United Airlines Reports Fourth-Quarter and Full-Year 2017 - United Hub

United Airlines Reports Fourth-Quarter and Full-Year 2017 Performance

January 23, 2018

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-

UNITED CONTINENTAL HOLDINGS, INC.
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)

(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)
  1. NM means Not Meaningful
Statistics:

NM Not meaningful

 

UNITED CONTINENTAL HOLDINGS, INC.
STATISTICS
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.

 

 

 

UNITED CONTINENTAL HOLDINGS, INC.
SUMMARY FINANCIAL METRICS (A)

(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.

 

 

 

UNITED CONTINENTAL HOLDINGS, INC.
RETURN ON INVESTED CAPITAL (ROIC)

ROIC - Non-GAAP is a financial measure that we believe provides useful supplemental information for management and investors by measuring the effectiveness of our operations' use of invested capital to generate profits.
(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%
  • (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 and reflecting hedge adjustments. For the twelve months ended December 31, 2017, 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 assist with 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 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

 

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

 

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

UAL provides financial metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA), that we believe provide useful supplemental information for management and investors by measuring profit and profit as a percentage of total operating revenues. Adjusted EBITDA is EBITDA excluding special charges that are non-recurring and that management believes are not indicative of UAL's ongoing performance. Adjusted EBITDA also includes hedge adjustments to reflect the cash impact of fuel derivative contracts settled in the current period.

EBITDA
(In millions)
Three Months Ended
December 31, 2017
Three Months Ended
December 31, 2016
Year Ended
December 31, 2017
Year Ended
December 31, 2016
Net income:
Net income
$580 $397 $2,131 $2,263
Net income Adjusted for:Depreciation and amortization 539 504 2,149 1,977
Net income Adjusted for:Interest expense 171 148 643 614
Net income Adjusted for:Interest capitalized (20) (24) (84) (72)
Net income Adjusted for:Interest income (16) (11) (57) (42)
Net income Adjusted for:Income tax expense(E) 20 487 868 1,556
Net income Adjusted for:Special charges and hedge adjustments before income taxes (D) 31 (27) 176 643
Adjusted EBITDA, excluding special charges and reflecting hedge adjustments - Non-GAAPAdjusted EBITDA, excluding special charges and reflecting hedge adjustments - Non-GAAP $1,305 $1,474 $5,826 $6,939

UAL believes that adjusting capital expenditures for assets acquired through the issuance of debt and capital leases, airport construction financing and excluding fully reimbursable projects is useful to investors in order to appropriately reflect the non-reimbursable funds spent on capital expenditures. UAL also believes that adjusting net cash provided by operating activities for capital expenditures and adjusted capital expenditures is useful to allow investors to evaluate the company's ability to generate cash that is available for debt service or general corporate initiatives.

Capital Expenditures
(In millions)

Three Months Ended


December 31, 2017
Three Months Ended
December 31, 2016
Year Ended
December 31, 2017
Year Ended
December 31, 2016
Capital expenditures:Capital expenditures $1,098 $880 $3,998 $3,223
Capital expenditures:Property and equipment acquired through the issuance of debt and capital leases 17 271 935 386
Capital expenditures:Airport construction financing 1 23 42 91
Capital expenditures:Fully reimbursable projects (70) (96) (246) (353)
Capital expenditures:Adjusted capital expenditures – Non-GAAP $1,046 $1,078 $4,729 $3,347
Free Cash Flow
(In millions)
Free Cash Flow:Net cash provided by operating activities $728 $658 $3,413 $5,542
Free Cash Flow:Less capital expenditures 1,098 880 3,998 3,223
Free Cash Flow:Free cash flow, net of financings - Non-GAAP $(370) $(222) $(585) $2,319
Free Cash Flow:Net cash provided by operating activities $728 $658 $3,413 $5,542
Free Cash Flow:Less adjusted capital expenditures – Non-GAAP 1,046 1,078 4,729 3,347
Free Cash Flow:Free cash flow - Non-GAAP $(318) $(420) $(1,316) $2,195

 

UNITED CONTINENTAL HOLDINGS, INC.
NOTES (UNAUDITED)
(B) Select passenger revenue information is as follows (in millions):
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        

 

UNITED CONTINENTAL HOLDINGS, INC.
NOTES (UNAUDITED)

