United Airlines Reports Fourth-Quarter and Full-Year 2017 Performance
CHICAGO, Jan. 23, 2018 /PRNewswire/ -- United Airlines (UAL) today announced its fourth-quarter and full-year 2017 financial results.
- UAL reported fourth-quarter net income of $580 million, diluted earnings per share of $1.99, pre-tax earnings of $600 million and pre-tax margin of 6.4 percent. Excluding special charges and income tax adjustments, UAL reported fourth-quarter net income of $408 million, diluted earnings per share of $1.40, pre-tax earnings of $631 million and pre-tax margin of 6.7 percent.
- UAL reported full-year net income of $2.1 billion, diluted earnings per share of $7.02, pre-tax earnings of $3.0 billion and pre-tax margin of 7.9 percent. Excluding special charges and income tax adjustments, UAL reported full-year net income of $2.1 billion, diluted earnings per share of $6.76, pre-tax earnings of $3.2 billion and pre-tax margin of 8.4 percent.
- UAL repurchased $553 million of its common shares in the fourth quarter, bringing the full-year share repurchases to $1.8 billion and completing the company's July 2016 $2 billion share repurchase program. The company's board of directors authorized a new $3 billion share repurchase program in December.
- During 2017, United consistently notched operational bests in on-time arrivals and completions while seeing the fewest cancellations and the best baggage performance in company history.
- Employees earned $349 million in profit sharing for 2017.
"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) |
|
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. |
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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
United Airlines Names Bryan Quigley Senior Vice President - Flight Operations
CHICAGO, Jan. 18, 2019 /PRNewswire/ -- United Airlines (UAL) today announced Bryan Quigley has been named senior vice president of flight operations. Quigley will be responsible for overseeing United's 12,500 pilots and will serve as the airline's FAA certificate director of operations. Quigley will replace Howard Attarian who is retiring after more than a decade of leadership at United.
Quigley, who joined United in 1995, has held several leadership positions throughout United. He most recently was the vice president of the company's San Francisco hub. Quigley also served as chief pilot and led the team in charge of the integration of policies and procedures following the merger of United and Continental.
"Bryan is an exceptional leader both in and out of the flight deck. He has developed a deep understanding of the entire airline after leading our San Francisco hub and I believe he will do great work as the leader of our pilots," said Executive Vice President and Chief Operations Officer Greg Hart.
In addition to his time at United, Quigley spent 26 years in the United States Navy, serving as a U.S. naval aviator.
Attarian retires after more than 40 years in aviation. In addition to his time at United, he spent more than 23 years as a pilot for Northwest Airlines and held several leadership positions with the Air Line Pilots Association. Attarian also served in the United States Air Force and was a demonstration pilot with the U.S. Air Force Thunderbirds.
"Over the past five years, Howard has worked tirelessly to develop the best group of aviators in the industry. We will forever be grateful and wish him the best as he enters the next chapter of his life," said Hart.
Quigley holds a bachelor of science degree in Business Administration from Appalachian State University and has completed the Executive Scholar Program from the Kellogg School of Business at Northwestern University.
Matt Miller, current vice president of international will replace Quigley as vice president of the San Francisco hub.
About United
United Airlines and United Express operate approximately 4,800 flights a day to 353 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
United Airlines Reports Full-Year and Fourth-Quarter 2018 Performance
For 2019, UAL expects adjusted diluted earnings per share to again grow year-over-year to between $10.00 to $12.00.2
- UAL reported fourth-quarter net income of $462 million, diluted earnings per share of $1.70, pre-tax earnings of $556 million and pre-tax margin of 5.3 percent.
- UAL reported fourth-quarter adjusted net income of $657 million, adjusted diluted earnings per share of $2.41 and adjusted pre-tax earnings of $814 million.
- UAL reported fourth-quarter adjusted pre-tax margin of 7.8 percent,1 expanding margin on an adjusted basis of 0.9 points versus the fourth-quarter of 2017.
- UAL recovered 98% percent of the year-over-year increase in fuel prices in 2018.
- Consolidated fourth-quarter passenger revenue per available seat mile (PRASM) increased 5 percent year-over-year, at the high end of the company's fourth-quarter 2018 guidance range.
- Consolidated fourth-quarter unit cost per available seat mile (CASM) increased 7.0 percent year-over-year.
- Consolidated fourth-quarter CASM, excluding special charges, third-party business expenses, fuel and profit sharing, decreased 0.7 percent year-over-year.
- Employees earned $334 million in profit sharing for 2018.
For more information on UAL's first-quarter and full-year 2019 guidance, please visit ir.united.com for the company's investor update.
2018 Highlights
Record-Setting Operational Performance3
- Set new UAL records by flying the most revenue passengers ever, operating the most mainline departures and achieving the fewest cancellations ever in a year, resulting in more UAL customers departing on-time in 2018 than ever before.
- For the year, achieved the best completion rate in company history with more than 1.7 million flights.
- In 2018, achieved the best ever company STAR performance (first departures of the day), with nearly 250,000 flights leaving on time.
- In the fourth quarter, the company achieved top-tier performance in on-time departures among its largest competitors. For the December holiday season, UAL had its best-ever on-time departure performance while flying the most revenue customers it had ever flown during the holiday period.
Customer Experience
- Opened three new United Polaris lounges located in San Francisco International Airport, Newark Liberty International Airport and Houston's George Bush Intercontinental Airport.
- Announced UAL's newest premium seating, United® Premium Plus, which will provide more space, comfort and amenities on select international flights starting later this year.
- Introduced a new boarding process designed to reduce customers' stress by reducing time spent waiting in line and providing them with improved boarding information.
- Expanded personal device entertainment option to all aircraft, providing at least one free entertainment option on all Wi-Fi equipped aircraft.
- MileagePlus loyalty program voted Best Overall Frequent-Flyer Program in the world for the 15th consecutive year by readers of Global Traveler, and voted Favorite Frequent-Flyer Program in the Trazee Awards.
Employees
- Employees earned incentive payments totaling approximately $14 million for achieving operational performance goals in the quarter, marking a full year of earned incentive payments totaling $55 million.
- Introduced and trained over 90,000 team members on UAL's new customer service decision framework, the core4, which focuses on the principles of safe, caring, dependable and efficient.
- Deployed 6,000 iPads to maintenance employees, improving reliability and efficiency.
- Unveiled a state-of-the-art flight training center in Denver, Colorado - the largest in the world and home to the company's more than 30 full flight simulators representing all of UAL's fleet types.
- Successfully completed the full implementation of the flight attendant joint collective bargaining agreement, allowing the company to operate more efficiently and reliably.
- Achieved the top score of 100 percent on the 2018 Disability Equality Index (DEI), a prominent benchmarking metric that rates U.S. companies on their disability inclusion policies and practices, also earning UAL a place on DEI's 2018 "Best Places to Work" list.
- Received "Best-of-the-Best" Award from the National LGBT Chamber of Commerce and National Business Inclusion Consortium for commitment to diversity and inclusion across all communities.
Network
- Introduced 93 new routes, adding more flights in 2018 than any other U.S. airline.
- Announced new international service including Washington-Dulles to Tel Aviv, Israel; San Francisco to Amsterdam, Netherlands; Newark/New York to Naples, Italy; as well as Newark/New York to Prague, Czech Republic and Denver to Frankfurt, Germany, all subject to government approval.
- Launched several exciting new international routes including Houston to Sydney, San Francisco to Tahiti and Denver to London.
- Announced schedule expansion at East Coast hubs in Newark/New York and Washington-Dulles to offer more nonstop flights to destinations popular with New York-area customers while reallocating largely connecting passenger flights to Washington-Dulles.
- Announced a joint business agreement with Compañía Panameña de Aviación S.A. (Copa), Aerovías del Continente Americano S.A. (Avianca) and many of Avianca's affiliates, pending government approval.
Fleet
- Took delivery of 21 new Boeing aircraft, including four 777-300ER, four 787-9, three 787-10 and ten 737 MAX 9 aircraft.
- In December 2018, ordered an additional four Boeing 777-300ER aircraft and 24 737 MAX aircraft.
Community and Environment
- Pledged to reduce the company's greenhouse gas emissions by 50 percent by 2050, the only U.S. airline to commit to emissions reductions, further strengthening UAL's ambition to be the world's most environmentally conscious airline.
- Announced a total of $8 million in grants to benefit organizations in each of UAL's domestic hub communities.
- Announced new global partnership with the Special Olympics and flew hundreds of Team USA Olympic and Paralympic Winter Games 2018 athletes, coaches and family members to PyeongChang, South Korea, continuing the 38-year relationship between UAL and the United States Olympic Committee.
- Ranked No. 1 among global carriers in Newsweek's 2017 Global 500 Green Rankings, one of the most recognized environmental performance assessments of the world's largest publicly traded companies.
- Launched a Crowdrise fundraising campaign to support those affected by Hurricane Florence, Typhoon Mangkhut, flooding in Western Japan, wildfires in California and other disasters.
Earnings Call
UAL will hold a conference call to discuss its fourth-quarter and full-year 2018 financial results and its financial and operational outlook for the first quarter and full year of 2019 on Wednesday, January 16, at 9:30 a.m. Central time /10:30 a.m. Eastern time. A live, listen-only webcast of the conference call will be available at ir.united.com. The webcast will be available for replay within 24 hours of the conference call and then archived on the website for three months.
About United
United Airlines and United Express operate approximately 4,800 flights a day to 353 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".
