United Airlines Reports Fourth-Quarter and Full-Year 2017 Performance
"I am incredibly proud of how our employees delivered in 2017, achieving our best-ever operational performance. Reliability is an important pillar in our continued focus on further improving the customer experience," said Oscar Munoz, chief executive officer of United Airlines. "Looking ahead, we are committed to improving profitability over the long-term by building on the strong foundation we have laid over the past two years. Everyone at United is excited to enter 2018 with a clear set of priorities and a renewed sense of purpose around unlocking the full potential of United Airlines."
Fourth-Quarter and Full-Year Revenue
For the fourth quarter of 2017, revenue was $9.4 billion, an increase of 4.3 percent year-over-year. Fourth-quarter 2017 consolidated passenger revenue per available seat mile (PRASM) was up 0.2 percent compared to the fourth quarter of 2016. Cargo revenue was $304 million in the fourth quarter of 2017, an increase of 21.6 percent year-over-year primarily due to higher international freight volume and yields. For the full year of 2017, total revenue was $37.7 billion, an increase of 3.2 percent year-over-year.
"Everything we do at United is underpinned by a commitment to deliver top tier operational reliability," said Scott Kirby, president of United Airlines. "Thanks to the drive and dedication of our employees, we have significantly raised the bar in this area, delivering a record-setting operational performance in 2017. Looking ahead, our focus will be on continuing to improve customer service and expanding United's network to offer customers more choice."
Fourth-Quarter and Full-Year Costs
Total operating expense was $8.7 billion in the fourth quarter, up 8.2 percent year-over-year. Consolidated unit cost per available seat mile (CASM) increased 4.0 percent compared to the fourth quarter of 2016 due largely to higher fuel and labor expense. Fourth-quarter consolidated CASM, excluding special charges, third-party business expenses, fuel and profit sharing, increased 1.5 percent year-over-year, driven mainly by higher labor expense. For the full year, consolidated CASM increased 2.8 percent compared to full-year 2016 due largely to higher fuel and labor expense. Excluding special charges, third-party business expenses, fuel and profit sharing, consolidated CASM increased 3.1 percent compared to the prior year primarily due to expenses resulting from labor agreements ratified in 2016.
"We are encouraged by our financial results in the fourth quarter which capped a year of strong earnings. Additionally, throughout the year we made significant investments in the business while continuing to return cash to our shareholders through $1.8 billion of share repurchases," said Andrew Levy, executive vice president and chief financial officer of United Airlines. "In 2018, we will continue to focus on cost control, invest strategically into the business and utilize our new $3 billion share repurchase authorization to return cash to our shareholders."
Capital Allocation
UAL generated $728 million in operating cash flow during the fourth quarter of 2017 and ended the quarter with $5.8 billion in unrestricted liquidity, including $2.0 billion of undrawn commitments under its revolving credit facility. UAL generated $3.4 billion in operating cash flow for the full year. The company continued to invest in its business through capital expenditures of $1.1 billion in the fourth quarter and a total of $4.0 billion for the full year. Adjusted capital expenditures, measured as capital expenditures including assets acquired through the issuance of debt and capital leases, airport construction financing, and excluding fully reimbursable projects, were $1.0 billion during the fourth quarter and $4.7 billion for the full year in 2017. The company contributed $419 million to its pension plans and made debt and capital lease principal payments of $1.0 billion during 2017.
For the 12 months ended Dec. 31, 2017, the company's pre-tax income was $3.0 billion and return on invested capital (ROIC) was 13.8 percent. In the fourth quarter, UAL purchased $553 million of its common shares at an average price of $59.61 per share. During 2017, UAL purchased $1.8 billion of its common shares at an average price of $66.30 per share. The company completed its July 2016 $2 billion share repurchase program and announced authorization for a new $3 billion share repurchase program, which represents approximately 14 percent of the company's market capitalization based on the closing stock price on Jan. 22, 2018.
UAL management will host an Investor Event at 4:30pm ET today to discuss fourth-quarter and full-year 2017 earnings, outline 2018 priorities, provide an update on United's network strategy and deliver a financial update. During this presentation, UAL will provide full-year 2018 guidance including earnings per share and establish long-term earnings targets. Please visit ir.united.com to access the first-quarter 2018 investor update, the webcast of the event and the company's presentation made available during the webcast, the entirety of which will be available on the website at the conclusion of the event.
Fourth-Quarter and Full-Year Highlights
Operations and Employees
- Achieved a record-setting year for operational reliability, including best on-time departure performance, fewest cancellations, and best baggage handling performance.
- The fourth quarter saw a record-breaking performance during the busy holiday travel season.