(C) UAL's results of operations include fuel expense for both mainline and regional operations.
(In millions, except per gallon) Three Months Ended
December 31, 2017
Three Months Ended
December 31, 2016
%
Increase/
(Decrease)
Nine Months Ended
December 31, 2017
Nine Months Ended
December 31, 2016
%
Increase/
(Decrease)
Mainline fuel expense excluding hedge impacts Mainline fuel expense excluding hedge impacts $1,551 $1,270 22.1 $5,770 $4,640 24.4
Hedge losses reported in fuel expense (a) (20) NM (2) (217) NM
Total mainline fuel expenseTotal mainline fuel expense 1,551 1,290 20.2 5,772 4,857 18.8
Regional fuel expense Regional fuel expense 324 265 22.3 1,141 956 19.4
Consolidated fuel expenseConsolidated fuel expense $1,875 $1,555 20.6 $6,913 $5,813 18.9
Mainline fuel consumption (gallons)Mainline fuel consumption (gallons) 820 804 2.0 3,357 3,261 2.9
Mainline average aircraft fuel price per gallonMainline average aircraft fuel price per gallon $1.89 $1.60 18.1 $1.72 $1.49 15.4
Mainline average aircraft fuel price per gallon excluding hedge losses recorded in fuel expenseMainline average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense $1.89 $1.58 19.6 $1.72 $1.42 21.1
Regional fuel consumption (gallons)Regional fuel consumption (gallons) 160 158 1.3 621 643 (3.4)
Regional average aircraft fuel price per gallonRegional average aircraft fuel price per gallon $2.03 $1.68 20.8 $1.84 $1.49 23.5
Consolidated fuel consumption (gallons)Consolidated fuel consumption (gallons) 980 962 1.9 3,978 3,904 1.9
Consolidated average aircraft fuel price per gallonConsolidated average aircraft fuel price per gallon $1.91 $1.62 17.9 $1.74 $1.49 16.8
Consolidated average aircraft fuel price per gallon excluding hedge losses recorded in fuel expenseConsolidated average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense $1.91 $1.60 19.4 $1.74 $1.43 21.7
  • (a) UAL allocates 100 percent of losses from settled hedges that were designated for hedge accounting to mainline fuel expense.
 

(a)   UAL allocates 100 percent of losses from settled hedges that were designated for hedge accounting to mainline fuel expense.

 

 

 

UNITED CONTINENTAL HOLDINGS, INC.
NOTES (UNAUDITED)

(D) Special charges, hedge adjustments and income tax include the following:
(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

More than a 'Nosh' - United Airlines Expands Kosher Culinary Choices for Customers Traveling Between the U.S. and Tel Aviv

February 10, 2020

NEW YORK, Feb. 10, 2020 /PRNewswire/ -- This month, United is taking Kosher cuisine to new heights by introducing a variety of new options for customers traveling between the U.S. and Tel Aviv, from the airline's Newark / New York, San Francisco and Washington, D.C. / Dulles based hubs. These exciting menu additions include popular choices from several leading Kosher food and beverage brands and reflects United's commitment to elevate the travel experience for our customers.

"We are thrilled to expand our already high-quality Kosher culinary choices to include new options we know our customers will love," said Charlean Gmunder, United's vice president of Catering Operations. "We know our customers and listen to their feedback and all of these new menu items – from savory new snacks to wonderful wines – are the result of our on-going efforts to exceed customer expectations. We will continue to embrace suggestions as well as seek out ways to create the best possible onboard dining experience for everyone we proudly serve."

Partnering with New Jersey-based fresh food provider Fresko, meals on the Newark to Tel Aviv flight will feature an entirely new menu. Options will include dishes such as fresh bagels, a cheese omelet, blintzes, chicken marsala, a kale quinoa burger and traditional bakery items like rugelach and black and white cookies.

As part of the introduction of these new dining options, United is also testing a menu offering for its youngest customers – a Kosher child's meal in all cabins between Tel Aviv, Newark and San Francisco. If the testing is successful, the airline will roll out the meal selection on additional Tel Aviv routes.

For those customers traveling in Polaris and United Premium Plus, additional dining enhancements can be found in the all Kosher snack choices for mid-flight enjoyment. The new offerings include Deep River Potato Chips, Cheez-It® crackers, Drizzilicious Cinnamon Swirl crisps, Madi K's Almonds and M&M'S®.

New beverage options will include Kosher wine provided by Royal Wine, another New Jersey-based company, which includes Herzog Lineage Cabernet Sauvignon and Herzog Lineage Sauvignon Blanc throughout the Polaris cabin. Additionally, building on the airline's partnership with Illy coffee, United is upgrading its Kosher coffee to provide both regular and decaf Illy coffee within all cabins over the next several months.

Part of the Kosher expansion includes the airport experience where United is testing the addition of a hot Kosher à la carte meal option in the Newark Polaris Lounge to complement the already featured Kosher wines. Additionally, at both the Polaris lounge and United Clubs in Newark and LaGuardia Airports the offerings will include Kosher packaged snacks upon request.

Summary of the onboard Kosher enhancements


Kosher Option

Cabin

EWR/TLV

TLV/EWR

SFO/TLV

TLV/SFO

IAD/TLV

TLV/IAD

Locally sourced
Fresko meals

All

February
2020

-

-

-

-

-

Enhancements to
existing Kosher
meals

All

February
2020

February
2020

February
2020

February
2020

February
2020

February
2020

Testing Kosher
child's meal

All

March

2020

-

March

2020

-

-

-

Illy Kosher Coffee

All

February
2020

Summer
2020

March
2020

Summer
2020

Summer
2020

Summer
2020

Kosher mid-flight
snacks

Polaris /
United
Premium
Plus

December

2019

December

2019

December

2019

December

2019

December

2019

December

2019

Kosher Wine

Polaris

February
2020

February
2020

February
2020

February
2020

March
2020

March
2020

For images please visit: https://app.box.com/s/pp4w09s7mw8699n9zwj46thsdd6qllmp 

Every customer. Every flight. Every day.

