



$

1,052



$

(1,791)



$

(3,331)



1,344


Adjusted for:














Depreciation and amortization

207



620



618



560



1,243



1,233



1,107


Interest expense, net of capitalized interest and interest income

133



392



168



132



721



292



269


Income tax expense (benefit)

41



(130)



(376)



302



(524)



(786)



377


Special charges (credits)

(245)



(948)



(1,449)



71



(2,325)



(1,386)



89


Nonoperating unrealized (gains) losses on investments, net

(107)



(147)



(9)



(34)



(125)



310



(51)


Nonoperating debt extinguishment and modification fees



62







62






Nonoperating special termination benefits and settlement losses





231





46



231




Nonoperating credit loss on BRW term loan and guarantee











697




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

$

212



$

(585)



$

(2,444)



$

2,083



$

(2,693)



$

(2,740)



$

3,135


  Adjusted EBITDA margin

9.2

%


(10.7)

%


(165.7)

%


18.3

%


(31.0)

%


(29.0)

%


14.9

%





























NM Not Meaningful




























 

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

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


Three Months Ended

June 30,


Six Months Ended

June 30,

Capital Expenditures (in millions)

2021


2020


2021


2020

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

$

861



$

39



$

1,305



$

1,998


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

252



498



761



626


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

26



(53)



(14)



(53)


Adjusted capital expenditures (Non-GAAP)

$

1,139



$

484



$

2,052



$

2,571










Free Cash Flow (in millions)








Net cash provided by (used in) operating activities (GAAP)

$

2,675



$

(130)



$

3,122



$

(67)


Less capital expenditures, net of flight equipment purchase deposit returns

861



39



1,305



1,998


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

$

1,814



$

(169)



$

1,817



$

(2,065)










Net cash provided by (used in) operating activities (GAAP)

$

2,675



$

(130)



$

3,122



$

(67)


Less adjusted capital expenditures (Non-GAAP)

1,139



484



2,052



2,571


Less aircraft operating lease additions

33



12



175



33


Free cash flow (Non-GAAP)

$

1,503



$

(626)



$

895



$

(2,671)










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

 

UNITED AIRLINES HOLDINGS, INC.

NON-GAAP FINANCIAL RECONCILIATION (Continued)



Three Months Ended

June 30,


Increase/

(Decrease)


%

Increase/

(Decrease)


Six Months Ended

June 30,


Increase/

(Decrease)


%

Increase/

(Decrease)

(in millions)

2021


2020



2021


2020


Operating expenses (GAAP)

$

5,741



$

3,112



$

2,629



84.5



$

10,343



$

12,063



$

(1,720)



(14.3)


Special charges (credits)

(948)



(1,449)



(501)



NM



(2,325)



(1,386)



939



NM


Operating expenses, excluding special charges
(credits)

6,689



4,561



2,128



46.7



12,668



13,449



(781)



(5.8)


Adjusted to exclude:
















Third-party business expenses

30



58



(28)



(48.3)



56



102



(46)



(45.1)


Fuel expense

1,232



240



992



413.3



2,083



1,966



117



6.0


Adjusted operating expenses (Non-GAAP)

$

5,427



$

4,263



$

1,164



27.3



$

10,529



$

11,381



$

(852)



(7.5)


















Operating loss (GAAP)

$

(270)



$

(1,637)



$

(1,367)



(83.5)



$

(1,651)



$

(2,609)



(958)



(36.7)


Adjusted to exclude:
















Special charges (credits)

(948)



(1,449)



$

(501)



NM



(2,325)



(1,386)



939



NM


Adjusted operating loss (Non-GAAP)

$

(1,218)



$

(3,086)



$

(1,868)



(60.5)



$

(3,976)



$

(3,995)



$

(19)



(0.5)


















Operating margin

(4.9)

%


(111.0)

%


106.1



pts.



(19.0)

%


(27.6)

%


8.6



pts.


Adjusted operating margin (Non-GAAP)

(22.3)

%


(209.2)

%


186.9



pts.



(45.7)

%


(42.3)

%


(3.4)



pts.


















