United Airlines and The Private Suite Create a New Luxury Experience at Los Angeles International Airport
Access to The Private Suite will be included in certain business-class fares. United has negotiated a highly preferential rate for use of the exclusive service. The Private Suite experience will initially be available through select corporate travel booking desks and travel agents, and later available for purchase on united.com or through the United app as part of a premium-cabin ticket fare.
United customers flying to or from New York/Newark; Aspen, Colorado; Hawaii; London Heathrow; Los Cabos, Mexico; Melbourne and Sydney, Australia; Shanghai; Singapore; and Tokyo Narita who purchase this service will have access to the exclusive co-branded lounge at The Private Suite's terminal on the LAX airfield. Customers arriving from overseas will be met at the aircraft and escorted to private customs and immigration processing. A Private Suite logistics team of eight people is assigned to each booking, ensuring a seamless airport experience without traffic, lines or wait time.
"We are excited to offer this new experience for our customers who are seeking additional efficiency, comfort, privacy and the ultimate service during their travels," said Janet Lamkin, President, California, for United Airlines. "The partnership with The Private Suite affords our customers the opportunity to enjoy a one-of-a-kind experience that makes travel through LAX the best in class. As California's global airline, our customers expect the best, and United is delivering on that promise."
The Private Suite is owned and operated by Gavin de Becker & Associates, a world-renowned consulting and service firm that handles logistics and protection for many of the world's most prominent people.
"United has created an exceptional service opportunity for its customers, and we're excited to be part of something that's never before existed in commercial air travel," said Joshua Gausman, Co-Founder of The Private Suite.
For more information, visit united.com/privatesuite.
United at LAX
United's hub at LAX is a key gateway, offering service to Latin America, Europe, Asia, Australia and the domestic U.S. network. From Los Angeles, United operates daily nonstop service to five Asia-Pacific destinations, including Melbourne, Tokyo Narita, Shanghai, Sydney and Singapore. At 8,700 miles, the flight between LAX and Singapore holds the record for any airline operating a flight to or from the U.S. The airline also operates nonstop service to London Heathrow, Vancouver, Canada, and five destinations in Mexico, as well as 138 daily flights to destinations across the U.S. Over the last two years, United has invested more than $570 million in its LAX hub.
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, New York/Newark, 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."
About The Private Suite
The Private Suite at LAX is a new terminal designed for First and Business Class travelers seeking the highest convenience, privacy, and luxury. Offering a dramatically improved airport experience, The Private Suite includes private TSA screening and Customs processing, private suites for awaiting boarding, and direct-to-aircraft transportation across the airfield. The Private Suite is operated by Gavin de Becker & Associates, the 775-person consulting and service firm that protects many of the world's most prominent people. Headquartered in Los Angeles, Gavin de Becker & Associates has operations in 27 cities and 7 countries. For more information on The Private Suite, visit: www.theprivatesuite.com.
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
Access to The Private Suite will be included in certain business-class fares. United has negotiated a highly preferential rate for use of the exclusive service. The Private Suite experience will initially be available through select corporate travel booking desks and travel agents, and later available for purchase on united.com or through the United app as part of a premium-cabin ticket fare.
United customers flying to or from New York/Newark; Aspen, Colorado; Hawaii; London Heathrow; Los Cabos, Mexico; Melbourne and Sydney, Australia; Shanghai; Singapore; and Tokyo Narita who purchase this service will have access to the exclusive co-branded lounge at The Private Suite's terminal on the LAX airfield. Customers arriving from overseas will be met at the aircraft and escorted to private customs and immigration processing. A Private Suite logistics team of eight people is assigned to each booking, ensuring a seamless airport experience without traffic, lines or wait time.
"We are excited to offer this new experience for our customers who are seeking additional efficiency, comfort, privacy and the ultimate service during their travels," said Janet Lamkin, President, California, for United Airlines. "The partnership with The Private Suite affords our customers the opportunity to enjoy a one-of-a-kind experience that makes travel through LAX the best in class. As California's global airline, our customers expect the best, and United is delivering on that promise."
The Private Suite is owned and operated by Gavin de Becker & Associates, a world-renowned consulting and service firm that handles logistics and protection for many of the world's most prominent people.
"United has created an exceptional service opportunity for its customers, and we're excited to be part of something that's never before existed in commercial air travel," said Joshua Gausman, Co-Founder of The Private Suite.
For more information, visit united.com/privatesuite.
