United Airlines Reports Fourth-Quarter and Full-Year 2017 Performance
"I am incredibly proud of how our employees delivered in 2017, achieving our best-ever operational performance. Reliability is an important pillar in our continued focus on further improving the customer experience," said Oscar Munoz, chief executive officer of United Airlines. "Looking ahead, we are committed to improving profitability over the long-term by building on the strong foundation we have laid over the past two years. Everyone at United is excited to enter 2018 with a clear set of priorities and a renewed sense of purpose around unlocking the full potential of United Airlines."
Fourth-Quarter and Full-Year Revenue
For the fourth quarter of 2017, revenue was $9.4 billion, an increase of 4.3 percent year-over-year. Fourth-quarter 2017 consolidated passenger revenue per available seat mile (PRASM) was up 0.2 percent compared to the fourth quarter of 2016. Cargo revenue was $304 million in the fourth quarter of 2017, an increase of 21.6 percent year-over-year primarily due to higher international freight volume and yields. For the full year of 2017, total revenue was $37.7 billion, an increase of 3.2 percent year-over-year.
"Everything we do at United is underpinned by a commitment to deliver top tier operational reliability," said Scott Kirby, president of United Airlines. "Thanks to the drive and dedication of our employees, we have significantly raised the bar in this area, delivering a record-setting operational performance in 2017. Looking ahead, our focus will be on continuing to improve customer service and expanding United's network to offer customers more choice."
Fourth-Quarter and Full-Year Costs
Total operating expense was $8.7 billion in the fourth quarter, up 8.2 percent year-over-year. Consolidated unit cost per available seat mile (CASM) increased 4.0 percent compared to the fourth quarter of 2016 due largely to higher fuel and labor expense. Fourth-quarter consolidated CASM, excluding special charges, third-party business expenses, fuel and profit sharing, increased 1.5 percent year-over-year, driven mainly by higher labor expense. For the full year, consolidated CASM increased 2.8 percent compared to full-year 2016 due largely to higher fuel and labor expense. Excluding special charges, third-party business expenses, fuel and profit sharing, consolidated CASM increased 3.1 percent compared to the prior year primarily due to expenses resulting from labor agreements ratified in 2016.
"We are encouraged by our financial results in the fourth quarter which capped a year of strong earnings. Additionally, throughout the year we made significant investments in the business while continuing to return cash to our shareholders through $1.8 billion of share repurchases," said Andrew Levy, executive vice president and chief financial officer of United Airlines. "In 2018, we will continue to focus on cost control, invest strategically into the business and utilize our new $3 billion share repurchase authorization to return cash to our shareholders."
Capital Allocation
UAL generated $728 million in operating cash flow during the fourth quarter of 2017 and ended the quarter with $5.8 billion in unrestricted liquidity, including $2.0 billion of undrawn commitments under its revolving credit facility. UAL generated $3.4 billion in operating cash flow for the full year. The company continued to invest in its business through capital expenditures of $1.1 billion in the fourth quarter and a total of $4.0 billion for the full year. Adjusted capital expenditures, measured as capital expenditures including assets acquired through the issuance of debt and capital leases, airport construction financing, and excluding fully reimbursable projects, were $1.0 billion during the fourth quarter and $4.7 billion for the full year in 2017. The company contributed $419 million to its pension plans and made debt and capital lease principal payments of $1.0 billion during 2017.
For the 12 months ended Dec. 31, 2017, the company's pre-tax income was $3.0 billion and return on invested capital (ROIC) was 13.8 percent. In the fourth quarter, UAL purchased $553 million of its common shares at an average price of $59.61 per share. During 2017, UAL purchased $1.8 billion of its common shares at an average price of $66.30 per share. The company completed its July 2016 $2 billion share repurchase program and announced authorization for a new $3 billion share repurchase program, which represents approximately 14 percent of the company's market capitalization based on the closing stock price on Jan. 22, 2018.
UAL management will host an Investor Event at 4:30pm ET today to discuss fourth-quarter and full-year 2017 earnings, outline 2018 priorities, provide an update on United's network strategy and deliver a financial update. During this presentation, UAL will provide full-year 2018 guidance including earnings per share and establish long-term earnings targets. Please visit ir.united.com to access the first-quarter 2018 investor update, the webcast of the event and the company's presentation made available during the webcast, the entirety of which will be available on the website at the conclusion of the event.
Fourth-Quarter and Full-Year Highlights
Operations and Employees
- Achieved a record-setting year for operational reliability, including best on-time departure performance, fewest cancellations, and best baggage handling performance.
- The fourth quarter saw a record-breaking performance during the busy holiday travel season.
- In December, United was first place among competitors in mainline on-time departures, completion factor, and on-time arrivals.
- In November, United set company performance records during the busy Thanksgiving travel week, landing its best-ever Thanksgiving completion factor and twice breaking on-time performance records in the midst of the busiest travel days of the year.
- Employees earned incentive payments of approximately $30 million for achieving operations performance goals in the fourth quarter, marking a full year of earned bonuses totaling approximately $87 million.
- The company earned its seventh consecutive perfect 100 percent score on the Human Rights Campaign's Corporate Equality Index and a spot on the organization's list of "Best Places to Work for LGBT Equality."
- Recognized as a Top 100 Best Places to Work in the U.S. by the Glassdoor Employees' Choice Awards.
- Announced the appointment of Regional Presidents for California and New York/New Jersey, demonstrating our commitment to these communities and our hubs.
- In response to the catastrophic weather events Harvey, Irma and Maria, United and its employees came together to keep the operation moving and take part in relief efforts, delivering more than 1.7 million pounds of relief supplies to impacted areas, and together with customers and employees, raised and contributed more than $9 million to community assistance.
Network and Fleet
- Last year, announced 44 new domestic routes from the company's seven U.S. mainland hubs, and increased service on 11 routes to the Hawaiian Islands from Denver, Chicago, Los Angeles and San Francisco – offering more nonstop service to Hawaiian destinations than any other carrier.
- Announced 13 new international routes in 2017 including its newest route San Francisco to Papeete, Tahiti starting seasonally in October 2018.
- By increasing its nonstop service from six hub cities to nine ski destinations, United offers customers the most service to the most ski destinations across the U.S.
- During 2017, took delivery of 19 new Boeing aircraft, including twelve 777-300ER, three 787-9, four 737-800 and eight used Airbus aircraft including two A320 and six A319.
- Announced an agreement with Boeing to convert 100 current 737 MAX orders into 737 MAX 10 aircraft starting in late 2020.
- Announced an agreement with Airbus to modify its A350 order resulting in a conversion of the model type from the A350-1000 to the A350-900, an increase in the order size from 35 to 45 aircraft and a deferral of the first delivery to late 2022.
- Retired the company's iconic Boeing 747 fleet with a final farewell flight between San Francisco and Honolulu.
Customer Experience
- Took several actions to improve the overall customer experience – including providing more tools to employees to assist customers and increasing compensation for denied boarding.
- Rolled out system-wide new Customer Solutions Desk with a dedicated team to develop creative solutions to assist customers in reaching their final destinations when their travel plans don't go as expected.
- Decreased involuntary denied boardings by 92% since April, and in December only had 13 involuntary denied boardings.
- Upgraded the Houston and Newark terminal experience with the opening of OTG experience, opened new security lanes with automated security bins at Chicago and Newark, and opened the brand new upgraded Los Angeles United Club along with new Global Services lobbies in Houston, Newark and Los Angeles.
- Improved the customer experience at Houston George Bush Intercontinental Airport by offering customers shorter, more convenient connection times and better access to more destinations through "rebanking" of the hub. UAL will "rebank" Chicago O'Hare beginning in February of 2018.
- Unveiled new enhancements to United's award-winning mobile app including bag tracking feature, ability to change and cancel flights in the app, add MileagePlus and United Club cards to the Apple Wallet, and allow customers to access boarding passes for 19 other carriers.
- Became the first airline to give customers access to flight information and other amenities skills for Amazon Alexa, Google Assistant and Fitbit Ionic smartwatch.
- Continued to improve the mobile tools used by employees, including the first release of the "in the moment" care app, and new functionality in flight attendant tools to better serve customers.
- The company received the CIO 100 award, an acknowledged mark of enterprise excellence in business technology.
- Launched a new online portal, United Jetstream, in an effort to simplify the travel management process and give corporate and agency customers an intuitive suite of self-service tools.
About United
United Airlines and United Express operate approximately 4,500 flights a day to 338 airports across five continents. In 2017, United and United Express operated more than 1.6 million flights carrying more than 148 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 744 mainline aircraft and the airline's United Express carriers operate 518 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".
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Certain statements included in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as "expects," "will," "plans," "anticipates," "indicates," "believes," "forecast," "guidance," "outlook," "goals" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: our ability to comply with the terms of our various financing arrangements; the costs and availability of financing; our ability to maintain adequate liquidity; our ability to execute our operational plans and revenue-generating initiatives, including optimizing our revenue; our ability to control our costs, including realizing benefits from our resource optimization efforts, cost reduction initiatives and fleet replacement programs; costs associated with any modification or termination of our aircraft orders; our ability to utilize our net operating losses; our ability to attract and retain customers; potential reputational or other impact from adverse events in our operations; demand for transportation in the markets in which we operate; an outbreak of a disease that affects travel demand or travel behavior; demand for travel and the impact that global economic and political conditions have on customer travel patterns; excessive taxation and the inability to offset future taxable income; 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); economic and political instability and other risks of doing business globally; our ability to cost-effectively hedge against increases in the price of aircraft fuel if we decide to do so; any potential realized or unrealized gains or losses related to fuel or currency hedging programs; the effects of any hostilities, act of war or terrorist attack; 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; the effects of any technology failures or cybersecurity breaches; disruptions to our regional network; the costs and availability of aviation and other insurance; industry consolidation or changes in airline alliances; the success of our investments in airlines in other parts of the world; competitive pressures on pricing and on demand; our capacity decisions and the capacity decisions of our competitors; U.S. or foreign governmental legislation, regulation and other actions (including Open Skies agreements and environmental regulations); the impact of regulatory, investigative and legal proceedings and legal compliance risks; the impact of any management changes; labor costs; 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; weather conditions; 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, 2016, 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-
| (In millions, except per share data) | Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
% Increase/ (Decrease) |
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
% Increase/ (Decrease) |
|---|---|---|---|---|---|---|
| Operating revenue: Passenger: Mainline |
$6,582 | $6,295 | 4.6 | $26,552 | $25,414 | 4.5 |
| Operating revenue: Passenger: Regional | 1,498 | 1,466 | 2.2 | 5,852 | 6,043 | (3.2) |
| Operating revenue: Passenger: (B) Total passenger revenue | 8,080 | 7,761 | 4.1 | 32,404 | 31,457 | 3.0 |
| Operating revenue: Cargo | 304 | 250 | 21.6 | 1,035 | 876 | 18.2 |
| Operating revenue: Other operating revenue | 1,054 | 1,041 | 1.2 | 4,297 | 4,223 | 1.8 |
| Operating revenue:Other operating revenue: Total operating revenue | 9,438 | 9,052 | 4.3 | 37,736 | 36,556 | 3.2 |
| Operating expense: Salaries and related costs |
2,704 | 2,568 | 5.3 | 11,045 | 10,275 | 7.5 |
| Operating expense: Aircraft fuel(C) | 1,875 | 1,555 | 20.6 | 6,913 | 5,813 | 18.9 |
| Operating expense: Landing fees and other rent | 570 | 553 | 3.1 | 2,240 | 2,165 | 3.5 |
| Operating expense: Regional capacity purchase | 580 | 552 | 5.1 | 2,232 | 2,197 | 1.6 |
| Operating expense: Depreciation and amortization | 539 | 504 | 6.9 | 2,149 | 1,977 | 8.7 |
| Operating expense: Aircraft maintenance materials and outside repairs | 479 | 448 | 6.9 | 1,856 | 1,749 | 6.1 |
| Operating expense: Distribution expenses | 328 | 316 | 3.8 | 1,349 | 1,303 | 3.5 |
| Operating expense: Aircraft rent | 145 | 159 | (8.8) | 621 | 680 | (8.7) |
| Operating expense: Special charges (D) | 31 | (31) | NM | 176 | 638 | NM |
| Operating expense: Other operating expenses | 1,458 | 1,423 | 2.5 | 5,657 | 5,421 | 4.4 |
| Operating expense: Total operating expenses | 8,709 | 8,047 | 8.2 | 34,238 | 32,218 | 6.3 |