Pre-tax loss (GAAP)

$

(564)



$

(2,003)



$

(1,439)



(71.8)



$

(2,315)



$

(4,117)



$

(1,802)



(43.8)


Adjusted to exclude:
















Special charges (credits)

(948)



(1,449)



(501)



NM



(2,325)



(1,386)



939



NM


Unrealized (gains) losses on investments, net

(147)



(9)



138



NM



(125)



310



(435)



NM


   Debt extinguishment and modification fees

62





62



NM



62





62



NM


   Special termination benefits



231



(231)



NM



46



231



(185)



NM


Credit loss on BRW term loan and guarantee







NM





697



(697)



NM


Adjusted pre-tax loss (Non-GAAP)

$

(1,597)



$

(3,230)



$

(1,633)



(50.6)



$

(4,657)



$

(4,265)



$

392



9.2


















Pre-tax margin

(10.3)

%


(135.8)

%


125.5



pts.



(26.6)

%


(43.5)

%


16.9



pts.


Adjusted pre-tax margin (Non-GAAP)

(29.2)

%


(219.0)

%


189.8



pts.



(53.6)

%


(45.1)

%


(8.5)



pts.


















 Net loss (GAAP)

$

(434)



$

(1,627)



$

(1,193)



(73.3)



$

(1,791)



$

(3,331)



$

(1,540)



(46.2)


Adjusted to exclude:
















Special charges (credits)

(948)



(1,449)



(501)



NM



(2,325)



(1,386)



939



NM


Unrealized (gains) losses on investments, net

(147)



(9)



138



NM



(125)



310



(435)



NM


Debt extinguishment and modification fees

62





62



NM



62





62



NM


   Special termination benefits



231



(231)



NM



46



231



(185)



NM


Credit loss on BRW term loan and guarantee







NM





697



(697)



NM


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

203



241



(38)



NM



494



227



267



NM


Adjusted net loss (Non-GAAP)

$

(1,264)



$

(2,613)



$

(1,349)



(51.6)



$

(3,639)



$

(3,252)



$

387



11.9


















 Diluted loss per share (GAAP)

$

(1.34)



$

(5.79)



$

(4.45)



(76.9)



$

(5.60)



$

(12.59)



$

(6.99)



(55.5)


Adjusted to exclude:
















Special charges (credits)

(2.93)



(5.17)



(2.24)



NM



(7.26)



(5.24)



$

2.02



NM


Unrealized (gains) losses on investments, net

(0.46)



(0.03)



0.43



NM



(0.39)



1.17



(1.56)



NM


Debt extinguishment and modification fees

0.19





0.19



NM



0.19





0.19



NM


   Special termination benefits



0.82



(0.82)



NM



0.15



0.87



(0.72)



NM


Credit loss on BRW term loan and guarantee







NM





2.64



(2.64)



NM


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

0.63



0.86



(0.23)



NM



1.54



0.86



0.68



NM


Adjusted diluted loss per share (Non-GAAP)

$

(3.91)



$

(9.31)



$

(5.40)



(58.0)



$

(11.37)



$

(12.29)



$

(0.92)



(7.5)



NM Not Meaningful

 

UNITED AIRLINES HOLDINGS, INC

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)


 (In millions)

June 30, 2021


December 31, 2020

ASSETS




Current assets:




Cash and cash equivalents

$

20,838



$

11,269


Short-term investments

230



414


Restricted cash

254



255


Receivables, less allowance for credit losses (2021 — $71; 2020 — $78)

1,793



1,295


Aircraft fuel, spare parts and supplies, less obsolescence allowance (2021 — $518; 2020 — $478)

912



932


Prepaid expenses and other

646



635


Total current assets

24,673



14,800






Total operating property and equipment, net

32,331



31,466


Operating lease right-of-use assets

4,421



4,537


Other assets:




Goodwill

4,527



4,527


Intangibles, less accumulated amortization (2021 — $1,519; 2020 — $1,495)

2,827



2,838


Restricted cash

216



218


Deferred income taxes

647



131


Investments in affiliates and other, less allowance for credit losses (2021 — $606; 2020 — $522)