United at LAX
United's hub at LAX is a key gateway, offering service to Latin America, Europe, Asia, Australia and the domestic U.S. network. From Los Angeles, United operates daily nonstop service to five Asia-Pacific destinations, including Melbourne, Tokyo Narita, Shanghai, Sydney and Singapore. At 8,700 miles, the flight between LAX and Singapore holds the record for any airline operating a flight to or from the U.S. The airline also operates nonstop service to London Heathrow, Vancouver, Canada, and five destinations in Mexico, as well as 138 daily flights to destinations across the U.S. Over the last two years, United has invested more than $570 million in its LAX hub.
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, New York/Newark, 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."
About The Private Suite
The Private Suite at LAX is a new terminal designed for First and Business Class travelers seeking the highest convenience, privacy, and luxury. Offering a dramatically improved airport experience, The Private Suite includes private TSA screening and Customs processing, private suites for awaiting boarding, and direct-to-aircraft transportation across the airfield. The Private Suite is operated by Gavin de Becker & Associates, the 775-person consulting and service firm that protects many of the world's most prominent people. Headquartered in Los Angeles, Gavin de Becker & Associates has operations in 27 cities and 7 countries. For more information on The Private Suite, visit: www.theprivatesuite.com.
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
"We were proud to do our part to encourage more Americans to get their shot and were thrilled by the overwhelming response we received. This prize clearly struck an emotional chord with our customers, as the opportunity to travel and connect with people and places that matter most is something that clearly has been missed during the pandemic," said United's CEO, Scott Kirby. "I'd like to extend my personal gratitude to everyone who entered the sweepstakes and more importantly, made the decision to get vaccinated."
United is the only U.S. airline to offer its own one-stop-shop where customers can conveniently get "travel-ready" by uploading and storing their COVID-19 test results and vaccination records directly through the airline's website and award-winning mobile app with the Travel-Ready Center. The airline's easy-to-use travel tool enables customers to reduce stress and save valuable time at the airport right from the palm of their hand.
All of the grand prize winners are already starting to plan out the adventures they and their families will have in the upcoming year thanks to United. Ashley Cronkhite is an advertising professional who began working at a grocery store during the pandemic. She plans to travel to European destinations including Ireland and Italy with her best friend – her mom. Robert Simicak plans to travel to national parks around the U.S. with his wife, who is a frontline healthcare worker in Cleveland. Lauren Aldredge will experience her first time flying in a premium cabin and will be traveling to celebrate her 30th birthday with her partner. Sean Husmoe plans to travel with his wife and daughters to check off the final two continents that they have not yet visited, including South America and Antarctica. Lauren M. plans to travel with her family, including a trip to Tahiti with her husband.
The rest of United's customers will have no shortage of opportunities to plan long-awaited getaways of their own, as the airline has continued to grow its schedule in response to increased travel demand. Since May, the airline has launched new flights to Greece, Iceland, South Africa, Ghana and Croatia, and has resumed service as countries like Italy, Portugal, Spain and France re-opened to vaccinated travelers or travelers with a negative COVID test. For those planning to stay closer to home, United is adding nearly 150 flights to warm-weather destinations across the U.S, just in time for the winter holiday season.
Travel-Ready Center
Since its launch, United customers have been able to easily access testing or vaccine requirements needed for travel destinations, upload country specific required forms, completed testing results and vaccination records as well as have them verified, all within United's award-winning mobile app and website with the Travel-Ready Center. The Travel-Ready Center is an industry-leading digital platform that offers customers the ability to choose from thousands of COVID-19 testing providers across the country, book appointments and receive confirmation whether their test results meet their destination's requirements. Once requirements are validated, customers will see a status indicator informing them that they are "travel-ready" and receive their mobile boarding pass. United is the only airline that offers its customers these services as part of an integrated experience within its own app and website. The airline was also the first to set up an easy way for international travelers to bring a CDC-approved test with them, self-administer while abroad, and return home through an innovative collaboration with Abbott.
Mileage Plus: A 40-Year Legacy
United introduced its MileagePlus loyalty program in 1981 and over the past four decades, it has continued to be a leading airline loyalty program, with a number of industry-first innovations designed to enhance the travel experience for members. United added its Premier® program in 1983 and then its first loyalty credit card in 1987. More recently, in 2019, United announced that MileagePlus award miles never expire, and introduced PlusPoints for MileagePlus Premier members, giving customers more flexibility in how they choose to fly. United has also proudly worked together with MileagePlus members to contribute to the communities it serves, most notably donating 3.4 billion miles to charity organizations since 2003.
MileagePlus was named the 2020 Best Frequent Flyer Program by Global Traveler for the 17th consecutive year and was recently recognized as the Best Overall Frequent Flyer program by WalletHub.