1Adjusted pre-tax earnings and adjusted pre-tax margin exclude special charges, the mark-to-market ("MTM") impact of financial instruments and imputed interest on certain capitalized leases. Adjusted net income and adjusted diluted earnings per share exclude special charges, the MTM impact of financial instruments, imputed interest on certain capitalized leases and certain tax adjustments. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in the tables accompanying this release. |
2 Excludes special charges and the MTM impact of financial instruments, the nature of which are not determinable at this time, and imputed interest on certain capitalized leases. Accordingly, UAL is not providing earnings guidance on a GAAP basis. |
3 Company history defined as post-2010 merger; company records measured from 2010 merger. |
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements included in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as "expects," "will," "plans," "anticipates," "indicates," "believes," "estimates," "forecast," "guidance," "outlook," "goals" 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: 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, including political developments that may impact our operations in certain countries; demand for travel and the impact that global economic and political conditions have on customer travel patterns; competitive pressures on pricing and on demand; demand for transportation in the markets in which we operate; our capacity decisions and the capacity decisions of our competitors; the effects of any hostilities, act of war or terrorist attack; the effects of any technology failures or cybersecurity breaches; the impact of regulatory, investigative and legal proceedings and legal compliance risks; disruptions to our regional network; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; costs associated with any modification or termination of our aircraft orders; potential reputational or other impact from adverse events in our operations, the operations of our regional carriers, the operations of our code share partners or the aircraft operated by another airline of the same model as operated by us, our regional carriers or our code share partners; our ability to attract and retain customers; 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; the impact of any management changes; 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 any fuel or currency hedging programs; 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; an outbreak of a disease that affects travel demand or travel behavior; U.S. or foreign governmental legislation, regulation and other actions (including Open Skies agreements and environmental regulations); industry consolidation or changes in airline alliances; our ability to comply with the terms of our various financing arrangements; the costs and availability of financing; our ability to maintain adequate liquidity; the costs and availability of aviation and other insurance; weather conditions; our ability to utilize our net operating losses to offset future taxable income; the impact of changes in tax laws; the success of our investments in airlines in other parts of the world; 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, 2017, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission.
-tables attached-
On January 1, 2018, United Continental Holdings, Inc. ("UAL") adopted Accounting Standards Update No. 2014-09 (Topic 606), Revenue from Contracts with Customers, and Accounting Standards Update No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. As such, certain previously reported 2017 figures are adjusted in this report on a basis consistent with the new standards. See the Current Report on Form 8-K filed by UAL with the Securities and Exchange Commission on March 1, 2018 for additional information.
UNITED CONTINENTAL HOLDINGS, INC. | ||||||||||||||||||||||||
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED) | ||||||||||||||||||||||||
Three Months Ended December 31, | % | Full Year Ended December 31, | % | |||||||||||||||||||||
(In millions, except per share data) | 2018 | 2017 | Increase/ | 2018 | 2017 | Increase/ | ||||||||||||||||||
Operating revenue: | ||||||||||||||||||||||||
Passenger | $ | 9,556 | $ | 8,587 | 11.3 | $ | 37,706 | $ | 34,460 | 9.4 | ||||||||||||||
Cargo | 334 | 324 | 3.1 | 1,237 | 1,114 | 11.0 | ||||||||||||||||||
Other operating revenue | 601 | 540 | 11.3 | 2,360 | 2,210 | 6.8 | ||||||||||||||||||
Total operating revenue | 10,491 | 9,451 | 11.0 | 41,303 | 37,784 | 9.3 | ||||||||||||||||||
Operating expense: | ||||||||||||||||||||||||
Salaries and related costs | 2,924 | 2,678 | 9.2 | 11,458 | 10,941 | 4.7 | ||||||||||||||||||
Aircraft fuel | 2,380 | 1,875 | 26.9 | 9,307 | 6,913 | 34.6 | ||||||||||||||||||
Regional capacity purchase | 638 | 580 | 10.0 | 2,601 | 2,232 | 16.5 | ||||||||||||||||||
Landing fees and other rent | 602 | 570 | 5.6 | 2,359 | 2,240 | 5.3 | ||||||||||||||||||
Depreciation and amortization | 578 | 539 | 7.2 | 2,240 | 2,149 | 4.2 | ||||||||||||||||||
Aircraft maintenance materials and outside repairs | 434 | 479 | (9.4) | 1,767 | 1,856 | (4.8) | ||||||||||||||||||
Distribution expenses | 396 | 354 | 11.9 | 1,558 | 1,435 | 8.6 | ||||||||||||||||||
Aircraft rent | 78 | 145 | (46.2) | 433 | 621 | (30.3) | ||||||||||||||||||
Special charges (B) | 301 | 31 | NM | 487 | 176 | NM | ||||||||||||||||||
Other operating expenses | 1,508 | 1,424 | 5.9 | 5,801 | 5,550 | 4.5 | ||||||||||||||||||
Total operating expense | 9,839 | 8,675 | 13.4 | 38,011 | 34,113 | 11.4 | ||||||||||||||||||
Operating income | 652 | 776 | (16.0) | 3,292 | 3,671 | (10.3) | ||||||||||||||||||
Operating margin | 6.2 | % | 8.2 | % | (2.0) | pts. | 8.0 | % | 9.7 | % | (1.7) | pts. | ||||||||||||
Adjusted operating margin (Non-GAAP) (A) | 9.1 | % | 8.5 | % | 0.6 | pts. | 9.1 | % | 10.2 | % | (1.1) | pts. | ||||||||||||
Nonoperating income (expense): | ||||||||||||||||||||||||
Interest expense | (189) | (173) | 9.2 | (729) | (671) | 8.6 | ||||||||||||||||||
Interest capitalized | 19 | 20 | (5.0) | 70 | 84 | (16.7) | ||||||||||||||||||
Interest income | 31 | 16 | 93.8 | 101 | 57 | 77.2 | ||||||||||||||||||
Miscellaneous, net (B) | 43 | (19) | NM | (76) | (101) | (24.8) | ||||||||||||||||||
Total nonoperating expense | (96) | (156) | (38.5) | (634) | (631) | 0.5 | ||||||||||||||||||
Income before income taxes | 556 | 620 | (10.3) | 2,658 | 3,040 | (12.6) | ||||||||||||||||||
Pre-tax margin | 5.3 | % | 6.6 | % | (1.3) | pts. | 6.4 | % | 8.0 | % | (1.6) | pts. | ||||||||||||
Adjusted pre-tax margin (Non-GAAP) (A) | 7.8 | % | 6.9 | % | 0.9 | pts. | 7.7 | % | 8.5 | % | (0.8) | pts. | ||||||||||||
Income tax expense (D) | 94 | 41 | 129.3 | 529 | 896 | (41.0) | ||||||||||||||||||
Net income | $ | 462 | $ | 579 | (20.2) | $ | 2,129 | $ | 2,144 | (0.7) | ||||||||||||||
Diluted earnings per share | $ | 1.70 | $ | 1.98 | (14.1) | $ | 7.70 | $ | 7.06 | 9.1 | ||||||||||||||
Diluted weighted average shares | 272.7 | 291.8 | (6.5) | 276.7 | 303.6 | (8.9) | ||||||||||||||||||
NM Not meaningful |
UNITED CONTINENTAL HOLDINGS, INC. | ||||||||||||
SELECT PASSENGER REVENUE INFORMATION AND STATISTICS | ||||||||||||
Select passenger revenue information is as follows: | ||||||||||||
4Q 2018 Passenger Revenue (millions) | Passenger Revenue vs. 4Q 2017 | PRASM vs. 4Q 2017 | Yield vs. 4Q 2017 | Available Seat Miles vs. 4Q 2017 | ||||||||
Domestic | 6,088 | 12.8% | 6.0% | 6.7% | 6.4% | |||||||
Atlantic | 1,535 | 9.6% | 1.6% | (5.0%) | 8.0% | |||||||
Pacific | 1,139 | 8.8% | 4.5% | 3.2% | 4.0% | |||||||
Latin America | 794 | 7.2% | 3.8% | 1.1% | 3.1% | |||||||
International | 3,468 | 8.8% | 3.2% | (0.5%) | 5.4% | |||||||
Consolidated | $ | 9,556 | 11.3% | 5.0% | 3.8% | 6.0% | ||||||
Select statistics are as follows: | ||||||||||||||||||||||||
Three Months Ended December 31, | % Increase/ (Decrease) | Full Year Ended December 31, | % Increase/ (Decrease) | |||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||
Passengers (thousands) | 39,891 | 37,413 | 6.6 | 158,330 | 148,067 | 6.9 | ||||||||||||||||||
Revenue passenger miles (millions) | 56,968 | 53,149 | 7.2 | 230,155 | 216,261 | 6.4 | ||||||||||||||||||
Available seat miles (millions) | 68,902 | 65,028 | 6.0 | 275,262 | 262,386 | 4.9 | ||||||||||||||||||
Passenger load factor: | ||||||||||||||||||||||||
Consolidated | 82.7 | % | 81.7 | % | 1.0 | pt. | 83.6 | % | 82.4 | % | 1.2 | pts. | ||||||||||||
Domestic | 84.6 | % | 85.2 | % | (0.6) | pts. | 85.4 | % | 85.2 | % | 0.2 | pts. | ||||||||||||
International | 80.1 | % | 77.2 | % | 2.9 | pts. | 81.3 | % | 78.9 | % | 2.4 | pts. | ||||||||||||
Passenger revenue per available seat mile (cents) | 13.87 | 13.21 | 5.0 | 13.70 | 13.13 | 4.3 | ||||||||||||||||||
Total revenue per available seat mile (cents) | 15.23 | 14.53 | 4.8 | 15.00 | 14.40 | 4.2 | ||||||||||||||||||
Average yield per revenue passenger mile (cents) | 16.77 | 16.16 | 3.8 | 16.38 | 15.93 | 2.8 | ||||||||||||||||||
Aircraft in fleet at end of period | 1,329 | 1,262 | 5.3 | 1,329 | 1,262 | 5.3 | ||||||||||||||||||
Average stage length (miles) | 1,426 | 1,431 | (0.3) | 1,446 | 1,460 | (1.0) | ||||||||||||||||||
Average full-time equivalent employees (thousands) | 87.3 | 85.6 | 2.0 | 86.6 | 86.0 | 0.7 | ||||||||||||||||||
Average aircraft fuel price per gallon | $ | 2.30 | $ | 1.91 | 20.4 | $ | 2.25 | $ | 1.74 | 29.3 | ||||||||||||||
Fuel gallons consumed (millions) | 1,036 | 980 | 5.7 | 4,137 | 3,978 | 4.0 | ||||||||||||||||||
Note: See Part II, Item 6, Selected Financial Data, of UAL's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, for definitions of these statistics. |