1,407



1,031


Total other assets

9,624



8,745


Total assets

$

71,049



$

59,548






LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$

2,218



$

1,595


Accrued salaries and benefits

2,228



1,960


Advance ticket sales

6,960



4,833


Frequent flyer deferred revenue

2,099



908


Current maturities of long-term debt

1,881



1,911


Current maturities of operating leases

583



612


Current maturities of finance leases

144



182


Payroll Support Program deferred credit

1,132




Other

819



724


Total current liabilities

18,064



12,725






Long-term liabilities and deferred credits:




Long-term debt

32,303



24,836


Long-term obligations under operating leases

4,920



4,986


Long-term obligations under finance leases

250



224


Frequent flyer deferred revenue

4,086



5,067


Pension liability

2,501



2,460


Postretirement benefit liability

988



994


Other financial liabilities from sale-leasebacks

1,683



1,140


Other

1,350



1,156


Total long-term liabilities and deferred credits

48,081



40,863


Total stockholders' equity

4,904



5,960


Total liabilities and stockholders' equity

$

71,049



$

59,548


 

UNITED AIRLINES HOLDINGS, INC.

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)


 (In millions)

Six Months Ended

June 30,


2021


2020

Cash Flows from Operating Activities:




Net cash provided by (used in) operating activities

$

3,122



$

(67)






Cash Flows from Investing Activities:




Capital expenditures, net of flight equipment purchase deposit returns

(1,305)



(1,998)


Purchases of short-term investments



(550)


Proceeds from sale of short-term investments

184



1,774


Other, net

11



14


Net cash used in investing activities

(1,110)



(760)






Cash Flows from Financing Activities:




Proceeds from issuance of debt, net of discounts and fees

11,116



4,371


Proceeds from equity issuance

532



1,135


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

(4,072)



(564)


Repurchases of common stock



(353)


Other, net

(22)



(18)


Net cash provided by financing activities

7,554



4,571


Net increase in cash, cash equivalents and restricted cash

9,566



3,744


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

11,742



2,868


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

$

21,308



$

6,612






Investing and Financing Activities Not Affecting Cash:




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

$

761



$

626


Lease modifications and lease conversions

59



470


Right-of-use assets acquired through operating leases

214



48


Notes receivable and warrants received for entering into agreements

139




 

UNITED AIRLINES HOLDINGS, INC.

NOTES (UNAUDITED)


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




Three Months Ended

June 30,


Six Months Ended

June 30,

(In millions)


2021


2020


2021


2020

Operating:









CARES Act grant


$

(1,079)



$

(1,589)



$

(2,889)



$

(1,589)


Impairment of assets


59



80



59



130


Severance and benefit costs


11



63



428



63


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


61



(3)



77



10


     Total operating special charges (credits)


(948)



(1,449)



(2,325)



(1,386)











Nonoperating unrealized (gains) losses on investments, net


(147)



(9)



(125)



310


Nonoperating debt extinguishment and modification fees


62





62




Nonoperating special termination benefits and settlement losses




231



46



231


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








697


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


(85)



222



(17)



1,238


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


(1,033)



(1,227)



(2,342)



(148)


Income tax expense, net of valuation allowance


203



241



494



227


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


$

(830)



$

(986)



$

(1,848)



$

79


CARES Act grant: During the six months ended June 30, 2021, the company received approximately $5.8 billion in funding pursuant to certain Payroll Support Programs under the CARES Act ("PSP2" and "PSP3") which included an approximately $1.7 billion unsecured loan. The company recorded $1.1 billion and $2.9 billion as grant income during the three and six months ended June 30, 2021, respectively. The company also recorded $52 million and $99 million for the related warrants issued to United States Treasury ("Treasury") as part of the agreements related to PSP2 and PSP3, within stockholders' equity, as an offset to the grant income in the three and six months ended June 30, 2021, respectively. The company deferred recognition of $1.1 billion of the funds received under the PSP3 program as of June 30, 2021 as the funds can only be used for the payment of eligible salaries, wages and benefits. The company expects the remainder of the PSP3 funds will be recognized as income in the third quarter of 2021.

During the three and six months ended June 30, 2020, the company received approximately $4.5 billion in funding pursuant to a separate Payroll Support Program under the CARES Act, which consisted of a $3.2 billion grant and a $1.3 billion unsecured loan. The company recognized $1.6 billion of the grant as a credit to Special charges (credit) and $57 million in warrants issued to Treasury, within stockholder's equity, as an offset to the grant income.