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".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
CHICAGO, July 28, 2021 /PRNewswire/ -- Starting today on select flights, all United customers – no matter what cabin of service they're flying in – can use the airline's award-winning mobile app and website to pre-order meals, snacks and beverages up to five days before they're scheduled to travel. United is the first and only U.S. airline to offer economy customers the option to pre-order snacks and beverages, a reflection of the customer experience transformation underway at the airline.
United's pre-order technology is an extension of the airline's contactless payment platform that allows customers to store payment information in a digital wallet. United's pre-order option is now available on select flights departing from Chicago to Orange County, CA Sacramento, CA and San Diego, and will expand to all flights over 1,500 miles by early fall.
"Our new pre-order option reflects the customer experience transformation taking place at United – customers in our economy cabins will have an easy, convenient way to choose their snack or drink, and our flight attendants can move through the cabin faster, delivering more personalized service," said Toby Enqvist, chief customer officer for United. "This new feature also builds on our existing contactless payment technology, which has enabled us to safely resume our inflight food and beverage program on select flights."
How It Works
- Five days prior to departure, customers will see an option in the Reservation Details section of the United app or on United.com to pre-order food and beverage items available for their specific flight. Customers will also receive an email notifying them when pre-order is available.
- In economy cabins, customers can pre-order snacks and beverages from United's buy-on-board menu. They will be asked to enter their credit card information but will not be charged until the items are served to them onboard.
- In premium cabins, customers can select their meal option directly from the United app or website. Once they make their selection, they will get a receipt emailed to them.
About United's Contactless Payment Technology
For customers looking to purchase drinks and snack items while onboard, United's contactless payment platform allows them to store their payment information in a digital wallet on the United app and on United.com prior to departure.
- Once in flight, customers can access a menu to view available items either on the United app or in Hemispheres® magazine.
- Rather than handing the flight attendant a credit card, the flight attendant will ask for the customer's name and seat to confirm the card on file.
- Once confirmed, customers will receive their products and the card on file will be charged.
About United's Newly Enhanced Buy-On-Board Menu
United recently unveiled its refreshed buy-on-board menu, which includes a wide variety of food and beverage offerings including:
- Adult Beverage Options: Mango White Claw®; red, white and sparkling wine, and new beer options such as Breckenridge Brewery Juice Drop Hazy IPA and Michelob ULTRA®.
- Three New Snack Boxes: A Tapas snack box with European-inspired offerings; a Takeoff snack box with high-protein options; a Recline snack box with movie theater themed treats.
- A la Carte Snack Options: Including chips, dips, trail mix and chocolate-covered dried fruit.
New Domestic Premium Cabin Menu Items
United also introduced brand-new meal offerings to customers seated in domestic premium cabins on flights over 1,500 miles and hub-to-hub flights over 800 miles.
- The enhanced meal service includes a choice of entrees – including fresher options like egg scramble with plant-based chorizo and grilled chicken breast with orzo and lemon basil pesto – sides and dessert.
- United has also teamed with Eli's Cheesecake to create a uniquely United chocolate pie flavor called "Pie in the Sky."
- The meals will be served on one tray, with items individually wrapped, to limit person-to-person contact and further the safety of our employees and customers.
United's pre-order technology is available beginning July 28 for flights departing on or after August 2. The technology will initially be available on flights from Chicago O'Hare International Airport to San Diego International Airport, Sacramento International Airport, Orange County's John Wayne Airport and Honolulu's Daniel K. Inouye International Airport.
For information on snacks available, United's contactless payment technology and FAQs, visit United.com/snacktime.
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".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
United is the only U.S. airline to offer its own one-stop-shop where customers can conveniently get "travel-ready" by uploading and storing their COVID-19 test results and vaccination records directly through the airline's website and award-winning mobile app with the Travel-Ready Center. The airline's easy-to-use travel tool enables customers to reduce stress and save valuable time at the airport right from the palm of their hand. United also announced a new collaboration with Abbott and became the first U.S. carrier to set up an easy way for international travelers to bring a CDC-approved test with them, self-administer while abroad, and return home.
"Today's announcement is yet another major milestone in recovering from the COVID-19 pandemic with the opening of one of the most important markets from the U.S." said Patrick Quayle, vice president of international network and alliances at United. "United has demonstrated that we can operate flights between the U.S. and England safely and we are eager to help rebuild these economies by facilitating business and leisure travel."
United in England
United has provided service to London Heathrow for nearly 30 years and over the course of the pandemic has maintained continuous service between the U.S. and London. In August, United is increasing its service from Houston to London from five times weekly to daily and adding a second daily flight from Washington, D.C. United will continue operating daily flights to London from Chicago, New York/Newark, San Francisco. The airline plans to continue offering these six daily flights in September.
