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
United has tested a variety of uses for UVC lighting as a disinfectant and consulted with its United CleanPlus partners at the Cleveland Clinic to determine that the flight deck was the most effective use of the technology.
"Safety is our highest priority and we continue to research, test and roll out new technologies to keep our aircraft and terminals safe for both customers and crew," said Bryan Quigley, United's senior vice president of flight operations. "Flight decks have many working parts, screens and components that are challenging to clean with traditional hand wipes and liquids, especially for someone who isn't a pilot. The UVC lighting gives us a faster, more effective disinfection of one of the most important areas of the aircraft."
United currently uses electrostatic spraying to disinfect its aircraft cabins, one of the most effective techniques to clean around harder to reach surfaces, particularly overhead bins and spaces within tray tables. United's use of UVC lighting in the flight deck – along with electrostatic spraying in the cabin – further reflects the airline's approach of matching the right type of technology to the right settings.
This latest enhancement of using UVC lighting technology is another way United is working with its partners at the Cleveland Clinic to guide its policies and procedures on safety and cleanliness.
"United implementing UVC lighting in its flight decks is an important tactic because we know that the virus can be killed by ultraviolet light," said Dr. James Merlino, Chief Clinical Transformation Officer at Cleveland Clinic. "It's one more measure that we can implement to ensure that we're doing all we can to keep passengers, flight attendants and crews safer."
To download b-roll of the UVC lighting cleaning process click here
United is focused on delivering a new level of cleanliness on the ground and in the air. In addition to the initiatives mentioned above, several of the airline's precautionary measures to further ensure a cleaner environment include:
At Check-In
- Implementing temperature checks for employees and flight attendants working at hubs and other airports throughout the airline's system
- Installing sneeze guards at check-in and gate podiums
- Promoting social distancing with floor decals to help customers stand six feet apart
- Becoming the first airline in the world to roll out touchless check-in capabilities for customers with bags
At the Gate
- Disinfecting high-touch areas such as door handles, handrails, elevator buttons, telephones and computers
- Providing hand sanitizer and disinfectant wipes
- Rolling out Clorox Total 360 Electrostatic Sprayers in select markets to disinfect gate areas at United's hub airports
- Enabling customers to self-scan boarding passes
- Boarding fewer customers at a time and, after pre-boarding, boarding from the back of the plane to the front
- Introduced real-time seat assignment update text and email notifications to further United's touchless airport experience
On Board
- Using electrostatic spraying to disinfect most aircraft prior to flight
- Disinfecting high-touch areas – such as tray tables and armrests – prior to boarding
- Reducing contact between flight attendants and customers during snack and beverage service
- Deplaning in groups of five rows at a time to reduce crowding
- Providing onboard items including pillows and blankets upon request
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, 872-825-8640, media.relations@united.com
"We continue to be realistic in our approach to building back our international and domestic schedules by closely monitoring customer demand and flying where people want to go," said Patrick Quayle, United's vice president of International Network and Alliances. "In September, we're adding even more options for leisure travelers or those who want to visit friends and relatives, whether that's within the United States or around the world."
Domestically, United intends to fly 40% of its schedule. The airline plans to add more than 40 daily flights on 48 routes to locations including Austin, Texas; Colorado Springs, Colorado; and Santa Barbara, California. Additionally, United plans to resume service between the U.S. mainland and Hilo and Kauai and increase flying to Honolulu, Kona and Maui in the Hawaiian Islands.
Internationally, United intends to fly 30% of its schedule as compared to September 2019, which is a 5-point increase compared to August. The airline expects to resume service on 20 routes in Latin America and the Caribbean, including to popular vacation destinations like Cabo San Lucas and Puerto Vallarta in Mexico and to San Jose and Liberia in Costa Rica. United intends to begin new nonstop service between Chicago and Tel Aviv and resume eight routes in the Atlantic and Pacific, including the return of European service from Houston with flights to Amsterdam and Frankfurt.
U.S. Domestic
Travelers in search of more socially distant vacation options like beach, mountain and national park destinations will continue to see opportunities for leisure travel including:
- Increasing opportunities to connect to more than 800 flights from United's mid-continental hubs in Chicago, Denver and Houston.
- Adding more than 40 daily flights on more than 48 routes across the United States.
- Resuming service between the U.S. mainland and Hilo and Kauai in Hawaii
- Increasing service between the U.S. mainland and Honolulu, Kona and Maui.
Atlantic
Internationally, United is scheduled to fly 30% of its schedule in September compared to the same period in 2019. Across the Atlantic, United plans to offer customers more opportunities to get to Europe and beyond from Chicago, Houston, New York/Newark, and San Francisco. Highlights include:
- Launching brand-new service between Chicago and Tel Aviv (subject to government approval)
- Resuming service between Chicago and Amsterdam.
- Resuming service between Houston and Amsterdam and Frankfurt.
- Resuming service between San Francisco and Munich.
- Increasing to daily service between Chicago and Frankfurt, and between San Francisco and London.
- Continuing service between the United States and Delhi and Mumbai (subject to government approval).
Pacific
Across the Pacific in September, United plans to re-start three-times-weekly service between Los Angeles and Sydney and passenger service between Chicago and Hong Kong (subject to government approval).
Latin America/Caribbean
Throughout Latin America and the Caribbean, United is expanding across each region by adding 20 new routes for September. Highlights of United's schedule include:
- Starting new service between San Juan, Puerto Rico and Chicago and Washington-Dulles.
- Resuming service from Houston to Aguascalientes, Tampico and Veracruz in Mexico.
- Starting new service between New York/Newark and St. Thomas.
- Resuming service between Costa Rica and Houston and New York/Newark.
- Adding more ways to get to Puerto Vallarta, Mexico, including resuming service from Chicago, Denver and Los Angeles.
- Resuming service between Denver and Cabo San Lucas.
- Increasing the number of flights between Houston and Quito, Ecuador.
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 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, including:
- Requiring all travelers – including crew members – to wear face coverings and potentially revoking travel privileges for customers who do not follow these requirements, as underscored in a recent video from United CEO Scott Kirby.
- Using state-of-the-art high-efficiency (HEPA) filters on most United mainline aircraft to circulate air and remove up to 99.97% of airborne particles.
- Using electrostatic spraying on all mainline aircraft before departure for enhanced cabin sanitation.
- Adding a step to the check-in process, based on a recommendation from the Cleveland Clinic, requiring customers to acknowledge they do not have symptoms for COVID-19 and agree to follow our policies, including wearing a mask on board.
- Offering customers a touchless baggage check-in experience at more than 200 airports across the United States; United is the first and only U.S. airline to make this technology available.
For more details on all the ways United is helping keep customers safe during their journey, please visit united.com/cleanplus.
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 30, 2020 /PRNewswire/ -- United Airlines today launched a new chat function – the United Automated Assistant – to give customers a contactless option to receive immediate access to information about cleaning and safety procedures put in place due to COVID-19. Customers can text "Clean" to FLYUA (35982) and get answers to questions about masks, boarding procedures, touchless check-in options and more, without having to call, search online or wait in a line for an answer. The United Automated Assistant is one of many recent innovations that have been developed to modernize the airline's service and create a more seamless experience for our customers. This launch follows another recently announced digital product that allows United customers on standby and upgrade lists to receive text notifications once they have been cleared and assigned a seat, saving them time and further limiting person-to-person interactions.
"The travel experience has changed a lot from just a few months ago – we've overhauled our safety and cleaning procedures and this new text functionality makes it easier for our customers to stay informed," said Linda Jojo, Executive Vice President for Technology and Chief Digital Officer. "Whether you want to know the latest about our social distancing and face covering policies or see how the boarding and deplaning process has changed, our Automated Assistant is designed to meet the customer where they are and get them answers in a simple, fast and easy way."
The United Automated Assistant answers customers questions like:
- How is United keeping airports cleaner and safer?
- Are United Club locations still open?
- How can I prepare for an upcoming trip?
- What is the quality of the air onboard a plane?
- How are you cleaning and disinfecting your planes?
- Are there any changes to service during flight?
The United Automated Assistant is part of the airline's United CleanPlus program, an effort to put health and safety at the forefront of the entire customer experience, that includes partnerships with Clorox and the Cleveland Clinic, a mandatory mask policy, electrostatic spraying, touchless check-in capabilities and a first-of-its kind, pre-boarding health self-assessment for passengers.
This week, United started requiring customers to wear a face covering in the more than 360 airports where the airline operates around the world, in addition to onboard the aircraft, and is now running the high-efficiency particulate air (HEPA) filtration systems at full strength on all mainline aircraft during the entire boarding and deplaning process, helping to mitigate the risk of spreading COVID-19.