| Operating income: Operating income | 729 | 1,005 | (27.5) | 3,498 | 4,338 | (19.4) |
| Operating margin: | 7.7% | 11.1% | (3.4) pts. | 9.3% | 11.9% | (2.6) pts. |
| Operating margin, excluding special charges (A) (Non-GAAP) | 8.1% | 10.8% | (2.7) pts. | 9.7% | 13.6% | (3.9) pts. |
| Nonoperating income (expense): Interest expense |
(171) | (148) | 15.5 | (643) | (614) | 4.7 |
| Nonoperating income (expense): Interest capitalized | 20 | 24 | (16.7) | 84 | 72 | 16.7 |
| Nonoperating income (expense): Interest income | 16 | 11 | 45.5 | 57 | 42 | 35.7 |
| Nonoperating income (expense): Miscellaneous, net (D) | 6 | (8) | NM | 3 | (19) | NM |
| Nonoperating income (expense): Total nonoperating expense | (129) | (121) | 6.6 | (499) | (519) | (3.9) |
| Income before income taxes: Income before income taxes | 600 | 884 | (32.1) | 2,999 | 3,819 | (21.5) |
| Pre-tax margin:Pre-tax margin | 6.4% | 9.8% | (3.4) pts. | 7.9% | 10.4% | (2.5) pts. |
| Pre-tax margin: Pre-tax margin, excluding special charges and reflecting hedge adjustments (A) (Non-GAAP) | 6.7% | 9.5% | (2.8) pts. | 8.4% | 12.2% | (3.8) pts. |
| Income tax expense: Income tax expense (E) | 20 | 487 | (95.9) | 868 | 1,556 | (44.2) |
| Net income: Net income | $580 | $397 | 46.1 | $2,131 | $2,263 | (5.8) |
| Earnings per share: Earnings per share, diluted | $1.99 | $1.26 | 57.9 | $7.02 | $6.85 | 2.5 |
| Weighted average shares: Weighted average shares, diluted | 291.8 | 315.7 | (7.6) | 303.6 | 330.3 | (8.1) |
|
||||||
| Statistics: |
|
NM Not meaningful |
| Statistics: | Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
% Increase/ (Decrease) |
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
% Increase/ (Decrease) |
|---|---|---|---|---|---|---|
| Mainline: Passengers (thousands) |
26,926 | 25,590 | 5.2 | 108,017 | 101,007 | 6.9 |
| Mainline:Revenue passenger miles (millions) | 47,192 | 45,608 | 3.5 | 193,444 | 186,181 | 3.9 |
| Mainline:Available seat miles (millions) | 57,866 | 55,440 | 4.4 | 234,576 | 224,692 | 4.4 |
| Mainline:Cargo ton miles (millions) | 910 | 790 | 15.2 | 3,316 | 2,805 | 18.2 |
| Mainline:Passenger revenue per available seat mile (cents) | 11.37 | 11.35 | 0.2 | 11.32 | 11.31 | 0.1 |
| Mainline:Average yield per revenue passenger mile (cents) | 13.95 | 13.80 | 1.1 | 13.73 | 13.65 | 0.6 |
| Mainline:Aircraft in fleet at end of period | 744 | 737 | 0.9 | 744 | 737 | 0.9 |
| Mainline:Average stage length (miles) | 1,775 | 1,804 | (1.6) | 1,806 | 1,859 | (2.9) |
| Mainline:Average daily utilization of each aircraft (hours: minutes) | 10:16 | 9:54 | 3.7 | 10:27 | 10:06 | 3.5 |
| Regional: Passengers (thousands) |
10,487 | 10,433 | 0.5 | 40,050 | 42,170 | (5.0) |
| Regional:Revenue passenger miles (millions) | 5,957 | 5,930 | 0.5 | 22,817 | 24,128 | (5.4) |
| Regional:Available seat miles (millions) | 7,162 | 7,078 | 1.2 | 27,810 | 28,898 | (3.8) |
| Regional:Passenger revenue per available seat mile (cents) | 20.92 | 20.71 | 1.0 | 21.04 | 20.91 | 0.6 |
| Regional:Average yield per revenue passenger mile (cents) | 25.15 | 24.72 | 1.7 | 25.65 | 25.05 | 2.4 |
| Regional:Aircraft in fleet at end of period | 518 | 494 | 4.9 | 518 | 494 | 4.9 |
| Regional:Average stage length (miles) | 558 | 560 | (0.4) | 558 | 564 | (1.1) |
| Consolidated (Mainline and Regional): Passengers (thousands) |
37,413 | 36,023 | 3.9 | 148,067 | 143,177 | 3.4 |
| Consolidated (Mainline and Regional)Revenue passenger miles (millions) | 53,149 | 51,538 | 3.1 | 216,261 | 210,309 | 2.8 |
| Consolidated (Mainline and Regional)Available seat miles (millions) | 65,028 | 62,518 | 4.0 | 262,386 | 253,590 | 3.5 |
| Consolidated (Mainline and Regional)Passenger load factor | 81.7% | 82.4% | (0.7) pts. | 82.4% | 82.9% | (0.5) pts. |
| Consolidated (Mainline and Regional)Domestic | 85.2% | 85.2% | — | 85.2% | 85.4% | (0.2) pts. |
| Consolidated (Mainline and Regional)Internal | 77.2% | 78.9% | (1.7) pts. | 78.9% | 80.0% | (1.1) pts. |
| Consolidated (Mainline and Regional)Passenger revenue per available seat mile (cents) | 12.43 | 12.41 | 0.2 | 12.35 | 12.40 | (0.4) |
| Consolidated (Mainline and Regional)Total revenue per available seat mile (cents) | 14.51 | 14.48 | 0.2 | 14.38 | 14.42 | (0.3) |
| Consolidated (Mainline and Regional)Average yield per revenue passenger mile (cents) | 15.20 | 15.06 | 0.9 | 14.98 | 14.96 | 0.1 |
| Consolidated (Mainline and Regional)Aircraft in fleet at end of period | 1,262 | 1,231 | 2.5 | 1,262 | 1,231 | 2.5 |
| Consolidated (Mainline and Regional)Average stage length (miles) | 1,431 | 1,441 | (0.7) | 1,460 | 1,473 | (0.9) |
| Consolidated (Mainline and Regional)Average full-time equivalent employees (thousands) | 85.6 | 84.8 | 0.9 | 86.0 | 83.9 | 2.5 |
| Note:See Part II, Item 6 Selected Financial Data of the company's annual report on Form 10-K for the year ended December 31, 2016 for the definition of these statistics. | ||||||
| (In millions, except per share data) | Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
% Increase/ (Decrease) |
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
% Increase/ (Decrease) |
|---|---|---|---|---|---|---|
| Operating income: Operating income | $729 | $1,005 | (27.5) | $3,498 | $4,338 | (19.4) |
| Operating margin:Operating margin: | 7.7% | 11.1% | (3.4) pts. | 9.3% | 11.9% | (2.6) pts. |
| Operating income, excluding special charges (Non-GAAP) | 760 | 974 | (22.0) | 3,674 | 4,976 | (26.2) |
| Operating margin, excluding special charges (Non-GAAP) | 8.1% | 10.8% | (2.7) pts. | 9.7% | 13.6% | (3.9) pts. |
| Adjusted EBITDA, excluding special charges and reflecting hedge adjustments (a) (Non-GAAP) | $1,305 | $1,474 | (11.5) | $5,826 | $6,939 | (16.0) |
| Adjusted EBITDA margin, excluding special charges and reflecting hedge adjustments (a) (Non-GAAP) | 13.8% | 16.3% | (2.5) pts. | 15.4% | 19.0% | (3.6) pts. |
| Pre-tax income | $600 | $884 | (32.1) | $2,999 | $3,819 | (21.5) |
| Pre-tax margin | 6.4% | 9.8% | (3.4) pts. | 7.9% | 10.4% | (2.5) pts. |
| Pre-tax income, excluding special charges and reflecting hedge adjustments (a) (Non-GAAP) | 631 | 857 | (26.4) | 3,175 | 4,462 | (28.8) |
| Pre-tax margin, excluding special charges and reflecting hedge adjustments (a) (Non-GAAP) | 6.7% | 9.5% | (2.8) pts. | 8.4% | 12.2% | (3.8) pts. |
| Net income: Net income | $580 | $397 | 46.1 | $2,131 | $2,263 | (5.8) |
| Net income: Net income, excluding special charges and reflecting hedge adjustments (a) (Non-GAAP) | 408 | 562 | (27.4) | 2,052 | 2,857 | (28.2) |
| Diluted earnings per share: Diluted earnings per share | $1.99 | $1.26 | 57.9 | $7.02 | $6.85 | 2.5 |
| Diluted earnings per share: Diluted earnings per share, excluding special charges and reflecting hedge adjustments (a) (Non-GAAP) | 1.40 | 1.78 | (21.3) | 6.76 | 8.65 | (21.8) |
| Net cash provided by operating activities: Net cash provided by operating activities | $728 | $658 | 10.6 | $3,413 | $5,542 | (38.4) |
| Capital expenditures: Capital expenditures | $1,098 | $880 | 24.8 | $3,998 | $3,223 | 24.0 |
| Capital expenditures: Adjusted capital expenditures (Non-GAAP) | 1,046 | 1,078 | (3.0) | 4,729 | 3,347 | 41.3 |
| Free cash flow: Free cash flow, net of financings (Non-GAAP) | $(370) | $(222) | NM | $(585) | $2,319 | NM |
| Free cash flow: Free cash flow (Non-GAAP) | (318) | (420) | NM | (1,316) | 2,195 | NM |
| (a) Hedge adjustments include prior period gains (losses) on fuel derivative contracts settled in the current period. See note D for further information. | ||||||
| (b) The company recorded a special income tax benefit adjustment of $192 million in 2017 and a special income tax expense adjustment of $180 million in 2016. See note E for further information on the income tax adjustments. | ||||||
| (in millions) | Twelve Months Ended December 31, 2017 |
||||
|---|---|---|---|---|---|
| Return On Invested CapitalNet Operating Profit After Tax (NOPAT) Pre-tax income |
$2,999 | ||||
| Return On Invested CapitalSpecial charges (D): Severance and benefit costs |
116 | ||||
| Return On Invested Capital Impairment of assets |
25 | ||||
| Return On Invested Capital (Gains) losses on sale of assets and other special charges |
35 | ||||
Pre-tax income excluding special charges and reflecting hedge adjustments - Non-GAAP |
3,175 | ||||
add: Interest expense (net of income tax benefit) (a) |
639 | ||||
add: Interest component of capitalized aircraft rent (net of income tax benefit) (a) |
302 | ||||
add: Net interest on pension (net of income tax benefit) (a) |
41 | ||||
less: Income taxes paid |
(20) | ||||
NOPAT - Non-GAAP |
$4,137 | ||||
| Return On Invested CapitalInvested Capital (five-quarter average) Total assets |
$41,753 | ||||
add: Capitalized aircraft operating leases (b) |
4,585 | ||||
less: Non-interest bearing liabilities (c) |
(16,394) | ||||
Average invested capital - Non-GAAP |
$29,944 | ||||
Return On Invested Capital - Non-GAAP |
13.8% | ||||
|
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|
UNITED CONTINENTAL HOLDINGS, INC. |
|
(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 operating income (loss) excluding special charges, income (loss) before income taxes excluding special charges and reflecting hedge adjustments, net income (loss) excluding special charges and reflecting hedge adjustments, net earnings (loss) per share excluding special charges and reflecting hedge adjustments, and CASM, as adjusted, among others. 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 non-recurring charges 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, fuel sales and non-air mileage redemptions, 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 recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry. In addition, the company believes that adjusting for prior period gains and losses on fuel derivative contracts settled in the current period is useful because the adjustments allow investors to better understand the cash impact of settled fuel derivative contracts in a given period. Pursuant to SEC Regulation G, UAL has included the following reconciliations of reported Non-GAAP financial measures to comparable financial measures reported on a GAAP basis. |
| Statistics: | Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
% Increase/ (Decrease) |
Nine Months Ended December 31, 2017 |
Nine Months Ended December 31, 2016 |
% Increase/ (Decrease) |
|---|---|---|---|---|---|---|
| CASM Mainline Operations (cents) Cost per available seat mile (CASM) |
12.90 | 12.43 | 3.8 | 12.59 | 12.22 | 3.0 |
| Cost per available seat mile (CASM)Special charges (D) | 0.06 | (0.06) | NM | 0.07 | 0.29 | NM |
| Cost per available seat mile (CASM)Third-party business expenses | 0.12 | 0.13 | (7.7) | 0.12 | 0.11 | 9.1 |
| Cost per available seat mile (CASM)Fuel expense | 2.68 | 2.33 | 15.0 | 2.46 | 2.16 | 13.9 |
| CASM Mainline OperationsCASM, excluding special charges, third-party business expenses and fuel | 10.04 | 10.03 | 0.1 | 9.94 | 9.66 | 2.9 |
| CASM Mainline OperationsProfit sharing per available seat mile | 0.08 | 0.22 | (63.6) | 0.15 | 0.28 | (46.4) |
| CASM Mainline OperationsCASM, excluding special charges, third-party business expenses, fuel, and profit sharing | 9.96 | 9.81 | 1.5 | 9.79 | 9.38 | 4.4 |
| CASM Consolidated Operations (cents)Cost per available seat mile (CASM) | 13.39 | 12.87 | 4.0 | 13.05 | 12.70 | 2.8 |
| CASM Mainline Operations (cents)Special charges (D) | 0.04 | (0.05) | NM | 0.07 | 0.25 | NM |
| CASM Mainline Operations (cents)Third-party business expenses | 0.12 | 0.11 | 9.1 | 0.10 | 0.10 | — |
| CASM Mainline Operations (cents) Fuel expense | 2.88 | 2.49 | 15.7 | 2.64 | 2.29 | 15.3 |
| CASM Mainline Operations (cents) CASM, excluding special charges, third-party business expenses and fuel | 10.35 | 10.32 | 0.3 | 10.24 | 10.06 | 1.8 |
| CASM Mainline Operations (cents) Profit sharing per available seat mile | 0.07 | 0.19 | (63.2) | 0.13 | 0.25 | (48.0) |
| CASM Mainline Operations (cents) CASM, excluding special charges, third-party business expenses, fuel, and profit sharing | 10.28 | 10.13 | 1.5 | 10.11 | 9.81 | 3.1 |
| (In millions) | Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
$ Increase/ (Decrease) |
% Increase/ (Decrease) |
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
$ Increase/ (Decrease) |
% Increase/ (Decrease) |
|---|---|---|---|---|---|---|---|---|
| Operating expenses | $8,709 | $8,047 | $662 | 8.2 | $34,238 | $32,218 | $2,020 | 6.3 |
| Operating expensesSpecial charges (D) | 31 | (31) | 62 | NM | 176 | 638 | (462) | NM |
| Operating expenses, excluding special charges Operating expenses, excluding special charges | 8,678 | 8,078 | 600 | 7.4 | 34,062 | 31,580 | 2,482 | 7.9 |
| Operating expenses, excluding special chargesThird-party business expenses | 72 | 69 | 3 | 4.3 | 277 | 257 | 20 | 7.8 |
| Operating expenses, excluding special chargesFuel expense | 1,875 | 1,555 | 320 | 20.6 | 6,913 | 5,813 | 1,100 | 18.9 |
| Operating expensesProfit sharing, including taxes | 45 | 122 | (77) | (63.1) | 349 | 628 | (279) | (44.4) |
| Operating expensesOperating expenses, excluding fuel, profit sharing, special charges and third-party business expenses | $6,686 | $6,332 | $354 | 5.6 | $26,523 | $24,882 | $1,641 | 6.6 |
| Operating income | $729 | $1,005 | $(276) | (27.5) | $3,498 | $4,338 | $(840) | (19.4) |
| Operating incomeLess: Special charges (D) | 31 | (31) | 62 | NM | 176 | 638 | (462) | NM |
| Operating incomeOperating income, excluding special charges | $760 | $974 | $(214) | (22.0) | $3,674 | $4,976 | $(1,302) | (26.2) |
| Operating incomeIncome before income taxes | $600 | $884 | $(284) | (32.1) | $2,999 | $3,819 | $(820) | (21.5) |
| Operating incomeSpecial charges and hedge adjustments before income taxes (D) | 31 | (27) | 58 | NM | 176 | 643 | (467) | NM |
| Operating incomeIncome before income taxes and excluding special items | $631 | $857 | $(226) | (26.4) | $3,175 | $4,462 | $(1,287) | (28.8) |
| Operating incomeNet income | $580 | $397 | $183 | 46.1 | $2,131 | $2,263 | $(132) | (5.8) |
| Operating incomeSpecial charges and hedge adjustments, net of tax (D) | (172) | 165 | (337) | NM | (79) | 594 | (673) | NM |
| Operating incomeNet income, excluding special charges and reflecting hedge | $408 | $562 | $(154) | (27.4) | $2,052 | $2,857 | $(805) | (28.2) |
| Diluted earnings per shareDiluted earnings per share | $1.99 | $1.26 | $0.73 | 57.9 | $7.02 | $6.85 | $0.17 | 2.5 |
| Diluted earnings per shareSpecial charges and hedge adjustments | 0.11 | (0.09) | 0.20 | NM | 0.58 | 1.95 | (1.37) | NM |
| Diluted earnings per shareTax effect related to special charges and hedge adjustments | (0.70) | 0.61 | (1.31) | NM | (0.84) | (0.15) | (0.69) | NM |
| Diluted earnings per shareDiluted earnings per share, excluding special items | $1.40 | $1.78 | $(0.38) | (21.3) | $6.76 | $8.65 | $(1.89) | (21.8) |