United continues to strengthen its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's announcement, United recently:

  • Announced that MileagePlus award miles will never expire
  • Committed $40 million toward a new investment initiative focused on accelerating the development of sustainable aviation fuels and other decarbonization technologies
  • Established Miles on a Mission, a first-of-its-kind crowdsourcing platform which gives customers a simple way to donate miles to non-profit organizations and charities in need of air travel
  • Launched ConnectionSaver, a digital tool dedicated to improving the experience for customers with connecting flights
  • Instituted PlusPoints, new upgrade benefits for MileagePlus Premier members
  • Gave Economy customers a choice of complimentary snacks on domestic flights
  • Made DIRECTV free for every customer on more than 200 aircraft

About United

United's shared purpose is "Connecting People. Uniting the World." We are more focused than ever on our commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United and United Express operate approximately 4,900 flights a day to 362 airports across six continents. In 2019, United and United Express operated more than 1.7 million flights carrying more than 162 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 791 mainline aircraft and the airline's United Express partners operate 581 regional aircraft. United is a founding member of Star Alliance, which provides service to 195 countries via 26 member airlines. For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

 

SOURCE United Airlines

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

United Airlines to Offer Denver Travelers More Flights to More Places Than Ever Before

February 07, 2020

DENVER, Feb. 7, 2020 /PRNewswire/ -- United Airlines today hosted an event in partnership with Denver International Airport (DEN) celebrating the recent decision from Denver City Council to approve the lease of an additional 24 gates by the airline at DEN, paving the way for local travelers to access more flights to more places than ever before. United Airlines CEO Oscar Munoz joined Denver Mayor Michael B. Hancock to sign United's proposal to amend its current lease, solidifying United's plans to grow its Denver hub from 500 to as many as 700 daily flights by 2025. The additional gates are a combination of newly constructed and existing gates, and part of DEN's $1.5 billion Concourse Expansion Program.

"United Airlines is a vital partner for Denver International Airport, and we're proud they are continuing to invest and grow right here in Denver," said Mayor Michael B. Hancock. "As United increases daily flights and continues to add new routes, they are creating economic opportunities that benefit our entire community."

On Jan. 21, the Denver City Council unanimously approved an amendment for United's lease of additional gates.

"Just over twenty years ago I moved to Denver with what was then my young, growing family. Ever since, wherever I've lived, I continue to feel great pride at how the Mile High City seems to reach even greater heights, as well as the role United's service plays in driving the region's success," said Oscar Munoz, CEO of United Airlines. "These additional gates will take the starring role Denver plays in our growth strategy to a new level. It will mean more seats, more connections and more destinations as Denver continues to extend the global reach of its businesses and communities. This growth complements the investments we make in key infrastructure, such as the Western Hemisphere's largest flight training center at DEN, and in local communities; because Denver is not just a hub, it feels like home for so many of us in the United family."

In the past five years, United has added more than 100 flights and almost 40 new markets departing from Denver as the company continues to connect Denver to the world conveniently, comfortably and reliably. United has consistently outperformed its peers at DEN – achieving better on-time performance than its top competitor for each of the last 59 months and, despite operating twice as many flights, United had fewer cancellations the last two years than Denver's second-largest airline.

United's international offerings are also growing and the airline's Denver to London route, introduced in 2018, quickly shifted from seasonal to a daily, year-round flight. And due to the success of flights between Denver and London, Frankfurt and Tokyo, United will begin using a larger aircraft, the Boeing 787-9, on these routes starting in June, adding nearly 100 daily seats each way to these popular destinations. United's growing domestic and international flight offerings have also created thousands of additional connection opportunities for customers traveling through Denver.

United is proud to employ more than 7,000 professionals in Denver who are committed to delivering an exceptional travel experience to every customer, on every flight, every day. With their continued contributions and the airline's future growth, United will create more than a thousand new, high-quality job opportunities in the coming years.

The additional gates, located in Concourse A and B, will offer more mainline and regional capabilities. In addition to the gates, United will expand existing United Clubs and add a new Club on Concourse A.

United Airlines in Denver

United is Denver's largest airline offering more flights and more seats from the Mile High City to more destinations around the world than any other carrier. United operates approximately 500 daily flights to over 170 airports worldwide from Denver. United has a storied history in Denver, serving the community for more than 80 years, and benefits from a great partnership with local leaders who understand the importance of a thriving aviation sector. The company's commitment to Denver extends beyond the airport and is home to United's Flight Training Center, a state-of-the-art facility where the company's more than 12,000 pilots train every year. The company has a commitment to giving back to the community where many of its customers and employees live and work. United supports local organizations like Girls Inc., Mile High Youth Corps, Wings Over the Rockies and the Denver Public Schools Foundation and, in 2018, announced a $1 million grant to local Denver nonprofit Warren Village.

Every customer. Every flight. Every day.