Earlier this month, United debuted new text alerts for passengers on standby and upgrade lists. Cleared upgrade and standby customers, who have opted-in to receive text notifications about their flights, will now receive a text message asking them to refresh their boarding pass on the United app, where they will be able to find their seat assignment and boarding information. This new process will help further minimize touchpoints between gate agents and customers to create a more touchless travel experience. Other measures put in place include:
Limiting Number of Passengers on Board
The airline is also taking steps to limit the overall number of people onboard and separate customers wherever possible. United switched to a larger plane 66 times a day in May and June, for a total of more than 4,000 flights during those months, creating more space onboard. As a result, the airline's consolidated average seat factor – or the percentage of occupied seats including customers and non-revenue passengers – was 38% in May; 57% in June and is expected to be about 45% in July, with less than 15% of flights operating with more than 70% seats filled.
When United flights are less full, the airline's advanced automated seating tool assigns seats in a way that maximizes the space on board – and the distance between customers. And since May, United has been contacting customers via email and through the United app – as much as 24 hours in advance – if their flight is expected to be more than 70% full and gives them options to switch to different, less full flights for no additional fees. Customers also have the option to cancel their flight and receive a credit for future travel. To date, the overwhelming majority of customers choose to keep their travel plans the same.
In addition to the vital initiatives mentioned above, several of the airline's precautionary measures to further ensure a cleaner environment include:
At Check-In
- Implementing temperature checks for every employee working at all stations throughout the airline's system
- Installing sneeze guards at check-in and gate podiums
- Promoting social distancing with floor decals to help customers stand six feet apart
- Becoming the first U.S. carrier to roll out touchless check-in capabilities for customers with bags
At the Gate
- Disinfecting high-touch areas such as door handles, handrails, elevator buttons, telephones and computers
- Providing hand sanitizer and disinfectant wipes
- Rolling out Clorox Total 360 Electrostatic Sprayers in select markets to disinfect gate areas at United's hub airports
- Enabling customers to self-scan boarding passes
- Boarding fewer customers at a time and, after pre-boarding, boarding from the back of the plane to the front
- Introducing real-time seat assignment update text and email notifications to further United's touchless airport experience
On Board
- Using electrostatic spraying to disinfect 95%+ of aircraft
- Disinfecting high-touch areas – such as tray tables and armrests – prior to boarding
- Reducing contact between flight attendants and customers during snack and beverage service
- Deplaning in groups of five rows at a time to reduce crowding
- Providing customers with hand sanitizer and disinfectant wipes, and onboard items including pillows and blankets upon request
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
In her new role, Johnson will manage all aspects of worldwide aviation safety, ground safety, quality assurance, medical, workers compensation, managed care, business continuity, family assistance and emergency operations for United.
"Sasha is a highly respected and well-established leader with a proven track record of navigating some of the most challenging safety and regulatory issues in our industry," said Scott Kirby, United's chief executive officer. "Her unparalleled capacity for collaboration, teamwork and creative solutions will be a tremendous asset to our corporate safety team during one of the most challenging periods our industry has ever faced. We wish Mike well and appreciate his efforts over the past decade to not only lead United's safety programs but also take on a mentorship role for young people interested in aviation."
During Quiello's 11 years with United, the Corporate Safety team accomplished some tremendous milestones, including the highly complex process that resulted in United's single operating certificate after the merger with Continental Airlines. Quiello championed the company's active participation in the OSHA Voluntary Protection Program, and under his leadership, the United team's data visualization program won the National Safety Council's highest award.
Before joining United in 2015, Johnson worked for more than a decade at the Federal Aviation Administration and with the Department of Transportation in various roles including chief of staff at the FAA; assistant to the secretary and director of public affairs, and press secretary at the DOT. In these roles, she developed a comprehensive understanding of the issues critical to aviation safety, honed by her work in crisis management with the FAA administrator and the DOT secretary.
Prior to that, Johnson spent more than a decade in broadcast journalism at CNN, including covering campaigns and elections as a senior producer.
Johnson holds a Bachelor of Science degree from the S.I. Newhouse School of Public Communications at Syracuse University.
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 22, 2020 /PRNewswire/ -- United Airlines today announced that customers will be required to wear a face covering in the more than 360 airports where the airline operates around the world. This includes United customer service counters and kiosks, United Club locations, United's gates and baggage claim areas. If customers refuse to comply, they may be refused travel and banned from flying United at least while the mask requirement is in place. This will be effective for all customers traveling on and after July 24 regardless of when their ticket was purchased. United also will strengthen its mask exemption policy by only excluding children under the age of two. If a passenger believes that there are extraordinary circumstances that warrant an exception, they should contact United or speak to a representative at the airport.
In early May, United was the first major U.S. airline to require flight attendants to wear a face covering and later extended that policy to all customers. And in June, the airline was among the first U.S. carriers to say it would suspend flight benefits of passengers who refused to comply while onboard.
"The most important thing any of us can do to slow the spread of the coronavirus is to simply wear a mask when we're around other people," said United's Chief Executive Officer, Scott Kirby. "A mask is about protecting the safety of others, and I'm proud of the aggressive and proactive steps United Airlines has taken to ensure people are wearing a face covering in the airports where we operate and onboard the aircraft we fly."
United will post signage throughout the airport to reinforce this new policy and employees will first give a customer a verbal reminder and offer a free mask to any customer who is not wearing one. If the customer refuses to comply, United employees will offer the customer a reminder card that outlines the company's face covering policy. Continued non-compliance could result in a refusal to transport and the customer could also be banned from flying United at a minimum while the mask requirement is in place.
United's face covering policy was created under the guidance of United's on-staff corporate medical team, public health officials and experts at Cleveland Clinic.
"United's extended face mask policy adds another layer of protection for travelers, even before they board an aircraft," said Dr. James Merlino, Chief Clinical Transformation Officer at Cleveland Clinic. "Wearing a face mask is an incredibly simple measure that we all can take to help slow the spread of COVID-19. They act as a barrier to keep respiratory droplets from entering the air, where someone else could breathe them in and possibly become infected. The more people that wear masks, the less risk there is of others being exposed to the virus."
United will inform customers of its updated face covering policy at numerous points in the travel journey including:
- Online and in the United app when a customer books a ticket.
- At check in as part of United's "Ready to Fly" checklist, which asks customers to certify that they have not been in contact with someone who has tested positive for COVID-19, have not exhibited symptoms and are willing to comply with the company's face covering policy. Customers who cannot or do not meet these requirements will be given the option to rebook their travel.
- New airport signage in terminal and gate areas.
Onboard, customers are expected to wear a face covering for the duration of the flight, except when eating or drinking. Customers who refuse to comply with the onboard policy could be refused travel and banned from flying United at least while the mask requirement is in place.
This new policy is part of the airline's United CleanPlus program, an effort to put health and safety at the forefront of the entire customer experience, that includes a mandatory mask policy, electrostatic spraying, touchless check-in capabilities and a first-of-its kind, pre-boarding health self-assessment for passengers.
Limiting Number of Passengers on Board
The airline is also taking steps to limit the overall number of people on board and separate customers wherever possible. United switched to a larger plane 66 times a day in May and June, for a total of more than 4,000 flights during those months, creating more space onboard. As a result, the airline's consolidated average seat factor – or the percentage of occupied seats including customers and non-revenue passengers – was 38% in May; 57% in June and is expected to be about 45% in July, with less than 15% of flights operating with more than 70% seats filled.
When United flights are less full, the airline's advanced automated seating tool assigns seats in a way that maximizes the space on board – and the distance between customers. And since May, United has been contacting customers via email and through the United app – as much as 24 hours in advance – if their flight is expected to be more than 70% full and gives them options to switch to different, less full flights for no additional fees. Customers also have the option to cancel their flight and receive a credit for future travel. To date, the overwhelming majority of customers choose to keep their travel plans the same.
United is focused on delivering a new level of cleanliness on the ground and in the air. In addition to the vital initiatives mentioned above, several of the airline's precautionary measures to further ensure a cleaner environment include:
At Check-In
- Implementing temperature checks for employees and flight attendants working at hubs and other airports throughout the airline's system
- Installing sneeze guards at check-in and gate podiums
- Promoting social distancing with floor decals to help customers stand six feet apart
- Becoming the first airline in the world to roll out touchless check-in capabilities for customers with bags
At the Gate
- Disinfecting high-touch areas such as door handles, handrails, elevator buttons, telephones and computers
- Providing hand sanitizer and disinfectant wipes
- Rolling out Clorox Total 360 Electrostatic Sprayers in select markets to disinfect gate areas at United's hub airports
- Enabling customers to self-scan boarding passes
- Boarding fewer customers at a time and, after pre-boarding, boarding from the back of the plane to the front
- Introduced real-time seat assignment update text and email notifications to further United's touchless airport experience
On Board
- Using electrostatic spraying to disinfect most aircraft prior to flight
- Disinfecting high-touch areas – such as tray tables and armrests – prior to boarding
- Reducing contact between flight attendants and customers during snack and beverage service
- Deplaning in groups of five rows at a time to reduce crowding
- Providing onboard items including pillows and blankets upon request
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
Cash burn2 during the second quarter averaged $40 million a day, including $3 million of principal payments and severance expenses. The company currently is forecasting average daily cash burn to be approximately $25 million during the third quarter of 2020 including $6 million of principal repayments and severance expenses.