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UAL provides financial metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA), that we believe provide useful supplemental information for management and investors by measuring profit and profit as a percentage of total operating revenues. Adjusted EBITDA is EBITDA excluding special charges that are non-recurring and that management believes are not indicative of UAL's ongoing performance. Adjusted EBITDA also includes hedge adjustments to reflect the cash impact of fuel derivative contracts settled in the current period. |
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| EBITDA (In millions) |
Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income: Net income |
$580 | $397 | $2,131 | $2,263 | ||||||||||||
| Net income Adjusted for:Depreciation and amortization | 539 | 504 | 2,149 | 1,977 | ||||||||||||
| Net income Adjusted for:Interest expense | 171 | 148 | 643 | 614 | ||||||||||||
| Net income Adjusted for:Interest capitalized | (20) | (24) | (84) | (72) | ||||||||||||
| Net income Adjusted for:Interest income | (16) | (11) | (57) | (42) | ||||||||||||
| Net income Adjusted for:Income tax expense(E) | 20 | 487 | 868 | 1,556 | ||||||||||||
| Net income Adjusted for:Special charges and hedge adjustments before income taxes (D) | 31 | (27) | 176 | 643 | ||||||||||||
| Adjusted EBITDA, excluding special charges and reflecting hedge adjustments - Non-GAAPAdjusted EBITDA, excluding special charges and reflecting hedge adjustments - Non-GAAP | $1,305 | $1,474 | $5,826 | $6,939 | ||||||||||||
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UAL believes that adjusting capital expenditures for assets acquired through the issuance of debt and capital leases, airport construction financing and excluding fully reimbursable projects is useful to investors in order to appropriately reflect the non-reimbursable funds spent on capital expenditures. UAL also believes that adjusting net cash provided by operating activities for capital expenditures and adjusted capital expenditures is useful to allow investors to evaluate the company's ability to generate cash that is available for debt service or general corporate initiatives. |
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| Capital Expenditures (In millions) |
Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
||||||||||||
| Capital expenditures:Capital expenditures | $1,098 | $880 | $3,998 | $3,223 | ||||||||||||
| Capital expenditures:Property and equipment acquired through the issuance of debt and capital leases | 17 | 271 | 935 | 386 | ||||||||||||
| Capital expenditures:Airport construction financing | 1 | 23 | 42 | 91 | ||||||||||||
| Capital expenditures:Fully reimbursable projects | (70) | (96) | (246) | (353) | ||||||||||||
| Capital expenditures:Adjusted capital expenditures – Non-GAAP | $1,046 | $1,078 | $4,729 | $3,347 | ||||||||||||
| Free Cash Flow (In millions) |
||||||||||||||||
| Free Cash Flow:Net cash provided by operating activities | $728 | $658 | $3,413 | $5,542 | ||||||||||||
| Free Cash Flow:Less capital expenditures | 1,098 | 880 | 3,998 | 3,223 | ||||||||||||
| Free Cash Flow:Free cash flow, net of financings - Non-GAAP | $(370) | $(222) | $(585) | $2,319 | ||||||||||||
| Free Cash Flow:Net cash provided by operating activities | $728 | $658 | $3,413 | $5,542 | ||||||||||||
| Free Cash Flow:Less adjusted capital expenditures – Non-GAAP | 1,046 | 1,078 | 4,729 | 3,347 | ||||||||||||
| Free Cash Flow:Free cash flow - Non-GAAP | $(318) | $(420) | $(1,316) | $2,195 | ||||||||||||
| Notes (Unaudited): | 4Q 2017 Passenger Revenue (millions) |
Passenger Revenue vs. 4Q 2016 |
PRASM vs. 4Q 2016 |
Yield vs. 4Q 2016 |
Available Seat Miles vs. 4Q 2016 |
|---|---|---|---|---|---|
| Mainline:Mainline | $3,626 | 7.3% | 0.3% | 0.1% | 7.1% |
| Regional:Regional | 1,453 | 2.7% | 1.0% | 1.9% | 1.7% |
| Domestic:Domestic | 5,079 | 6.0% | (0.1%) | 0.0% | 6.0% |
| Atlantic:Atlantic | 1,312 | 5.3% | 1.3% | 1.5% | 4.0% |
| Pacific:Pacific | 986 | (4.3%) | (2.9%) | 0.6% | (1.4%) |
| Latin America:Latin America | 703 | 1.6% | (0.6%) | 2.6% | 2.3% |
| International:International | 3,001 | 1.1% | (0.4%) | 1.9% | 1.4% |
| Consolidated:Consolidated | 8,080 | 4.1% | 0.2% | 0.9% | 4.0% |
| Mainline:Mainline | $6,582 | 4.6% | 0.2% | 1.1% | 4.4% |
| Regional:Regional | 1,498 | 2.2% | 1.0% | 1.7% | 1.2% |
| Consolidated:Consolidated | 8,080 |
| (In millions, except per gallon) | Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
% Increase/ (Decrease) |
Nine Months Ended December 31, 2017 |
Nine Months Ended December 31, 2016 |
% Increase/ (Decrease) |
|---|---|---|---|---|---|---|
| Mainline fuel expense excluding hedge impacts Mainline fuel expense excluding hedge impacts | $1,551 | $1,270 | 22.1 | $5,770 | $4,640 | 24.4 |
| Hedge losses reported in fuel expense (a) | — | (20) | NM | (2) | (217) | NM |
| Total mainline fuel expenseTotal mainline fuel expense | 1,551 | 1,290 | 20.2 | 5,772 | 4,857 | 18.8 |
| Regional fuel expense Regional fuel expense | 324 | 265 | 22.3 | 1,141 | 956 | 19.4 |
| Consolidated fuel expenseConsolidated fuel expense | $1,875 | $1,555 | 20.6 | $6,913 | $5,813 | 18.9 |
| Mainline fuel consumption (gallons)Mainline fuel consumption (gallons) | 820 | 804 | 2.0 | 3,357 | 3,261 | 2.9 |
| Mainline average aircraft fuel price per gallonMainline average aircraft fuel price per gallon | $1.89 | $1.60 | 18.1 | $1.72 | $1.49 | 15.4 |
| Mainline average aircraft fuel price per gallon excluding hedge losses recorded in fuel expenseMainline average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense | $1.89 | $1.58 | 19.6 | $1.72 | $1.42 | 21.1 |
| Regional fuel consumption (gallons)Regional fuel consumption (gallons) | 160 | 158 | 1.3 | 621 | 643 | (3.4) |
| Regional average aircraft fuel price per gallonRegional average aircraft fuel price per gallon | $2.03 | $1.68 | 20.8 | $1.84 | $1.49 | 23.5 |
| Consolidated fuel consumption (gallons)Consolidated fuel consumption (gallons) | 980 | 962 | 1.9 | 3,978 | 3,904 | 1.9 |
| Consolidated average aircraft fuel price per gallonConsolidated average aircraft fuel price per gallon | $1.91 | $1.62 | 17.9 | $1.74 | $1.49 | 16.8 |
| Consolidated average aircraft fuel price per gallon excluding hedge losses recorded in fuel expenseConsolidated average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense | $1.91 | $1.60 | 19.4 | $1.74 | $1.43 | 21.7 |
|
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(a) UAL allocates 100 percent of losses from settled hedges that were designated for hedge accounting to mainline fuel expense. |
| (In millions) | Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
|---|---|---|---|---|
| Operating: Severance and benefit costs |
$15 | $10 | $116 | $37 |
| Operating:Impairment of assets | 10 | — | 25 | 412 |
| Operating:Labor agreement costs | — | (60) | — | 64 |
| Operating:Cleveland airport lease restructuring | — | — | — | 74 |
| Operating:(Gains) losses on sale of assets and other special charges | 6 | 19 | 35 | 51 |
| Operating:Subtotal | 31 | (31) | 176 | 638 |
| Other nonoperating (gains) losses:Other nonoperating (gains) losses | — | — | — | (1) |
| Total special charges:Total special charges | 31 | (31) | 176 | 637 |
| Income tax benefit related to special charges:Income tax benefit related to special charges | (11) | 12 | (63) | (229) |
| Total special charges, net of income taxes:Total special charges, net of income taxes | 20 | (19) | 113 | 408 |
| Income tax adjustments (E) | (192) | 180 | (192) | 180 |
| Hedge adjustments: prior period gains on fuel derivative contracts settled in the current period:Hedge adjustments: prior period gains on fuel derivative contracts settled in the current period | — | 4 | — | 6 |
| Total special charges and hedge adjustments, net of income taxes:Total special charges and hedge adjustments, net of income taxes | $(172) | $165 | $(79) | $594 |
|
Special charges, hedge adjustments and income tax adjustments |
|
Severance and benefit costs: During the three months and year ended December 31, 2017, the company recorded $10 million ($6 million net of taxes) and $83 million ($53 million net of taxes), respectively, of severance and benefit costs related to a voluntary early-out program for its technicians and related employees represented by the International Brotherhood of Teamsters (the "IBT"). In the first quarter of 2017, approximately 1,000 technicians and related employees elected to voluntarily separate from the company and will receive a severance payment, with a maximum value of $100,000 per participant, based on years of service, with retirement dates through early 2019. Also during the three months and year ended December 31, 2017, the company recorded $5 million ($3 million net of taxes) and $33 million ($21 million net of taxes), respectively, of severance primarily related to its management reorganization initiative. |
|
During the three months and year ended December 31, 2016, the company recorded $10 million ($6 million net of taxes) and $37 million ($24 million net of taxes), respectively, of severance and benefit costs related to a voluntary early-out program for the company's flight attendants and other severance agreements. |
|
Impairment of assets: In the fourth quarter of 2017, the company recorded a $10 million ($6 million net of taxes) impairment charge related to obsolete spare parts inventory. During 2017, United recorded a $15 million ($10 million net of taxes) intangible asset impairment charge related to a maintenance service agreement. |
|
In April 2016, the Federal Aviation Administration ("FAA") announced that, effective October 30, 2016, it would designate Newark Liberty International Airport ("Newark") as a Level 2 schedule-facilitated airport under the International Air Transport Association Worldwide Slot Guidelines. The designation was associated with an updated demand and capacity analysis of Newark by the FAA. In the second quarter of 2016, the company determined that the FAA's action impaired the entire value of its Newark slots because the slots are no longer the mechanism that governs take-off and landing rights. Accordingly, the company recorded a $412 million special charge ($264 million net of taxes) to write off the intangible asset. |
|
Labor agreement costs and related items: In 2016, the fleet service, passenger service, storekeeper and other employees represented by the International Association of Machinists and Aerospace Workers (IAM) ratified seven new contracts with the company which extended the contracts through 2021. Also in 2016, the technicians and related employees represented by the International Brotherhood of Teamsters (IBT) ratified a six-year joint collective bargaining agreement which extended the contract through 2022. During 2016, the company recorded $171 million ($110 million net of taxes) of special charges primarily for payments in conjunction with the IAM and IBT agreements described above. As part of the ratified contract with the IBT, the company amended some of its technicians and related employees' postretirement medical plans. The amendments triggered curtailment accounting, resulting in the recognition of a one-time $60 million gain ($38 million net of taxes) for accelerated recognition of a prior service credit in one of the plans. Also, as part of the ratified contract with the Association of Flight Attendants, the company amended two of its flight attendant postretirement medical plans. The amendments triggered curtailment accounting, resulting in the recognition of a one-time $47 million gain ($30 million net of taxes) for accelerated recognition of a prior service credit. |
|
Cleveland airport lease restructuring: During 2016, the City of Cleveland agreed to amend the company's lease, which runs through 2029, associated with certain excess airport terminal space (principally Terminal D) and related facilities at Hopkins International Airport. The company recorded an accrual for remaining payments under the lease for facilities that the company no longer uses and will continue to incur costs under the lease without economic benefit to the company. This liability was measured and recorded at its fair value when the company ceased its right to use such facilities leased to it pursuant to the lease. The company recorded a special charge of $74 million ($47 million net of taxes) related to the amended lease. |
|
Hedge adjustments: Prior to 2017, the company used certain combinations of derivative contracts that were economic hedges but did not qualify for hedge accounting under U.S. generally accepted accounting principles. As with derivatives that qualified for hedge accounting, the economic hedges and individual contracts were part of the company's program to mitigate the adverse financial impact of potential increases in the price of fuel. The company recorded changes in the fair value of the various contracts that were not designated for hedge accounting to Nonoperating income (expense): Miscellaneous, net in the statements of consolidated operations. During the three months and year ended December 31, 2016, for fuel derivative contracts that settled in the three months and year ended December 31, 2016, the company recorded mark-to-market gains of $4 million and $6 million, respectively, in prior periods. |
|
(E) Effective tax rate: The company's effective tax rate for the three months and year ended December 31, 2017 was 3.5% and 29.0%, respectively. The company's effective tax rate for the three months and year ended December 31, 2016 was 55.1% and 40.7%, respectively. The rate for both 2017 periods was impacted by a one-time, $192 million benefit due to the passage of the Tax Cuts and Jobs Act in the fourth quarter of 2017. The rate for both 2016 periods was impacted by a special tax expense of $180 million. In 2016, the company recorded approximately $180 million of deferred income tax expense adjustments in AOCI, which related to losses on fuel hedges designated for hedge accounting. Accounting rules required the adjustments to remain in AOCI as long as the company had fuel derivatives designated for cash flow hedge accounting. In 2016, we settled all of our fuel hedges and have not entered into any new fuel derivative contracts for hedge accounting. Accordingly, the company reclassified the $180 million to income tax expense in 2016. |
|
The effective tax rates for the 2017 and 2016 periods represented a blend of federal, state and foreign taxes and the impact of certain nondeductible items. The effective tax rate for the three months and year ended December 31, 2017 reflects the impact of a change in the mix of domestic and foreign earnings. |
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
"I am incredibly proud of how our employees delivered in 2017, achieving our best-ever operational performance. Reliability is an important pillar in our continued focus on further improving the customer experience," said Oscar Munoz, chief executive officer of United Airlines. "Looking ahead, we are committed to improving profitability over the long-term by building on the strong foundation we have laid over the past two years. Everyone at United is excited to enter 2018 with a clear set of priorities and a renewed sense of purpose around unlocking the full potential of United Airlines."