United continues to strengthen its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's announcement, United recently:

  • Announced that MileagePlus award miles will never expire
  • Committed $40 million toward a new investment initiative focused on accelerating the development of sustainable aviation fuels and other decarbonization technologies
  • Established Miles on a Mission, a first-of-its-kind crowdsourcing platform which gives customers a simple way to donate miles to non-profit organizations and charities in need of air travel
  • Launched ConnectionSaver, a digital tool dedicated to improving the experience for customers with connecting flights
  • Instituted PlusPoints, new upgrade benefits for MileagePlus Premier members
  • Gave Economy customers a choice of complimentary snacks on domestic flights
  • Made DIRECTV free for every customer on more than 200 aircraft

About United

United's shared purpose is "Connecting People. Uniting the World." We are more focused than ever on our commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United and United Express operate approximately 4,900 flights a day to 362 airports across six continents. In 2019, United and United Express operated more than 1.7 million flights carrying more than 162 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 791 mainline aircraft and the airline's United Express partners operate 581 regional aircraft. United is a founding member of Star Alliance, which provides service to 195 countries via 26 member airlines. For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

SOURCE United Airlines

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

United Airlines to Become Only Major U.S. Carrier To Own and Operate a Flight Training Academy

February 05, 2020

CHICAGO, Feb. 5, 2020 /PRNewswire/ -- United Airlines today further expanded its innovative Aviate pilot program by signing a purchase agreement to become the only major U.S. carrier to own a flight training academy. The United Aviate Academy will give the airline more visibility and direction over the recruitment, development and training of future pilots, enabling United to increase the percentage of women and minorities who become pilots. United expects approximately 300 students to graduate from the United Aviate Academy in its first full year of operation.

The flight training academy – currently operating as Westwind School of Aeronautics in Phoenix, Arizona – will be an extension of the airline's Aviate program, a pilot development and recruitment program that offers aspiring aviators the most direct path to achieve their dreams of becoming a United pilot. The airline anticipates hiring more than 10,000 pilots by 2029.

"We have developed the Aviate program in collaboration with the Air Line Pilots Association, International to have greater influence on the next generation of aviators at United," said Captain Bebe O'Neil, United's managing director of Aviate. "Launching our own academy provides us with the unique opportunity to not only ensure we maintain the ideal number of quality candidates within our pilot pipeline, but also play a significant role in recruiting, developing and welcoming those with diverse backgrounds to the United family."

In addition to launching the flight academy, United plans to reduce financial barriers to joining the program, making the dream of becoming a United pilot even more accessible to more individuals. The carrier is currently engaging with financial institutions with the goal of making attractive financing terms – such as industry-tailored grace periods and competitive interest rates – available to qualified individuals. Additionally, United plans to launch a scholarship program specifically focused on encouraging women and minorities to consider joining the United family. The airline will provide more details regarding these financing options as they become available.

Aviate partners currently include:

· Embry-Riddle Aeronautical University

· Western Michigan University

· Lufthansa Aviation Training Academy

· University of North Dakota

· Hillsboro Aero Academy

· US Aviation Academy

· FlightSafety International

· Ameriflight

· Boutique Air

· ATP Flight School

· ExpressJet

· CommutAir

· Air Wisconsin

· Mesa Airlines

· Florida Institute of Technology


Aviate: Love to fly, born to lead

Last year, United launched Aviate, its innovative pilot recruitment and development program. Those who apply to Aviate and are successful in the selection process will receive a program acceptance job offer with United. Aviate also provides support and coaching for pilots to develop into leaders who exemplify the professionalism, level of excellence and commitment to providing safe, caring, dependable and efficient service that United expects from its pilots. Additionally, Aviate provides those who aspire to a career as a United captain with the most direct route to achieving that goal.

United's Aviate career path program offers pilots competitive benefits, including:

  • The most direct path within the industry to a major airline, with an Aviate regional partner minimum requirement of 24 months and 2,000 hours
  • More options in program entry points throughout a pilot's career and choice of select United Express carriers
  • Increased transparency and clarity along the path from program entry to flying for United
  • Improved career development, mentoring and access to United pilots and learning tools.
  • Immediate inclusion in the United family, with access to senior leadership, site visits and tours, and certain travel privileges

For more information on Aviate, please visit unitedaviate.com

About United

United's shared purpose is "Connecting People. Uniting the World." We are more focused than ever on our commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United and United Express operate approximately 4,900 flights a day to 362 airports across six continents. In 2019, United and United Express operated more than 1.7 million flights carrying more than 162 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 791 mainline aircraft and the airline's United Express partners operate 581 regional aircraft. United is a founding member of Star Alliance, which provides service to 195 countries via 26 member airlines. For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

SOURCE United Airlines

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

United Airlines Earns 100% Score on Human Rights Campaign Foundation's Annual Scorecard on LGBTQ+ Workplace Equality

January 27, 2020

CHICAGO, Jan. 27, 2020 /PRNewswire/ -- United Airlines today announced it has received a perfect score of 100% on the 2020 Corporate Equality Index (CEI), a premier benchmarking survey and report on corporate policies and practices related to LGBTQ+ workplace equality, administered by the Human Rights Campaign (HRC) Foundation. This is the ninth consecutive year the airline receives a 100% score.

"United is proud to receive this recognition as it speaks to our commitment to not only promoting an LGBTQ+-friendly workplace but LGBTQ+-friendly skies," said Kate Gebo, United's Executive Vice President of Human Resources and Labor Relations. "We will continue working with organizations like the Human Rights Campaign to help champion LGBTQ+ inclusion because United believes in breaking down barriers to create a more welcoming world for all who explore it."