UNITED CONTINENTAL HOLDINGS, INC. | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||
(In millions) | December 31, 2018 | December 31, 2017 | |||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,694 | $ | 1,482 | |||
Short-term investments | 2,256 | 2,316 | |||||
Receivables, net | 1,346 | 1,340 | |||||
Aircraft fuel, spare parts and supplies, net | 985 | 924 | |||||
Prepaid expenses and other | 913 | 1,071 | |||||
Total current assets | 7,194 | 7,133 | |||||
Total operating property and equipment, net | 28,329 | 26,208 | |||||
Other assets: | |||||||
Goodwill | 4,523 | 4,523 | |||||
Intangibles, net | 3,159 | 3,539 | |||||
Restricted cash | 105 | 91 | |||||
Loans to others, net | 496 | 46 | |||||
Investments in affiliates and other, net | 966 | 806 | |||||
Total other assets | 9,249 | 9,005 | |||||
Total assets | $ | 44,772 | $ | 42,346 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Advance ticket sales | $ | 4,381 | $ | 3,940 | |||
Accounts payable | 2,363 | 2,196 | |||||
Frequent flyer deferred revenue | 2,286 | 2,192 | |||||
Accrued salaries and benefits | 2,184 | 2,166 | |||||
Current maturities of long-term debt and capital leases | 1,379 | 1,693 | |||||
Other | 600 | 576 | |||||
Total current liabilities | 13,193 | 12,763 | |||||
Other liabilities and deferred credits: | |||||||
Long-term debt and capital leases | 13,349 | 12,699 | |||||
Frequent flyer deferred revenue | 2,719 | 2,591 | |||||
Postretirement benefit liability | 1,295 | 1,602 | |||||
Pension liability | 1,576 | 1,921 | |||||
Deferred income taxes | 814 | 204 | |||||
Other | 1,831 | 1,832 | |||||
Total other liabilities and deferred credits | 21,584 | 20,849 | |||||
Commitments and contingencies | |||||||
Stockholders' equity | 9,995 | 8,734 | |||||
Total liabilities and stockholders' equity | $ | 44,772 | $ | 42,346 | |||
UNITED CONTINENTAL HOLDINGS, INC. | |||||||
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED) | |||||||
(In millions) | Full Year Ended | ||||||
2018 | 2017 | ||||||
Cash Flows from Operating Activities: | |||||||
Net cash provided by operating activities | $ | 6,181 | $ | 3,413 | |||
Cash Flows from Investing Activities: | |||||||
Capital expenditures | (4,177) | (3,998) | |||||
Purchases of short-term and other investments | (2,552) | (3,241) | |||||
Proceeds from sale of short-term and other investments | 2,616 | 3,177 | |||||
Loans made to others | (456) | — | |||||
Investment in affiliates | (139) | — | |||||
Other, net | 145 | 132 | |||||
Net cash used in investing activities | (4,563) | (3,930) | |||||
Cash Flows from Financing Activities: | |||||||
Proceeds from issuance of long-term debt and airport construction financing | 1,740 | 2,765 | |||||
Repurchases of common stock | (1,235) | (1,844) | |||||
Payments of long-term debt | (1,727) | (901) | |||||
Principal payments under capital leases | (134) | (124) | |||||
Other, net | (54) | (91) | |||||
Net cash used in financing activities | (1,410) | (195) | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 208 | (712) | |||||
Cash, cash equivalents and restricted cash at beginning of the year | 1,591 | 2,303 | |||||
Cash, cash equivalents and restricted cash at end of the year (a) | $ | 1,799 | $ | 1,591 | |||
Investing and Financing Activities Not Affecting Cash: | |||||||
Property and equipment acquired through the issuance of debt and capital leases | $ | 174 | $ | 935 | |||
Debt associated with termination of a maintenance service agreement | 163 | — | |||||
Equity interest in Republic Airways Holdings, Inc. received in consideration for bankruptcy claims | — | 92 | |||||
Airport construction financing | 12 | 42 | |||||
Operating lease conversions to capital lease | 52 | — | |||||
(a) The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheet: | |||||||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,694 | $ | 1,482 | |||
Restricted cash included in Prepaid expenses and other | — | 18 | |||||
Other assets: | |||||||
Restricted cash | 105 | 91 | |||||
Total cash, cash equivalents and restricted cash | $ | 1,799 | $ | 1,591 | |||
UNITED CONTINENTAL HOLDINGS, INC. | |||
RETURN ON INVESTED CAPITAL (ROIC) - Non-GAAP | |||
ROIC is a non-GAAP financial measure that UAL believes provides useful supplemental information for management and investors by measuring the effectiveness of the company's operations' use of invested capital to generate profits. | |||
(in millions) | Twelve Months Ended December 31, 2018 | ||
Net Operating Profit After Tax ("NOPAT") | |||
Pre-tax income | $ | 2,658 | |
Special charges and MTM losses on financial instruments (B): | |||
Impairment of assets | 377 | ||
Termination of a maintenance service agreement | 64 | ||
Severance and benefit costs | 41 | ||
MTM losses on financial instruments | 5 | ||
(Gains) losses on sale of assets and other special charges | 5 | ||
Pre-tax income excluding special charges and MTM losses on financial instruments (Non-GAAP) | 3,150 | ||
add: Interest expense (net of income tax benefit) (a) | 725 | ||
add: Interest component of capitalized aircraft rent (net of income tax benefit) (a) | 211 | ||
add: Net interest on pension (net of income tax benefit) (a) | (16) | ||
less: Income taxes paid | (19) | ||
NOPAT (Non-GAAP) | $ | 4,051 | |
Average Invested Capital (five-quarter average) | |||
Total assets | $ | 44,133 | |
add: Capitalized aircraft operating leases (b) | 3,723 | ||
less: Non-interest bearing liabilities (c) | (17,224) | ||
Average invested capital (Non-GAAP) | $ | 30,632 | |
ROIC (Non-GAAP) | 13.2 | % | |
(a) | Income tax benefit measured based on the effective cash tax rate. The effective cash tax rate is calculated by dividing cash taxes paid by pre-tax income excluding special charges. For the twelve months ended December 31, 2018, the effective cash tax rate was 0.6%. |
(b) | The purpose of this adjustment is to capitalize the impact of aircraft operating leases. The company uses a multiple of seven times its annual aircraft rent expense to estimate the potential capitalized value and related liability of its aircraft. This is a simplified method used by many rating agencies and financial analysts to assess the impact of operating leases on financial measures like return on invested capital. |
(c) | Non-interest bearing liabilities include advance ticket sales, frequent flyer deferred revenue, deferred income taxes and other non-interest bearing liabilities. |
UNITED CONTINENTAL HOLDINGS, INC. | ||||||||||||||||||
NON-GAAP FINANCIAL RECONCILIATION | ||||||||||||||||||
(A) UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and Non-GAAP financial measures, including adjusted operating income (loss), adjusted operating margin, adjusted pre-tax income (loss), adjusted pre-tax margin, adjusted net income (loss), adjusted diluted earnings (loss) per share and CASM, excluding special charges, third-party business expenses, fuel, and profit sharing, among others. UAL believes that adjusting for special charges is useful to investors because special charges are not indicative of UAL's ongoing performance. UAL believes that adjusting for MTM gains and losses on financial instruments is useful to investors because those unrealized gains or losses may not ultimately be realized on a cash basis. UAL believes that adjusting for interest expense related to capital leases of Embraer ERJ 145 aircraft is useful to investors because of the accelerated recognition of interest expense. | ||||||||||||||||||
CASM is a common metric used in the airline industry to measure an airline's cost structure and efficiency. UAL reports CASM excluding special charges, third-party business expenses, fuel and profit sharing. UAL believes that adjusting for special charges is useful to investors because special charges are not indicative of UAL's ongoing performance. UAL also believes that excluding third-party business expenses, such as maintenance, ground handling and catering services for third parties and fuel sales, provides more meaningful disclosure because these expenses are not directly related to UAL's core business. UAL also believes that excluding fuel costs from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence. UAL excludes profit sharing because this exclusion allows investors to better understand and analyze our operating cost performance and provides a more meaningful comparison of our core operating costs to the airline industry. | ||||||||||||||||||
Reconciliations of reported non-GAAP financial measures to the most directly comparable GAAP financial measures are included below. | ||||||||||||||||||
Three Months Ended December 31, | % | Full Year Ended December 31, | % | |||||||||||||||
2018 | 2017 | (Decrease) | 2018 | 2017 | (Decrease) | |||||||||||||
CASM (cents) | ||||||||||||||||||
Cost per available seat mile (CASM) (GAAP) | 14.28 | 13.34 | 7.0 | 13.81 | 13.00 | 6.2 | ||||||||||||
Special charges (B) | 0.44 | 0.04 | NM | 0.18 | 0.07 | NM | ||||||||||||
Third-party business expenses | 0.04 | 0.06 | (33.3) | 0.04 | 0.05 | (20.0) | ||||||||||||
Fuel expense | 3.46 | 2.88 | 20.1 | 3.38 | 2.64 | 28.0 | ||||||||||||
Profit sharing, including taxes | 0.12 | 0.07 | 71.4 | 0.12 | 0.13 | (7.7) | ||||||||||||
CASM, excluding special charges, third-party business expenses, fuel, and profit sharing (Non-GAAP) | 10.22 | 10.29 | (0.7) | 10.09 | 10.11 | (0.2) | ||||||||||||
NM Not Meaningful |
UNITED CONTINENTAL HOLDINGS, INC. | ||||||||||||||||||||||||||||||
NON-GAAP FINANCIAL RECONCILIATION (Continued) | ||||||||||||||||||||||||||||||
Three Months Ended December 31, | $ Increase/ | % Increase/ | Full Year Ended December 31, | $ Increase/ | % Increase/ | |||||||||||||||||||||||||
(in millions) | 2018 | 2017 | (Decrease) | (Decrease) | 2018 | 2017 | (Decrease) | (Decrease) | ||||||||||||||||||||||