Fourth-Quarter and Full-Year Revenue
For the fourth quarter of 2017, revenue was $9.4 billion, an increase of 4.3 percent year-over-year. Fourth-quarter 2017 consolidated passenger revenue per available seat mile (PRASM) was up 0.2 percent compared to the fourth quarter of 2016. Cargo revenue was $304 million in the fourth quarter of 2017, an increase of 21.6 percent year-over-year primarily due to higher international freight volume and yields. For the full year of 2017, total revenue was $37.7 billion, an increase of 3.2 percent year-over-year.
"Everything we do at United is underpinned by a commitment to deliver top tier operational reliability," said Scott Kirby, president of United Airlines. "Thanks to the drive and dedication of our employees, we have significantly raised the bar in this area, delivering a record-setting operational performance in 2017. Looking ahead, our focus will be on continuing to improve customer service and expanding United's network to offer customers more choice."
Fourth-Quarter and Full-Year Costs
Total operating expense was $8.7 billion in the fourth quarter, up 8.2 percent year-over-year. Consolidated unit cost per available seat mile (CASM) increased 4.0 percent compared to the fourth quarter of 2016 due largely to higher fuel and labor expense. Fourth-quarter consolidated CASM, excluding special charges, third-party business expenses, fuel and profit sharing, increased 1.5 percent year-over-year, driven mainly by higher labor expense. For the full year, consolidated CASM increased 2.8 percent compared to full-year 2016 due largely to higher fuel and labor expense. Excluding special charges, third-party business expenses, fuel and profit sharing, consolidated CASM increased 3.1 percent compared to the prior year primarily due to expenses resulting from labor agreements ratified in 2016.
"We are encouraged by our financial results in the fourth quarter which capped a year of strong earnings. Additionally, throughout the year we made significant investments in the business while continuing to return cash to our shareholders through $1.8 billion of share repurchases," said Andrew Levy, executive vice president and chief financial officer of United Airlines. "In 2018, we will continue to focus on cost control, invest strategically into the business and utilize our new $3 billion share repurchase authorization to return cash to our shareholders."
Capital Allocation
UAL generated $728 million in operating cash flow during the fourth quarter of 2017 and ended the quarter with $5.8 billion in unrestricted liquidity, including $2.0 billion of undrawn commitments under its revolving credit facility. UAL generated $3.4 billion in operating cash flow for the full year. The company continued to invest in its business through capital expenditures of $1.1 billion in the fourth quarter and a total of $4.0 billion for the full year. Adjusted capital expenditures, measured as capital expenditures including assets acquired through the issuance of debt and capital leases, airport construction financing, and excluding fully reimbursable projects, were $1.0 billion during the fourth quarter and $4.7 billion for the full year in 2017. The company contributed $419 million to its pension plans and made debt and capital lease principal payments of $1.0 billion during 2017.
For the 12 months ended Dec. 31, 2017, the company's pre-tax income was $3.0 billion and return on invested capital (ROIC) was 13.8 percent. In the fourth quarter, UAL purchased $553 million of its common shares at an average price of $59.61 per share. During 2017, UAL purchased $1.8 billion of its common shares at an average price of $66.30 per share. The company completed its July 2016 $2 billion share repurchase program and announced authorization for a new $3 billion share repurchase program, which represents approximately 14 percent of the company's market capitalization based on the closing stock price on Jan. 22, 2018.
UAL management will host an Investor Event at 4:30pm ET today to discuss fourth-quarter and full-year 2017 earnings, outline 2018 priorities, provide an update on United's network strategy and deliver a financial update. During this presentation, UAL will provide full-year 2018 guidance including earnings per share and establish long-term earnings targets. Please visit ir.united.com to access the first-quarter 2018 investor update, the webcast of the event and the company's presentation made available during the webcast, the entirety of which will be available on the website at the conclusion of the event.
Fourth-Quarter and Full-Year Highlights
Operations and Employees
- Achieved a record-setting year for operational reliability, including best on-time departure performance, fewest cancellations, and best baggage handling performance.
- The fourth quarter saw a record-breaking performance during the busy holiday travel season.
- In December, United was first place among competitors in mainline on-time departures, completion factor, and on-time arrivals.
- In November, United set company performance records during the busy Thanksgiving travel week, landing its best-ever Thanksgiving completion factor and twice breaking on-time performance records in the midst of the busiest travel days of the year.
- Employees earned incentive payments of approximately $30 million for achieving operations performance goals in the fourth quarter, marking a full year of earned bonuses totaling approximately $87 million.
- The company earned its seventh consecutive perfect 100 percent score on the Human Rights Campaign's Corporate Equality Index and a spot on the organization's list of "Best Places to Work for LGBT Equality."
- Recognized as a Top 100 Best Places to Work in the U.S. by the Glassdoor Employees' Choice Awards.
- Announced the appointment of Regional Presidents for California and New York/New Jersey, demonstrating our commitment to these communities and our hubs.
- In response to the catastrophic weather events Harvey, Irma and Maria, United and its employees came together to keep the operation moving and take part in relief efforts, delivering more than 1.7 million pounds of relief supplies to impacted areas, and together with customers and employees, raised and contributed more than $9 million to community assistance.
Network and Fleet
- Last year, announced 44 new domestic routes from the company's seven U.S. mainland hubs, and increased service on 11 routes to the Hawaiian Islands from Denver, Chicago, Los Angeles and San Francisco – offering more nonstop service to Hawaiian destinations than any other carrier.
- Announced 13 new international routes in 2017 including its newest route San Francisco to Papeete, Tahiti starting seasonally in October 2018.
- By increasing its nonstop service from six hub cities to nine ski destinations, United offers customers the most service to the most ski destinations across the U.S.
- During 2017, took delivery of 19 new Boeing aircraft, including twelve 777-300ER, three 787-9, four 737-800 and eight used Airbus aircraft including two A320 and six A319.
- Announced an agreement with Boeing to convert 100 current 737 MAX orders into 737 MAX 10 aircraft starting in late 2020.
- Announced an agreement with Airbus to modify its A350 order resulting in a conversion of the model type from the A350-1000 to the A350-900, an increase in the order size from 35 to 45 aircraft and a deferral of the first delivery to late 2022.
- Retired the company's iconic Boeing 747 fleet with a final farewell flight between San Francisco and Honolulu.
Customer Experience
- Took several actions to improve the overall customer experience – including providing more tools to employees to assist customers and increasing compensation for denied boarding.
- Rolled out system-wide new Customer Solutions Desk with a dedicated team to develop creative solutions to assist customers in reaching their final destinations when their travel plans don't go as expected.
- Decreased involuntary denied boardings by 92% since April, and in December only had 13 involuntary denied boardings.
- Upgraded the Houston and Newark terminal experience with the opening of OTG experience, opened new security lanes with automated security bins at Chicago and Newark, and opened the brand new upgraded Los Angeles United Club along with new Global Services lobbies in Houston, Newark and Los Angeles.
- Improved the customer experience at Houston George Bush Intercontinental Airport by offering customers shorter, more convenient connection times and better access to more destinations through "rebanking" of the hub. UAL will "rebank" Chicago O'Hare beginning in February of 2018.
- Unveiled new enhancements to United's award-winning mobile app including bag tracking feature, ability to change and cancel flights in the app, add MileagePlus and United Club cards to the Apple Wallet, and allow customers to access boarding passes for 19 other carriers.
- Became the first airline to give customers access to flight information and other amenities skills for Amazon Alexa, Google Assistant and Fitbit Ionic smartwatch.
- Continued to improve the mobile tools used by employees, including the first release of the "in the moment" care app, and new functionality in flight attendant tools to better serve customers.
- The company received the CIO 100 award, an acknowledged mark of enterprise excellence in business technology.
- Launched a new online portal, United Jetstream, in an effort to simplify the travel management process and give corporate and agency customers an intuitive suite of self-service tools.
About United
United Airlines and United Express operate approximately 4,500 flights a day to 338 airports across five continents. In 2017, United and United Express operated more than 1.6 million flights carrying more than 148 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 744 mainline aircraft and the airline's United Express carriers operate 518 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".
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Certain statements included in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as "expects," "will," "plans," "anticipates," "indicates," "believes," "forecast," "guidance," "outlook," "goals" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: our ability to comply with the terms of our various financing arrangements; the costs and availability of financing; our ability to maintain adequate liquidity; our ability to execute our operational plans and revenue-generating initiatives, including optimizing our revenue; our ability to control our costs, including realizing benefits from our resource optimization efforts, cost reduction initiatives and fleet replacement programs; costs associated with any modification or termination of our aircraft orders; our ability to utilize our net operating losses; our ability to attract and retain customers; potential reputational or other impact from adverse events in our operations; demand for transportation in the markets in which we operate; an outbreak of a disease that affects travel demand or travel behavior; demand for travel and the impact that global economic and political conditions have on customer travel patterns; excessive taxation and the inability to offset future taxable income; 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); economic and political instability and other risks of doing business globally; our ability to cost-effectively hedge against increases in the price of aircraft fuel if we decide to do so; any potential realized or unrealized gains or losses related to fuel or currency hedging programs; the effects of any hostilities, act of war or terrorist attack; 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; the effects of any technology failures or cybersecurity breaches; disruptions to our regional network; the costs and availability of aviation and other insurance; industry consolidation or changes in airline alliances; the success of our investments in airlines in other parts of the world; competitive pressures on pricing and on demand; our capacity decisions and the capacity decisions of our competitors; U.S. or foreign governmental legislation, regulation and other actions (including Open Skies agreements and environmental regulations); the impact of regulatory, investigative and legal proceedings and legal compliance risks; the impact of any management changes; labor costs; 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; weather conditions; 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, 2016, 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-
| (In millions, except per share data) | Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
% Increase/ (Decrease) |
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
% Increase/ (Decrease) |
|---|---|---|---|---|---|---|
| Operating revenue: Passenger: Mainline |
$6,582 | $6,295 | 4.6 | $26,552 | $25,414 | 4.5 |
| Operating revenue: Passenger: Regional | 1,498 | 1,466 | 2.2 | 5,852 | 6,043 | (3.2) |
| Operating revenue: Passenger: (B) Total passenger revenue | 8,080 | 7,761 | 4.1 | 32,404 | 31,457 | 3.0 |
| Operating revenue: Cargo | 304 | 250 | 21.6 | 1,035 | 876 | 18.2 |
| Operating revenue: Other operating revenue | 1,054 | 1,041 | 1.2 | 4,297 | 4,223 | 1.8 |
| Operating revenue:Other operating revenue: Total operating revenue | 9,438 | 9,052 | 4.3 | 37,736 | 36,556 | 3.2 |
| Operating expense: Salaries and related costs |
2,704 | 2,568 | 5.3 | 11,045 | 10,275 | 7.5 |
| Operating expense: Aircraft fuel(C) | 1,875 | 1,555 | 20.6 | 6,913 | 5,813 | 18.9 |
| Operating expense: Landing fees and other rent | 570 | 553 | 3.1 | 2,240 | 2,165 | 3.5 |
| Operating expense: Regional capacity purchase | 580 | 552 | 5.1 | 2,232 | 2,197 | 1.6 |
| Operating expense: Depreciation and amortization | 539 | 504 | 6.9 | 2,149 | 1,977 | 8.7 |
| Operating expense: Aircraft maintenance materials and outside repairs | 479 | 448 | 6.9 | 1,856 | 1,749 | 6.1 |
| Operating expense: Distribution expenses | 328 | 316 | 3.8 | 1,349 | 1,303 | 3.5 |
| Operating expense: Aircraft rent | 145 | 159 | (8.8) | 621 | 680 | (8.7) |
| Operating expense: Special charges (D) | 31 | (31) | NM | 176 | 638 | NM |
| Operating expense: Other operating expenses | 1,458 | 1,423 | 2.5 | 5,657 | 5,421 | 4.4 |
| Operating expense: Total operating expenses | 8,709 | 8,047 | 8.2 | 34,238 | 32,218 | 6.3 |
| Operating income: Operating income | 729 | 1,005 | (27.5) | 3,498 | 4,338 | (19.4) |
| Operating margin: | 7.7% | 11.1% | (3.4) pts. | 9.3% | 11.9% | (2.6) pts. |
| Operating margin, excluding special charges (A) (Non-GAAP) | 8.1% | 10.8% | (2.7) pts. | 9.7% | 13.6% | (3.9) pts. |