"The impact of the Human Rights Campaign's Corporate Equality Index over its 18-year history is profound. In this time, the corporate community has worked with us to adopt LGBTQ+-inclusive policies, practices and benefits, establishing the Corporate Equality Index as a primary driving force for LGBTQ+ workplace inclusion in America and across the globe," said HRC President Alphonso David. "These companies know that protecting their LGBTQ+ employees and customers from discrimination is not just the right thing to do -- it is also the best business decision."

United's commitment to LGBTQ+ equality includes being the first U.S. airline to fully recognize domestic partnerships in 1999 to becoming the first U.S. airline to offer non-binary gender options throughout all of its booking channels in 2019. Additionally, during its Pride Month celebration in 2019, United became the first public company to be inducted into Pride Live's Stonewall Ambassador program

United has partnered with the Human Rights Campaign on training initiatives including educating employees about preferred pronouns and the persistence of gender norms and other steps to make United an inclusive space for both customers and employees. The airline's latest efforts include developing comprehensive training modules and exercises to continue employee education on how to be a better ally in both the workplace and to customers. Over the past year, United has also opened more LGBTQ+ Business Resource Groups across the country, reaching more employees.

Alongside partner organizations, customers and employees, United will continue working to build the world's most inclusive airline. For more information on United's commitment to diversity and inclusion, visit https://hub.united.com/diversity-inclusion-fact-sheet/.

Every customer. Every flight. Every day.

United continues to strengthen its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's announcement, United recently:

  • Announced that MileagePlus award miles will never expire
  • Committed $40 million toward a new investment initiative focused on accelerating the development of sustainable aviation fuels and other decarbonization technologies
  • Established Miles on a Mission, a first-of-its-kind crowdsourcing platform which gives customers a simple way to donate miles to non-profit organizations and charities in need of air travel
  • Launched ConnectionSaver, a digital tool dedicated to improving the experience for customers with connecting flights
  • Instituted PlusPoints, new upgrade benefits for MileagePlus Premier members
  • Gave Economy customers a choice of complimentary snacks on domestic flights
  • Made DIRECTV free for every customer on more than 200 aircraft

About United

United's shared purpose is "Connecting People. Uniting the World." We are more focused than ever on our commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United and United Express operate approximately 4,900 flights a day to 362 airports across six continents. In 2019, United and United Express operated more than 1.7 million flights carrying more than 162 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 791 mainline aircraft and the airline's United Express partners operate 581 regional aircraft. United is a founding member of Star Alliance, which provides service to 195 countries via 26 member airlines. For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

SOURCE United Airlines

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

United is Onboard as the Official Airline of the 92nd Street Y’s Acclaimed Talks Series

January 24, 2020

NEW YORK, January 24, 2020 – United is teaming up with famed New York community and cultural center, the 92nd Street Y (92Y), to serve as the official airline of the nonprofit's renowned Recanati-Kaplan Talks Series for 2020. For decades, 92Y has been home to New York City's largest and most successful talks series, featuring prominent artists, entertainers, musicians, scientists, comedians, political figures, fashion designers, dancers, economists and many others.

Pop TV's Schitt's Creek: A Screening and Conversation with Eugene Levy, Catherine O'Hara, Daniel Levy and Annie Murphy, Moderated by Vanity Fair's Richard Lawson at the 92Y.

Jamie McCarthy/Getty Images

🙂

"United's shared purpose drives us to unite the world by connecting people to what matters most, which is why we are thrilled to be aligned with an organization such as the 92nd Street Y which embodies our brand's commitment," said Jill Kaplan, President, New York / New Jersey for United Airlines. "We are extremely proud to join this iconic institution in treating New Yorkers to another season of compelling commentary and captivating stories that will lift hearts, illuminate minds and bring our community together."

"We are delighted to collaborate with United Airlines for our 2020 season of Recanati-Kaplan Talks," said Susan Engel, executive director of 92Y Talks. "Their generosity helps us to continue to present unforgettable events with some of the most interesting and culturally significant speakers of our times."

Talks for the 2020 season include Larry David, the cast of Schitt's Creek, John Mulaney, Jeffrey Toobin, Paul Krugman, Samantha Bee, Queer Eye's Antoni Porowski, Diane Keaton, Issa Rae, Edie Falco, Seth Rogen, the cast of Outlander, Kevin Kline, Pod Save America's Dan Pfeiffer, Roy Wood Jr., Ronny Chieng, Noah Centineo, Ezra Klein, Malcolm Gladwell, Fareed Zakaria, Ramit Sethi, Glennon Doyle, Nicholas Kristof, Sheryl WuDunn and many more.

Every customer. Every flight. Every day.

United continues to strengthen its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's announcement, United recently:

  • Announced that MileagePlus award miles will never expire
  • Committed $40 million toward a new investment initiative focused on accelerating the development of sustainable aviation fuels and other decarbonization technologies
  • Established Miles on a Mission, a first-of-its-kind crowdsourcing platform which gives customers a simple way to donate miles to non-profit organizations and charities in need of air travel
  • Launched ConnectionSaver, a digital tool dedicated to improving the experience for customers with connecting flights
  • Instituted PlusPoints, new upgrade benefits for MileagePlus Premier members
  • Gave Economy customers a choice of complimentary snacks on domestic flights
  • Made DIRECTV free for every customer on more than 200 aircraft