Impairment of assets: During the three and six months ended June 30, 2021, the company recorded $59 million of impairments primarily related to 64 Embraer EMB 145LR aircraft and related engines that United retired from its regional aircraft fleet.

During the three and six months ended June 30, 2020, the company recorded impairment charges of $80 million and $130 million, respectively, for its China routes, which was primarily caused by the COVID-19 pandemic and the company's subsequent suspension of flights to China.

Severance and benefit costs: During the three and six months ended June 30, 2021, the company recorded charges of $11 million and $428 million, respectively, related to pay continuation and benefits-related costs provided to employees who chose to voluntarily separate from the company. The company offered, based on employee group, age and completed years of service, pay continuation, health care coverage, and travel benefits. Approximately 4,500 employees elected to voluntarily separate from the company. 

During the three and six months ended June 30, 2020, the company recorded $63 million related to pay continuation and benefits provided to employees who chose to voluntarily separate from the company.

(Gains) losses on sale of assets and other special charges: During the three and six months ended June 30, 2021, the company recorded charges of $61 million and $77 million, respectively, primarily related to incentives for certain of its front-line employees to receive a COVID-19 vaccination and the termination of the lease associated with three floors of its headquarters at the Willis Tower in Chicago in the first quarter of 2021.

Nonoperating unrealized gains and losses on investments, net: During the three and six months ended June 30, 2021, the company recorded $90 million of gains related to its equity investments and warrants in the equity of Clear Secure, Inc. (formerly, Alclear, Inc.). Clear Secure, Inc. undertook its initial public stock offering in June 2021. Also during the three and six months ended June 30, 2021, the company recorded gains of $57 million and $35 million, respectively, primarily for the change in the market value of its investment in Azul Linhas Aéreas Brasileiras S.A. ("Azul"). 

During the three and six months ended June 30, 2020, the company recorded gains of $9 million and losses of $310 million, respectively. The losses in the six months ended June 30, 2020 were primarily due to a $284 million decrease in the market value of the company's investment in Azul and a $24 million decrease in the fair value of the Avianca Holdings S.A. ("AVH") share call options, AVH share appreciation rights and AVH share-based upside sharing agreement.

Nonoperating debt extinguishment and modification fees: On April 21, 2021, United issued, through a private offering to eligible purchasers, $4.0 billion in aggregate principal amount of two series of notes, consisting of $2.0 billion in aggregate principal amount of 4.375% senior secured notes due 2026 and $2.0 billion in aggregate principal amount of 4.625% senior secured notes due 2029. United used the net proceeds from the offering of the notes and borrowings under a new $5.0 billion term loan facility to repay in full the $1.4 billion aggregate principal amount outstanding under the then-existing term loan facility included in the Amended and Restated Credit and Guaranty Agreement, dated as of March 29, 2017 (the "Existing Credit Agreement"), the $1.0 billion aggregate principal amount outstanding under the revolving credit facility included in the Existing Credit Agreement and the $520 million aggregate principal amount outstanding under the CARES Act loan. During the three and six months ended June 30, 2021, the company recorded $62 million of charges for fees and discounts related to the issuance of new debt and the prepayment of these debt agreements.  

Nonoperating special termination benefits and settlement losses: During the six months ended June 30, 2021, as part of a first quarter voluntary separation program, the company recorded $46 million of special termination benefits in the form of additional subsidies for retiree medical costs for certain U.S.-based front-line employees. The subsidies were in the form of a one-time contribution into the employee's Retiree Health Account of $125,000 for full-time employees and $75,000 for part-time employees.

During the three and six months ended June 30, 2020, the company recorded $231 million of settlement losses related to the company's primary defined benefit pension plans covering certain U.S. non-pilot employees, and special termination benefits offered under voluntary separation programs to certain U.S. based front-line employees participating in the non-pilot defined benefit pension plan and postretirement medical programs.

Nonoperating credit loss on BRW term loan and related guarantee: During the six months ended June 30, 2020, the company recorded a $697 million expected credit loss allowance for the company's Term Loan Agreement (the "BRW Term Loan"), with, among others, BRW Aviation Holding LLC and BRW Aviation LLC, and the related guarantee. BRW's equity and BRW's holdings of AVH equity are secured as a pledge under the BRW Term Loan, which is currently in default.