| Nonoperating income (expense): Interest expense |
(171) | (148) | 15.5 | (643) | (614) | 4.7 |
| Nonoperating income (expense): Interest capitalized | 20 | 24 | (16.7) | 84 | 72 | 16.7 |
| Nonoperating income (expense): Interest income | 16 | 11 | 45.5 | 57 | 42 | 35.7 |
| Nonoperating income (expense): Miscellaneous, net (D) | 6 | (8) | NM | 3 | (19) | NM |
| Nonoperating income (expense): Total nonoperating expense | (129) | (121) | 6.6 | (499) | (519) | (3.9) |
| Income before income taxes: Income before income taxes | 600 | 884 | (32.1) | 2,999 | 3,819 | (21.5) |
| Pre-tax margin:Pre-tax margin | 6.4% | 9.8% | (3.4) pts. | 7.9% | 10.4% | (2.5) pts. |
| Pre-tax margin: Pre-tax margin, excluding special charges and reflecting hedge adjustments (A) (Non-GAAP) | 6.7% | 9.5% | (2.8) pts. | 8.4% | 12.2% | (3.8) pts. |
| Income tax expense: Income tax expense (E) | 20 | 487 | (95.9) | 868 | 1,556 | (44.2) |
| Net income: Net income | $580 | $397 | 46.1 | $2,131 | $2,263 | (5.8) |
| Earnings per share: Earnings per share, diluted | $1.99 | $1.26 | 57.9 | $7.02 | $6.85 | 2.5 |
| Weighted average shares: Weighted average shares, diluted | 291.8 | 315.7 | (7.6) | 303.6 | 330.3 | (8.1) |
|
||||||
| Statistics: |
|
NM Not meaningful |
| Statistics: | Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
% Increase/ (Decrease) |
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
% Increase/ (Decrease) |
|---|---|---|---|---|---|---|
| Mainline: Passengers (thousands) |
26,926 | 25,590 | 5.2 | 108,017 | 101,007 | 6.9 |
| Mainline:Revenue passenger miles (millions) | 47,192 | 45,608 | 3.5 | 193,444 | 186,181 | 3.9 |
| Mainline:Available seat miles (millions) | 57,866 | 55,440 | 4.4 | 234,576 | 224,692 | 4.4 |
| Mainline:Cargo ton miles (millions) | 910 | 790 | 15.2 | 3,316 | 2,805 | 18.2 |
| Mainline:Passenger revenue per available seat mile (cents) | 11.37 | 11.35 | 0.2 | 11.32 | 11.31 | 0.1 |
| Mainline:Average yield per revenue passenger mile (cents) | 13.95 | 13.80 | 1.1 | 13.73 | 13.65 | 0.6 |
| Mainline:Aircraft in fleet at end of period | 744 | 737 | 0.9 | 744 | 737 | 0.9 |
| Mainline:Average stage length (miles) | 1,775 | 1,804 | (1.6) | 1,806 | 1,859 | (2.9) |
| Mainline:Average daily utilization of each aircraft (hours: minutes) | 10:16 | 9:54 | 3.7 | 10:27 | 10:06 | 3.5 |
| Regional: Passengers (thousands) |
10,487 | 10,433 | 0.5 | 40,050 | 42,170 | (5.0) |
| Regional:Revenue passenger miles (millions) | 5,957 | 5,930 | 0.5 | 22,817 | 24,128 | (5.4) |
| Regional:Available seat miles (millions) | 7,162 | 7,078 | 1.2 | 27,810 | 28,898 | (3.8) |
| Regional:Passenger revenue per available seat mile (cents) | 20.92 | 20.71 | 1.0 | 21.04 | 20.91 | 0.6 |
| Regional:Average yield per revenue passenger mile (cents) | 25.15 | 24.72 | 1.7 | 25.65 | 25.05 | 2.4 |
| Regional:Aircraft in fleet at end of period | 518 | 494 | 4.9 | 518 | 494 | 4.9 |
| Regional:Average stage length (miles) | 558 | 560 | (0.4) | 558 | 564 | (1.1) |
| Consolidated (Mainline and Regional): Passengers (thousands) |
37,413 | 36,023 | 3.9 | 148,067 | 143,177 | 3.4 |
| Consolidated (Mainline and Regional)Revenue passenger miles (millions) | 53,149 | 51,538 | 3.1 | 216,261 | 210,309 | 2.8 |
| Consolidated (Mainline and Regional)Available seat miles (millions) | 65,028 | 62,518 | 4.0 | 262,386 | 253,590 | 3.5 |
| Consolidated (Mainline and Regional)Passenger load factor | 81.7% | 82.4% | (0.7) pts. | 82.4% | 82.9% | (0.5) pts. |
| Consolidated (Mainline and Regional)Domestic | 85.2% | 85.2% | — | 85.2% | 85.4% | (0.2) pts. |
| Consolidated (Mainline and Regional)Internal | 77.2% | 78.9% | (1.7) pts. | 78.9% | 80.0% | (1.1) pts. |
| Consolidated (Mainline and Regional)Passenger revenue per available seat mile (cents) | 12.43 | 12.41 | 0.2 | 12.35 | 12.40 | (0.4) |
| Consolidated (Mainline and Regional)Total revenue per available seat mile (cents) | 14.51 | 14.48 | 0.2 | 14.38 | 14.42 | (0.3) |
| Consolidated (Mainline and Regional)Average yield per revenue passenger mile (cents) | 15.20 | 15.06 | 0.9 | 14.98 | 14.96 | 0.1 |
| Consolidated (Mainline and Regional)Aircraft in fleet at end of period | 1,262 | 1,231 | 2.5 | 1,262 | 1,231 | 2.5 |
| Consolidated (Mainline and Regional)Average stage length (miles) | 1,431 | 1,441 | (0.7) | 1,460 | 1,473 | (0.9) |
| Consolidated (Mainline and Regional)Average full-time equivalent employees (thousands) | 85.6 | 84.8 | 0.9 | 86.0 | 83.9 | 2.5 |
| Note:See Part II, Item 6 Selected Financial Data of the company's annual report on Form 10-K for the year ended December 31, 2016 for the definition of these statistics. | ||||||
| (In millions, except per share data) | Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
% Increase/ (Decrease) |
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
% Increase/ (Decrease) |
|---|---|---|---|---|---|---|
| Operating income: Operating income | $729 | $1,005 | (27.5) | $3,498 | $4,338 | (19.4) |
| Operating margin:Operating margin: | 7.7% | 11.1% | (3.4) pts. | 9.3% | 11.9% | (2.6) pts. |
| Operating income, excluding special charges (Non-GAAP) | 760 | 974 | (22.0) | 3,674 | 4,976 | (26.2) |
| Operating margin, excluding special charges (Non-GAAP) | 8.1% | 10.8% | (2.7) pts. | 9.7% | 13.6% | (3.9) pts. |
| Adjusted EBITDA, excluding special charges and reflecting hedge adjustments (a) (Non-GAAP) | $1,305 | $1,474 | (11.5) | $5,826 | $6,939 | (16.0) |
| Adjusted EBITDA margin, excluding special charges and reflecting hedge adjustments (a) (Non-GAAP) | 13.8% | 16.3% | (2.5) pts. | 15.4% | 19.0% | (3.6) pts. |
| Pre-tax income | $600 | $884 | (32.1) | $2,999 | $3,819 | (21.5) |
| Pre-tax margin | 6.4% | 9.8% | (3.4) pts. | 7.9% | 10.4% | (2.5) pts. |
| Pre-tax income, excluding special charges and reflecting hedge adjustments (a) (Non-GAAP) | 631 | 857 | (26.4) | 3,175 | 4,462 | (28.8) |
| Pre-tax margin, excluding special charges and reflecting hedge adjustments (a) (Non-GAAP) | 6.7% | 9.5% | (2.8) pts. | 8.4% | 12.2% | (3.8) pts. |
| Net income: Net income | $580 | $397 | 46.1 | $2,131 | $2,263 | (5.8) |
| Net income: Net income, excluding special charges and reflecting hedge adjustments (a) (Non-GAAP) | 408 | 562 | (27.4) | 2,052 | 2,857 | (28.2) |
| Diluted earnings per share: Diluted earnings per share | $1.99 | $1.26 | 57.9 | $7.02 | $6.85 | 2.5 |
| Diluted earnings per share: Diluted earnings per share, excluding special charges and reflecting hedge adjustments (a) (Non-GAAP) | 1.40 | 1.78 | (21.3) | 6.76 | 8.65 | (21.8) |
| Net cash provided by operating activities: Net cash provided by operating activities | $728 | $658 | 10.6 | $3,413 | $5,542 | (38.4) |
| Capital expenditures: Capital expenditures | $1,098 | $880 | 24.8 | $3,998 | $3,223 | 24.0 |
| Capital expenditures: Adjusted capital expenditures (Non-GAAP) | 1,046 | 1,078 | (3.0) | 4,729 | 3,347 | 41.3 |
| Free cash flow: Free cash flow, net of financings (Non-GAAP) | $(370) | $(222) | NM | $(585) | $2,319 | NM |
| Free cash flow: Free cash flow (Non-GAAP) | (318) | (420) | NM | (1,316) | 2,195 | NM |
| (a) Hedge adjustments include prior period gains (losses) on fuel derivative contracts settled in the current period. See note D for further information. | ||||||
| (b) The company recorded a special income tax benefit adjustment of $192 million in 2017 and a special income tax expense adjustment of $180 million in 2016. See note E for further information on the income tax adjustments. | ||||||
| (in millions) | Twelve Months Ended December 31, 2017 |
||||
|---|---|---|---|---|---|
| Return On Invested CapitalNet Operating Profit After Tax (NOPAT) Pre-tax income |
$2,999 | ||||
| Return On Invested CapitalSpecial charges (D): Severance and benefit costs |
116 | ||||
| Return On Invested Capital Impairment of assets |
25 | ||||
| Return On Invested Capital (Gains) losses on sale of assets and other special charges |
35 | ||||
Pre-tax income excluding special charges and reflecting hedge adjustments - Non-GAAP |
3,175 | ||||
add: Interest expense (net of income tax benefit) (a) |
639 | ||||
add: Interest component of capitalized aircraft rent (net of income tax benefit) (a) |
302 | ||||
add: Net interest on pension (net of income tax benefit) (a) |
41 | ||||
less: Income taxes paid |
(20) | ||||
NOPAT - Non-GAAP |
$4,137 | ||||
| Return On Invested CapitalInvested Capital (five-quarter average) Total assets |
$41,753 | ||||
add: Capitalized aircraft operating leases (b) |
4,585 | ||||
less: Non-interest bearing liabilities (c) |
(16,394) | ||||
Average invested capital - Non-GAAP |
$29,944 | ||||
Return On Invested Capital - Non-GAAP |
13.8% | ||||
|
|||||
|
UNITED CONTINENTAL HOLDINGS, INC. |
|
(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 operating income (loss) excluding special charges, income (loss) before income taxes excluding special charges and reflecting hedge adjustments, net income (loss) excluding special charges and reflecting hedge adjustments, net earnings (loss) per share excluding special charges and reflecting hedge adjustments, and CASM, as adjusted, among others. 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 non-recurring charges 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, fuel sales and non-air mileage redemptions, 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 recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry. In addition, the company believes that adjusting for prior period gains and losses on fuel derivative contracts settled in the current period is useful because the adjustments allow investors to better understand the cash impact of settled fuel derivative contracts in a given period. Pursuant to SEC Regulation G, UAL has included the following reconciliations of reported Non-GAAP financial measures to comparable financial measures reported on a GAAP basis. |
| Statistics: | Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
% Increase/ (Decrease) |
Nine Months Ended December 31, 2017 |
Nine Months Ended December 31, 2016 |
% Increase/ (Decrease) |
|---|---|---|---|---|---|---|
| CASM Mainline Operations (cents) Cost per available seat mile (CASM) |
12.90 | 12.43 | 3.8 | 12.59 | 12.22 | 3.0 |
| Cost per available seat mile (CASM)Special charges (D) | 0.06 | (0.06) | NM | 0.07 | 0.29 | NM |
| Cost per available seat mile (CASM)Third-party business expenses | 0.12 | 0.13 | (7.7) | 0.12 | 0.11 | 9.1 |
| Cost per available seat mile (CASM)Fuel expense | 2.68 | 2.33 | 15.0 | 2.46 | 2.16 | 13.9 |
| CASM Mainline OperationsCASM, excluding special charges, third-party business expenses and fuel | 10.04 | 10.03 | 0.1 | 9.94 | 9.66 | 2.9 |
| CASM Mainline OperationsProfit sharing per available seat mile | 0.08 | 0.22 | (63.6) | 0.15 | 0.28 | (46.4) |
| CASM Mainline OperationsCASM, excluding special charges, third-party business expenses, fuel, and profit sharing | 9.96 | 9.81 | 1.5 | 9.79 | 9.38 | 4.4 |
| CASM Consolidated Operations (cents)Cost per available seat mile (CASM) | 13.39 | 12.87 | 4.0 | 13.05 | 12.70 | 2.8 |
| CASM Mainline Operations (cents)Special charges (D) | 0.04 | (0.05) | NM | 0.07 | 0.25 | NM |
| CASM Mainline Operations (cents)Third-party business expenses | 0.12 | 0.11 | 9.1 | 0.10 | 0.10 | — |
| CASM Mainline Operations (cents) Fuel expense | 2.88 | 2.49 | 15.7 | 2.64 | 2.29 | 15.3 |
| CASM Mainline Operations (cents) CASM, excluding special charges, third-party business expenses and fuel | 10.35 | 10.32 | 0.3 | 10.24 | 10.06 | 1.8 |
| CASM Mainline Operations (cents) Profit sharing per available seat mile | 0.07 | 0.19 | (63.2) | 0.13 | 0.25 | (48.0) |
| CASM Mainline Operations (cents) CASM, excluding special charges, third-party business expenses, fuel, and profit sharing | 10.28 | 10.13 | 1.5 | 10.11 | 9.81 | 3.1 |
| (In millions) | Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
$ Increase/ (Decrease) |
% Increase/ (Decrease) |
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
$ Increase/ (Decrease) |
% Increase/ (Decrease) |
|---|---|---|---|---|---|---|---|---|
| Operating expenses | $8,709 | $8,047 | $662 | 8.2 | $34,238 | $32,218 | $2,020 | 6.3 |
| Operating expensesSpecial charges (D) | 31 | (31) | 62 | NM | 176 | 638 | (462) | NM |
| Operating expenses, excluding special charges Operating expenses, excluding special charges | 8,678 | 8,078 | 600 | 7.4 | 34,062 | 31,580 | 2,482 | 7.9 |
| Operating expenses, excluding special chargesThird-party business expenses | 72 | 69 | 3 | 4.3 | 277 | 257 | 20 | 7.8 |
| Operating expenses, excluding special chargesFuel expense | 1,875 | 1,555 | 320 | 20.6 | 6,913 | 5,813 | 1,100 | 18.9 |
| Operating expensesProfit sharing, including taxes | 45 | 122 | (77) | (63.1) | 349 | 628 | (279) | (44.4) |
| Operating expensesOperating expenses, excluding fuel, profit sharing, special charges and third-party business expenses | $6,686 | $6,332 | $354 | 5.6 | $26,523 | $24,882 | $1,641 | 6.6 |
| Operating income | $729 | $1,005 | $(276) | (27.5) | $3,498 | $4,338 | $(840) | (19.4) |
| Operating incomeLess: Special charges (D) | 31 | (31) | 62 | NM | 176 | 638 | (462) | NM |
| Operating incomeOperating income, excluding special charges | $760 | $974 | $(214) | (22.0) | $3,674 | $4,976 | $(1,302) | (26.2) |
| Operating incomeIncome before income taxes | $600 | $884 | $(284) | (32.1) | $2,999 | $3,819 | $(820) | (21.5) |
| Operating incomeSpecial charges and hedge adjustments before income taxes (D) | 31 | (27) | 58 | NM | 176 | 643 | (467) | NM |
| Operating incomeIncome before income taxes and excluding special items | $631 | $857 | $(226) | (26.4) | $3,175 | $4,462 | $(1,287) | (28.8) |
| Operating incomeNet income | $580 | $397 | $183 | 46.1 | $2,131 | $2,263 | $(132) | (5.8) |
| Operating incomeSpecial charges and hedge adjustments, net of tax (D) | (172) | 165 | (337) | NM | (79) | 594 | (673) | NM |
| Operating incomeNet income, excluding special charges and reflecting hedge | $408 | $562 | $(154) | (27.4) | $2,052 | $2,857 | $(805) | (28.2) |
| Diluted earnings per shareDiluted earnings per share | $1.99 | $1.26 | $0.73 | 57.9 | $7.02 | $6.85 | $0.17 | 2.5 |
| Diluted earnings per shareSpecial charges and hedge adjustments | 0.11 | (0.09) | 0.20 | NM | 0.58 | 1.95 | (1.37) | NM |
| Diluted earnings per shareTax effect related to special charges and hedge adjustments | (0.70) | 0.61 | (1.31) | NM | (0.84) | (0.15) | (0.69) | NM |
| Diluted earnings per shareDiluted earnings per share, excluding special items | $1.40 | $1.78 | $(0.38) | (21.3) | $6.76 | $8.65 | $(1.89) | (21.8) |
|
UAL provides financial metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA), that we believe provide useful supplemental information for management and investors by measuring profit and profit as a percentage of total operating revenues. Adjusted EBITDA is EBITDA excluding special charges that are non-recurring and that management believes are not indicative of UAL's ongoing performance. Adjusted EBITDA also includes hedge adjustments to reflect the cash impact of fuel derivative contracts settled in the current period. |