About United

United's shared purpose is "Connecting People. Uniting the World." We are more focused than ever on our commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United and United Express operate approximately 5,000 flights a day to 362 airports across five continents. In 2019, United and United Express operated more than 1.7 million flights carrying more than 162 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 791 mainline aircraft and the airline's United Express partners operate 579 regional aircraft. United is a founding member of Star Alliance, which provides service to 195 countries via 26 member airlines. For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

About 92Y

92nd Street Y is a world-class, nonprofit cultural and community center that fosters the mental, physical and spiritual health of people throughout their lives, offering: wide-ranging conversations with the world's best minds; an outstanding range of programming in the performing, visual and literary arts; fitness and sports programs; and activities for children and families. 92Y is reimagining what it means to be a community center in the digital age with initiatives like the award-winning #GivingTuesday, launched by 92Y in 2012 and now recognized across the US and in a growing number of regions worldwide as a day to celebrate and promote giving. These kinds of initiatives are transforming the way people share ideas and translate them into action both locally and around the world. More than 300,000 people visit 92Y annually; millions more participate in 92Y's digital and online initiatives. A proudly Jewish organization since its founding in 1874, 92Y embraces its heritage and welcomes people of all backgrounds and perspectives. For more information, visit www.92Y.org.

United Adds 29 New Flights to Miami for the Big Game

January 23, 2020

CHICAGO, Jan. 23, 2020 /PRNewswire/ -- United Airlines is offering football fans across the United States more options to get to Miami for the Big Game. United is offering fans more than 5,600 seats through 29 additional nonstop flights to Miami from its seven U.S. hubs including Los Angeles and seven special point-to-point flights between Kansas City and Miami. Tickets are now available for purchase on united.com.

"This year we're offering football fans from every corner of the country more opportunities than ever to get to Miami for the Big Game including extra flights between San Francisco and Miami and new service between Kansas City and Miami," said Ankit Gupta, United's vice president of Domestic Network Planning. "In addition to our expanded network to Miami for the game, travelers can easily get to Miami via United's 25 daily flights to Fort Lauderdale's Hollywood International Airport from Chicago, Denver, Houston, New York/Newark, San Francisco, Washington Dulles and Cleveland."

United's Big Game Service to Miami


Day

From

To

Frequency

Friday

San Francisco

Miami

3 Flights

Friday

Kansas City

Miami

2 Flights

Friday

Chicago

Miami

5 Flights

Friday

Denver

Miami

1 Flight

Friday

Houston

Miami

5 Flights

Friday

Los Angeles

Miami

1 Flight

Friday

New York/Newark

Miami

8 Flights

Friday

Washington Dulles

Miami

2 Flights





Saturday

San Francisco

Miami

3 Flights

Saturday

Kansas City

Miami

2 Flights

Saturday

Chicago

Miami

5 Flights

Saturday

Denver

Miami

1 Flight

Saturday

Houston

Miami

6 Flights

Saturday

New York/Newark

Miami

6 Flights

Saturday

Washington Dulles

Miami

2 Flights





Monday

Miami

San Francisco

5 Flights

Monday

Miami

Kansas City

3 Flights

Monday

Miami

Chicago

4 Flights

Monday

Miami

Denver

1 Flight

Monday

Miami

Houston

5 Flights

Monday

Miami

Los Angeles

2 Flights

Monday

Miami

New York/Newark

9 Flights

Monday

Miami

Washington Dulles

3 Flights

Every customer. Every flight. Every day.

United continues to strengthen its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's announcement, United recently:

  • Announced that MileagePlus award miles will never expire
  • Committed $40 million toward a new investment initiative focused on accelerating the development of sustainable aviation fuels and other decarbonization technologies
  • Established Miles on a Mission, a first-of-its-kind crowdsourcing platform which gives customers a simple way to donate miles to non-profit organizations and charities in need of air travel
  • Launched ConnectionSaver, a digital tool dedicated to improving the experience for customers with connecting flights
  • Instituted PlusPoints, new upgrade benefits for MileagePlus Premier members
  • Gave Economy customers a choice of complimentary snacks on domestic flights
  • Made DIRECTV free for every customer on more than 200 aircraft

About United

United's shared purpose is "Connecting People. Uniting the World." We are more focused than ever on our commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United and United Express operate approximately 4,900 flights a day to 362 airports across six continents. In 2019, United and United Express operated more than 1.7 million flights carrying more than 162 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 791 mainline aircraft and the airline's United Express partners operate 581 regional aircraft. United is a founding member of Star Alliance, which provides service to 195 countries via 26 member airlines. For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

 

SOURCE United Airlines

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

United Airlines Reaches 2020 Adjusted Earnings Per Share Target One Year Ahead Of Schedule

January 21, 2020

CHICAGO, Jan. 21, 2020 /PRNewswire/ -- United Airlines (UAL) today announced it reached its 2020 goal -- first announced in January 2018 -- to achieve adjusted diluted earnings per share (EPS) target2 of $11 to $13 a full year ahead of schedule. The company also achieved full year pre-tax margin growth of 2.6 points, which is expected to outpace its largest competitors for 2019.