Operating expenses (GAAP) | $ | 9,839 | $ | 8,675 | $ | 1,164 | 13.4 | $ | 38,011 | $ | 34,113 | $ | 3,898 | 11.4 | ||||||||||||||||
Special charges (B) | 301 | 31 | 270 | NM | 487 | 176 | 311 | NM | ||||||||||||||||||||||
Operating expenses, excluding special charges | 9,538 | 8,644 | 894 | 10.3 | 37,524 | 33,937 | 3,587 | 10.6 | ||||||||||||||||||||||
Adjusted to exclude: | ||||||||||||||||||||||||||||||
Third-party business expenses | 32 | 31 | 1 | 3.2 | 121 | 145 | (24) | (16.6) | ||||||||||||||||||||||
Fuel expense | 2,380 | 1,875 | 505 | 26.9 | 9,307 | 6,913 | 2,394 | 34.6 | ||||||||||||||||||||||
Profit sharing, including taxes | 82 | 45 | 37 | 82.2 | 334 | 349 | (15) | (4.3) | ||||||||||||||||||||||
Adjusted operating expenses (Non-GAAP) | $ | 7,044 | $ | 6,693 | $ | 351 | 5.2 | $ | 27,762 | $ | 26,530 | $ | 1,232 | 4.6 | ||||||||||||||||
Operating income (GAAP) | $ | 652 | $ | 776 | $ | (124) | (16.0) | $ | 3,292 | $ | 3,671 | $ | (379) | (10.3) | ||||||||||||||||
Adjusted to exclude: | ||||||||||||||||||||||||||||||
Special charges (B) | 301 | 31 | 270 | NM | 487 | 176 | 311 | NM | ||||||||||||||||||||||
Adjusted operating income (Non-GAAP) | $ | 953 | $ | 807 | $ | 146 | 18.1 | $ | 3,779 | $ | 3,847 | $ | (68) | (1.8) | ||||||||||||||||
Pre-tax income (GAAP) | $ | 556 | $ | 620 | $ | (64) | (10.3) | $ | 2,658 | $ | 3,040 | $ | (382) | (12.6) | ||||||||||||||||
Adjusted to exclude: | ||||||||||||||||||||||||||||||
Special charges (B) | 301 | 31 | 270 | NM | 487 | 176 | 311 | NM | ||||||||||||||||||||||
MTM (gains) losses on financial instruments (B) | (56) | — | (56) | NM | 5 | — | 5 | NM | ||||||||||||||||||||||
Interest expense on ERJ 145 capital leases (C) | 13 | — | 13 | NM | 26 | — | 26 | NM | ||||||||||||||||||||||
Adjusted pre-tax income (Non-GAAP) | $ | 814 | $ | 651 | $ | 163 | 25.0 | $ | 3,176 | $ | 3,216 | $ | (40) | (1.2) | ||||||||||||||||
Net income (GAAP) | $ | 462 | $ | 579 | $ | (117) | (20.2) | $ | 2,129 | $ | 2,144 | $ | (15.0) | (0.7) | ||||||||||||||||
Adjusted to exclude: | ||||||||||||||||||||||||||||||
Special charges (B) | 301 | 31 | 270 | NM | 487 | 176 | 311 | NM | ||||||||||||||||||||||
MTM (gains) losses on financial instruments (B) | (56) | — | (56) | NM | 5 | — | 5 | NM | ||||||||||||||||||||||
Interest expense on ERJ 145 capital leases (C) | 13 | — | 13 | NM | 26 | — | 26 | NM | ||||||||||||||||||||||
Income tax benefit related to adjustments above | (58) | (11) | (47) | NM | (116) | (63) | (53) | NM | ||||||||||||||||||||||
Special income tax adjustments (D) | (5) | (179) | 174 | NM | (5) | (179) | 174 | NM | ||||||||||||||||||||||
Adjusted net income (Non-GAAP) | $ | 657 | $ | 420 | $ | 237 | 56.4 | $ | 2,526 | $ | 2,078 | $ | 448 | 21.6 | ||||||||||||||||
Diluted earnings per share (GAAP) | $ | 1.70 | $ | 1.98 | $ | (0.28) | (14.1) | $ | 7.70 | $ | 7.06 | $ | 0.64 | 9.1 | ||||||||||||||||
Adjusted to exclude: | ||||||||||||||||||||||||||||||
Special charges (B) | 1.10 | 0.11 | 0.99 | NM | 1.76 | 0.58 | 1.18 | NM | ||||||||||||||||||||||
MTM (gains) losses on financial instruments (B) | (0.21) | — | (0.21) | NM | 0.02 | — | 0.02 | NM | ||||||||||||||||||||||
Interest expense on ERJ 145 capital leases (C) | 0.05 | — | 0.05 | NM | 0.09 | — | 0.09 | NM | ||||||||||||||||||||||
Income tax benefit related to adjustments | (0.21) | (0.04) | (0.17) | NM | (0.42) | (0.21) | (0.21) | NM | ||||||||||||||||||||||
Special income tax adjustments (D) | (0.02) | (0.61) | 0.59 | NM | (0.02) | (0.59) | 0.57 | NM | ||||||||||||||||||||||
Adjusted diluted earnings per share (Non-GAAP) | $ | 2.41 | $ | 1.44 | $ | 0.97 | 67.4 | $ | 9.13 | $ | 6.84 | $ | 2.29 | 33.5 | ||||||||||||||||
NM Not Meaningful |
UNITED CONTINENTAL HOLDINGS, INC. | ||||||||||||||||
NON-GAAP FINANCIAL RECONCILIATION (Continued) | ||||||||||||||||
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. | ||||||||||||||||
Three Months Ended December 31, | Full Year Ended December 31, | |||||||||||||||
Capital Expenditures (in millions) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Capital expenditures (GAAP) | $ | 1,585 | $ | 1,098 | $ | 4,177 | $ | 3,998 | ||||||||
Property and equipment acquired through the issuance of debt and capital leases | 35 | 17 | 174 | 935 | ||||||||||||
Airport construction financing | — | 1 | 12 | 42 | ||||||||||||
Fully reimbursable projects | (36) | (70) | (176) | (246) | ||||||||||||
Adjusted capital expenditures (Non-GAAP) | $ | 1,584 | $ | 1,046 | $ | 4,187 | $ | 4,729 | ||||||||
Free Cash Flow (in millions) | ||||||||||||||||
Net cash provided by operating activities (GAAP) | $ | 1,101 | $ | 728 | $ | 6,181 | $ | 3,413 | ||||||||
Less capital expenditures | 1,585 | 1,098 | 4,177 | 3,998 | ||||||||||||
Free cash flow, net of financings (Non-GAAP) | $ | (484) | $ | (370) | $ | 2,004 | $ | (585) | ||||||||
Net cash provided by operating activities (GAAP) | $ | 1,101 | $ | 728 | $ | 6,181 | $ | 3,413 | ||||||||
Less adjusted capital expenditures (Non-GAAP) | 1,584 | 1,046 | 4,187 | 4,729 | ||||||||||||
Free cash flow (Non-GAAP) | $ | (483) | $ | (318) | $ | 1,994 | $ | (1,316) | ||||||||
UNITED CONTINENTAL HOLDINGS, INC. | ||||||||||||||||
NOTES (UNAUDITED) | ||||||||||||||||
(B) Special charges and MTM gains and losses on financial instruments include the following: | ||||||||||||||||
Three Months Ended December 31, | Full Year Ended December 31, | |||||||||||||||
(In millions) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Operating: | ||||||||||||||||
Impairment of assets | $ | 232 | $ | 10 | $ | 377 | $ | 25 | ||||||||
Termination of an engine maintenance service agreement | 64 | — | 64 | — | ||||||||||||
Severance and benefit costs | 7 | 15 | 41 | 116 | ||||||||||||
(Gains) losses on sale of assets and other special charges | (2) | 6 | 5 | 35 | ||||||||||||
Total special charges | 301 | 31 | 487 | 176 | ||||||||||||
Nonoperating MTM (gains) losses on financial instruments | (56) | — | 5 | — | ||||||||||||
Total special charges and MTM (gains) losses on financial instruments | 245 | 31 | 492 | 176 | ||||||||||||
Income tax benefit related to special charges | (68) | (11) | (109) | (63) | ||||||||||||
Income tax expense (benefit) related to MTM gains and losses on financial instruments | 13 | — | (1) | — | ||||||||||||
Income tax adjustments (D) | (5) | (179) | (5) | (179) | ||||||||||||
Total special charges and MTM (gains) losses on financial instruments, net of income taxes | $ | 185 | $ | (159) | $ | 377 | $ | (66) | ||||||||
Impairment of assets: |
Routes: The company conducted its annual impairment review of intangible assets in the fourth quarter of 2018, which consisted of a comparison of the book value of specific assets to the fair value of those assets calculated using the discounted cash flow method. Due to increased costs without sufficient corresponding increases in revenue in the Hong Kong market, the company determined that the value of its Hong Kong routes had been impaired. Accordingly, in the fourth quarter of 2018, the company recorded a special non-cash impairment charge of $206 million ($160 million net of taxes) associated with its Hong Kong routes. The collateral pledged under the company's term loan, including the Hong Kong routes, continues to be sufficient to satisfy the loan covenants. |
In May 2018, the Brazil–United States open skies agreement was ratified, which provides air carriers with unrestricted access between the United States and Brazil. The company determined that the approval of the open skies agreement impaired the entire value of its Brazil route authorities because the agreement removes all limitations or reciprocity requirements for flights between the United States and Brazil. Accordingly, in the second quarter of 2018, the company recorded a $105 million special charge ($82 million net of taxes) to write off the entire value of the intangible asset associated with its Brazil routes. This asset was not part of any collateral pledged against any of the company's borrowings. The company continues to maintain its slot assets related to Brazil since airport access is still regulated by slot allocations that are limited by airport facility constraints. |
Other: For the three and twelve months ended December 31, 2018, the company also recorded $26 million ($20 million net of taxes) and $66 million ($51 million net of taxes), respectively, of fair value adjustments related to aircraft purchased off lease, write-off of unexercised aircraft purchase options and other impairments related to certain fleet types and international slots no longer in use. |
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, the company recorded a $15 million ($10 million net of taxes) intangible asset impairment charge related to a maintenance service agreement. |
Termination of a maintenance service agreement: In the fourth quarter of 2018, the company recorded a one-time termination charge of $64 million ($50 million net of tax) related to one of its engine maintenance service agreements. |
Severance and benefit costs: During the three and twelve months ended December 31, 2018, the company recorded severance and benefit costs related to a voluntary early-out program for its technicians and related employees represented by the International Brotherhood of Teamsters of $3 million ($2 million net of taxes) and $22 million ($17 million net of taxes), respectively. 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 2018. Also during the three and twelve months ended December 31, 2018, the company recorded other management severance of $4 million ($3 million net of taxes) and $19 million ($15 million net of taxes), respectively. |