||||||||||||||||
| EBITDA (In millions) |
Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income: Net income |
$580 | $397 | $2,131 | $2,263 | ||||||||||||
| Net income Adjusted for:Depreciation and amortization | 539 | 504 | 2,149 | 1,977 | ||||||||||||
| Net income Adjusted for:Interest expense | 171 | 148 | 643 | 614 | ||||||||||||
| Net income Adjusted for:Interest capitalized | (20) | (24) | (84) | (72) | ||||||||||||
| Net income Adjusted for:Interest income | (16) | (11) | (57) | (42) | ||||||||||||
| Net income Adjusted for:Income tax expense(E) | 20 | 487 | 868 | 1,556 | ||||||||||||
| Net income Adjusted for:Special charges and hedge adjustments before income taxes (D) | 31 | (27) | 176 | 643 | ||||||||||||
| Adjusted EBITDA, excluding special charges and reflecting hedge adjustments - Non-GAAPAdjusted EBITDA, excluding special charges and reflecting hedge adjustments - Non-GAAP | $1,305 | $1,474 | $5,826 | $6,939 | ||||||||||||
|
UAL believes that adjusting capital expenditures for assets acquired through the issuance of debt and capital leases, airport construction financing and excluding fully reimbursable projects is useful to investors in order to appropriately reflect the non-reimbursable funds spent on capital expenditures. UAL also believes that adjusting net cash provided by operating activities for capital expenditures and adjusted capital expenditures is useful to allow investors to evaluate the company's ability to generate cash that is available for debt service or general corporate initiatives. |
||||||||||||||||
| Capital Expenditures (In millions) |
Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
||||||||||||
| Capital expenditures:Capital expenditures | $1,098 | $880 | $3,998 | $3,223 | ||||||||||||
| Capital expenditures:Property and equipment acquired through the issuance of debt and capital leases | 17 | 271 | 935 | 386 | ||||||||||||
| Capital expenditures:Airport construction financing | 1 | 23 | 42 | 91 | ||||||||||||
| Capital expenditures:Fully reimbursable projects | (70) | (96) | (246) | (353) | ||||||||||||
| Capital expenditures:Adjusted capital expenditures – Non-GAAP | $1,046 | $1,078 | $4,729 | $3,347 | ||||||||||||
| Free Cash Flow (In millions) |
||||||||||||||||
| Free Cash Flow:Net cash provided by operating activities | $728 | $658 | $3,413 | $5,542 | ||||||||||||
| Free Cash Flow:Less capital expenditures | 1,098 | 880 | 3,998 | 3,223 | ||||||||||||
| Free Cash Flow:Free cash flow, net of financings - Non-GAAP | $(370) | $(222) | $(585) | $2,319 | ||||||||||||
| Free Cash Flow:Net cash provided by operating activities | $728 | $658 | $3,413 | $5,542 | ||||||||||||
| Free Cash Flow:Less adjusted capital expenditures – Non-GAAP | 1,046 | 1,078 | 4,729 | 3,347 | ||||||||||||
| Free Cash Flow:Free cash flow - Non-GAAP | $(318) | $(420) | $(1,316) | $2,195 | ||||||||||||
| Notes (Unaudited): | 4Q 2017 Passenger Revenue (millions) |
Passenger Revenue vs. 4Q 2016 |
PRASM vs. 4Q 2016 |
Yield vs. 4Q 2016 |
Available Seat Miles vs. 4Q 2016 |
|---|---|---|---|---|---|
| Mainline:Mainline | $3,626 | 7.3% | 0.3% | 0.1% | 7.1% |
| Regional:Regional | 1,453 | 2.7% | 1.0% | 1.9% | 1.7% |
| Domestic:Domestic | 5,079 | 6.0% | (0.1%) | 0.0% | 6.0% |
| Atlantic:Atlantic | 1,312 | 5.3% | 1.3% | 1.5% | 4.0% |
| Pacific:Pacific | 986 | (4.3%) | (2.9%) | 0.6% | (1.4%) |
| Latin America:Latin America | 703 | 1.6% | (0.6%) | 2.6% | 2.3% |
| International:International | 3,001 | 1.1% | (0.4%) | 1.9% | 1.4% |
| Consolidated:Consolidated | 8,080 | 4.1% | 0.2% | 0.9% | 4.0% |
| Mainline:Mainline | $6,582 | 4.6% | 0.2% | 1.1% | 4.4% |
| Regional:Regional | 1,498 | 2.2% | 1.0% | 1.7% | 1.2% |
| Consolidated:Consolidated | 8,080 |
| (In millions, except per gallon) | Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
% Increase/ (Decrease) |
Nine Months Ended December 31, 2017 |
Nine Months Ended December 31, 2016 |
% Increase/ (Decrease) |
|---|---|---|---|---|---|---|
| Mainline fuel expense excluding hedge impacts Mainline fuel expense excluding hedge impacts | $1,551 | $1,270 | 22.1 | $5,770 | $4,640 | 24.4 |
| Hedge losses reported in fuel expense (a) | — | (20) | NM | (2) | (217) | NM |
| Total mainline fuel expenseTotal mainline fuel expense | 1,551 | 1,290 | 20.2 | 5,772 | 4,857 | 18.8 |
| Regional fuel expense Regional fuel expense | 324 | 265 | 22.3 | 1,141 | 956 | 19.4 |
| Consolidated fuel expenseConsolidated fuel expense | $1,875 | $1,555 | 20.6 | $6,913 | $5,813 | 18.9 |
| Mainline fuel consumption (gallons)Mainline fuel consumption (gallons) | 820 | 804 | 2.0 | 3,357 | 3,261 | 2.9 |
| Mainline average aircraft fuel price per gallonMainline average aircraft fuel price per gallon | $1.89 | $1.60 | 18.1 | $1.72 | $1.49 | 15.4 |
| Mainline average aircraft fuel price per gallon excluding hedge losses recorded in fuel expenseMainline average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense | $1.89 | $1.58 | 19.6 | $1.72 | $1.42 | 21.1 |
| Regional fuel consumption (gallons)Regional fuel consumption (gallons) | 160 | 158 | 1.3 | 621 | 643 | (3.4) |
| Regional average aircraft fuel price per gallonRegional average aircraft fuel price per gallon | $2.03 | $1.68 | 20.8 | $1.84 | $1.49 | 23.5 |
| Consolidated fuel consumption (gallons)Consolidated fuel consumption (gallons) | 980 | 962 | 1.9 | 3,978 | 3,904 | 1.9 |
| Consolidated average aircraft fuel price per gallonConsolidated average aircraft fuel price per gallon | $1.91 | $1.62 | 17.9 | $1.74 | $1.49 | 16.8 |
| Consolidated average aircraft fuel price per gallon excluding hedge losses recorded in fuel expenseConsolidated average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense | $1.91 | $1.60 | 19.4 | $1.74 | $1.43 | 21.7 |
|
||||||
|
(a) UAL allocates 100 percent of losses from settled hedges that were designated for hedge accounting to mainline fuel expense. |
| (In millions) | Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
|---|---|---|---|---|
| Operating: Severance and benefit costs |
$15 | $10 | $116 | $37 |
| Operating:Impairment of assets | 10 | — | 25 | 412 |
| Operating:Labor agreement costs | — | (60) | — | 64 |
| Operating:Cleveland airport lease restructuring | — | — | — | 74 |
| Operating:(Gains) losses on sale of assets and other special charges | 6 | 19 | 35 | 51 |
| Operating:Subtotal | 31 | (31) | 176 | 638 |
| Other nonoperating (gains) losses:Other nonoperating (gains) losses | — | — | — | (1) |
| Total special charges:Total special charges | 31 | (31) | 176 | 637 |
| Income tax benefit related to special charges:Income tax benefit related to special charges | (11) | 12 | (63) | (229) |
| Total special charges, net of income taxes:Total special charges, net of income taxes | 20 | (19) | 113 | 408 |
| Income tax adjustments (E) | (192) | 180 | (192) | 180 |
| Hedge adjustments: prior period gains on fuel derivative contracts settled in the current period:Hedge adjustments: prior period gains on fuel derivative contracts settled in the current period | — | 4 | — | 6 |
| Total special charges and hedge adjustments, net of income taxes:Total special charges and hedge adjustments, net of income taxes | $(172) | $165 | $(79) | $594 |
|
Special charges, hedge adjustments and income tax adjustments |
|
Severance and benefit costs: During the three months and year ended December 31, 2017, the company recorded $10 million ($6 million net of taxes) and $83 million ($53 million net of taxes), respectively, of severance and benefit costs related to a voluntary early-out program for its technicians and related employees represented by the International Brotherhood of Teamsters (the "IBT"). In the first quarter of 2017, approximately 1,000 technicians and related employees elected to voluntarily separate from the company and will receive a severance payment, with a maximum value of $100,000 per participant, based on years of service, with retirement dates through early 2019. Also during the three months and year ended December 31, 2017, the company recorded $5 million ($3 million net of taxes) and $33 million ($21 million net of taxes), respectively, of severance primarily related to its management reorganization initiative. |
|
During the three months and year ended December 31, 2016, the company recorded $10 million ($6 million net of taxes) and $37 million ($24 million net of taxes), respectively, of severance and benefit costs related to a voluntary early-out program for the company's flight attendants and other severance agreements. |
|
Impairment of assets: In the fourth quarter of 2017, the company recorded a $10 million ($6 million net of taxes) impairment charge related to obsolete spare parts inventory. During 2017, United recorded a $15 million ($10 million net of taxes) intangible asset impairment charge related to a maintenance service agreement. |
|
In April 2016, the Federal Aviation Administration ("FAA") announced that, effective October 30, 2016, it would designate Newark Liberty International Airport ("Newark") as a Level 2 schedule-facilitated airport under the International Air Transport Association Worldwide Slot Guidelines. The designation was associated with an updated demand and capacity analysis of Newark by the FAA. In the second quarter of 2016, the company determined that the FAA's action impaired the entire value of its Newark slots because the slots are no longer the mechanism that governs take-off and landing rights. Accordingly, the company recorded a $412 million special charge ($264 million net of taxes) to write off the intangible asset. |
|
Labor agreement costs and related items: In 2016, the fleet service, passenger service, storekeeper and other employees represented by the International Association of Machinists and Aerospace Workers (IAM) ratified seven new contracts with the company which extended the contracts through 2021. Also in 2016, the technicians and related employees represented by the International Brotherhood of Teamsters (IBT) ratified a six-year joint collective bargaining agreement which extended the contract through 2022. During 2016, the company recorded $171 million ($110 million net of taxes) of special charges primarily for payments in conjunction with the IAM and IBT agreements described above. As part of the ratified contract with the IBT, the company amended some of its technicians and related employees' postretirement medical plans. The amendments triggered curtailment accounting, resulting in the recognition of a one-time $60 million gain ($38 million net of taxes) for accelerated recognition of a prior service credit in one of the plans. Also, as part of the ratified contract with the Association of Flight Attendants, the company amended two of its flight attendant postretirement medical plans. The amendments triggered curtailment accounting, resulting in the recognition of a one-time $47 million gain ($30 million net of taxes) for accelerated recognition of a prior service credit. |
|
Cleveland airport lease restructuring: During 2016, the City of Cleveland agreed to amend the company's lease, which runs through 2029, associated with certain excess airport terminal space (principally Terminal D) and related facilities at Hopkins International Airport. The company recorded an accrual for remaining payments under the lease for facilities that the company no longer uses and will continue to incur costs under the lease without economic benefit to the company. This liability was measured and recorded at its fair value when the company ceased its right to use such facilities leased to it pursuant to the lease. The company recorded a special charge of $74 million ($47 million net of taxes) related to the amended lease. |
|
Hedge adjustments: Prior to 2017, the company used certain combinations of derivative contracts that were economic hedges but did not qualify for hedge accounting under U.S. generally accepted accounting principles. As with derivatives that qualified for hedge accounting, the economic hedges and individual contracts were part of the company's program to mitigate the adverse financial impact of potential increases in the price of fuel. The company recorded changes in the fair value of the various contracts that were not designated for hedge accounting to Nonoperating income (expense): Miscellaneous, net in the statements of consolidated operations. During the three months and year ended December 31, 2016, for fuel derivative contracts that settled in the three months and year ended December 31, 2016, the company recorded mark-to-market gains of $4 million and $6 million, respectively, in prior periods. |
|
(E) Effective tax rate: The company's effective tax rate for the three months and year ended December 31, 2017 was 3.5% and 29.0%, respectively. The company's effective tax rate for the three months and year ended December 31, 2016 was 55.1% and 40.7%, respectively. The rate for both 2017 periods was impacted by a one-time, $192 million benefit due to the passage of the Tax Cuts and Jobs Act in the fourth quarter of 2017. The rate for both 2016 periods was impacted by a special tax expense of $180 million. In 2016, the company recorded approximately $180 million of deferred income tax expense adjustments in AOCI, which related to losses on fuel hedges designated for hedge accounting. Accounting rules required the adjustments to remain in AOCI as long as the company had fuel derivatives designated for cash flow hedge accounting. In 2016, we settled all of our fuel hedges and have not entered into any new fuel derivative contracts for hedge accounting. Accordingly, the company reclassified the $180 million to income tax expense in 2016. |
|
The effective tax rates for the 2017 and 2016 periods represented a blend of federal, state and foreign taxes and the impact of certain nondeductible items. The effective tax rate for the three months and year ended December 31, 2017 reflects the impact of a change in the mix of domestic and foreign earnings. |
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
The rapid Abbott ID NOW COVID-19 test – administered by GoHealth Urgent Care and their partner Dignity Health – provides results in approximately 15 minutes and will be available to United customers on the same day as their flight departing from SFO. The mail-in test option will be administered by Color and it is recommended that customers initiate testing at least 10 days prior to their trip and provide their sample within 72 hours of their trip.