  • Reported fourth quarter net income of $641 million, diluted EPS of $2.53, up 50% versus the fourth quarter of 2018, pre-tax earnings of $844 million and pre-tax margin of 7.8 percent, expanding pre-tax margin 2.5 points versus the fourth quarter of 2018.
  • Reported fourth quarter adjusted net income of $676 million, adjusted diluted EPS of $2.67, up 11% versus the fourth quarter of 2018, adjusted pre-tax earnings of $889 million and adjusted pre-tax margin of 8.2 percent, expanding adjusted pre-tax margin 0.5 points versus the fourth quarter of 2018.1
  • Reported full year net income of $3.0 billion, diluted EPS of $11.58, up 51% versus full year 2018, pre-tax earnings of $3.9 billion and pre-tax margin of 9.0 percent, expanding pre-tax margin 2.6 points versus full year 2018.
  • Reported full year adjusted net income of $3.1 billion, adjusted diluted EPS of $12.05, up 32% versus full year 2018, adjusted pre-tax earnings of $4.1 billion and adjusted pre-tax margin of 9.4 percent, expanding adjusted pre-tax margin 1.7 points versus full year 2018.1
  • Consolidated fourth quarter passenger revenue per available seat mile (PRASM) increased 0.8 percent year-over-year.
  • Consolidated fourth quarter unit cost per available seat mile (CASM) decreased 1.3 percent year-over-year and consolidated full year unit cost per available seat mile (CASM) decreased 1.2 percent year-over-year.
  • Consolidated fourth quarter CASM, excluding special charges, third party business expenses, fuel and profit sharing, increased 2.7 percent year-over-year. Consolidated full year CASM, excluding special charges, third-party business expenses, fuel and profit sharing, increased 1.0 percent year-over-year.
  • Repurchased $216 million of its common shares in the fourth quarter of 2019, at an average purchase price of $88.95 per share, bringing share repurchases for full year 2019 to $1.6 billion.

"2019 was a great year for our United team -- highlighted by achieving our $11 to $13 adjusted EPS target a full year ahead of schedule," said Oscar Munoz, CEO of United Airlines. "With a four-quarter streak of expanding profit margins, when all the results are in we expect our full year 2019 pre-tax margin growth to be the highest amongst our largest competitors. When I look at United's fundamental strength, I could not be prouder of what we've accomplished in such a short time. This is the New United we set out to build more than four years ago. As we embark on a new year and decade, I believe the outlook for United's future has never been brighter."

1 Excludes special charges, unrealized gains and losses on investments and imputed interest on certain finance leases. 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 unrealized gains and losses on investments, the nature of which are not determined at this time. Accordingly, UAL does not provide earnings guidance on a GAAP basis.

For more information on UAL's first quarter and full year 2020 guidance, please visit ir.united.com for the company's investor update.

2019 Highlights

Operations and Employees

  • Flew most revenue passengers in company history.
  • Set new company record for most mainline departures with nearly 800,000 departures.
  • Number one in on-time departures at all hubs with direct competitors -- Chicago, Denver and Los Angeles.
  • Hosted Backstage 2019, which brought all 25,000 flight attendants to Chicago for an event which was designed to underscore the important role flight attendants play in delivering great service.
  • Profit sharing for 2019 was on average 45 percent higher per participating employee year-over-year.
  • Launched Aviate, a new pilot recruiting and development program and career website to establish a more structured career path to becoming a United pilot.
  • Hired nearly 9,000 aviation professionals in well paying careers with great benefits in 2019.

Customer Experience

  • Introduced ConnectionSaver, a new tool dedicated to improving the experience for customers connecting from one United flight to the next, saving nearly 100,000 connections to be made in 2019.
  • Became the first U.S. airline to offer non-binary gender options throughout all booking channels in addition to providing the option to select the title "Mx." during booking.
  • Announced MileagePlus award miles never expire, giving members a lifetime to use miles on flights, experiences, hotels and more.
  • Announced free live DIRECTV on 211 Boeing 737 United aircraft equipped with seat back TV, providing more than 100 channels of live television.
  • Introduced a re-imagined mobile app to customers featuring a more dynamic experience that updates customers at each step of their travel journey.
  • Customers are now provided three inflight snack options on domestic flights regardless of departure time, including the Stroopwafel.
  • MileagePlus members between the ages of 18 to 22 received a discount on domestic flights when booked through the United mobile app through the end of 2019.
  • Opened the fifth of its award-winning United Polaris Lounges at Los Angeles International Airport.
  • Opened three new United Clubs at Fort Lauderdale-Hollywood International Airport, LaGuardia Airport and Raleigh-Durham International Airport.
  • Announced the addition of more than 1,600 United Polaris® business class and United First seats to nearly 250 international and domestic aircraft.
  • Began flight operations at LaGuardia Airport's new Terminal B Eastern Concourse.
  • Customers can now pre-pay for bags as soon as their ticket is issued. Previously customers had to wait until check-in to pay for their bags.
  • Announced partnership with CLEAR which includes a free or discounted CLEAR membership for U.S.-based MileagePlus members.

Network

  • Announced a total of nine new international routes and two new expanded routes beginning in 2020, including four new daily nonstop flights to Tokyo Haneda Airport.
  • Strengthened the domestic route network with 69 new routes including launching 54 new routes and announcing 15 routes beginning in 2020.
  • Launched 11 new international routes in 2019, including direct flights from Newark Liberty International Airport to Cape Town, South Africa; Prague, Czech Republic; and Naples, Italy.