United flies to more European destinations than any other U.S. carrier, and is welcoming back customers on more than 30 daily flights to 16 destinations in Europe this summer. The carrier has expanded its service to Europe including new routes to Dubrovnik, Croatia; Reykjavik, Iceland and Athens, Greece. All of these flights are available for purchase on united.com. To see the full list of reopened countries where United is flying visit united.com/reopen. Customers should review local country requirements before they travel.
Committed to Ensuring a Safe Journey
United is committed to putting health and safety at the forefront of every customer's journey, with the goal of delivering an industry-leading standard of cleanliness through its United CleanPlus SM program. United has teamed up with Clorox and Cleveland Clinic to redefine cleaning and health safety procedures from check-in to landing and has implemented more than a dozen new policies, protocols and innovations designed with the safety of customers and employees in mind. To manage entry requirements in different destinations, and find places to get tests, customer can visit Travel Ready Center on United's app and website.
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".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
"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. | PRASM vs. | Yield vs. | Available Seat Miles vs. 2Q 2020 | Available Seat Miles vs. 2Q 2019 | 2Q 2021 | 2Q 2021 | |||||||||||||
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 | |||||||||||||||||||
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 | 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 | $ | 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, | 252 | 498 | 761 | 626 | |||||||||||
Adjustment to property and equipment acquired through other financial | 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 | 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 | 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 | 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 | — | — | — | 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 | $ | (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
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 has prepared for the return of air travel for more than a year, matching its flying schedule and aircraft availability to demand by maintaining close coordination between its network planning teams and the airline's operating groups. During this fourth of July travel period, United carried five times as many customers as it did over the same period in 2020 and in anticipation of that trend continuing throughout 2021, the airline is expanding its winter schedule.
"Celebrating the holidays with family and loved ones in 2020 was a challenge, and we know our customers are already eager to plan winter vacations and gatherings in person this year to make up for time that they lost," said Ankit Gupta, vice president of network planning at United. "As pandemic restrictions ease, people are becoming more confident in planning travel further in advance, so we want to make sure to offer our customers as much choice as possible."
Most of these additional flights will be operated with mainline aircraft featuring United FirstSM , Economy Plus® and standard Economy seat options and complimentary snacks and onboard Wi-Fi. The additional U.S. flights include:
- Up to 25 additional daily flights from New York/Newark to cities including Ft. Myers, Jacksonville and Savannah
- Up to 14 additional daily flights from Denver to cities including Charleston, Ft. Lauderdale and Savannah
- Up to 12 additional daily flights from Chicago to cities including Key West, Las Vegas and San Diego
- Up to 11 additional daily flights from Washington D.C. to cities including Charleston, New Orleans and Phoenix
- Up to seven additional daily flights from Houston to Florida including Miami, Orlando and Palm Beach
- Up to four additional daily flights from Los Angeles to Orlando, Tampa and Ft. Myers
- Up to four additional daily flights from Cleveland to Orlando, Tampa and Ft. Myers
- Up to three additional daily flights from San Francisco to Orlando and Ft. Myers
And as customers continue to reunite with family and friends in warm international destinations this winter, United is increasing service to the Caribbean, Mexico and Central America by 30% compared to 2019. This added service includes launching 12 new routes from Denver, Los Angeles, New York/Newark, San Francisco and Washington, D.C. to destinations including Belize City, Belize; Cozumel, Mexico; Liberia, Costa Rica and Nassau, Bahamas.
These additions come on the heels of United announcing the largest fleet order in its history of more than 270 mainline aircraft. Customers can book these flights now on united.com or through United's Webby Award winning mobile app.
Committed to Ensuring a Safe Journey
United is committed to putting health and safety at the forefront of every customer's journey, with the goal of delivering an industry-leading standard of cleanliness through its United CleanPlusSM program. United has teamed up with Clorox and Cleveland Clinic to redefine cleaning and health safety procedures from check-in to landing and has implemented more than a dozen new policies, protocols and innovations designed with the safety of customers and employees in mind. To manage entry requirements in different destinations, and find places to get tests, customer can visit United's Travel Ready Center.
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".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@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".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
Selected for their shared values of ambition, excellence, diversity and unity on a global stage, Team United is comprised of the following athletes:
- Simone Biles – Gymnast from Houston, Texas, and the world's most decorated female gymnast in history
- Kolohe Andino – Surfer from San Clemente, California, who holds the record for most championship titles in U.S. surfing history
- Julie Ertz – Soccer Defender from Mesa, Arizona, and two-time World Cup champion
- Jessica Long – Swimmer from Baltimore, Maryland, and 23-time Paralympic medalist
- Oz Sanchez – Hand Cyclist from San Diego, California, and six-time Paralympic medalist
VIDEO: Time to Let Yourself Fly
"The upcoming Olympic and Paralympic games mark the 40th year we've supported Team USA on their journey from practice to the podium," said Janet Lamkin, senior vice president of market and community innovation at United. "Like the athletes we've flown over the years to compete on a global stage, United is an airline committed to doing the hard work to be the best and engage deeply in the communities we serve."