United believes it did the best job of matching actual capacity to demand among its largest network peers. The company also expects to finish the quarter with the lowest average daily cash burn among large network carriers.
"I am grateful for the professionalism and dedication of our United team members who persevered through an historic and challenging period to deliver for our customers," said CEO Scott Kirby. "While this unprecedented crisis has been difficult for our team, we expect United produced fewer losses and lower cash burn in the second quarter than any of our large network competitors. We accomplished this by quickly and accurately forecasting the impact that COVID would have on passenger and cargo demand, accurately matching our schedule to that reduced demand, completing the largest debt financing deal in aviation history, and cutting expenses across our business. We believe this quick and aggressive action has positioned United to both survive the COVID crisis and capitalize on consumer demand when it sustainably returns."
Q2 Financial Actions to Mitigate COVID-19 Impact
The company continued to take aggressive action to mitigate the impact of the COVID-19 pandemic by raising liquidity and reducing cash burn. The company is focused on remaining flexible to position the airline to bounce back when demand recovers.
- Since the start of the crisis the company has raised a total of $16.1 billion through debt offerings, stock issuances and the CARES Act Payroll Support Program grant and loan, among other items.
- As of July 2, raised $6.8 billion in financings secured against MileagePlus Holdings in the form of a $3.8 billion bond and a $3.0 billion term loan, with interest rates of 6.5% and LIBOR plus 5.25%, respectively.
- Entered into an equity distribution agreement for the issuance and sale from time to time of up to 28 million shares of UAL common stock in "at-the-market" offerings. Utilized the at-the-market program to raise $22 million through the sale of approximately 532,000 shares in the second quarter.
- The company entered into an agreement with a subsidiary of BOC Aviation Limited to finance through a sale leaseback transaction six Boeing 787-9 and 16 Boeing 737 MAX 9 aircraft that are currently subject to purchase agreements between United and The Boeing Company and are scheduled to deliver in 2020.
- Raised $250 million in a secured term loan facility.
- Increased cargo revenue by 36.3% by serving strategic international cargo-only missions and optimizing aircraft capacity with low passenger demand.
- Reduced total operating costs by 69% versus the second quarter of 2019; excluding special charges3, reduced operating costs by 54%.
- Full-year 2020 adjusted capital expenditures4 are now expected to be approximately $3.7 billion.
- In third quarter 2020 the company expects consolidated system capacity to be down 65% versus third quarter 2019. The company will continue to proactively evaluate and cancel flights on a rolling 60-day basis until it sees signs of a recovery in demand, and expects demand to remain suppressed until the availability of a widely accepted treatment and/or vaccine for COVID-19.
- Offered employees comprehensive voluntary separation packages including flight benefits and continuous pay through Nov. 30, 2020 with more than 6,000 employees opting to participate.
United CleanPlus: Keeping Our Customers and Employees Safe
- Launched United CleanPlus, to reinforce the company's commitment to putting health and safety at the forefront of the entire customer experience, with the goal of delivering an industry-leading standard of cleanliness by partnering with Clorox and experts from the Cleveland Clinic.
- Require all United flight attendants and passengers to wear face coverings.
- Among first U.S. airlines to enforce policy that bans customers for refusing to follow mask requirements.
- This week, the company announced it will now maximize air flow volume for all mainline aircraft high-efficiency particulate air (HEPA) filtration systems during the entire boarding and deplaning process, helping further reduce the spread of COVID-19.
- First major U.S. airline to ask all passengers to complete a health self-assessment during their check-in process based on recommendations from the Cleveland Clinic.
- As of July 1, all U.S. airports are electrostatic spraying aircraft interiors.
- Expanded touchless check-in capabilities to kiosks at more than 215 airports.
- The company offers free COVID-19 testing to all employees, and checks their temperatures before they begin work at all U.S. airports.
- In May, started providing individually wrapped hand wipes and snack bag with pretzels, Stroopwafel, water, and a hand sanitizer wipe as customers board to reduce touchpoints.
More Space and Flexibility to Build Our Customers' Confidence
- First airline to contact customers when flights are more than 70% full to give them the opportunity to change their plans for free.
- Upgauged more than 4,000 flights in May and June to give customers more space on-board. Seat factor5 in May was 38.0% and in June was 57.8%.
- United doubled the size of its schedule from June to July - meaning more flights, more seats, and more space onboard for our customers. Our schedule will expand again in August.
- Expecting a July load factor of 45%, with less than 15% of flights with more than 70% of seats filled.
- Waiving change fees for tickets bought through July 31, 2020.
Doing Our Part to Help Fight COVID-19 Since Crisis Began
- Booked over 2,900 in-kind flights for medical professionals to support COVID-19 response in New Jersey/New York and California.
- More than 19.2 million miles donated by MileagePlus members and 7.6 million miles matched from United to help organizations providing relief during COVID-19.
- Donated more than 500,000 pounds of food from United Polaris lounges, United Clubs and catering kitchens to local food banks and charities.
- Over 7,500 face masks were made from upcycled unused ramp uniforms.
- More than 800 gallons of hand sanitizer produced by United employees in San Francisco for use by United employees.
- Donated 15,000 pillows, 2,800 amenity kits and 5,000 self-care products to charities and homeless shelters.
- More than 2.2 million pounds of food and household goods were processed by United employees at the Houston Food Bank.
- Flew over 78.6 million pounds of medical equipment and personal protective equipment and 2 million pounds of supplies to support military troops.
- Operated over 3,800 cargo-only flights to bring 204,000,000 pounds of cargo to communities in need.
- More than 2,300 United employees worldwide have volunteered, with over 30,800 hours served.
1 Excludes special charges, nonoperating special termination benefits and settlement losses and unrealized gains and losses on investments. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in the tables accompanying this release. |
2 Cash burn is defined as: Net cash from operations, less investing and financing activities. Proceeds from the issuance of new debt (excluding expected aircraft financing), government grants associated with the Payroll Support Program of the CARES Act, issuance of new stock, net proceeds from sale of short-term and other investments and changes in restricted cash balances are not included in this figure. |
3 Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in the tables accompanying this release. |
4 Non-cash capital expenditures are not determinable at this time. Accordingly, the Company is not providing capital expenditure guidance on a GAAP basis. |
5 Seat factor is defined as total number of seats filled divided by total number of seats. This number includes both revenue and non-revenue customers. |
Earnings Call