Effective tax rate:

The company's effective tax rates for the three and six months ended June 30, 2021 were 23.0% and 22.6%, respectively. The effective tax rates for the three and six months ended June 30, 2020 were 18.8% and 19.1%, respectively. The provision for income taxes is based on the estimated annual effective tax rate which represents a blend of federal, state and foreign taxes and includes the impact of certain nondeductible items. The effective tax rates for the three and six months ended June 30, 2021 were impacted by $74 million and $79 million, respectively, of valuation allowance related to unrealized capital losses and state attributes. The effective tax rates for the three and six months ended June 30, 2020 were impacted by $64 million and $130 million, respectively, of valuation allowance related to unrealized capital losses.

 

SOURCE United Airlines

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

Electric Aircraft Set to Take Flight by 2026 Under New Agreements with United Airlines Ventures, Breakthrough Energy Ventures, Mesa Airlines, Heart Aerospace

United Airlines signs agreement to acquire 100 of Heart Aerospace's ES-19 aircraft, a 19-seat electric airliner that has the potential to decarbonize regional air travel
July 13, 2021

CHICAGO, July 13, 2021 /PRNewswire/ -- United Airlines Ventures (UAV) announced today it, along with Breakthrough Energy Ventures (BEV) and Mesa Airlines, has invested in electric aircraft startup Heart Aerospace. Heart Aerospace is developing the ES-19, a 19-seat electric aircraft that has the potential to fly customers up to 250 miles before the end of this decade. In addition to UAV's investment, United Airlines has conditionally agreed to purchase 100 ES-19 aircraft, once the aircraft meet United's safety, business and operating requirements. Mesa Airlines, United's key strategic partner in bringing electric aircraft into commercial service, has also agreed to add 100 ES-19 aircraft to its fleet, subject to similar requirements.

UAV is building a portfolio of companies that focus on innovative sustainability concepts and create the technologies and products necessary to build a carbon-neutral airline and reach United's net-zero greenhouse gas emissions goals. With this new agreement, United is deepening its bold commitment to reduce its greenhouse gas emissions 100% by 2050 without relying on traditional carbon offsets, as well as enabling the growth of Heart Aerospace and participating in the development of aircraft that will reduce greenhouse gas emissions from flying.

"Breakthrough Energy Ventures is the leading voice of investors who are supporting clean-energy technology creation. We share their view that we have to build companies who have real potential to change how industries operate and, in our case, that means investing in companies like Heart Aerospace who are developing a viable electric airliner," said Michael Leskinen, United's Vice President Corp Development & Investor Relations, as well as UAV's President. "We recognize that customers want even more ownership of their own carbon emissions footprint. We're proud to partner with Mesa Air Group to bring electric aircraft to our customers earlier than any other US airliner.  Mesa's long serving CEO, Jonathan Ornstein has shown visionary leadership in the field of electric-powered flight."

UAV and BEV are among the first investors in Heart Aerospace, demonstrating confidence in Heart's design and creating potential for Heart to fast track the ES-19 introduction to market as early as 2026.

"Aviation is such a critical piece of our global economy. At the same time, it's a major source of carbon emissions and one of the most difficult sectors to decarbonize," said Carmichael Roberts, Breakthrough Energy Ventures. "We believe electric aircraft can be transformational in reducing the emissions of the industry, and enable low cost, quiet and clean regional travel on a broad scale. Heart's visionary team is developing an aircraft around its proprietary electric motor technology that will allow airlines to operate at a fraction of the cost of today and has the potential to change the way we fly."

By utilizing electric motors instead of jet engines, and batteries instead of jet fuel, Heart's ES-19 aircraft will have zero operational emissions. Seating 19 passengers, the ES-19 aircraft will also be larger than any of its all-electric competitors and will be designed to operate on the same types of batteries used in electric cars.  Once operational, the ES-19 could operate on more than 100 of United's regional routes out of most of its hubs. Some of these routes include Chicago O'Hare International Airport (ORD) to Purdue University Airport (LAF) and San Francisco International Airport (SFO) to Modesto City-County Airport (MOD).  