For the last four decades, United has proudly sponsored Team USA Olympic and Paralympic athletes as part of its long-standing relationship with the United States Olympic and Paralympic Committee. As the official airline sponsor of Team USA, United flies athletes along with their equipment and gear, and maintains reservations agents dedicated to Team USA's travel needs.
Leading up to and throughout the Tokyo Games, United will also encourage fans to "let yourself fly" with United through airport and onboard marketing activations. Campaign visuals will be displayed on signage throughout United's airports. Customers flying in premium cabins this summer will receive limited-edition Team USA-themed amenity kits and on select international flights, customers in United Polaris® business class will dream like an Olympian in Team USA-themed pajamas.
To keep up with Team United's travel journeys to Tokyo this summer, follow @United on Twitter, Instagram, Facebook and TikTok.
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".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
When combined with the current order book, United expects to introduce more than 500 new, narrow-body aircraft: 40 in 2022, 138 in 2023 and as many as 350 in 2024 and beyond. That means in 2023 alone, United's fleet will, on average, add about one new narrow-body aircraft every three days.
United's new aircraft order – 50 737 MAX 8s, 150 737 MAX 10s and 70 A321neos – will come with a new signature interior that includes seat-back entertainment in every seat, larger overhead bins for every passenger's carry-on bag and the industry's fastest available in-flight WiFi, as well as a bright look-and-feel with LED lighting. The airline expects to fly the first 737 MAX 8 with the signature interior this summer and to begin flying the 737 MAX 10 and the Airbus A321neo in early 2023.
What's more, United intends to upgrade 100% of its mainline, narrow-body fleet to these standards by 2025, an extraordinary retrofit project that, when combined with the number of new aircraft joining the fleet, means United will deliver its state-of-the-art inflight experience to tens of millions of customers at an unprecedented pace.
This order will also significantly boost United's total number of mainline daily departures and available seats across the airline's North American network, as well as the number of premium seats, both United FirstSM and Economy Plus®. Specifically, United expects it will have on average 53 premium seats per North American departure by 2026, an increase of about 75% over 2019, and more than any competitor in North America.
"Our United Next vision will revolutionize the experience of flying United as we accelerate our business to meet a resurgence in air travel," said United CEO Scott Kirby. "By adding and upgrading this many aircraft so quickly with our new signature interiors, we'll combine friendly, helpful service with the best experience in the sky, all across our premier global network. At the same time, this move underscores the critical role United plays in fueling the broader U.S. economy – we expect the addition of these new aircraft will have a significant economic impact on the communities we serve in terms of job creation, traveler spending and commerce."
United expects to create approximately 25,000 well-paying, unionized jobs at the airline as a result of adding these new aircraft and, based on a study from the Federal Aviation Administration, the airline expects to drive more than $30 billion in traveler spending when flying United and contribute an estimated $50 billion annually towards the U.S. economy by 2026.
Plus, adding these new 737 MAX and Airbus A321neo aircraft means United will replace older, smaller mainline jets and at least 200 single-class regional jets with larger aircraft, which the airline expects will lead to significant sustainability benefits compared to older planes: an expected 11% overall improvement in fuel efficiency and an expected 17-20% lower carbon emission per seat compared to older planes.
The best customer experience in the industry
United's new aircraft reflect a vastly improved customer experience standard – United's signature interior – that places a premium on the overall comfort of flying – more overall available seats in the market, more premium seats on each aircraft, as well as better entertainment, overhead storage and technology features. These standards will be applied to the airline's retrofit plan - a nose-to-tail transformation of its mainline, narrow-body fleet - that is expected to be 66% complete by 2023 and 99% complete by the summer of 2025.
United's new narrow-body jets will help the airline increase its total seats per departure for North American flights by 30 seats, or almost 30%, by 2026. At the same time, the airline will quickly grow the number of United FirstSM and Economy Plus® seats for customers seeking an elevated experience.
United's 737 MAX 8 has 16 United FirstSM seats and 54 Economy Plus® seats – more than double the number of extra leg room seats offered by competing airlines on similar-sized aircraft. The 737 MAX 10 - the largest member of the MAX family - makes up the majority of United's new order and will include 20 United FirstSM seats and 64 Economy Plus® seats and the new A321neo aircraft are expected to have a United FirstSM and Economy Plus® seat count similar to that of the 737 MAX 10.