UAL will hold a conference call to discuss second-quarter 2020 financial results as well as its financial and operational outlook for the third quarter and full year 2020, on Wednesday, July 22, 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 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 following: the duration and spread of the ongoing global COVID-19 pandemic and the outbreak of any other disease or similar public health threat and the impact on our business, results of operations and financial condition; the lenders' ability to accelerate the MileagePlus indebtedness, foreclose upon the collateral securing the MileagePlus indebtedness or exercise other remedies if we are not able to comply with the covenants in the MileagePlus financing agreement;; the final terms of borrowing pursuant to the Loan Program under the CARES Act, if any, and the effects of the grant and promissory note through the Payroll Support Program under the CARES Act; the costs and availability of financing; our significant amount of financial leverage from fixed obligations and ability to seek additional liquidity and maintain adequate liquidity; our ability to comply with the terms of our various financing arrangements; the material disruption of our strategic operating plan as a result of the COVID-19 pandemic, and our ability to execute our strategic operating plans in the long term; general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aircraft fuel and energy refining capacity in relevant markets); risks of doing business globally, including instability and political developments that may impact our operations in certain countries; demand for travel and the impact that global economic and political conditions have on customer travel patterns; our capacity decisions and the capacity decisions of our competitors; competitive pressures on pricing and on demand; changes in aircraft fuel prices; disruptions in our supply of aircraft fuel; our ability to cost-effectively hedge against increases in the price of aircraft fuel, if we decide to do so; the effects of any technology failures or cybersecurity or significant data breaches; disruptions to services provided by third-party service providers; potential reputational or other impact from adverse events involving our aircraft or operations, the aircraft or operations of our regional carriers or our code share partners or the aircraft or operations of another airline; our ability to attract and retain customers; the effects of any terrorist attacks, international hostilities or other security events, or the fear of such events; the mandatory grounding of aircraft in our fleet; disruptions to our regional network, as a result of the COVID-19 pandemic or otherwise; the impact of regulatory, investigative and legal proceedings and legal compliance risks; the success of our investments in other airlines, including in other parts of the world, which involve significant challenges and risks, particularly given the impact of the COVID-19 pandemic; industry consolidation or changes in airline alliances; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; costs associated with any modification or termination of our aircraft orders; disruptions in the availability of aircraft, parts or support from our suppliers; our ability to maintain satisfactory labor relations and the results of any collective bargaining agreement process with our union groups; any disruptions to operations due to any potential actions by our labor groups; labor costs; the impact of any management changes; extended interruptions or disruptions in service at major airports where we operate; U.S. or foreign governmental legislation, regulation and other actions (including Open Skies agreements, environmental regulations and the United Kingdom's withdrawal from the European Union); the seasonality of the airline industry; weather conditions; the costs and availability of aviation and other insurance; our ability to realize the full value of our intangible assets and long-lived assets; any impact to our reputation or brand image; and other risks and uncertainties set forth under Part I, Item 1A., "Risk Factors," of our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as updated by our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and the Company's Current Report on Form 8-K filed June 15, 2020, 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 | % | Six Months Ended | % | |||||||||||||||||||||
(In millions, except per share data) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Operating revenue: | ||||||||||||||||||||||||
Passenger | $ | 681 | $ | 10,486 | (93.5) | $ | 7,746 | $ | 19,211 | (59.7) | ||||||||||||||
Cargo | 402 | 295 | 36.3 | 666 | 581 | 14.6 | ||||||||||||||||||
Other operating revenue | 392 | 621 | (36.9) | 1,042 | 1,199 | (13.1) | ||||||||||||||||||
Total operating revenue | 1,475 | 11,402 | (87.1) | 9,454 | 20,991 | (55.0) | ||||||||||||||||||
Operating expense: | ||||||||||||||||||||||||
Salaries and related costs | 2,170 | 3,057 | (29.0) | 5,125 | 5,930 | (13.6) | ||||||||||||||||||
Aircraft fuel | 240 | 2,385 | (89.9) | 1,966 | 4,408 | (55.4) | ||||||||||||||||||
Regional capacity purchase | 388 | 715 | (45.7) | 1,125 | 1,403 | (19.8) | ||||||||||||||||||
Landing fees and other rent | 429 | 660 | (35.0) | 1,052 | 1,248 | (15.7) | ||||||||||||||||||
Depreciation and amortization | 618 | 560 | 10.4 | 1,233 | 1,107 | 11.4 | ||||||||||||||||||
Aircraft maintenance materials and outside repairs | 110 | 421 | (73.9) | 544 | 829 | (34.4) | ||||||||||||||||||
Distribution expenses | 31 | 442 | (93.0) | 326 | 802 | (59.4) | ||||||||||||||||||
Aircraft rent | 47 | 73 | (35.6) | 97 | 154 | (37.0) | ||||||||||||||||||
Special charges (credits) (B) | (1,449) | 71 | NM | (1,386) | 89 | NM | ||||||||||||||||||
Other operating expenses | 528 | 1,546 | (65.8) | 1,981 | 3,054 | (35.1) | ||||||||||||||||||
Total operating expense | 3,112 | 9,930 | (68.7) | 12,063 | 19,024 | (36.6) | ||||||||||||||||||
Operating income (loss) | (1,637) | 1,472 | NM | (2,609) | 1,967 | NM | ||||||||||||||||||
Operating margin | (111.0) | % | 12.9 | % | NM | (27.6) | % | 9.4 | % | NM | ||||||||||||||
Nonoperating income (expense): | ||||||||||||||||||||||||
Interest expense | (196) | (191) | 2.6 | (367) | (379) | (3.2) | ||||||||||||||||||
Interest capitalized | 17 | 21 | (19.0) | 38 | 43 | (11.6) | ||||||||||||||||||
Interest income | 11 | 38 | (71.1) | 37 | 67 | (44.8) | ||||||||||||||||||
Unrealized gains (losses) on investments, net (B) | 9 | 34 | NM | (310) | 51 | NM | ||||||||||||||||||
Miscellaneous, net (B) | (207) | (20) | NM | (906) | (28) | NM | ||||||||||||||||||
Total nonoperating expense | (366) | (118) | 210.2 | (1,508) | (246) | NM | ||||||||||||||||||
Income (loss) before income taxes | (2,003) | 1,354 | NM | (4,117) | 1,721 | NM | ||||||||||||||||||
Pre-tax margin | (135.8) | % | 11.9 | % | NM | (43.5) | % | 8.2 | % | NM | ||||||||||||||
Income tax expense (benefit) (D) | (376) | 302 | NM | (786) | 377 | NM | ||||||||||||||||||
Net income (loss) | $ | (1,627) | $ | 1,052 | NM | $ | (3,331) | $ | 1,344 | NM | ||||||||||||||
Diluted earnings (loss) per share | $ | (5.79) | $ | 4.02 | NM | $ | (12.59) | $ | 5.07 | NM | ||||||||||||||
Diluted weighted average shares | 280.7 | 261.6 | 7.3 | 264.6 | 264.9 | (0.1) | ||||||||||||||||||
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 2020 Passenger Revenue | 2Q 2019 Passenger Revenue (a) | Reporting | 2Q 2019 Passenger Revenue (b) | Passenger Revenue vs. 2Q 2019 (b) | PRASM vs. | Yield vs. | Available Seat Miles vs. 2Q 2019 | 2Q 2020 | 2Q 2020 | ||||||||||||||||||||
Domestic | $ | 542 | $ | 6,547 | $ | 62 | $ | 6,609 | (91.8%) | (46.8%) | 30.4% | (84.6%) | 6,402 | 2,283 | |||||||||||||||
Atlantic | 57 | 1,927 | (41) | 1,886 | (97.0%) | (65.1%) | 11.4% | (91.3%) | 1,222 | 323 | |||||||||||||||||||
Pacific | 34 | 1,135 | (31) | 1,104 | (96.9%) | (63.1%) | 59.1% | (91.7%) | 896 | 172 | |||||||||||||||||||
Latin America | 48 | 877 | 10 | 887 | (94.6%) | (15.8%) | 66.4% | (93.6%) | 443 | 192 | |||||||||||||||||||
International | 139 | 3,939 | (62) | 3,877 | (96.4%) | (55.5%) | 39.2% | (91.9%) | 2,561 | 687 | |||||||||||||||||||
Consolidated | $ | 681 | $ | 10,486 | $ | — | $ | 10,486 | (93.5%) | (46.9%) | 37.8% | (87.8%) | 8,963 | 2,970 | |||||||||||||||
(a) As previously reported. |
(b) During the third quarter of 2019, United implemented a new revenue accounting software system which allowed it to more precisely determine the geographic regions associated with certain ancillary passenger revenue items. Prior to July 2019, those ancillary revenue items were determined using an allocation method that was based on revenue from passenger travel. While the total passenger revenue is not impacted, the geographic totals for each period are not comparable year-over-year due to the change. The second quarter 2019 passenger revenue presented in the table above reallocates these ancillary items using the revised allocation. |
Select operating statistics are as follows: | ||||||||||||||||||||||||
Three Months Ended | % Increase/ (Decrease) | Six Months Ended | % Increase/ (Decrease) | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||
Passengers (thousands) | 2,813 | 42,592 | (93.4) | 33,172 | 79,046 | (58.0) | ||||||||||||||||||
Revenue passenger miles (millions) | 2,970 | 63,001 | (95.3) | 46,199 | 116,098 | (60.2) | ||||||||||||||||||
Available seat miles (millions) | 8,963 | 73,240 | (87.8) | 69,901 | 138,885 | (49.7) | ||||||||||||||||||
Passenger load factor: | ||||||||||||||||||||||||
Consolidated | 33.1 | % | 86.0 | % | (52.9) | pts. | 66.1 | % | 83.6 | % | (17.5) | pts. | ||||||||||||
Domestic | 35.7 | % | 87.5 | % | (51.8) | pts. | 65.6 | % | 85.2 | % | (19.6) | pts. | ||||||||||||
International | 26.8 | % | 84.0 | % | (57.2) | pts. | 66.8 | % | 81.5 | % | (14.7) | pts. | ||||||||||||
Passenger revenue per available seat mile (cents) | 7.60 | 14.32 | (46.9) | 11.08 | 13.83 | (19.9) | ||||||||||||||||||
Total revenue per available seat mile (cents) | 16.46 | 15.57 | 5.7 | 13.52 | 15.11 | (10.5) | ||||||||||||||||||