"Electric aircraft are happening now—the technology is already here," said Anders Forslund CEO of Heart Aerospace. "We couldn't be prouder to be partnering with United, Mesa and BEV on taking our ES-19 aircraft to market. I can't imagine a stronger coalition of partners to advance our mission to electrify short-haul air travel."

Once operational, Heart's ES-19 could give customers access to the convenience of flight without contributing to carbon emissions that cause climate change.

"We expect the short-haul regional air travel market to play a key role in the evolution of the electric aircraft.  As battery technology improves, larger-gauge aircraft should become viable but we're not going to wait to begin the journey," Leskinen said. "That's why we're looking forward to beginning our work with Heart, so that, together, we can scale the availability of electric airliners and use them for passenger flights within the next five years."

About United Airlines Ventures

United's corporate venture capital fund, United Airlines Ventures, allows the airline to continue investing in emerging companies that have the potential to influence the future of travel. The new fund will concentrate on sustainability concepts that will complement United's goal of net zero emissions by 2050 - without relying on traditional carbon offsets - as well as revolutionary aerospace developments and innovative technologies that are expected to create value for customers and United's operation. For more information about United Airlines Ventures, please visit https://www.united.com/ventures.

About United

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

About Breakthrough Energy Ventures

Backed by many of the world's top business leaders, Breakthrough Energy Ventures (BEV) invests in cutting-edge companies that will lead the world to net-zero emissions. BEV has more than $2 billion in committed capital to support bold entrepreneurs building companies that can significantly reduce emissions from agriculture, buildings, electricity, manufacturing, and transportation. BEV's strategy links government-funded research and patient, risk-tolerant capital to bring transformative clean energy innovations to market as quickly as possible.

The first fund was created in 2016 as part of the Breakthrough Energy network of initiatives and entities, which include investment funds, non-profit and philanthropic programs, and policy efforts linked by a shared commitment to scale the technologies needed to address climate change and achieve a path to net zero emissions by 2050. Visit https://www.breakthroughenergy.org/ to learn more.

About Heart Aerospace

Heart Aerospace is an electric airplane company based in Gothenburg, Sweden. The company is developing the ES-19, a nineteen-passenger aircraft scheduled to enter into service by 2026. The company was founded in 2018 and was part of the Y Combinator accelerator program in 2019. For more info, visit heartaerospace.com.

About Mesa Airlines

Mesa Airlines is a regional airline based in Phoenix, Arizona. The airline is committed to helping to decarbonize air travel as both an investor and future operator of electric aircraft. For more info, visit www.mesa-air.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: 

Certain statements 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," "remains," "believes," "estimates," "forecast," "guidance," "outlook," "goals," "targets" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the risks and uncertainties set forth under Part I, Item 1A., "Risk Factors," of our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as updated by our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, 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 Adds Nearly 150 Flights to Warm-Weather Cities This Winter

United adds service to cities in Mexico, Caribbean and Central America plus warm U.S. destinations in Arizona, California, Florida, Georgia and Nevada;
July 09, 2021

CHICAGO, July 9, 2021 /PRNewswire/ -- As demand for travel continues to build, United Airlines is expecting the resurgence to continue for winter holiday travel and is planning ahead by increasing service to cities in the U.S., Mexico, the Caribbean and Central America. The airline will add nearly 150 flights to warm-weather destinations across the U.S and is increasing service to Latin beach and leisure markets by 30% compared to 2019. The airline will fly 137 more flights than it did in 2019 to places like Florida, California, Arizona, Georgia and Nevada starting this November through next March.

United to Hold Webcast of Second-Quarter 2021 Financial Results

July 07, 2021

CHICAGO, July 7, 2021 /PRNewswire/ -- United Airlines will hold a conference call to discuss second-quarter 2021 financial results on Wednesday, July 21 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 second-quarter financial results after market close on Tuesday, July 20.