By flying bigger jets with a signature interior that includes more premium seating, United will give customers more choice when selecting their onboard experience, provide MileagePlus® members more opportunity for upgrades, and position United to better meet the demand among United's business customers while creating even more connectivity to its global long-haul network, helping to fuel growth to all corners of the world.
"We'll deliver a better, more consistent experience, with more features for more customers, faster than ever. While some airlines are reducing the number of economy seats with extra leg room, United will offer the most premium seats in North America, taking a different, more customer-friendly approach," said Andrew Nocella, United's EVP and Chief Commercial Officer. "This is United playing to our strengths - the location of our U.S. hubs means we're uniquely positioned to focus on premium products, business travel and global flying like no other U.S. airline. Our new, signature interior creates a more consistent product across our mainline fleet - with a focus on the amenities that customers value most like seat back screens, fast WiFi and extra storage - to further set ourselves apart."
United's inflight entertainment – 13-inch high-definition screens in every first class seat and 10-inch HD screens in every United Economy seat on the 737 MAX – includes free access to more than 2,800 selections including movies, TV shows and international selections, as well as audio playlists, podcasts, and games. Customers also can watch documentaries and live concerts through United's exclusive collaboration with the Coda Collection. Plus, every seat on these aircraft has access to electrical power and USB charge ports and provides a seatback experience with accessibility features for people with hearing or visual disabilities.
Each new 737 MAX and A321neo will have the industry's fastest available in-flight WiFi that lets customers stream video from online services. The aircraft also will have Bluetooth technology throughout for easy connections between wireless headphones and the seatback entertainment screens.
United's new, significantly larger overhead bins will provide space for one carry-on bag for every person onboard, addressing several of the biggest pain points among customers and employees. United expects that the availability of these larger bins will help alleviate gate crowding and anxiety, reduce the number of gate-checked bags and decrease the time it takes to board.
More Flights, New Destinations
United's plan to add hundreds of signature interior narrow-body aircraft to its fleet will give customers access to more modern seats and planes while reducing flights that use smaller, single-class regional jets. These new aircraft also will give customers even more options to fly between U.S. cities, including some new destinations, when they travel through the airline's major U.S. hubs. Finally, the larger mainline fleet will help accelerate United's plans to expand service in partnership with local airport authorities across the United States.
Impact in Newark/NYC
United expects to resume its full schedule of flights out of Newark by November 2021 when the FAA slot waiver period ends. The airline is already the leading carrier from Newark - United's largest global gateway - with 430 daily flights that include international destinations like Johannesburg, Tel Aviv, Mumbai and Hong Kong.
United expects the number of Newark departures on mainline aircraft to increase from 55% in 2019 to 70% by 2026. And by late 2021, United expects 100% of Newark departures to be on dual-class aircraft, including the 737 MAX and the airline's new, dual-class 50-seat CRJ-550 jet. Today's aircraft order means the airline can create quality, union jobs, as well as grow domestic and international capacity from Newark for years to come by replacing smaller mainline jets with larger aircraft, while at the same time driving international growth, by connecting more customers from U.S. cities to Newark/NYC for their international flights.
United is in the midst of a significant facility expansion and upgrade project at Newark. The work includes renovating an existing United Club SM location in Terminal C, building a completely new lounge in Terminal C that is capable of accommodating 500 travelers and will have panoramic views of Manhattan, as well as building a brand new United Club in Terminal A where United will operate from 12 new gates.
Jobs
Today, the airline supports about 68,000 union jobs - 89% of the airline's total domestic workforce.
All United employees – even part-time workers – earn more than the federal minimum wage, are eligible to receive company-sponsored medical coverage, participate in company-funded retirement programs like 401(k)s and receive paid sick leave, paid vacation and flight privileges when space is available to destinations around the world. Plus, these jobs offer opportunities for career growth – about 69% of the airline's senior leaders were internally promoted and more than 1,500 frontline employees have been promoted into management roles in the past seven years.
"The addition of these 270 new aircraft and reduction of single-class regional jets is not only good news for customers, it is excellent news for the 12,000 current United pilots, and the 10,000 more we expect to hire before the decade is out," said United ALPA Chair Capt. Todd Insler. "This is exactly what we planned for when we reached our industry-leading pandemic recovery agreement last year and kept United pilots on the property, trained and ready to take advantage of the rapid recovery in passenger demand. With the strength of our network, fleet, and pilot compensation, we are sure United will remain the destination of choice for the most highly qualified airline pilots."