During the three and twelve months 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 the voluntary early-out program for its technicians and related employees, and $5 million ($3 million net of taxes) and $33 million ($21 million net of taxes), respectively, of management severance. |
MTM gains and losses on financial instruments: During the three and twelve months ended December 31, 2018, the company recorded gains of $89 million ($69 million net of taxes) and $28 million ($22 million net of taxes), respectively, for the change in market value of certain of its equity investments. During the fourth quarter of 2018, the company recorded losses of $33 million ($26 million net of taxes) for the change in fair value of certain derivative assets related to equity of Avianca Holdings S.A. For equity investments and derivative assets subject to MTM accounting, the company records gains and losses as part of Nonoperating income (expense): Miscellaneous, net in its statements of consolidated operations. |
(C) Interest expense related to capital leases of Embraer ERJ 145 aircraft |
During the third quarter of 2018, United entered into an agreement with the lessor of 54 Embraer ERJ 145 aircraft to purchase those aircraft in 2019. The provisions of the new lease agreement resulted in a change in accounting classification of these new leases from operating leases to capital leases up until the purchase date. The company recognized $13 million ($10 million net of tax) and $26 million ($20 million net of tax) of additional interest expense in the three and twelve months ended December 31, 2018, respectively, as a result of this change. |
(D) Effective tax rate |
The company's effective tax rate for the three and twelve months ended December 31, 2018 was 16.9% and 19.9%, respectively, and the effective tax rate for the three and twelve months ended December 31, 2017 was 6.6% and 29.5%, respectively. The effective tax rate represents a blend of federal, state and foreign taxes and included the impact of certain nondeductible items. The effective tax rate for the three and twelve months ended December 31, 2018 also reflects the reduced federal corporate income tax rate as a result of the enactment of the Tax Cuts and Jobs Act (the "Tax Act") in December 2017 and the impact of a change in the company's mix of domestic and foreign earnings. The rates for the 2018 and 2017 periods were impacted by one-time benefits of $5 million and $179 million, respectively, due to the passage of the Tax Act. |
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
LA's Newest Star: The United Polaris Lounge Opens at Los Angeles International Airport
LOS ANGELES, Jan. 10, 2019 /PRNewswire/ -- Beginning January 12, United customers traveling in United Polaris® business class, the airline's international premium cabin travel experience, will now be able to relax and dine before their travels in the new United Polaris lounge at Los Angeles International Airport.
The award-winning Polaris lounge experience builds on the airline's concept to be uniquely United while embracing the energy and distinct culture of Southern California and the exciting destinations United serves from here. This Polaris lounge features Southern California-style throughout, including works by local, Los Angeles-based artists, Rema Ghuloum, Chris Trueman and Ruth Pastine, and a food and beverage program inspired by the City of Angels. It is conveniently located in Terminal 7 between Gates 73 and 75A and faces west to capture the city's vibrant sunset skies.
The United Polaris lounge is the most recent investment United has made at LAX, where the airline recently completed a $573 million renovation of Terminal 7. Customers also can now take advantage of the recently completed cut-through, a new road that provides a shortcut to avoid the LAX "horseshoe" road around the terminals to help ease their travels. In addition to the Polaris lounge, United recently opened a new United Club in Terminal 7, and offers customers who want a more upscale experience access to The Private Terminal. These latest improvements and amenities help give United customers the best possible airport experience at LAX.
The airline is also committed to the greater Los Angeles community, having announced last year a $1 million grant to Southern California-based First Place for Youth.
"Los Angeles is one of United's most important gateways, particularly to Asia and Australia, and this lounge provides our customers with a best-in-class experience before they board their flights, especially for those customers with late-night departures and early-morning arrivals," said Janet Lamkin, United's California President. "We continue to expand our presence in Los Angeles, connecting customers from all over California and the U.S. to our global network. The addition of the United Polaris lounge is yet another way we provide customers with the best possible travel experience at LAX."
United Polaris Lounge at LAX Facts & Highlights
- More than 12,000 square feet
- 140 seats, with a variety of seating areas for productivity, privacy and dining
- 272 power outlets and 120 USB ports
- Luxurious shower suites, featuring rainfall showerheads and Soho House & Co's Cowshed Spa products
- Private daybeds outfitted with Saks Fifth Avenue bedding
- Customers are invited to enjoy a full restaurant-quality experience in The Dining Room before their flights. With a menu that blends international comfort foods developed by Los Angeles native Chef Tritia Gestuvo, highlights include: almond-crusted fish and chips, chilaquiles, Korean bulgogi arancini, fresh crafted sandwiches on La Brea Bakery® bread, flavorful street tacos and house-made cinnamon churros.
- In a nod to the innovative cocktail culture of Los Angeles, the lounge features signature cocktails inspired by the City of Stars, including the Let's Rumble, made from Cruso Spiced Rum, fresh lemon, prickly pear puree and house-made simple syrup and the On Sunset, a playful take on the tequila sunrise, made from Casa Noble Tequila, Del Maguey Single Village Mezcal and agave nectar.
The United Polaris lounge at Los Angeles International Airport is the fifth Polaris lounge to open. Other United Polaris lounge locations include: Chicago O'Hare International Airport, George Bush Intercontinental in Houston, Newark Liberty International Airport and San Francisco International Airport.
The focus behind the United Polaris experience has always been to provide long-haul travelers with what they've asked for: the best sleep in the sky. On average, United continues to add one aircraft with the new United Polaris business class seat every 10 days from now through 2020. On Monday, the airline's newest aircraft, the Boeing 787-10 Dreamliner, officially entered service, featuring the Polaris business class seat as well as the airline's new United Premium Plus seat. United in the first North American carrier to operate the 787-10 and the only airline in the world to operate all three models of the Dreamliner.
For more photos of the United Polaris lounge at Los Angeles International Airport, visit the United Newsroom.
About United
United Airlines and United Express operate approximately 4,800 flights a day to 353 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
United Airlines Unveils New United MileagePlus X App
CHICAGO, Jan. 10, 2019 /PRNewswire/ -- Today, United Airlines is introducing the relaunch of the United MileagePlus X app, which offers United MileagePlus® members a unique opportunity to earn award miles for everyday purchases. The app has been refreshed to integrate additional programs to make it even easier for members to accumulate miles. Additionally, the app features the launch of United Visa Rewards with offers from merchants like Sam's Club®, Wayfair®, and StubHubTM, offering UnitedSM Chase Visa Cardmembers even more ways to earn miles.
App enhancements
- MileagePlus DiningSM: The existing MileagePlus Dining program has been integrated into the MileagePlus X app. With seamless enrollment and showcasing nearby restaurants, members' ability to choose where to dine and earn miles is now in the palm of their hand.
- MileagePlus Shopping: The longstanding shopping program is now available through the MileagePlus X app, and offers members the ability to shop and earn miles on the go at more than 900 retailers.
- United Visa Rewards: This new program is powered by Visa Commerce Network, which allows enrolled individuals to receive valuable offers within MileagePlus X thanks to the power of the Visa payments network. United Visa Rewards is available exclusively to United Chase Visa Cardmembers in the U.S. who are now able to enroll their eligible card into the program via the app. From there, they can view active enhanced mileage earning offers from participating merchants. Once program participants make a qualifying purchase with a participating merchant, they will receive a near real-time reward notification within the app. As a special launch offer, from now until March 31, 2019, United Chase Visa Cardmembers can earn 1,000 bonus award miles by simply enrolling their eligible credit card for the first time into the program.1
"We are excited to launch the new MileagePlus X app, which allows MileagePlus members to earn and redeem award miles in real time for their everyday purchases at hundreds of merchants across the U.S, matching the increased benefits our UnitedSM Explorer Cardmembers received with the new credit card last summer," said Luc Bondar, president of MileagePlus Holdings and vice president of loyalty at United Airlines. "As mobile payments become more commonplace, it was a natural tie for United to update the features, enable members to make purchases and earn and use miles on the go."