The airline worked closely with Hawaii officials to ensure that any United customer – both visitors and Hawaiian residents returning home – who tests negative on either test would not be subjected to the state's current 14-day quarantine requirement. United currently offers more flights to Hawaii than any other major network carrier including daily service between San Francisco and Honolulu (HNL), Maui (OGG) and Kona (KOA). The carrier plans to increase service to Hawaii on October 15, including the resumption of service between San Francisco and Lihue (LIH) and additional flights between San Francisco and Maui and Kona.
"Our new COVID testing program is another way we are helping customers meet their destinations' entry requirements, safely and conveniently," said Toby Enqvist, Chief Customer Officer at United. "We'll look to quickly expand customer testing to other destinations and U.S. airports later this year to complement our state-of-the-art cleaning and safety measures that include a mandatory mask policy, antimicrobial and electrostatic spraying and our hospital-grade HEPA air filtration systems."
Click here for b-roll and still images of COVID-19 testing at SFO
GoHealth Urgent Care Rapid Test
United first partnered with GoHealth Urgent Care in July to test its international flight crews at SFO. United now plans to expand that testing infrastructure to include customers who wish to be tested for COVID-19 pre-flight. Customers can schedule their visits online in advance for the on-site testing facility that is located at the international terminal and will receive their results in approximately 15 minutes. GoHealth Urgent Care's dedicated COVID-19 testing area will be available from 9 a.m. to 6 p.m. PT daily.
"We are excited about expanding our partnership with United and continuing to support their proactive safety measures," said Todd Latz, CEO of GoHealth Urgent Care. "Our on-site, real-time testing for passengers is yet another example of GoHealth's nationwide efforts to fight the spread of COVID-19 and ensure a safer return to normal activities and business operations."
Color Physician-Ordered Self-Collection Test
United is working with Color to offer self-collected, mail-in tests for customers traveling to Hawaii. United will email customers traveling from San Francisco to Hawaii an invitation to purchase their physician-ordered Color self-collection kit at least 10 days ahead of their departure, collect their own samples at home 72 hours prior to their departure and return their test via overnight mail or to a drop box at SFO.
Color then processes those tests at their local, CLIA-certified COVID-19 testing laboratory and returns results via text and/or email within 24-48 hours. Color's self-collection kit includes a plastic collection tube, a non-invasive nasal swab and instructions on how to properly collect a specimen.
"Convenient, widespread COVID-19 testing with fast and reliable results is critical to a return to normalcy and to accelerate the economic recovery," said Caroline Savello, Chief Commercial Officer at Color. "We are proud to partner with United to support the safe and responsible return of travelers to the skies."
United CleanPlusSM
Since the start of the pandemic, United has been a leader among U.S. airlines in enacting new policies and innovations designed to keep employees and passengers safer when traveling. It was the first U.S. airline to mandate masks for flight attendants, quickly following with all customers and employees. United was also among the first U.S. carriers to announce it wouldn't permit customers who refused to comply with the airline's mandatory mask policy to fly with them while the face mask policy is in place. United was also the first U.S. airline to roll out touchless check-in for customers with bags, and the first to require passengers take an online health assessment before traveling. And last week, the airline announced it will apply Zoono Microbe Shield, an EPA registered antimicrobial coating that forms a long-lasting bond with surfaces and inhibits the growth of microbes, to its entire mainline and express fleet before the end of the year.
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".
About GoHealth Urgent Care
GoHealth Urgent Care is one of the country's fastest-growing, largest and most technology-forward urgent care companies. At GoHealth Urgent Care, we provide unparalleled experiences that are effortless, personal and connected through partnerships with market-leading health systems and our communities as a whole. GoHealth Urgent Care operates approximately 150 urgent care centers in the greater New York metropolitan area, the Portland, Oregon-Vancouver, Washington metropolitan area, the San Francisco Bay Area, Hartford and South Eastern Connecticut, Winston-Salem and Charlotte, North Carolina, St. Louis and Springfield, Missouri, Oklahoma City, Oklahoma, Northwest Arkansas and Delaware. GoHealth Urgent Care is a TPG Growth portfolio company, the middle market and growth equity investment platform of TPG, which has more than $103 billion of assets under management. To learn more, please visit www.gohealthuc.com.
About Color
Color is a leader in distributed healthcare and clinical testing. Color makes population-scale healthcare programs accessible, convenient, and cost-effective for everyone. Color works with health systems, employers, and national health initiatives around the world including the million-person All of Us Research Program by the National Institutes of Health. For more information about Color and its response to COVID-19, visit www.color.com.
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
CHICAGO, Sept. 23, 2020 /PRNewswire/ -- Let's say you live in Chicago, have $250 to spend on a flight and are looking to go somewhere warm for the holidays. Or you're on the east coast and want to head west for a last-minute getaway to visit a national park. Now, instead of doing multiple, time-consuming searches online, United Airlines has launched a quick and easy way to see all your travel options in one place.
United today announced that it is the first U.S. airline to introduce an interactive map feature powered by Google Flight Search Enterprise Technology. Customers can access Map Search on United.com to easily compare and shop for flights, based on departure city, budget and location type, including popular national park, skiing and cultural destinations. This new digital tool displays fares in a map view, allowing customers to simultaneously compare travel to a variety of destinations in a single search.
"We've reinvented the way people search for flights and introduced something new for our customers that is simpler, provides better results and is easy to use," said Linda Jojo, Executive Vice President for Technology and Chief Digital Officer. "Leveraging the power of Google's Flight Search technology, we are able to provide an all-in-one solution that streamlines the search process and allows our customers to more easily find the flights that work best for them."
Customers can apply over a dozen filters to their map search, including viewing non-stop only flights, specific or flexible dates, and one-way or round-trip options. Additionally, customers can set their preferred departure city and maximum price preference, and filter options based on the type of destination they're looking to visit. The feature currently offers filters to view destinations that are popular for the following offerings:
- National Parks
- Beaches
- Beer & Breweries
- Culture
- Food & Drink
- Hiking
- Outdoors
- Romantic
- Skiing & Snowboarding
- Snorkeling and Scuba
The 'national park' filter was a more recent addition to United's map search feature given the increased interest we've received from customers over the past few months for flights to destinations where they can more easily recreate responsibly. These Map Search filters were designed to highlight the destination types that are most popular with today's traveler, including the top national park destinations served by United. The airline operates more flights to more national park destinations than any other U.S. carrier.
In addition to the filter options available on Map Search, MileagePlus members can also use the tool to view all of their past travels with United. With the "Where I've Been" feature, the map will highlight all the destinations a customer has traveled to with United.
This tool was developed in direct response to customer feedback and United and Google are continuing to collaborate on enhancing this innovative map search capability. Map Search follows a number of recent innovations introduced by United to streamline the travel process. Earlier this month, United debuted its Destination Travel Guide, which allows customers to filter and view destinations' COVID-19 related travel restrictions. Additionally, as part of its United CleanPlusSM program, the airline recently introduced touchless check-in, text alerts for passengers on standby and upgrade lists to reduce person-to-person interaction, and a new chat function to give customers a contactless option to receive immediate access to information about cleaning and safety procedures.
Since the start of the pandemic, United has been a leader among U.S. airlines in enacting new policies and innovations designed to keep employees and passengers safer when traveling. It was the first U.S. airline to mandate masks for flight attendants, quickly following with all customers and employees. United was also among the first U.S. carriers to announce it wouldn't permit customers who refused to comply with the airline's mandatory mask policy to fly with them while the face mask policy is in place. United was also the first U.S. airline to roll out touchless check-in for customers with bags, and the first to require passengers take an online health assessment before traveling. And last week, the airline announced it will apply Zoono Microbe Shield, an EPA registered antimicrobial coating that forms a long-lasting bond with surfaces and inhibits the growth of microbes, to its entire mainline and express fleet before the end of the year.
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 antimicrobial coating, created by Zoono Group Limited, a New Zealand Company and distributed in the USA by MicroSonic Solutions, will serve as an added layer of protection that complements the airline's existing, daily electrostatic spraying regimen before departing flights.
"This long-lasting, antimicrobial spray adds an extra level of protection on our aircraft to help better protect our employees and customers," said Toby Enqvist, United's Chief Customer Officer. "As part of our layered approach to safety, antimicrobials are an effective complement to our hospital-grade HEPA air filtration system, mandatory mask policy for customers and daily electrostatic spraying. We've overhauled our policies and procedures and continue to implement new, innovative solutions that deliver a safer onboard experience."
The Zoono Microbe Shield works by bonding to surfaces and creating a protective layer that resembles microscopic pins once dry which rupture cell walls and membranes when microbes come in contact with them. The chemical is classified by the EPA as Category IV, which is the lowest level of toxicity. During an aircraft's deep cleanings, United will use the NovaRover which is designed to apply a super fine mist of the antimicrobial that coats all surfaces in a 12-foot radius with a single spray. United will apply the antimicrobial to aircraft overnight every seven days using electrostatic sprayers to refresh and fortify the protective layer, while continuing to electrostatic spray disinfectant to the aircraft cabin before almost every departure.
For a video demonstration of the NovaRover click here.
"MicroSonic is proud to provide United with the most advanced application of antimicrobial protection for their aircraft," said Nick Federico, MicroSonic's President. "Our proprietary NovaRover system combined with Zoono Microbe Shield will deliver an additional effective layer of microbial protection, reassuring customers and crew that the environment inside United aircraft is more safe and clean."
United is currently applying Zoono Microbe Shield on aircraft at Chicago O'Hare International Airport and expects to expand it to each of its six other hubs and approximately 200 U.S. airports where United aircraft remain overnight in the coming months. The airline plans to deploy NovaRovers at ten airports, including each of United's seven hubs as well as Boston, Cleveland and Las Vegas.
United CleanPlusSM
United is focused on delivering a new level of cleanliness on the ground and in the air as part of its United CleanPlus program. 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 to customers
- 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 aircraft prior to flight
- Running cabin air circulation system that circulates air through high-efficiency particulate air (HEPA) filters on all mainline aircraft from boarding through deplaning
- Using UV light to disinfect flight decks
- Was the first U.S. airline to mandate masks for flight attendants, later following with all employees and customers
- 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".
About MicroSonic Solutions
MicroSonic Solutions offers comprehensive, proprietary antimicrobial solutions that are effective, fast, and fit into every cleaning protocol. We provide innovative spray technologies and antimicrobial chemistries to protect our customers from microbial threats. MicroSonic Solutions is headquartered in Burr Ridge, IL. Learn more at www.microsonicsolutions.com.
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
In addition to this commitment, United today also signed on to The Board Challenge, a movement among companies looking to accelerate change. United, like other Charter Pledge Partners, currently has a diverse board including one Black board member and is encouraging other corporations to do the same. The company and its Board of Directors believe that diverse leadership improves its ability to serve the millions of customers who choose to fly United across the globe.
"Change comes from the top, and by making this commitment, we will expand and diversify the leaders that are helping to guide United forward during some of the toughest challenges we have faced," said Scott Kirby, CEO. "As our search progresses, I am reminded of the wealth of untapped diverse talent that is out there and the ongoing responsibility that we, as corporate leaders, have to confront systemic racism head-on and actively recruit this talent at all levels of our organizations."
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
Domestically, United plans to fly 46% of its full schedule in October 2020 compared to October of last year, compared to the 38% schedule it plans to fly domestically in September 2020. The airline also plans to resume eight routes to Hawaii, pending approval of the state's pre-arrival COVID testing program.
Internationally, United expects to fly 33% of its schedule compared to October of 2019, which is up compared to the 29% schedule it plans to fly in September. United continues to respond to the growth in leisure travel demand by adding flights to cities in Mexico, Central America and South America.
"We continue to be data-driven and realistic in our approach to rebuilding our network," said Ankit Gupta, United's vice president of Domestic Network Planning. "Because October is typically a slower month for leisure travel, we're adjusting our schedules to reflect these seasonal changes in customer demand while resuming service or adding capacity on routes where we're seeing increased customer demand for travel."
United is being just as thoughtful in its approach to enhancing the customer experience as it is in rebuilding its network. Earlier this week, the airline was the first U.S. legacy carrier to permanently eliminate change fees on all standard Economy and Premium cabin tickets for travel within the U.S. In addition, starting on January 1, 2021, any United customer can fly standby for free on a flight departing the day of their travel regardless of the type of ticket or class of service. United has also been a leader in safety and enhanced cleaning protocols; as part of its United CleanPlus program, the airline established a partnership with Clorox and Cleveland Clinic in May, was a leader in establishing mandatory face covering policies for both customers and employees and was the first airline to roll out touchless check-in for baggage. Yesterday, United also launched the Destination Travel Guide, a first among U.S. airlines, which makes it easy for customers to plan their travel by helping them easily see local COVID-19 restrictions in all 50 states.
United is even realigning its schedule patterns with the customer in mind to match the current demand for leisure travel. In October, the airline plans to add more flights on days popular with leisure travelers looking to get a head start on long weekend getaways and will schedule fewer flights on days where demand is traditionally lower.
Domestic
- Resuming or starting new service on nearly 50 routes, including 37 routes from United's Chicago, Denver and Houston hubs.
- Resuming additional service to Florida including Washington-Dulles to Sarasota and Miami, and Denver to Fort Myers.
- Resuming service between Los Angeles and Eugene, Medford and Redmond/Bend in Oregon.
International
- Resuming service to 14 international destinations including Bogota, Colombia; Buenos Aires, Argentina; Lima, Peru and Panama City, Panama.
- Increasing to twice daily service between New York/Newark and Tel Aviv and resuming three-times weekly service between Washington, D.C. and Tel Aviv on October 25.
- Resuming or increasing service to Cancun, Mexico City and Puerto Vallarta in Mexico from its hubs in Chicago, Denver, Houston, New York/Newark and Washington, D.C.
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 his 22-year career with United, Mike has led from the heart, empowering employees and making strategic decisions that have continually fueled and supported United's success," said Jon Roitman, the airline's senior vice president and chief operations officer. I look forward to his leadership of the airport operations team as we help the best employees in the business navigate the challenges of the pandemic and begin to return our airline to the kind of culture, growth and prosperity we all want to see."
Hanna currently serves as vice president of United's Chicago O'Hare hub and has more than 25 years of aviation experience. He has held roles in all areas of airport operations, including cabin cleaning, lavatory servicing, fueling, ramp and customer service.