United's new aircraft order is expected to create about 25,000 well-paying, unionized jobs by 2026, including the following at each of the airline's seven, major U.S. hubs:
- Newark / EWR: up to 5,000 jobs
- San Francisco / SFO: up to 4,000 jobs
- Washington, D.C. / IAD: up to 3,000 jobs
- Chicago / ORD: up to 3,000 jobs
- Houston / IAH: up to 3,000 jobs
- Denver / DEN: up to 3,000 jobs
- Los Angeles / LAX: up to 1,400 jobs
United has contracts in place with the following unions and these descriptions provide an overview of each frontline group as well as salary details for each position:
- Contact Center, Ramp and Customer Service Agents (represented by IAM): United employed about 28,000 agents in 2019 - 14,000 who help load each aircraft, 12,000 customer service representatives in airports and 3,000 contact center agents (including about 900 based at the airline's Houston Reservation Center and 700 at United's Chicago facility) who help customers find the best option for their travel. Most of these jobs include entry-level opportunities for people directly out of high school and college, and their combined wages and benefits in 2019 totaled more than $90,000 at the top of their pay scale. Several of United's top leaders started out working on the ramp or in customer service, including United's current Senior Vice President of Airport Operations who started on the ramp, the airline's Vice President of San Francisco, who started as a customer service agent and United's current Managing Director of Customer Care, who started as a lead travel consultant.
- Dispatchers (represented by PAFCA): United has 400 dispatchers and in 2019 their combined wages and benefits totaled more than $200,000 at the top of their pay scale. These positions are certified by the FAA and share joint responsibility with the captain for the safe operation of every United flight. The airline has many dispatchers working in United's Network Operations Center who came from positions across the company including agents and management positions.
- Flight Attendants (represented by AFA): United had about 24,000 active flight attendants in 2019 and their combined wages and benefits totaled more than $90,000 at the top of their pay scale. With the unique ability to see the world while working, it's no surprise that flight attendant jobs are highly desired. In 2019, United had over 65,000 applicants for fewer than 1,500 flight attendant positions. New hires go through a six-week training course at United's Houston Training Center and visit one of the airline's seven training facilities every year to keep their skills fresh. Additionally, those interested in becoming a flight attendant do not require special schooling or a college degree and are fully trained once hired. United's current Senior Vice President of Inflight Services started as a flight attendant.
- Pilots (represented by ALPA): United has about 12,000 pilots - Captains of United's Boeing 787s and 777s can earn more than $350,000. In addition, United pilots receive one of the highest 401(k) matches in the nation – 16% of base pay. United leads the industry as the only major airline to own its own flight school – the United Aviate Academy – and recently embarked on a plan to train 5,000 new pilots by 2030 with the goal of at least half of them being women and people of color. The company had previously announced that it anticipates hiring more than 10,000 pilots by 2029. All United pilots complete intensive simulator training with our pilot instructors and evaluators every nine months at United's Flight Training Center in Denver. United's current Senior Vice President of Flight Operations started as a First Officer, served as a U.S. Naval Aviator and retired as a Navy Captain from the U.S. Navy Reserve.
- Technicians (represented by IBT): United had more than 9,000 technicians in 2019 and their combined wages and benefits totaled more than $140,000 at the top of their pay scale. This frontline team includes aircraft mechanics, facilities technicians and ground equipment technicians. These are highly skilled jobs – the airline actively recruits from the military - and United provides an onramp to this career through entry-level positions. Several United airlines leaders started out as aircraft mechanics, including the airline's current Vice President for Technical Operations.
Overall Economic Impact
In addition to creating jobs, the addition of these new aircraft to United's fleet is expected to drive more than $30 billion in traveler spending when flying United and contribute an estimated $50 billion annually towards the U.S. economy by 2026, based on a study from the Federal Aviation Administration and United's internal estimates:
- Jobs & Wages: In 2020, United paid more than $10 billion in wages and this new aircraft order has the potential to create an additional 25,000 United jobs by 2026, with billions of dollars more in potential additional wages expected. United estimates that every new direct airline job results in about two additional indirect jobs like aircraft manufacturers, airport management and airport retail. Furthermore, United's estimates indicate that each new direct and indirect job induces an additional five jobs, potentially creating a total wage impact of up to $12 billion annually.
- Visitor Spending: Based on the FAA study, United estimates domestic air travelers spend about $500 per trip in addition to airfare (food, lodging, recreation, gifts, entertainment, etc.). The addition of 270 new aircraft means the potential to carry tens of millions more passengers per year through 2026, which, using this metric for visitor spending, could contribute more than $30 billion in annual consumer spending when traveling on United.
- Taxes & Fees: Each year, United generates about $4 billion of direct (ticket excise, fuel, and property) and payroll taxes. United's own internal analysis estimates that these numbers will increase as a result of purchasing these 270 new aircraft.