"Visa and United have been working together for over 20 years," said Terry Angelos, SVP, loyalty & offers, Visa. "As digitally-savvy individuals continue to help shape the future of digital commerce, Visa continues to work with United and Chase to bring new ways to reward consumers for their loyalty. At the same time, participating merchants will benefit from Visa Commerce Network's ability to deliver custom solutions that will help increase their customer base and loyalty, ultimately helping them continue to grow their business."
Through the MileagePlus X app, members can purchase eGift Cards from hundreds of restaurants and retailers. One of the savviest ways to take advantage of this feature is to buy an eGift Card in the amount of the purchase price while at checkout at a participating merchant. In addition, primary United Chase Cardmembers earn a 25% bonus on miles earned from MileagePlus on eGift Card purchases made through the app. Customers can find eGift Cards from a variety of categories such as shopping, dining, transportation, lodging, music, and more.
About MileagePlus®
MileagePlus® is United's industry-leading loyalty program. With a wide network of partners through which members may earn and redeem miles. MileagePlus members earn award miles by flying United, United Express, Star Alliance airlines or other airline partners, and by purchasing products or services from partners around the globe. Members enjoy a host of options for using those award miles, including award travel, hotel stays, car rentals and merchandise. For the 15th consecutive year, Global Traveler voted United's MileagePlus® loyalty program the best overall frequent-flyer program in the world.
About United
United Airlines and United Express operate approximately 4,800 flights a day to 353 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".
1 Available to first time enrollees only
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, 872.825.8640, media.relations@united.com
United Reports December 2018 Operational Performance
CHICAGO, Jan. 9, 2019 /PRNewswire/ -- United Airlines (UAL) today reported December 2018 operational results.
UAL's December 2018 consolidated traffic (revenue passenger miles) increased 6.9 percent and consolidated capacity (available seat miles) increased 6.4 percent versus December 2017. UAL's December 2018 consolidated load factor increased 0.4 points compared to December 2017.
December Highlights
- Announced UAL's largest ever international network expansion from San Francisco International Airport by offering nonstop year-round service to Toronto and Melbourne, Australia, seasonal service to New Delhi and a second daily flight between San Francisco and Seoul, South Korea - all subject to government approvals. In addition to the new routes, UAL will begin new year-round nonstop service between San Francisco and each of Auckland, New Zealand, Tahiti, French Polynesia and Amsterdam.
- Announced the addition of 11 new routes from UAL's hubs in Chicago, Houston, Los Angeles and Washington, D.C. The company's new summer service, beginning in June 2019, will connect customers to popular summer vacation destinations in California, Colorado, Florida, Oregon, Michigan and Nova Scotia.
- Mileage Plus loyalty program was voted Best Overall Frequent-Flyer Program in the world for the 15th consecutive year by readers of Global Traveler and was awarded the 2018 Frequent Traveler Titan Award for the Americas.
About United
United Airlines and United Express operate approximately 4,800 flights a day to 353 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".
|
Preliminary Operational Results |
|||||||
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|
|
|
|
|
|
|
|
|
|
December |
|
Year-to-Date |
||||
|
|
2018 |
2017 |
Change |
|
2018 |
2017 |
Change |
|
|
|
|
|
|
|
|
|
|
REVENUE PASSENGER MILES (000) |
|||||||
|
|
|
|
|
|
|
|
|
|
Domestic |
11,058,944 |
10,479,105 |
5.5% |
|
132,954,893 |
124,267,502 |
7.0% |
|
Mainline |
8,982,444 |
8,578,667 |
4.7% |
|
108,634,884 |
102,312,669 |
6.2% |
|
Regional |
2,076,500 |
1,900,438 |
9.3% |
|
24,320,009 |
21,954,833 |
10.8% |
|
International |
8,270,205 |
7,596,002 |
8.9% |
|
97,199,892 |
91,992,999 |
5.7% |
|
Atlantic |
2,986,741 |
2,645,206 |
12.9% |
|
40,610,724 |
36,220,795 |
12.1% |
|
Pacific |
3,108,677 |
2,880,088 |
7.9% |
|
34,414,147 |
33,890,639 |
1.5% |
|
Latin |
2,174,787 |
2,070,708 |
5.0% |
|
22,175,021 |
21,881,565 |
1.3% |
|
Mainline |
2,085,568 |
1,987,076 |
5.0% |
|
21,255,941 |
21,019,723 |
1.1% |
|
Regional |
89,219 |
83,632 |
6.7% |
|
919,080 |
861,842 |
6.6% |
|
Consolidated |
19,329,149 |
18,075,107 |
6.9% |
|
230,154,785 |
216,260,501 |
6.4% |
|
|
|||||||
|
AVAILABLE SEAT MILES (000) |
|||||||
|
Domestic |
13,295,896 |
12,476,108 |
6.6% |
|
155,637,292 |
145,848,600 |
6.7% |
|
Mainline |
10,757,911 |
10,173,407 |
5.7% |
|
126,385,402 |
119,208,926 |
6.0% |
|
Regional |
2,537,985 |
2,302,701 |
10.2% |
|
29,251,890 |
26,639,674 |
9.8% |
|
International |
10,076,215 |
9,486,777 |
6.2% |
|
119,624,405 |
116,537,327 |
2.6% |
|
Atlantic |
3,671,224 |
3,343,547 |
9.8% |
|
49,721,287 |
47,297,821 |
5.1% |
|
Pacific |
3,835,983 |
3,660,168 |
4.8% |
|
43,406,455 |
42,831,318 |
1.3% |
|
Latin |
2,569,008 |
2,483,062 |
3.5% |
|
26,496,663 |
26,408,188 |
0.3% |
|
Mainline |
2,457,018 |
2,376,570 |
3.4% |
|
25,279,532 |
25,238,343 |
0.2% |
|
Regional |
111,990 |
106,492 |
5.2% |
|
1,217,131 |
1,169,845 |
4.0% |
|
Consolidated |
23,372,111 |
21,962,885 |
6.4% |
|
275,261,697 |
262,385,927 |
4.9% |
|
|
|
|
|||||
|
PASSENGER LOAD FACTOR |
|
|
|||||
|
Domestic |
83.2% |
84.0% |
(0.8) pts |
|
85.4% |
85.2% |
0.2 pts |
|
Mainline |
83.5% |
84.3% |
(0.8) pts |
|
86.0% |
85.8% |
0.2 pts |
|
Regional |
81.8% |
82.5% |
(0.7) pts |
|
83.1% |
82.4% |
0.7 pts |
|
International |
82.1% |
80.1% |
2.0 pts |
|
81.3% |
78.9% |
2.4 pts |
|
Atlantic |
81.4% |
79.1% |
2.3 pts |
|
81.7% |
76.6% |
5.1 pts |
|
Pacific |
81.0% |
78.7% |
2.3 pts |
|
79.3% |
79.1% |
0.2 pts |
|
Latin |
84.7% |
83.4% |
1.3 pts |
|
83.7% |
82.9% |
0.8 pts |
|
Mainline |
84.9% |
83.6% |
1.3 pts |
|
84.1% |
83.3% |
0.8 pts |
|
Regional |
79.7% |
78.5% |
1.2 pts |
|
75.5% |
73.7% |
1.8 pts |
|
Consolidated |
82.7% |
82.3% |
0.4 pts |
|
83.6% |
82.4% |
1.2 pts |
|
|
|||||||
|
ONBOARD PASSENGERS (000) |
|||||||
|
Mainline |
9,448 |
9,006 |
4.9% |
|
113,885 |
108,017 |
5.4% |
|
Regional |
3,744 |
3,436 |
9.0% |
|
44,445 |
40,050 |
11.0% |
|
Consolidated |
13,192 |
12,442 |
6.0% |
|
158,330 |
148,067 |
6.9% |
|
|
|||||||
|
CARGO REVENUE TON MILES (000) |
|||||||
|
Total |
302,575 |
301,330 |
0.4% |
|
3,424,625 |
3,315,902 |
3.3% |
|
|
|||||||
|
OPERATIONAL PERFORMANCE |
|||||||
|
Mainline Departure Performance 1 |
67.5% |
69.1% |
(1.6) pts |
|
|
|
|
|
Mainline Completion Factor |
99.8% |
99.8% |
0.0 pts |
|
|
|
|
|
|
|
1Based on mainline scheduled flights departing by or before scheduled departure time |
|
Note: See Part II, Item 6, Selected Financial Data, of the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017 for the definitions of these statistics |
Safe Harbor Statement
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 : Certain statements included in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as "expects," "will," "plans," "anticipates," "indicates," "believes," "estimates," "forecast," "guidance," "outlook," "goals" 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: 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, including political developments that may impact our operations in certain countries; demand for travel and the impact that global economic and political conditions have on customer travel patterns; competitive pressures on pricing and on demand; demand for transportation in the markets in which we operate; our capacity decisions and the capacity decisions of our competitors; the effects of any hostilities, act of war or terrorist attack; the effects of any technology failures or cybersecurity breaches; the impact of regulatory, investigative and legal proceedings and legal compliance risks; disruptions to our regional network; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; costs associated with any modification or termination of our aircraft orders; potential reputational or other impact from adverse events in our operations, the operations of our regional carriers, the operations of our code share partners or the aircraft operated by another airline of the same model as operated by us, our regional carriers or our code share partners; our ability to attract and retain customers; 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; the impact of any management changes; 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 any fuel or currency hedging programs; 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; an outbreak of a disease that affects travel demand or travel behavior; U.S. or foreign governmental legislation, regulation and other actions (including Open Skies agreements and environmental regulations); industry consolidation or changes in airline alliances; our ability to comply with the terms of our various financing arrangements; the costs and availability of financing; our ability to maintain adequate liquidity; the costs and availability of aviation and other insurance; weather conditions; our ability to utilize our net operating losses to offset future taxable income; the impact of changes in tax laws; the success of our investments in airlines in other parts of the world; and other risks and uncertainties set for thunder Part I, Item 1A., "Risk Factors," of our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission.