Fleet

  • Took delivery of 49 aircraft in 2019, including eight Boeing 787-10 aircraft, becoming the first carrier in the world to operate all three Dreamliner models.
  • Signed agreements to purchase 50 Airbus A321 XLR, 20 used Boeing 737-700 aircraft and 20 Embraer E175 aircraft operated by our regional partners.
  • Introduced a brand new and revolutionary regional flying experience with the addition of the two-cabin, 50-seat Bombardier CRJ 550 aircraft.
  • Unveiled next paint design, which brings a refreshed look to its fleet, serving as a visual representation of the airline's ongoing brand evolution.
  • Launched Boeing 767-300ER ultra-premium United Polaris business class configuration on all flights between New York/Newark and Chicago to London-Heathrow.

Community and Environment

  • Launched Miles on a Mission, a first-of-its-kind crowdsourcing platform which gives customers a simple way to donate miles to non-profit organizations and charities in need of air travel.
  • Pledged on Giving Tuesday to match up to 10 million MileagePlus miles to featured Miles on a Mission partners.
  • Committed $40 million toward a new investment initiative focused on accelerating the development of sustainable aviation fuels and other decarbonization technologies.
  • Made history with the departure of the "Flight for the Planet," the most eco-friendly commercial flight of its kind in the history of aviation.
  • Renewed contract with Boston-based World Energy to purchase up to 10 million gallons of cost-competitive, commercial-scale, sustainable aviation biofuel.
  • Launched Her Art Here, a contest where two women artists were chosen to have their work painted on California- and New York/New Jersey-themed Boeing 757s to uplift underrepresented women artists.
  • Celebrated Women in Aviation International's annual Girls in Aviation Day by hosting more than 500 girls in 14 locations around the world.
  • Became the first public company to be inducted into Pride Live's Stonewall Ambassador program in recognition of the airline's commitment to LGBTQ+ equality.
  • Reached a milestone of 1 million meals packed for charity partner Rise Against Hunger.
  • Donated $1 million to Feeding America's Shutdown Response Fund to directly support the food banks providing food for families of federal workers.

Earnings Call

UAL will hold a conference call to discuss its fourth quarter and full year 2019 financial results as well as its financial and operational outlook for first quarter and full year 2020 on Wednesday, January 22, 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's shared purpose is "Connecting People. Uniting the World." We are more focused than ever on our commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United and United Express operate approximately 4,900 flights a day to 362 airports across six continents. In 2019, United and United Express operated more than 1.7 million flights carrying more than 162 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 791 mainline aircraft and the airline's United Express partners operate 581 regional aircraft. United is a founding member of Star Alliance, which provides service to 195 countries via 26 member airlines. For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements 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," "targets" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: our ability to execute our strategic operating plan, including our growth, revenue-generating and cost-control initiatives; general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aircraft fuel and energy refining capacity in relevant markets); risks of doing business globally, including instability and political developments that may impact our operations in certain countries; demand for travel and the impact that global economic and political conditions have on customer travel patterns; our capacity decisions and the capacity decisions of our competitors; competitive pressures on pricing and on demand; changes in aircraft fuel prices; disruptions in our supply of aircraft fuel; our ability to cost-effectively hedge against increases in the price of aircraft fuel, if we decide to do so; the effects of any technology failures or cybersecurity breaches; disruptions to services provided by third-party service providers; potential reputational or other impact from adverse events involving our aircraft or operations, the aircraft or operations of our regional carriers or our code share partners or the aircraft or operations of another airline; our ability to attract and retain customers; the effects of any terrorist attacks, international hostilities or other security events, or the fear of such events; the mandatory grounding of aircraft in our fleet; disruptions to our regional network; the impact of regulatory, investigative and legal proceedings and legal compliance risks; the success of our investments in other airlines, including in other parts of the world; industry consolidation or changes in airline alliances; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; costs associated with any modification or termination of our aircraft orders; disruptions in the availability of aircraft, parts or support from our suppliers; our ability to maintain satisfactory labor relations and the results of any collective bargaining agreement process with our union groups; any disruptions to operations due to any potential actions by our labor groups; labor costs; an outbreak of a disease that affects travel demand or travel behavior; the impact of any management changes; extended interruptions or disruptions in service at major airports where we operate; U.S. or foreign governmental legislation, regulation and other actions (including Open Skies agreements, environmental regulations and the United Kingdom's withdrawal from the European Union); the seasonality of the airline industry; weather conditions; the costs and availability of aviation and other insurance; the costs and availability of financing; our ability to maintain adequate liquidity; our ability to comply with the terms of our various financing arrangements; our ability to realize the full value of our intangible assets and long-lived assets; 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, 2018, our Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, 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, 2019, United Airlines Holdings, Inc. ("UAL") adopted Accounting Standards Update No. 2016-02, Leases ("Topic 842"). As such, certain previously reported 2018 figures are adjusted in this report on a basis consistent with Topic 842.

UNITED AIRLINES HOLDINGS, INC,

STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)




Three Months Ended
December 31,


%
Increase/
(Decrease)



Year Ended
December 31,


%
Increase/
(Decrease)


(In millions, except per share data)


2019


2018




2019


2018



Operating revenue:















Passenger


$

9,933



$

9,556



3.9




$

39,625