"I look forward to continuing to work alongside the United team to move us forward during this unprecedented time and provide a great experience for our customers whenever and wherever they fly United," Hanna said.
Prior to overseeing the airline's team at O'Hare, he held positions of increasing responsibility at United's San Francisco hub, ascending to vice president of Airport Operations where he led both the airline's San Francisco and Los Angeles hubs. He has also served as general manager of United's operations in Seattle, Salt Lake City and Ontario, California.
Hanna holds a dual degree in marketing and management from Humboldt State University and a certification in human resources from Loyola Marymount University. He is married and has three children.
Hanna will continue to lead operations at O'Hare until the airline names his successor.
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 know it's a challenge to keep up with the ever-changing list of travel restrictions, policies and regulations so we are offering a simple, easy tool that helps customers decide where to travel next," said Linda Jojo, Executive Vice President for Technology and Chief Digital Officer. "By providing the most up-to-date information on the destinations we serve, customers can compare and shop for travel with greater confidence and help them find the destinations that best fit their preferences."
The Destination Travel Guide currently highlights travel restrictions and leisure offerings in the U.S. by state, and will expand to include all international destinations the airline serves in the coming weeks. Customers viewing the color-coded map can click on each state to view local regulations and travel guidances. There is also the option to filter the map by state to view specific information on each destination, including:
- Medical certificate needed (such as negative COVID test)
- Non-essential shops open
- Tourism accommodation open
- Restaurants open
- Bars and cafes open
- Museum and heritage sites open
- Mask in public required
- Physical distancing required
The new map feature follows several recent innovations from United that were designed to enhance the travel experience. As part of its United CleanPlus program, the airline recently introduced touchless check-in, text alerts for passengers on standby and upgrade lists to reduce person-to-person interaction, and a new chat function to give customers a contactless option to receive immediate access to information about cleaning and safety procedures.
Committed to Ensuring a Safe Journey
Through the United CleanPlus program, the airline 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. 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 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 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
United is also extending its waiver for new tickets issued through December 31, 2020, to permit unlimited changes with no fee. This policy applies to all ticket types issued after March 3, 2020 and is valid for domestic and international travel. With these improvements, no U.S. airline gives their customers more flexibility when booking – and changing – their travel plans than United Airlines.
"Change is inevitable these days – but it's how we respond to it that matters most. When we hear from customers about where we can improve, getting rid of this fee is often the top request," said Scott Kirby, CEO of United Airlines, in a video message to customers. "Following previous tough times, airlines made difficult decisions to survive, sometimes at the expense of customer service. United Airlines won't be following that same playbook as we come out of this crisis. Instead, we're taking a completely different approach – and looking at new ways to serve our customers better."
The new change fee policy applies to all standard Economy and Premium cabin tickets for travel within the U.S. 50 states, Puerto Rico and the U.S. Virgin Islands and customers will not be limited in the number of times they adjust their flights.
Additionally, United is giving customers more flexibility to change their flights on the day of their travel so they can head home if a meeting ends earlier or enjoy a few more hours on vacation. With the ability to list for same-day standby for free, customers will now have an option to take a different flight with the same origin and destination airports as their original itinerary if space is available at departure. This enhanced option will be available to all customers for travel within the U.S. and to and from international destinations beginning on January 1, 2021. Customers who want to switch flights will be able to add themselves to the standby list through United's award-winning mobile app, on united.com or at the airport no later than 30 minutes prior to departure for domestic flights and one hour before departure on international flights.
The carrier is also improving the travel experience for its MileagePlus members including waiving all redeposit fees on award travel for flights changed or cancelled more than 30 days before departure and allowing all MileagePlus Premier members to confirm a different flight on the day of their travel. As a way to thank MileagePlus Premier members for their loyalty, beginning January 1, 2021, all Premier members will be able to confirm a seat for free on a different flight with the same departure and arrival cities as their original ticket. This expanded option will allow MileagePlus Silver members and above to confirm a new seat in the same ticket fare class if space is available. Earlier this year, United announced that it will extend status for MileagePlus Premier and Global Services members through January 2022. United also reduced thresholds for Premier qualification by 50 percent for each status level, to make reaching an even higher status tier easier.
For more information on United's new flexible travel policies, visit https://www.united.com/ual/en/us/fly/travel/change-fee.html.
United CleanPlusSM
In addition to these more flexible options, earlier this year, United Airlines began to roll out United CleanPlus: 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. United partnered with Clorox and Cleveland Clinic to help guide its United CleanPlus policies and practices. 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 to customers
- 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 aircraft prior to flight
- Running high-efficiency particulate air (HEPA) filters on all mainline aircraft from boarding through deplaning
- 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
"United has served mainland China for more than three decades and we look forward to continuing to connect customers traveling between the U.S. and Shanghai with two additional flights beginning in September," said Patrick Quayle, United's vice president of International Network and Alliances.
United service to Shanghai
Flight | Depart | Day | Time | Arrive | Time |
UA 857 | San Francisco | Weds., Fri., Sat., Sun | 11:00 a.m. | Shanghai | 5:45 p.m.+1 day |
UA 858 | Shanghai | Mon., Thurs., Sat., Sun. | 9:40 p.m. | San Francisco | 8:55 p.m. |
In July, United began operating twice-weekly service between San Francisco and Shanghai via Seoul. United was the largest U.S. carrier serving China prior to suspending service in February due to COVID-19. In 2019, United operated five daily flights between Shanghai and its hubs in San Francisco, Los Angeles, Chicago and New York/Newark.
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
The airline will incrementally add in these flights starting November 6 with new roundtrip service from Boston, Cleveland and New York/LaGuardia to Fort Lauderdale, Fort Myers, Orlando and Tampa. In December, the airline will increase service to Florida with additional flights from Columbus, Ohio; Indianapolis; Milwaukee and Pittsburgh to Fort Myers and Tampa. Tickets are now available for purchase on united.com and the United mobile app.
"The addition of these new flights represents United's largest expansion of point-to-point, non-hub flying and reflects our data driven approach to add capacity where customers are telling us they want to go," said Ankit Gupta, United's vice president of Domestic Network Planning. "We look forward to offering customers in the Midwest and Northeast more options to fly nonstop to Florida this winter."
From Nov. 6, 2020 through January 10, 2021, United will operate nonstop service from Boston, Cleveland and New York/LaGuardia to Fort Lauderdale, Fort Myers, Orlando and Tampa on peak days.
| Route | Origin | Destination | Departure Time | Arrival Time | Aircraft |
| Boston | |||||
| Boston – Fort Lauderdale | BOS | FLL | 8:50 AM | 12:23 PM | 737-800 |
| BOS | FLL | 12:45 PM | 4:18 PM | 737-800 | |
| FLL | BOS | 8:30 AM | 11:48 AM | 737-800 | |
| FLL | BOS | 1:15 PM | 4:33 PM | 737-800 | |
| Boston – Fort Myers | BOS | RSW | 9:00 AM | 12:37 PM | A320 |
| RSW | BOS | 12:30 PM | 3:40 PM | A320 | |
| Boston – Orlando | BOS | MCO | 9:00 AM | 12:20 PM | A320 |
| BOS | MCO | 1:00 PM | 4:20 PM | 737-800 | |
| MCO | BOS | 8:15 AM | 11:09 AM | 737-800 | |
| MCO | BOS | 12:30 PM | 3:24 PM | A320 | |
| Boston – Tampa | BOS | TPA | 8:30 AM | 12:00 PM | 737-800 |
| TPA | BOS | 12:55 PM | 3:55 PM | 737-800 | |
| New York/LaGuardia | |||||
| New York – Fort Lauderdale | LGA | FLL | 9:20 AM | 12:33 PM | A320 |
| LGA | FLL | 1:05 PM | 4:18 PM | A320 | |
| FLL | LGA | 1:25 PM | 4:19 PM | A320 | |
| FLL | LGA | 5:10 PM | 8:04 PM | A320 | |
| New York – Fort Myers | LGA | RSW | 10:00 AM | 1:15 PM | 737-800 |
| RSW | LGA | 2:06 PM | 4:59 PM | 737-800 | |
| New York – Orlando | LGA | MCO | 7:59 AM | 10:55 AM | A320 |
| LGA | MCO | 12:00 PM | 2:56 PM | A320 | |
| MCO | LGA | 8:30 AM | 11:03 AM | A320 | |
| MCO | LGA | 12:00 PM | 2:33 PM | A320 | |
| New York – Tampa | LGA | TPA | 9:29 AM | 12:39 PM | 737-800 |
| TPA | LGA | 1:35 PM | 4:18 PM | 737-800 | |
| Cleveland |
|
|
|
|
|
| Cleveland – Fort Lauderdale | CLE | FLL | 9:15AM | 12:12 PM | 737-800 |
| FLL | CLE | 1:05PM | 3:58 PM | 737-800 | |
| Cleveland – Fort Myers | CLE | RSW | 9:30 AM | 12:13 PM | 737-800 |
| RSW | CLE | 1:10 PM | 3:52 PM | 737-800 | |
| Cleveland – Orlando | CLE | MCO | 9:00 AM | 11:32 AM | 737-800 |
| MCO | CLE | 12:30 PM | 2:58 PM | 737-800 | |
| Cleveland – Tampa | CLE | TPA | 8:15 AM | 10:57 AM | E175 |
| TPA | CLE | 11:35 AM | 2:10 PM | E175 | |
Beginning December 17, United plans to increase service to up to 28 daily nonstop flights with the addition of service from Indianapolis, Milwaukee, Pittsburgh and Columbus, Ohio, to Fort Myers and Tampa.
| Route | Origin | Destination | Departure Time | Arrival Time | Aircraft |
| Boston | |||||
| Boston – Fort Lauderdale | BOS | FLL | 8:50 AM | 12:23 PM | 737-800 |
| BOS | FLL | 12:45 PM | 4:18 PM | 737-800 | |
| FLL | BOS | 8:30 AM | 11:48 AM | 737-800 | |
| FLL | BOS | 1:15 PM | 4:33 PM | 737-800 | |
| Boston – Fort Myers | BOS | RSW | 9:00 AM | 12:37 PM | A320 |
| BOS | RSW | 1:00 PM | 4:39 PM | A320 | |
| RSW | BOS | 9:00 AM | 12:09 PM | A320 | |
| RSW | BOS | 12:30 PM | 3:40 PM | A320 | |
| Boston – Orlando | BOS | MCO | 9:00 AM | 12:20 PM | A320 |
| BOS | MCO | 1:00 PM | 4:20 PM | 737-800 | |
| MCO | BOS | 8:15 AM | 11:09 AM | 737-800 | |
| MCO | BOS | 12:30 PM | 3:24 PM | A320 | |
| Boston – Tampa | BOS | TPA | 8:30 AM | 12:00 PM | 737-800 |
| BOS | TPA | 1:30 PM | 5:02 PM | 737-800 | |
| TPA | BOS | 9:30 AM | 12:30 PM | 737-800 | |
| TPA | BOS | 12:55 PM | 3:55 PM | 737-800 | |
| New York/LaGuardia | |||||
| New York – Fort Lauderdale | LGA | FLL | 9:20 AM | 12:33 PM | A320 |
| LGA | FLL | 1:05 PM | 4:18 PM | A320 | |
| FLL | LGA | 1:25 PM | 4:19 PM | A320 | |
| FLL | LGA | 5:10 PM | 8:04 PM | A320 | |
| New York – Fort Myers | LGA | RSW | 10:00 AM | 1:15 PM | 737-800 |
| LGA | RSW | 1:29 PM | 4:46 PM | 737-800 | |
| RSW | LGA | 9:40 AM | 12:33 PM | 737-800 | |
| RSW | LGA | 2:06 PM | 4:59 PM | 737-800 | |
| New York – Orlando | LGA | MCO | 7:59 AM | 10:55 AM | A320 |
| LGA | MCO | 12:00 PM | 2:56 PM | A320 | |
| MCO | LGA | 8:30 AM | 11:03 AM | A320 | |
| MCO | LGA | 12:00 PM | 2:33 PM | A320 | |
| New York – Tampa | LGA | TPA | 9:29 AM | 12:39 PM | 737-800 |
| LGA | TPA | 12:29 PM | 3:40 PM | 737-800 | |
| TPA | LGA | 8:40 AM | 11:22 AM | 737-800 | |
| TPA | LGA | 1:35 PM | 4:18 PM | 737-800 | |
| Cleveland |
|
|
|
|
|
| Cleveland – Fort Lauderdale | CLE | FLL | 9:15 AM | 12:12 PM | 737-800 |
| CLE | FLL | 12:55 PM | 3:52 PM | 737-800 | |
| FLL | CLE | 9:10 AM | 12:03 PM | 737-800 | |
| FLL | CLE | 1:05 PM | 3:58 PM | 737-800 | |
| Cleveland – Fort Myers | CLE | RSW | 9:30 AM | 12:13 PM | 737-800 |
| CLE | RSW | 1:45 PM | 4:27 PM | 737-800 | |
| RSW | CLE | 10:00 AM | 12:38 PM | 737-800 | |
| RSW | CLE | 1:10 PM | 3:52 PM | 737-800 | |
| Cleveland – Orlando | CLE | MCO | 9:00 AM | 11:32 AM | 737-800 |
| CLE | MCO | 3:35 PM | 6:01 PM | 737-800 | |
| MCO | CLE | 8:45 AM | 11:12 AM | 737-800 | |
| MCO | CLE | 12:30 PM | 2:58 PM | 737-800 | |
| Cleveland – Tampa | CLE | TPA | 8:15 AM | 10:57 AM | 737-800 |
| TPA | CLE | 11:35 AM | 2:10 PM | 737-800 | |
| Milwaukee | |||||
| Milwaukee – Tampa | MKE | TPA | 9:15 AM | 1:05 PM | A319 |
| TPA | MKE | 1:55 PM | 3:55 PM | A319 | |
| Milwaukee – Fort Myers | MKE | RSW | 10:25 AM | 2:29 PM | A319 |
| RSW | MKE | 3:05 PM | 5:15 PM | A319 | |
| Columbus | |||||
| Columbus – Fort Myers | CMH | RSW | 8:30 AM | 11:05 AM | E175 |
| RSW | CMH | 1:30 PM | 4:01 PM | E175 | |
| Indianapolis | |||||
| Indianapolis – Fort Myers | IND | RSW | 9:05 AM | 11:33 PM | A320 |
| RSW | IND | 1:30 PM | 4:01 PM | A320 | |
| Pittsburgh | |||||
| Pittsburgh – Fort Myers | PIT | RSW | 10:10 AM | 12:50 PM | E175 |
| RSW | PIT | 11:50 AM | 2:29 PM | E175 | |
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, 872-825-8640, media.relations@united.com