Average yield per revenue passenger mile (cents) | 22.93 | 16.64 | 37.8 | 16.77 | 16.55 | 1.3 | ||||||||||||||||||
Cargo ton miles | 496 | 831 | (40.3) | 1,191 | 1,636 | (27.2) | ||||||||||||||||||
Aircraft in fleet at end of period | 1,307 | 1,344 | (2.8) | 1,307 | 1,344 | (2.8) | ||||||||||||||||||
Average stage length (miles) | 1,075 | 1,469 | (26.8) | 1,347 | 1,459 | (7.7) | ||||||||||||||||||
Employee headcount (in thousands) | 91.8 | 94.6 | (3.0) | 91.8 | 94.6 | (3.0) | ||||||||||||||||||
Average aircraft fuel price per gallon | $ | 1.18 | $ | 2.16 | (45.4) | $ | 1.76 | $ | 2.11 | (16.6) | ||||||||||||||
Fuel gallons consumed (millions) | 204 | 1,102 | (81.5) | 1,114 | 2,087 | (46.6) | ||||||||||||||||||
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, 2019, for definitions of these statistics. |
Cash burn: The company's management views daily "cash burn" as an important measure in monitoring liquidity in order to assess the company's cash needs without the impact of certain extraordinary actions or events, and the Company believes this provides useful information to investors about the company's liquidity position. | |||
Three Months Ended | |||
Net cash used by operating activities | $ | (130) | |
Cash flows provided by investing activities | 812 | ||
Cash flows provided by financing activities | 2,382 | ||
3,064 | |||
Adjusted to remove: | |||
Net proceeds from sale of short-term and other investments | 838 | ||
CARES Act Payroll Support Program ("PSP") grant | 3,154 | ||
PSP Note | 1,309 | ||
Secured debt | 250 | ||
Equity issuances | 1,135 | ||
Increase in restricted cash balance | 1 | ||
Total Adjustments | 6,687 | ||
Adjusted cash burn | $ | (3,623) | |
Days in the period | 91 | ||
Average daily cash burn | $ | (40) | |
UNITED AIRLINES HOLDINGS, INC | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||
(In millions) | June 30, 2020 | December 31, 2019 | |||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 6,505 | $ | 2,762 | |||
Short-term investments | 958 | 2,182 | |||||
Receivables, less allowance for credit losses (2020 — $11; 2019 — $9) | 857 | 1,364 | |||||
Aircraft fuel, spare parts and supplies, less obsolescence allowance (2020 — $464; 2019 — $425) | 955 | 1,072 | |||||
Prepaid expenses and other | 766 | 814 | |||||
Total current assets | 10,041 | 8,194 | |||||
Total operating property and equipment, net | 31,735 | 30,170 | |||||
Operating lease right-of-use assets | 4,738 | 4,758 | |||||
Other assets: | |||||||
Goodwill | 4,523 | 4,523 | |||||
Intangibles, less accumulated amortization (2020 — $1,467; 2019 — $1,440) | 2,852 | 3,009 | |||||
Restricted cash | 73 | 106 | |||||
Notes receivable, less allowance for credit losses (2020 — $553) | 141 | 671 | |||||
Investments in affiliates and other, net | 798 | 1,180 | |||||
Total other assets | 8,387 | 9,489 | |||||
Total assets | $ | 54,901 | $ | 52,611 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Advance ticket sales | $ | 4,950 | $ | 4,819 | |||
Accounts payable | 1,725 | 2,703 | |||||
Frequent flyer deferred revenue | 840 | 2,440 | |||||
Accrued salaries and benefits | 1,669 | 2,271 | |||||
Current maturities of long-term debt | 4,454 | 1,407 | |||||
Current maturities of finance leases | 93 | 46 | |||||
Current maturities of operating leases | 598 | 686 | |||||
Payroll Support Program deferred credit | 1,508 | — | |||||
Other | 558 | 566 | |||||
Total current liabilities | 16,395 | 14,938 | |||||
Long-term liabilities and deferred credits: | |||||||
Long-term debt | 14,318 | 13,145 | |||||
Long-term obligations under finance leases | 316 | 220 | |||||
Long-term obligations under operating leases | 5,113 | 4,946 | |||||
Frequent flyer deferred revenue | 4,830 | 2,836 | |||||
Postretirement benefit liability | 957 | 789 | |||||
Pension liability | 2,221 | 1,446 | |||||
Deferred income taxes | 804 | 1,736 | |||||
Other | 1,430 | 1,024 | |||||
Total long-term liabilities and deferred credits | 29,989 | 26,142 | |||||
Stockholders' equity | 8,517 | 11,531 | |||||
Total liabilities and stockholders' equity | $ | 54,901 | $ | 52,611 | |||
UNITED AIRLINES HOLDINGS, INC. | |||||||
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED) | |||||||
(In millions) | Six Months Ended June 30, | ||||||
2020 | 2019 | ||||||
Cash Flows from Operating Activities: | |||||||
Net cash provided by (used in) operating activities | $ | (67) | $ | 4,625 | |||
Cash Flows from Investing Activities: | |||||||
Capital expenditures, net of returns of purchase deposits on flight equipment | (1,998) | (2,467) | |||||
Purchases of short-term and other investments | (550) | (1,443) | |||||
Proceeds from sale of short-term and other investments | 1,774 | 1,484 | |||||
Other, net | 14 | (10) | |||||
Net cash used in investing activities | (760) | (2,436) | |||||
Cash Flows from Financing Activities: | |||||||
Proceeds from issuance of short-term debt | 2,750 | — | |||||
Proceeds from issuance of long-term debt | 1,669 | 996 | |||||
Proceeds from equity issuance | 1,135 | — | |||||
Payments of long-term debt | (523) | (473) | |||||
Repurchases of common stock | (353) | (1,062) | |||||
Principal payments under finance leases | (41) | (63) | |||||
Capitalized financing costs | (48) | (30) | |||||
Other, net | (18) | (30) | |||||
Net cash provided (used) in financing activities | 4,571 | (662) | |||||
Net increase in cash, cash equivalents and restricted cash | 3,744 | 1,527 | |||||
Cash, cash equivalents and restricted cash at beginning of the period | 2,868 | 1,799 | |||||
Cash, cash equivalents and restricted cash at end of the period | $ | 6,612 | $ | 3,326 | |||
Investing and Financing Activities Not Affecting Cash: | |||||||
Property and equipment acquired through the issuance of debt | $ | 327 | $ | 220 | |||
Property and equipment acquired through other financial liabilities | 280 | — | |||||
Lease modifications and lease conversions | 470 | 36 | |||||
Right-of-use assets acquired through operating leases | 48 | 99 | |||||
Property and equipment acquired through finance leases | 19 | 8 | |||||
UNITED AIRLINES HOLDINGS, INC. | ||||||||||||||||||
NON-GAAP FINANCIAL RECONCILIATION | ||||||||||||||||||
(A) UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and Non-GAAP financial measures, including adjusted operating income (loss), adjusted operating margin, adjusted pre-tax income (loss), adjusted pre-tax margin, adjusted net income (loss), adjusted diluted earnings (loss) per share and CASM, excluding special charges, third-party business expenses, fuel, and profit sharing, among others. UAL believes that adjusting for special charges and for nonoperating credit losses and nonoperating special termination benefits and settlement 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. UAL believes that adjusting for interest expense related to finance leases of Embraer ERJ 145 aircraft is useful to investors because of the accelerated recognition of interest expense. | ||||||||||||||||||
CASM is a common metric used in the airline industry to measure an airline's cost structure and efficiency. UAL reports CASM excluding special charges, third-party business expenses, fuel and profit sharing. UAL believes that adjusting for special charges is useful to investors because special charges are not indicative of UAL's ongoing performance. UAL also believes that excluding third-party business expenses, such as maintenance, ground handling and catering services for third parties and fuel sales, provides more meaningful disclosure because these expenses are not directly related to UAL's core business. UAL also believes that excluding fuel costs from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence. UAL excludes profit sharing because this exclusion allows investors to better understand and analyze our operating cost performance and provides a more meaningful comparison of our core operating costs to the airline industry. | ||||||||||||||||||
Reconciliations of reported non-GAAP financial measures to the most directly comparable GAAP financial measures are included below. | ||||||||||||||||||
Three Months Ended | % Increase/ (Decrease) | Six Months Ended | % Increase/ (Decrease) | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||
CASM (cents) | ||||||||||||||||||
Cost per available seat mile (CASM) (GAAP) | 34.72 | 13.56 | 156.0 | 17.26 | 13.70 | 26.0 | ||||||||||||
Special charges (B) | (16.17) | 0.10 | NM | (1.98) | 0.07 | NM | ||||||||||||
Third-party business expenses | 0.65 | 0.05 | NM | 0.15 | 0.05 | 200.0 | ||||||||||||
Fuel expense | 2.68 | 3.26 | (17.8) | 2.81 | 3.17 | (11.4) | ||||||||||||
Profit sharing, including taxes | — | 0.22 | (100.0) | — | 0.14 | (100.0) | ||||||||||||
CASM, excluding special charges, third-party business expenses, fuel, and profit sharing (Non-GAAP) | 47.56 | 9.93 | 379.0 | 16.28 | 10.27 | 58.5 | ||||||||||||
NM Not Meaningful |
UNITED AIRLINES HOLDINGS, INC. | |||||||||||||||||||||||||||||