Sustainability
By 2026, United expects its use of aircraft in this new order alone will lower the airline's total carbon emissions per seat up to 15%. Specifically, the 737 MAX and A321neo aircraft offer better overall range and environmental performance with their new, more fuel-efficient engines and improved aerodynamics. Improvements come from new engines, lighter-weight carbon composite airframes and aerodynamic innovations like natural laminar flow that reduces drag. United has set an ambitious goal to be 100% green by reducing its greenhouse gas emissions 100% by 2050, without relying on traditional carbon offsets.
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".
Cautionary Statement Regarding Forward-Looking Statements1
Certain statements in this press release are forward-looking and thus reflect United's current expectations and beliefs with respect to certain current and future events and anticipated effects of the new aircraft order and the broader United Next plan. Such forward-looking statements are and will be subject to many risks and uncertainties relating to United's 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 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 press release are based upon information available to United on the date of this press release. United undertakes 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.
United's 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 the business, operating results, financial condition, liquidity and near-term and long-term strategic operating plan of United, 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; United's reliance on technology and automated systems to operate its business and the impact of any significant failure or disruption of, or failure to effectively integrate and implement, the technology or systems; United's reliance on third-party service providers and the impact of any significant failure of these parties to perform as expected, or interruptions in United's relationships with these providers or their provision of services; adverse publicity, harm to United's brand, reduced travel demand, potential tort liability and voluntary or mandatory operational restrictions as a result of an accident, catastrophe or incident involving United, its regional carriers, its 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 United's regional network and United Express flights provided by third-party regional carriers; the failure of United's significant investments in other airlines, equipment manufacturers and other aviation industry participants to produce the returns or results United expects; further changes to the airline industry with respect to alliances and joint business arrangements or due to consolidations; changes in United's network strategy or other factors outside United's 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 its fleet as planned; United's reliance on single suppliers to source a majority of its 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 United's operations; extended interruptions or disruptions in service at major airports where United operates; the impacts of seasonality and other factors associated with the airline industry; United's failure to realize the full value of its intangible assets or its long-lived assets, causing United to record impairments; any damage to United's reputation or brand image; the limitation of United's ability to use its 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 United's significant amount of financial leverage from fixed obligations, the possibility United may seek material amounts of additional financial liquidity in the short-term and insufficient liquidity on its 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 United's other debt; changes in, or failure to retain, United's senior management team or other key employees; current or future litigation and regulatory actions, or failure to comply with the terms of any settlement, order or arrangement relating to these actions; increases in insurance costs or inadequate insurance coverage; and other risks and uncertainties set forth under Part I, Item 1A., "Risk Factors," of United's Annual Report on Form 10-K for the fiscal year ended December 31, 2020 as well as other risks and uncertainties set forth from time to time in the reports United files 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
The live webcast will be available on the investor relations section of United's website at ir.united.com. The company will archive the audio webcast on the website within 24 hours of the presentation, and the webcast will be available for a limited time.
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".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
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.
"Younger companies today have learned from aviation's rich history and are combining it with more advanced technology and creative thinking to develop new ideas that give us the ability to revolutionize how airlines operate and in turn, the experience customers have when they fly," said United CEO Scott Kirby. "With United Airlines Ventures, we're signaling our confidence in these companies and propelling them forward with our expertise and financial support to demonstrate that our commitment to innovation will strengthen our company and improve our customers' experience more quickly than anyone ever anticipated."
With major agreements announced in just the last six months including agreements to invest in, collaborate with and purchase aircraft from Archer Aviation, United has proven its commitment to work with companies that are developing transformational technologies and services that are designed to revolutionize the customer experience and redefine how airlines operate.
Through United Airlines Ventures, United will continue to forge a new path by accelerating the growth of small- to medium-sized companies with strong potential.
United's current Vice President of Corporate Development and Investor Relations, Michael Leskinen, will assume the role of President of United Airlines Ventures in addition to his current responsibilities.
"United has always been a pioneer within the industry and United Airlines Ventures will help us grow companies that are pushing the envelope to make air travel better for our customers, our employees and our planet," said Leskinen. "We're making more than a financial commitment to companies within this new portfolio; we're lending our expertise so that new ideas can really take off."
United continues to be a leader in the adoption of new sustainable aviation technologies and innovations. Last week, the company announced its agreement to purchase 15 of Boom Supersonic 'Overture' aircraft with an option for an additional 35 airliners. Once in service, Overture will not only re-introduce supersonic commercial flight, it is expected to be the first long-haul commercial aircraft to be net zero carbon from day one optimized to run on 100% sustainable aviation fuel (SAF).
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."
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