United Unveils Campaign Featuring Team USA Olympic and Paralympic Athletes

"Time to Let Yourself Fly" campaign stars athletes Simone Biles, Kolohe Andino, Julie Ertz, Jessica Long and Oz Sanchez
July 07, 2021

CHICAGO, July 7, 2021 /PRNewswire/ -- Today, United, the official airline sponsor of Team USA, debuted its new advertising campaign featuring five of the world's most accomplished and decorated Olympic and Paralympic athletes. Driven by the tagline "Time to Let Yourself Fly," the campaign highlights Team USA's return to the Games and honors the feeling many Americans have as they consider returning to travel. Customers traveling with United this summer will experience touches of the Team USA collaboration through signage displayed throughout United terminals and limited-edition amenity kits and pajamas available on select flights.

United Adds 270 Boeing and Airbus Aircraft to Fleet, Largest Order in Airline's History and Biggest by a Single Carrier in a Decade

"United Next" includes addition of 200 Boeing 737 MAX and 70 Airbus A321neo as well as plans to retrofit 100% of remaining mainline, narrow-body fleet to transform the customer experience and create a new signature interior - a roughly 75% increase in premium seats per North American departure, larger overhead bins, seatback entertainment in every seat and industry's fastest available WiFi;
June 29, 2021

CHICAGO, June 29, 2021 /PRNewswire/ -- United Airlines today announced the purchase of 270 new Boeing and Airbus aircraft - the largest combined order in the airline's history and the biggest by an individual carrier in the last decade. The 'United Next' plan will have a transformational effect on the customer experience and is expected to increase the total number of available seats per domestic departure by almost 30%, significantly lower carbon emissions per seat and create tens of thousands of quality, unionized jobs by 2026, all efforts that will have a positive, ripple effect across the broader U.S. economy.

United Airlines to Host 'United Next' Investor Event to Discuss Company Strategy

June 22, 2021

CHICAGO, June 22, 2021 /PRNewswire/ -- United Airlines will hold an investor event to provide an update on the Company's strategy. The event will take place on Tuesday, June 29 at 8:00 a.m. EDT and a live, listen-only webcast of the presentation will be available at ir.united.com.

United Advances Innovation Through Corporate Venture Capital Fund

United Airlines Ventures will invest in high-potential companies focused on sustainability, aerospace, and other innovative technologies
June 10, 2021

CHICAGO, June 10, 2021 /PRNewswire/ -- United Airlines launched a new, corporate venture fund today – United Airlines Ventures – that will allow the airline to continue investing in emerging companies that have the potential to influence the future of travel. The new fund will concentrate on sustainability concepts that will complement United's goal of net zero emissions by 2050 - without relying on traditional carbon offsets - as well as revolutionary aerospace developments and innovative technologies that are expected to create value for customers and United's operation.

Warriors, United Airlines Launch Franchise Fund

Four-Month Program Will Support Small Business Advancement Goals, Provide Resources For Business Growth

June 08, 2021

SAN FRANCISCO The Golden State Warriors and United Airlines announced today the launch of Franchise Fund, a program designed to support minority-owned Bay Area small businesses. For a video explaining Franchise Fund, click here.

United Adding Supersonic Speeds with New Agreement to Buy Aircraft from Boom Supersonic

First U.S. airline to sign commercial agreement with Boom Supersonic

New aircraft will cut travel times in half and operate on up to 100% sustainable aviation fuel

June 03, 2021

CHICAGO and DENVER, June 3, 2021 /PRNewswire/ -- United Airlines today announced a commercial agreement with Denver-based aerospace company Boom Supersonic to add aircraft to its global fleet as well as a cooperative sustainability initiative – a move that facilitates a leap forward in returning supersonic speeds to aviation.

Flying with Pride: United, Chase and Visa Join Forces in Support of LGBTQ+ Equality

Eligible United MileagePlus Visa Cardmembers earn five total miles for every dollar donated to charities supporting the LGBTQ+ community - up to $1,000 per eligible card
June 01, 2021

CHICAGO, June 1, 2021 /PRNewswire/ -- In celebration and support of Pride Month, United Airlines, Chase and Visa are collaborating to reward United Visa Cardmembers who donate to non-profit LGBTQ+ organizations. Between June 1 and June 30, 2021, eligible United MileagePlus Visa Cardmembers will receive five total miles for every dollar up to $1,000 in donations per eligible card made to the following organizations:

Scroll to top