NON-GAAP FINANCIAL RECONCILIATION (Continued) | |||||||||||||||||||||||||||||
Three Months Ended |
| % | Six Months Ended |
| % | ||||||||||||||||||||||||
(in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||
Operating expenses (GAAP) | $ | 3,112 | $ | 9,930 | $ | (6,818) | (68.7) | $ | 12,063 | $ | 19,024 | $ | (6,961) | (36.6) | |||||||||||||||
Special charges (credit) (B) | (1,449) | 71 | (1,520) | NM | (1,386) | 89 | (1,475) | NM | |||||||||||||||||||||
Operating expenses, excluding special charges | 4,561 | 9,859 | (5,298) | (53.7) | 13,449 | 18,935 | (5,486) | (29.0) | |||||||||||||||||||||
Adjusted to exclude: | |||||||||||||||||||||||||||||
Third-party business expenses | 58 | 41 | 17 | 41.5 | 102 | 71 | 31 | 43.7 | |||||||||||||||||||||
Fuel expense | 240 | 2,385 | (2,145) | (89.9) | 1,966 | 4,408 | (2,442) | (55.4) | |||||||||||||||||||||
Profit sharing, including taxes | — | 161 | (161) | (100.0) | — | 194 | (194) | (100.0) | |||||||||||||||||||||
Adjusted operating expenses (Non-GAAP) (A) | $ | 4,263 | $ | 7,272 | $ | (3,009) | (41.4) | $ | 11,381 | $ | 14,262 | $ | (2,881) | (20.2) | |||||||||||||||
Operating income (loss) (GAAP) | $ | (1,637) | $ | 1,472 | $ | (3,109) | NM | $ | (2,609) | $ | 1,967 | $ | (4,576) | NM | |||||||||||||||
Adjusted to exclude: | |||||||||||||||||||||||||||||
Special charges (credits) (B) | (1,449) | 71 | (1,520) | NM | (1,386) | 89 | (1,475) | NM | |||||||||||||||||||||
Adjusted operating income (Non-GAAP) (A) | $ | (3,086) | $ | 1,543 | $ | (4,629) | NM | $ | (3,995) | $ | 2,056 | $ | (6,051) | (294.3) | |||||||||||||||
Operating margin | (111.0) | % | 12.9 | % | (123.9) | pts. | (27.6) | % | 9.4 | % | (37.0) | pts. | |||||||||||||||||
Adjusted operating margin (Non-GAAP) (A) | (209.2) | % | 13.5 | % | (222.7) | pts. | (42.3) | % | 9.8 | % | (52.1) | pts. | |||||||||||||||||
Pre-tax income (loss) (GAAP) | $ | (2,003) | $ | 1,354 | $ | (3,357) | NM | $ | (4,117) | $ | 1,721 | $ | (5,838) | (339.2) | |||||||||||||||
Adjusted to exclude: | |||||||||||||||||||||||||||||
Special charges (credit) (B) | (1,449) | 71 | (1,520) | NM | (1,386) | 89 | (1,475) | NM | |||||||||||||||||||||
Termination benefits and settlement losses (B) | 231 | — | 231 | NM | 231 | — | 231 | NM | |||||||||||||||||||||
Unrealized (gains) losses on investments, net (B) | (9) | (34) | 25 | NM | 310 | (51) | 361 | NM | |||||||||||||||||||||
Loss on BRW term loan and guarantee (B) | — | — | — | NM | 697 | — | 697 | NM | |||||||||||||||||||||
Interest expense on ERJ 145 finance leases (C) | — | 25 | (25) | NM | — | 46 | (46) | NM | |||||||||||||||||||||
Adjusted pre-tax income (loss) (Non-GAAP) (A) | $ | (3,230) | $ | 1,416 | $ | (4,646) | NM | $ | (4,265) | $ | 1,805 | $ | (6,070) | (336.3) | |||||||||||||||
Pre-tax margin | (135.8) | % | 11.9 | % | (147.7) | pts. | (43.5) | % | 8.2 | % | (51.7) | pts. | |||||||||||||||||
Adjusted pre-tax margin (Non-GAAP) (A) | (219.0) | % | 12.4 | % | (231.4) | pts. | (45.1) | % | 8.6 | % | (53.7) | pts. | |||||||||||||||||
Net income (loss) (GAAP) | $ | (1,627) | $ | 1,052 | $ | (2,679) | NM | $ | (3,331) | $ | 1,344 | $ | (4,675.0) | (347.8) | |||||||||||||||
Adjusted to exclude: | |||||||||||||||||||||||||||||
Special charges (credit) (B) | (1,449) | 71 | (1,520) | NM | (1,386) | 89 | (1,475) | NM | |||||||||||||||||||||
Termination benefits and settlement losses (B) | 231 | — | 231 | NM | 231 | — | 231 | NM | |||||||||||||||||||||
Unrealized (gains) losses on investments, net (B) | (9) | (34) | 25 | NM | 310 | (51) | 361 | NM | |||||||||||||||||||||
Loss on BRW term loan and guarantee (B) | — | — | — | NM | 697 | — | 697 | NM | |||||||||||||||||||||
Interest expense on ERJ 145 finance leases (C) | — | 25 | (25) | NM | — | 46 | (46) | NM | |||||||||||||||||||||
Income tax expense (benefit) related to adjustments above, net of valuation allowance | 241 | (14) | 255 | NM | 227 | (19) | 246 | NM | |||||||||||||||||||||
Adjusted net income (loss) (Non-GAAP) (A) | $ | (2,613) | $ | 1,100 | $ | (3,713) | NM | $ | (3,252) | $ | 1,409 | $ | (4,661) | (330.8) | |||||||||||||||
Diluted earnings (loss) per share (GAAP) | $ | (5.79) | $ | 4.02 | $ | (9.81) | NM | $ | (12.59) | $ | 5.07 | $ | (17.66) | (348.3) | |||||||||||||||
Adjusted to exclude: | |||||||||||||||||||||||||||||
Special charges (credit) (B) | (5.17) | 0.27 | (5.44) | NM | (5.24) | 0.34 | (5.58) | NM | |||||||||||||||||||||
Termination benefits and settlement losses (B) | 0.82 | — | 0.82 | NM | 0.87 | — | 0.87 | NM | |||||||||||||||||||||
Unrealized (gains) losses on investments, net (B) | (0.03) | (0.13) | 0.10 | NM | 1.17 | (0.19) | 1.36 | NM | |||||||||||||||||||||
Loss on BRW term loan and guarantee (B) | — | — | — | NM | 2.64 | — | 2.64 | NM | |||||||||||||||||||||
Interest expense on ERJ 145 finance leases (C) | — | 0.10 | (0.10) | NM | — | 0.17 | (0.17) | NM | |||||||||||||||||||||
Income tax expense (benefit) related to adjustments, net of valuation allowance | 0.86 | (0.05) | 0.91 | NM | 0.86 | (0.07) | 0.93 | NM | |||||||||||||||||||||
Adjusted diluted earnings (loss) per share (Non-GAAP) (A) | $ | (9.31) | $ | 4.21 | $ | (13.52) | NM | $ | (12.29) | $ | 5.32 | $ | (17.61) | (331.0) | |||||||||||||||
NM Not Meaningful |
UNITED AIRLINES HOLDINGS, INC. | |||||||||||||||
NON-GAAP FINANCIAL RECONCILIATION (Continued) | |||||||||||||||
UAL believes that adjusting capital expenditures for assets acquired through the issuance of debt, 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 | Six Months Ended | ||||||||||||||
Capital Expenditures (in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Capital expenditures (GAAP) | $ | 39 | $ | 858 | $ | 1,998 | $ | 2,467 | |||||||
Property and equipment acquired through the issuance of debt | 218 | 128 | 327 | 220 | |||||||||||
Property and equipment acquired through finance leases | — | — | 19 | 8 | |||||||||||
Property and equipment acquired through other financial liabilities | 280 | — | 280 | — | |||||||||||
Adjustment to property and equipment acquired through other financial liabilities (a) | (53) | — | (53) | — | |||||||||||
Adjusted capital expenditures (Non-GAAP) | $ | 484 | $ | 986 | $ | 2,571 | $ | 2,695 | |||||||
Free Cash Flow (in millions) | |||||||||||||||
Net cash provided by operating activities (GAAP) | $ | (130) | $ | 2,710 | $ | (67) | $ | 4,625 | |||||||
Less capital expenditures | 39 | 858 | 1,998 | 2,467 | |||||||||||
Free cash flow, net of financings (Non-GAAP) | $ | (169) | $ | 1,852 | $ | (2,065) | $ | 2,158 | |||||||
Net cash provided by operating activities (GAAP) | $ | (130) | $ | 2,710 | $ | (67) | $ | 4,625 | |||||||
Less adjusted capital expenditures (Non-GAAP) | 484 | 986 | 2,571 | 2,695 | |||||||||||
Less aircraft operating lease additions | 12 | 7 | 33 | 7 | |||||||||||
Free cash flow (Non-GAAP) | $ | (626) | $ | 1,717 | $ | (2,671) | $ | 1,923 | |||||||
(a) United entered into an agreement with BOC Aviation (USA) Corporation ("BOCA"), a subsidiary of BOC Aviation Limited, to finance through a sale and leaseback transaction six new Boeing model 787-9 aircraft and 16 new Boeing model 737-9 MAX aircraft subject to purchase agreements between United and Boeing. In connection with delivery of each aircraft from Boeing, United will assign its right to purchase such aircraft to BOCA, and simultaneous with BOCA's purchase from Boeing, United will enter into a long-term lease for such aircraft with BOCA. Two Boeing model 787-9 aircraft were delivered in the second quarter of 2020 under this transaction (and each is presently subject to a long-term lease from BOCA to United), and the remaining 20 aircraft are scheduled to be delivered through the end of 2020. Upon delivery, the company will account for 14 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 liabilities (current and 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. | ||||||||||||||||
NOTES (UNAUDITED) | ||||||||||||||||
(B) Special charges (credit) and unrealized (gains) losses on investments, net include the following: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Operating: | ||||||||||||||||
CARES Act grant | $ | (1,589) | $ | — | $ | (1,589) | $ | — | ||||||||
Impairment of assets | 80 | 61 | 130 | 69 | ||||||||||||
Severance and benefit costs | 63 | 6 | 63 | 12 | ||||||||||||
(Gains) losses on sale of assets and other special charges | (3) | 4 | 10 | 8 | ||||||||||||
Total operating special charges (credit) | (1,449) | 71 | (1,386) | 89 | ||||||||||||
Nonoperating special termination benefits and settlement losses | 231 | — | 231 | — | ||||||||||||
Nonoperating unrealized (gains) losses on investments, net | (9) | (34) | 310 | (51) | ||||||||||||
Nonoperating credit loss on BRW Aviation Holding LLC and BRW Aviation LLC ("BRW") term loan and related guarantee | — | — | 697 | — | ||||||||||||
Total nonoperating special charges and unrealized (gains) losses on investments | 222 | (34) | 1,238 | (51) | ||||||||||||