SOURCE United Airlines
For further information: United Airlines, Worldwide Media Relations, 872.825.8640, media.relations@united.com
United Airlines to Hold Live Webcast of Fourth-Quarter and Full-Year 2018 Financial Results
CHICAGO, Jan. 7, 2019 /PRNewswire/ -- United Airlines will hold a conference call to discuss fourth-quarter and full-year 2018 financial results on Wednesday, January 16, at 9:30 a.m. CT/10:30 a.m. ET. A live, listen-only webcast of the conference call will be available at ir.united.com. The company will issue its fourth-quarter and full-year 2018 financial results and first-quarter 2019 investor update after market close on Tuesday, January 15.
The webcast will be available for replay within 24 hours of the conference call and then archived on the website for three months.
Notable Special Charges
For fourth quarter 2018, the company expects to record a special non-cash impairment charge of $206 million ($160 million net of taxes) associated with its Hong Kong routes. The company conducted its annual impairment review of intangible assets in the fourth quarter of 2018, which consisted of a comparison of the book value of specific assets to the fair value of those assets calculated using the discounted cash flow method. Due to increased costs without sufficient corresponding increases in revenue in the Hong Kong market, the company determined that the value of its Hong Kong routes had been impaired. The collateral pledged under the company's term loan, including the Hong Kong routes, continues to be sufficient to satisfy the loan covenants.
The company expects to also record a one-time termination fee with a present value of $64 million ($50 million net of tax) related to one of its engine maintenance service agreements.
About United
United Airlines and United Express operate approximately 4,800 flights a day to 353 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements included in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as "expects," "will," "plans," "anticipates," "indicates," "believes," "estimates," "forecast," "guidance," "outlook," "goals" 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: 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, including political developments that may impact our operations in certain countries; demand for travel and the impact that global economic and political conditions have on customer travel patterns; competitive pressures on pricing and on demand; demand for transportation in the markets in which we operate; our capacity decisions and the capacity decisions of our competitors; the effects of any hostilities, act of war or terrorist attack; the effects of any technology failures or cybersecurity breaches; the impact of regulatory, investigative and legal proceedings and legal compliance risks; disruptions to our regional network; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; costs associated with any modification or termination of our aircraft orders; potential reputational or other impact from adverse events in our operations, the operations of our regional carriers, the operations of our code share partners or the aircraft operated by another airline of the same model as operated by us, our regional carriers or our code share partners; our ability to attract and retain customers; 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; the impact of any management changes; 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 any fuel or currency hedging programs; 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; an outbreak of a disease that affects travel demand or travel behavior; U.S. or foreign governmental legislation, regulation and other actions (including Open Skies agreements and environmental regulations); industry consolidation or changes in airline alliances; our ability to comply with the terms of our various financing arrangements; the costs and availability of financing; our ability to maintain adequate liquidity; the costs and availability of aviation and other insurance; weather conditions; our ability to utilize our net operating losses to offset future taxable income; the impact of changes in tax laws; the success of our investments in airlines in other parts of the world; 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, 2017, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission.
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
United Airlines' First 787-10 Begins Regular Service, Flying Coast to Coast
LOS ANGELES, Jan. 7, 2019 /PRNewswire/ -- Today, United Airlines' first Boeing 787-10 Dreamliner began regular service as UA2418, departing from Los Angeles International Airport traveling to Newark Liberty International Airport. United is the first carrier in the world to operate all three Dreamliner models, including the 787-8, 787-9 and now the longest model, the 787-10.
The Dreamliner's entry into scheduled service continues United's comprehensive fleet plan, while providing an improved experience for customers. The aircraft is United's first Dreamliner model delivered with the airline's signature Polaris business class seats, and new United® Premium Plus seats. Boeing's Dreamliners are known for dramatically improving the on board experience for customers with lower cabin altitude, better humidity, cleaner air, smoother ride and better sound quality. Additionally, the new Dreamliner provides better fuel efficiency than older aircraft, contributing to United's commitment to reducing emissions by 50 percent by 2050.
As previously announced, United expects its second Dreamliner to enter service between its hubs in San Francisco and New York/Newark in February, and begin international service in March.
For more information on United's 787-10, and other fleet updates visit United's Fleet Newsroom.
About United
United Airlines and United Express operate approximately 4,800 flights a day to 353 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, 872-825-8640, media.relations@united.com
United Airlines Named Best Overall Frequent Flyer Program in the World for 15th Consecutive Year
CHICAGO, Dec. 20, 2018 /PRNewswire/ -- For the 15th consecutive year, readers of Global Traveler, a monthly publication written exclusively for frequent business and luxury travelers, voted United's MileagePlus loyalty program the Best Overall Frequent-Flyer Program in the world. United has been recognized with this distinction every year since the inception of the GT Tested Reader Survey in 2004.
In the survey completed by frequent business and luxury travelers, United's MileagePlus program was also named the Best Frequent-Flyer Bonus Program for the sixth consecutive year.
Additionally, the United MileagePlus Club Card from Chase was named Best Credit Card and Best Credit Card Rewards Program, both for the seventh consecutive year.
"It is an honor that United's MileagePlus loyalty program is consistently recognized by Global Traveler as the Best Frequent Flyer Program. It represents our continued commitment to our MileagePlus members and credit card holders," said Luc Bondar, United's vice president of loyalty. "We are proud to offer a service that continues to be consistent and meets the standards our members expect."
MileagePlus members earn award miles by flying United, United Express, Star Alliance airlines or other airline partners, and by purchasing products or services from partners around the globe. Members enjoy a variety of options for using those award miles, including to pay for travel, hotel stays, car rentals and merchandise.
United continues to enhance its MileagePlus program, offering members new ways to earn and redeem miles as well as increased benefits. Highlights from the last 12 months include:
- The launch of the new United MileagePlus Explorer Card, which now offers an expanded 2 miles per $1 spent on hotel stays and restaurant purchases in addition to 2 miles per $1 spent on purchases with United, travel benefits and inflight discounts.
- The introduction, with BP, of the only program in the U.S. that lets customers earn and use U.S. airline miles at the pump for gasoline purchases.
- Recent enhancements to the MileagePlusX app to enable more ways for members to earn and redeem miles every day while shopping or dining.
- Continued expansion of MileagePlus Exclusives, allowing members to use miles on unique and memorable experiences with a VIP touch across a wide range of mileage levels.
- Increased checked baggage allowance for Premier members.
- A new boarding process for all customers, allowing Premier 1K and Premier Gold members to board in an earlier group.
About United
United Airlines and United Express operate approximately 4,700 flights a day to 356 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 760 mainline aircraft and the airline's United Express carriers operate 546 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental 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 More the Merrier - United Airlines Adds 11 New Routes from Chicago, Houston, Los Angeles and Washington, D.C.
CHICAGO, Dec. 19, 2018 /PRNewswire/ -- United Airlines today announced the addition of 11 new routes from its hubs in Chicago, Houston, Los Angeles and Washington, D.C. United's new summer service, beginning in June 2019, will connect customers to popular summer vacation destinations in California, Colorado, Florida, Oregon, Michigan and Nova Scotia. Tickets are now available for purchase.
In 2018, United introduced 93 new routes across the United States, including 15 international routes – adding more flights than any U.S. airline. Today's additions are part of United's 78 domestic routes announced this year and build on the airline's record network expansion.
"We are focused on giving our customers more reasons to choose to fly United Airlines," said Ankit Gupta, United's vice president of Domestic Network Planning and Scheduling. "With nearly 100 new routes announced this year, we continue to deliver on our commitment to build a global network with destinations where our customers want to fly."
Chicago to Colorado, Florida, Oregon and Nova Scotia
From United's hometown hub, the airline will offer seven new routes connecting customers to Florida beaches, Oregon's Willamette Valley and Cascade Mountains and the Colorado Rocky Mountains. Additionally, beginning June 6, United will offer daily service to the stunning coastline and scenery of Halifax on the Nova Scotia peninsula in Canada.
City | Depart | Arrive | Frequency | Aircraft |
Chicago-Destin | 9:15 a.m. | 11:41 a.m. | Saturday, Sunday | CRJ-200 |
Destin-Chicago | 12:15 p.m. | 2:55 p.m. | Saturday, Sunday | CRJ-200 |
Chicago-Durango | 10:00 am | 12:12 pm | Saturday | CRJ-700 |
Durango-Chicago | 12:50 p.m. | 4:40 p.m. | Saturday | CRJ-700 |
Chicago-Panama City Beach | 9:15 a.m. | 11:41 a.m. | Saturday, Sunday | CRJ-200 |
Panama City Beach-Chicago | 12:15 p.m. | 2:55 p.m. | Saturday, Sunday | CRJ-200 |
Chicago-Grand Junction | 10:00 a.m. | 12:12 p.m. | Saturday | CRJ-700 |
Grand Junction-Chicago | 12:50 p.m. | 4:40 p.m. | Saturday | CRJ-700 |
Chicago-Eugene | 7:30 p.m. | 9:50 p.m. | Daily, year-round | EMB-175 |
Eugene-Chicago | 11:40 p.m. | 5:15 a.m. + 1 day | Daily, year-round | EMB-175 |
Chicago-Halifax, Nova Scotia | 5:50 p.m. | 10:52 p.m. | Daily, Summer | EMB-175 |
Halifax, Nova Scotia-Chicago | 7:14 a.m. | 8:40 a.m. | Daily, Summer | EMB-175 |
Chicago-Redmond | 7:30 p.m. | 9:45 p.m. | Daily, Summer | EMB-175 |
Redmond-Chicago | 11:45 p.m. | 5:15 a.m. + 1 day | Daily, Summer | EMB-175 |
Houston to Durango, Colorado, and Ontario, California
United's new service between its Houston hub at George Bush Intercontinental Airport offers customers nonstop access for the summer season to outdoor summer fun in Durango and southwestern Colorado's San Juan mountain range. United will also begin daily, year-round service between Houston and Ontario in southern California. From Ontario, customers can easily access four major interstates, including easy access to Los Angeles and Long Beach.
City | Depart | Arrive | Frequency | Aircraft |
Houston-Durango | 9:35 a.m. | 10:55 a.m. | Saturday | EMB-175 |
Durango-Houston | 12:20 p.m. | 3:35 p.m. | Saturday | EMB-175 |
Houston-Ontario | 9:30 p.m. | 11:15 p.m. | Daily, year-round | EMB-175 |
Ontario-Houston | 11:59 p.m. | 5:10 a.m.+ 1 day | Daily, year-round | EMB-175 |
Los Angles to Stockton, California
Beginning Aug. 20, 2019, United's new, twice-daily service between Los Angeles and Stockton will provide Stockton travelers seamless access to United's global network at its Los Angeles hub.
City | Depart | Arrive | Frequency | Aircraft |
Los Angeles-Stockton | 1:00 p.m. 5:10 p.m. | 2:22 p.m. 6:32 p.m. | Daily, year-round | CRJ-200 |
Stockton-Los Angeles | 7:41 a.m. 3:00 p.m. | 9:10 a.m. 4:29 p.m. | Daily, year-round | CRJ-200 |
Washington Dulles to Traverse City, Michigan
Located on the eastern shores of Lake Michigan, picturesque Traverse City is an ideal destination for a summer vacation. In fact, fans of the National Cherry Blossom Festival in Washington can follow up with a trip to Traverse City, home of the annual week-long National Cherry Festival in July. United customers traveling between Washington, D.C. and Traverse City will enjoy the area's freshwater beaches, vineyards and nearby national forest and state park.
City | Depart | Arrive | Frequency | Aircraft | ||||||
Washington Dulles-Traverse City | 9:00 a.m. | 11:00 a.m. | Saturday | EMB-145 | ||||||
Traverse City-Washington Dulles | 1:45 pm | 3:45 pm | Saturday | EMB-145 | ||||||
Booking summer travel is an opportunity for United MileagePlus members to enjoy the benefits and perks of their membership. Whether it's a trip for business or a vacation getaway with friends or family, MileagePlus Premier and eligible United MileagePlus Chase cardmembers can book Everyday Awards on flights operated by United and United Express.
About United
United Airlines and United Express operate approximately 4,700 flights a day to 356 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 760 mainline aircraft and the airline's United Express carriers operate 546 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental 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 More the Merrier - United Airlines Adds 11 New Routes from Chicago, Houston, Los Angeles and Washington, D.C.
CHICAGO, Dec. 19, 2018 /PRNewswire/ -- United Airlines today announced the addition of 11 new routes from its hubs in Chicago, Houston, Los Angeles and Washington, D.C. United's new summer service, beginning in June 2019, will connect customers to popular summer vacation destinations in California, Colorado, Florida, Oregon, Michigan and Nova Scotia. Tickets are now available for purchase.
In 2018, United introduced 93 new routes across the United States, including 15 international routes – adding more flights than any U.S. airline. Today's additions are part of United's 78 domestic routes announced this year and build on the airline's record network expansion.
"We are focused on giving our customers more reasons to choose to fly United Airlines," said Ankit Gupta, United's vice president of Domestic Network Planning and Scheduling. "With nearly 100 new routes announced this year, we continue to deliver on our commitment to build a global network with destinations where our customers want to fly."
Chicago to Colorado, Florida, Oregon and Nova Scotia
From United's hometown hub, the airline will offer seven new routes connecting customers to Florida beaches, Oregon's Willamette Valley and Cascade Mountains and the Colorado Rocky Mountains. Additionally, beginning June 6, United will offer daily service to the stunning coastline and scenery of Halifax on the Nova Scotia peninsula in Canada.
City | Depart | Arrive | Frequency | Aircraft |
Chicago-Destin | 9:15 a.m. | 11:41 a.m. | Saturday, Sunday | CRJ-200 |
Destin-Chicago | 12:15 p.m. | 2:55 p.m. | Saturday, Sunday | CRJ-200 |
Chicago-Durango | 10:00 am | 12:12 pm | Saturday | CRJ-700 |
Durango-Chicago | 12:50 p.m. | 4:40 p.m. | Saturday | CRJ-700 |
Chicago-Panama City Beach | 9:15 a.m. | 11:41 a.m. | Saturday, Sunday | CRJ-200 |
Panama City Beach-Chicago | 12:15 p.m. | 2:55 p.m. | Saturday, Sunday | CRJ-200 |
Chicago-Grand Junction | 10:00 a.m. | 12:12 p.m. | Saturday | CRJ-700 |
Grand Junction-Chicago | 12:50 p.m. | 4:40 p.m. | Saturday | CRJ-700 |
Chicago-Eugene | 7:30 p.m. | 9:50 p.m. | Daily, year-round | EMB-175 |
Eugene-Chicago | 11:40 p.m. | 5:15 a.m. + 1 day | Daily, year-round | EMB-175 |
Chicago-Halifax, Nova Scotia | 5:50 p.m. | 10:52 p.m. | Daily, Summer | EMB-175 |
Halifax, Nova Scotia-Chicago | 7:14 a.m. | 8:40 a.m. | Daily, Summer | EMB-175 |
Chicago-Redmond | 7:30 p.m. | 9:45 p.m. | Daily, Summer | EMB-175 |
Redmond-Chicago | 11:45 p.m. | 5:15 a.m. + 1 day | Daily, Summer | EMB-175 |
Houston to Durango, Colorado, and Ontario, California
United's new service between its Houston hub at George Bush Intercontinental Airport offers customers nonstop access for the summer season to outdoor summer fun in Durango and southwestern Colorado's San Juan mountain range. United will also begin daily, year-round service between Houston and Ontario in southern California. From Ontario, customers can easily access four major interstates, including easy access to Los Angeles and Long Beach.
City | Depart | Arrive | Frequency | Aircraft |
Houston-Durango | 9:35 a.m. | 10:55 a.m. | Saturday | EMB-175 |
Durango-Houston | 12:20 p.m. | 3:35 p.m. | Saturday | EMB-175 |
Houston-Ontario | 9:30 p.m. | 11:15 p.m. | Daily, year-round | EMB-175 |
Ontario-Houston | 11:59 p.m. | 5:10 a.m.+ 1 day | Daily, year-round | EMB-175 |
Los Angles to Stockton, California
Beginning Aug. 20, 2019, United's new, twice-daily service between Los Angeles and Stockton will provide Stockton travelers seamless access to United's global network at its Los Angeles hub.
City | Depart | Arrive | Frequency | Aircraft |
Los Angeles-Stockton | 1:00 p.m. 5:10 p.m. | 2:22 p.m. 6:32 p.m. | Daily, year-round | CRJ-200 |
Stockton-Los Angeles | 7:41 a.m. 3:00 p.m. | 9:10 a.m. 4:29 p.m. | Daily, year-round | CRJ-200 |
Washington Dulles to Traverse City, Michigan
Located on the eastern shores of Lake Michigan, picturesque Traverse City is an ideal destination for a summer vacation. In fact, fans of the National Cherry Blossom Festival in Washington can follow up with a trip to Traverse City, home of the annual week-long National Cherry Festival in July. United customers traveling between Washington, D.C. and Traverse City will enjoy the area's freshwater beaches, vineyards and nearby national forest and state park.
City | Depart | Arrive | Frequency | Aircraft | ||||||
Washington Dulles-Traverse City | 9:00 a.m. | 11:00 a.m. | Saturday | EMB-145 | ||||||
Traverse City-Washington Dulles | 1:45 pm | 3:45 pm | Saturday | EMB-145 | ||||||
Booking summer travel is an opportunity for United MileagePlus members to enjoy the benefits and perks of their membership. Whether it's a trip for business or a vacation getaway with friends or family, MileagePlus Premier and eligible United MileagePlus Chase cardmembers can book Everyday Awards on flights operated by United and United Express.
About United
United Airlines and United Express operate approximately 4,700 flights a day to 356 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 760 mainline aircraft and the airline's United Express carriers operate 546 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL."
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
United Airlines Names Pam Hendry Treasurer
CHICAGO, Dec. 17, 2018 /PRNewswire/ -- United Airlines (UAL) today announced Pam Hendry has been named vice president and treasurer. Hendry will be responsible for Corporate Finance, Treasury Operations and Risk Management.
Hendry is a senior aviation finance executive who has an extensive background in cost-effectively financing aircraft. She spent the majority of her career at International Lease Finance Corporation (ILFC) where, among other roles, she served as senior vice president and treasurer.
"Pam is well known and respected throughout the aircraft finance community. With her reputation as a strong leader and her deep industry knowledge she will be a great addition to the United team," said Executive Vice President and CFO Gerry Laderman. "I look forward to welcoming Pam to United and partnering with her and our entire team as we continue to deliver on the growth strategy we laid out in January of this year."
Prior to joining United, Hendry was a managing director at Plane View Partners, an aviation consulting firm. She has also held a number of leadership and consulting roles in aircraft finance and leasing, where she built a proven track record in financial and capital markets.
Hendry holds a bachelor's degree in Business Economics from the University of California, Santa Barbara.
Hendry will report to Laderman and will start on January 7.
About United
United Airlines and United Express operate approximately 4,700 flights a day to 356 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 760 mainline aircraft and the airline's United Express carriers operate 546 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental 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