Total operating and nonoperating special charges (credit) and unrealized (gains) losses on investments | (1,227) | 37 | (148) | 38 | ||||||||||||
Income tax expense (benefit), net of valuation allowance | 241 | (8) | 227 | (8) | ||||||||||||
Total operating and non-operating special charges (credit) and unrealized (gains) losses on investments, net of income taxes | $ | (986) | $ | 29 | $ | 79 | $ | 30 | ||||||||
CARES Act grant. During the three and six months ended June 30, 2020, the company received $4.5 billion in funding pursuant to the Payroll Support Program under the CARES Act, which consists of $3.2 billion in a grant and $1.3 billion in an unsecured loan. The company recorded $57 million in warrants issued to the U.S. Treasury Department, within stockholder's equity, as an offset to the grant proceeds. As of June 30, 2020, we recognized $1.6 billion of the grant as a credit to special charges (credit) with the remaining $1.5 billion recorded as a deferred credit on our balance sheet. We expect to recognize the remainder of the grant proceeds, including additional proceeds expected in July, from the Payroll Support Program as Special charge (credit) by the end of 2020 as the salaries and wages the grant is intended to offset are incurred. |
Impairment of assets: 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. The company conducted impairment reviews of certain intangible assets in the first and second quarters of 2020, which consisted of a comparison of the book value of those assets to their fair value calculated using the discounted cash flow method. Due to the COVID-19 pandemic and the subsequent suspension of flights to China, the company determined that the value of its China routes had been impaired in the first quarter of 2020. The additional impairment in the second quarter of 2020 was the result of a further delay in the expected return of full capacity to the China markets. |
During the three months ended June 30, 2019, the company recorded a $47 million impairment for aircraft engines removed from operations, a $6 million charge for the early termination of several regional aircraft finance leases and $8 million in other miscellaneous impairments. During the six months ended June 30, 2019, in addition to the charges described above, the company recorded an $8 million fair value adjustment for aircraft purchased off lease. |
Severance and benefit costs: During the three and six months ended June 30, 2020, the company recorded $63 million related to pay continuation and benefits provided to employees that chose to voluntarily separate from the company. |
During the three and six months ended June 30, 2019, the company recorded $6 million and $10 million, respectively, of management severance. During the six months ended June 30, 2019, the company recorded $2 million of severance and benefit costs primarily related to a voluntary early-out program for its technicians and related employees represented by the International Brotherhood of Teamsters. In the first quarter of 2017, approximately 1,000 technicians and related employees elected to voluntarily separate from the company and received a severance payment, with a maximum value of $100,000 per participant, based on years of service, with retirement dates through early 2019. |
Nonoperating special termination benefits and settlement losses: 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 front-line U.S. based employees participating in the non-pilot defined benefit pension plan and postretirement medical programs. |
Nonoperating unrealized (gains) losses on investments, net: During the three and six months ended June 30, 2020, the company recorded gains of $9 million and losses of $286 million, respectively. primarily for changes in the market value of its investment in Azul Linhas Aéreas Brasileiras S.A. ("Azul"). During the six months ended June 30, 2020, the company recorded a loss of $24 million for the decrease in fair value of the AVH share call options, AVH share appreciation rights, and AVH share-based upside sharing agreement (collectively, the "AVH Derivative Assets") that United obtained as part of the BRW term loan agreement and related agreements with Kingsland Holdings Limited. |
During the three and six months ended June 30, 2019, the company recorded gains of $38 million and $52 million, respectively, for the change in market value of its investment in Azul. During the three and six months ended June 30, 2019, the company recorded losses of $4 million and $1 million, respectively, for the change in fair value of the AVH Derivative Assets. |
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 BRW term loan and related guarantee. United recorded the allowance based on United's assessment of Avianca Holdings S.A.'s ("AVH") financial uncertainty due to its high level of leverage and the fact that the airline has currently ceased operations due to the COVID-19 pandemic. 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. |
(C) Interest expense related to finance leases of Embraer ERJ 145 aircraft |
During the third quarter of 2018, United entered into an agreement with the lessor of 54 Embraer ERJ 145 aircraft to purchase those aircraft in 2019. The provisions of the new lease agreement resulted in a change in accounting classification of these new leases from operating leases to finance leases up until the purchase date. The company recognized $25 million and $46 million of additional interest expense in the three and six months ended June 30, 2019, respectively, as a result of this change. |
(D) Effective tax rate |
The company's effective tax rate for the three and six months ended June 30, 2020 was 18.8% and 19.1%, respectively. The effective tax rate for the three and six months ended June 30, 2019 and 22.3% and 21.9%, 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 and the impact of a change in the company's mix of domestic and foreign earnings (losses). The three and six months ended June 30, 2020 rate was 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, +1-872-825-8640, media.relations@united.com
To see an animation of how air flows throughout the cabin click here
"We know the environment on an aircraft is safe and because the air flow is designed to minimize the transmission of disease, the earlier we maximize air flow over our HEPA filtration system, the better for our crew and our customers," said Scott Kirby, United's chief executive officer. "The quality of the air, combined with a strict mask policy and regularly disinfected surfaces, are the building blocks towards preventing the spread of COVID-19 on an airplane. We expect that air travel is not likely to get back to normal until we're closer to a widely administered vaccine – so we're in this for the long haul. And I am going to keep encouraging our team to explore and implement new ideas, new technologies, new policies and new procedures that better protect our customers and employees."
On commercial aircraft, fresh air flows downward into the cabin from ceiling vents and exits the cabin at the floor and sidewalls. That air is then routed through the HEPA filters and mixed with fresh, outside air before returning back to the cabin. According to Boeing, that top-to bottom pattern, and frequent air exchange helps minimize front-to-back air movement and reduces the potential for spread of contaminants from people, such as through sneezing or coughing. The system replaces the entire volume of cabin air every 2-3 minutes by providing 50% HEPA filtered, recirculated air mixed with 50% outside air, which allows a constant flow of either fresh or HEPA filtered air throughout the cabin. In addition, United has been partnering with the Defense Advanced Research Projects Agency (DARPA) to study how effectively the unique airflow configuration onboard an aircraft can prevent the spread of aerosolized particles among passengers and crew.
During a review of its cleaning and safety procedures with its United CleanPlus partners - Clorox and the Cleveland Clinic - United identified new opportunities during boarding and deplaning to help prevent the spread of the coronavirus. Already, the airline boards passengers back-to-front and deplanes five rows at a time. The new air filtration procedure on mainline aircraft will maximize air flow volume and recirculation of cabin air for passengers from the moment they step onboard.
"HEPA filters are an effective way to ensure clean air on an aircraft," said Dr. James Merlino from The Cleveland Clinic. "United's new strategy of running the air filtration and circulation systems at maximum volume well before passengers board and until they deplane, adds one more layer of protection. In addition to air filtration, we have worked with the airline to enact measures such as mandatory masking, health screenings, disinfection, and touchless systems, as we believe layering on precautions, more than any one strategy alone, helps create the safest environment possible."
Among the First to Require Masks
United was one of the first airlines in the country to mandate that everyone onboard wear a face covering, providing complimentary masks to any customer or employee who needs one. When worn properly, face coverings prevent particles from one passenger's respiratory system from getting into the air and then potentially infecting others. Customers who do not comply with United's policy risk having their travel benefits suspended.
Limiting Number of Passengers on Board
The airline is also taking steps to limit the overall number of people on board and separate customers wherever possible. United switched to a larger plane 66 times a day in May and June, for a total of more than 4,000 flights during those months, creating more space onboard. As a result, the airline's consolidated average seat factor – or the percentage of occupied seats including customers and non-revenue passengers – was 38% in May; 57% in June and is expected to be about 45% in July, with less than 15% of flights operating with more than 70% seats filled.
When United flights are less full, the airline's advanced automated seating tool assigns seats in a way that maximizes the space on board – and the distance between customers. And since May, United has been contacting customers via email and through the United app – as much as 24 hours in advance – if their flight is expected to be more than 70% full and gives them options to switch to different, less full flights for no additional fees. Customers also have the option to cancel their flight and receive a credit for future travel. To date, the overwhelming majority of customers choose to keep their travel plans the same.
United is focused on delivering a new level of cleanliness on the ground and in the air. In addition to the vital initiatives mentioned above, several of the airline's precautionary measures to further ensure a cleaner environment include:
At Check-In
- Implementing temperature checks for employees and flight attendants working at hubs and other airports throughout the airline's system
- Installing sneeze guards at check-in and gate podiums
- Promoting social distancing with floor decals to help customers stand six feet apart
- Becoming the first airline in the world to roll out touchless check-in capabilities for customers with bags
At the Gate
- Disinfecting high-touch areas such as door handles, handrails, elevator buttons, telephones and computers
- Providing hand sanitizer and disinfectant wipes
- Rolling out Clorox Total 360 Electrostatic Sprayers in select markets to disinfect gate areas at United's hub airports
- Enabling customers to self-scan boarding passes
- Boarding fewer customers at a time and, after pre-boarding, boarding from the back of the plane to the front
- Introduced real-time seat assignment update text and email notifications to further United's touchless airport experience
On Board
- Using electrostatic spraying to disinfect most aircraft prior to flight
- Disinfecting high-touch areas – such as tray tables and armrests – prior to boarding
- Reducing contact between flight attendants and customers during snack and beverage service
- Deplaning in groups of five rows at a time to reduce crowding
- Providing onboard items including pillows and blankets upon request
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 15, 2020 /PRNewswire/ -- United Airlines was recognized for the fifth consecutive year as a top-scoring company and best place to work for disability inclusion with a perfect score of 100 on the 2020 Disability Equality Index (DEI). The 2020 DEI measured United's inclusion criteria including: culture & leadership; enterprise-wide access; employment practices; community engagement and supplier diversity.
"United is committed to creating an inclusive workforce that engages and advocates for people with disabilities," said Jessica Kimbrough, United's Chief Diversity, Equity and Inclusion Officer. "We're proud of our leading diversity and inclusion initiatives and will continue to do our part to ensure that our company is as diverse as the communities we serve."
This recognition highlights United's efforts to build a more inclusive workplace and travel experience for all people, through actions including:
- Developing products and services that specifically cater to those with disabilities: Last year, United debuted the world's most extensive suite of accessibility features on its seatback entertainment system, which accommodates any level of vision, as well as provides support for customers with hearing and mobility issues.
- Implementing employee training: United's Accessible Travel Advisory Board is comprised of a group of experts living with disabilities, who meet regularly to review the airline's policies and procedures for passengers with disabilities. They also travel throughout United's system hosting learning sessions and providing accessibility training to employees, vendors and airport partners.
- Expanding Business Resource Groups: United has six Business Resource Groups (BRGs) that include 26 chapters, more than 16,000 members worldwide and more than 150 voluntary BRG leaders, to ensure all people have a seat at the table with their voice heard. Bridge, United's BRG for employees with disabilities and allies, works to create awareness around the experience of having a visible or hidden disability and to provide education and support for internal departments focused on hiring, developing and retaining talent. Bridge also advises and counsels company leaders on the impact specific policies and practices may have on employees and customers within the people with disabilities community.
- Collaboration with partner organizations: United works with partner organizations to engage people from all backgrounds to build a more diverse aviation industry. United has a long-standing relationship with Special Olympics to provide workplace experiences for those with intellectual disabilities, as well to implement employee training scenarios to make traveling a positive experience for these individuals.
- Supplier Diversity: United continues to engage disability-owned and service-disabled, veteran-owned businesses in our procurement outreach process and supports certification of these businesses in partnership with DisabilityIN.
- Employing anti-discrimination policies: United is an equal opportunity employer committed to providing its employees with a non-discriminatory work environment that promotes open and honest communication and embraces dignity, respect and diversity in all aspects of its business operations.
Through United's diversity and inclusion initiatives, the airline demonstrates its commitment to engaging with and advocating for workplace diversity including the LGBT community, people from multicultural backgrounds, women, veterans and people with disabilities. Alongside partner organizations, customers and employees, United will continue working to build the world's most inclusive and accessible airline. For more information on United's commitment to diversity and inclusion, visit https://hub.united.com/diversity-inclusion-fact-sheet/.
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
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
This press release is neither an offer to sell nor the solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful. The Notes are being offered only to qualified institutional buyers in an offering exempt from registration in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States in reliance on Regulation S under the Securities Act. The Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act or any applicable state securities laws.
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 are forward-looking and thus reflect the Company's 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 the Company'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 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 the Company on the date of this release. The Company 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.
The Company's actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: the duration and spread of the ongoing global COVID-19 pandemic and the outbreak of any other disease or similar public health threat and the impact on the business, results of operations and financial condition of the Company; the lenders' ability to accelerate the MileagePlus indebtedness, foreclose upon the collateral securing the MileagePlus indebtedness or exercise other remedies if the Company is not able to comply with the covenants in the MileagePlus financing agreement; the final terms of borrowing pursuant to the Loan Program under the CARES Act, if any, and the effects of the grant and promissory note through the Payroll Support Program under the CARES Act; the costs and availability of financing; the Company's significant amount of financial leverage from fixed obligations and ability to seek additional liquidity and maintain adequate liquidity; the Company's ability to comply with the terms of its various financing arrangements; the material disruption of the Company's strategic operating plan as a result of the COVID-19 pandemic and the Company's ability to execute its strategic operating plans in the long term; general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aircraft fuel and energy refining capacity in relevant markets); risks of doing business globally, including instability and political developments that may impact its operations in certain countries; demand for travel and the impact that global economic and political conditions have on customer travel patterns; the Company's capacity decisions and the capacity decisions of its competitors; competitive pressures on pricing and on demand; changes in aircraft fuel prices; disruptions in the Company's supply of aircraft fuel; the Company's ability to cost-effectively hedge against increases in the price of aircraft fuel, if it decides to do so; the effects of any technology failures, cybersecurity or significant data breaches; disruptions to services provided by third-party service providers; potential reputational or other impact from adverse events involving the Company's aircraft or operations, the aircraft or operations of its regional carriers or its code share partners or the aircraft or operations of another airline; the Company's ability to attract and retain customers; the effects of any terrorist attacks, international hostilities or other security events, or the fear of such events; the mandatory grounding of aircraft in the Company's fleet; disruptions to the Company's regional network as a result of the COVID-19 pandemic or otherwise; the impact of regulatory, investigative and legal proceedings and legal compliance risks; the success of the Company's investments in other airlines, including in other parts of the world, which involve significant challenges and risks, particularly given the impact of the COVID-19 pandemic; industry consolidation or changes in airline alliances; the ability of other air carriers with whom the Company has alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; costs associated with any modification or termination of the Company's aircraft orders; disruptions in the availability of aircraft, parts or support from its suppliers; the Company's ability to maintain satisfactory labor relations and the results of any collective bargaining agreement process with its union groups; any disruptions to operations due to any potential actions by the Company's labor groups; labor costs; the impact of any management changes; extended interruptions or disruptions in service at major airports where the Company operates; U.S. or foreign governmental legislation, regulation and other actions (including Open Skies agreements, environmental regulations and the United Kingdom's withdrawal from the European Union); the seasonality of the airline industry; weather conditions; the costs and availability of aviation and other insurance; the Company's ability to realize the full value of its intangible assets and long-lived assets; any impact to the Company's reputation or brand image and other risks and uncertainties set forth under Part I, Item 1A., "Risk Factors," of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as updated by the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and the Company's Current Report on Form 8-K filed June 15, 2020, as well as other risks and uncertainties set forth from time to time in the reports it files with the SEC.
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