- In December, United was first place among competitors in mainline on-time departures, completion factor, and on-time arrivals.
- In November, United set company performance records during the busy Thanksgiving travel week, landing its best-ever Thanksgiving completion factor and twice breaking on-time performance records in the midst of the busiest travel days of the year.
- Employees earned incentive payments of approximately $30 million for achieving operations performance goals in the fourth quarter, marking a full year of earned bonuses totaling approximately $87 million.
- The company earned its seventh consecutive perfect 100 percent score on the Human Rights Campaign's Corporate Equality Index and a spot on the organization's list of "Best Places to Work for LGBT Equality."
- Recognized as a Top 100 Best Places to Work in the U.S. by the Glassdoor Employees' Choice Awards.
- Announced the appointment of Regional Presidents for California and New York/New Jersey, demonstrating our commitment to these communities and our hubs.
- In response to the catastrophic weather events Harvey, Irma and Maria, United and its employees came together to keep the operation moving and take part in relief efforts, delivering more than 1.7 million pounds of relief supplies to impacted areas, and together with customers and employees, raised and contributed more than $9 million to community assistance.
Network and Fleet
- Last year, announced 44 new domestic routes from the company's seven U.S. mainland hubs, and increased service on 11 routes to the Hawaiian Islands from Denver, Chicago, Los Angeles and San Francisco – offering more nonstop service to Hawaiian destinations than any other carrier.
- Announced 13 new international routes in 2017 including its newest route San Francisco to Papeete, Tahiti starting seasonally in October 2018.
- By increasing its nonstop service from six hub cities to nine ski destinations, United offers customers the most service to the most ski destinations across the U.S.
- During 2017, took delivery of 19 new Boeing aircraft, including twelve 777-300ER, three 787-9, four 737-800 and eight used Airbus aircraft including two A320 and six A319.
- Announced an agreement with Boeing to convert 100 current 737 MAX orders into 737 MAX 10 aircraft starting in late 2020.
- Announced an agreement with Airbus to modify its A350 order resulting in a conversion of the model type from the A350-1000 to the A350-900, an increase in the order size from 35 to 45 aircraft and a deferral of the first delivery to late 2022.
- Retired the company's iconic Boeing 747 fleet with a final farewell flight between San Francisco and Honolulu.
Customer Experience
- Took several actions to improve the overall customer experience – including providing more tools to employees to assist customers and increasing compensation for denied boarding.
- Rolled out system-wide new Customer Solutions Desk with a dedicated team to develop creative solutions to assist customers in reaching their final destinations when their travel plans don't go as expected.
- Decreased involuntary denied boardings by 92% since April, and in December only had 13 involuntary denied boardings.
- Upgraded the Houston and Newark terminal experience with the opening of OTG experience, opened new security lanes with automated security bins at Chicago and Newark, and opened the brand new upgraded Los Angeles United Club along with new Global Services lobbies in Houston, Newark and Los Angeles.
- Improved the customer experience at Houston George Bush Intercontinental Airport by offering customers shorter, more convenient connection times and better access to more destinations through "rebanking" of the hub. UAL will "rebank" Chicago O'Hare beginning in February of 2018.
- Unveiled new enhancements to United's award-winning mobile app including bag tracking feature, ability to change and cancel flights in the app, add MileagePlus and United Club cards to the Apple Wallet, and allow customers to access boarding passes for 19 other carriers.
- Became the first airline to give customers access to flight information and other amenities skills for Amazon Alexa, Google Assistant and Fitbit Ionic smartwatch.
- Continued to improve the mobile tools used by employees, including the first release of the "in the moment" care app, and new functionality in flight attendant tools to better serve customers.
- The company received the CIO 100 award, an acknowledged mark of enterprise excellence in business technology.
- Launched a new online portal, United Jetstream, in an effort to simplify the travel management process and give corporate and agency customers an intuitive suite of self-service tools.
About United
United Airlines and United Express operate approximately 4,500 flights a day to 338 airports across five continents. In 2017, United and United Express operated more than 1.6 million flights carrying more than 148 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 744 mainline aircraft and the airline's United Express carriers operate 518 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 191 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the NYSE under the symbol "UAL".
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Certain statements included in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as "expects," "will," "plans," "anticipates," "indicates," "believes," "forecast," "guidance," "outlook," "goals" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: our ability to comply with the terms of our various financing arrangements; the costs and availability of financing; our ability to maintain adequate liquidity; our ability to execute our operational plans and revenue-generating initiatives, including optimizing our revenue; our ability to control our costs, including realizing benefits from our resource optimization efforts, cost reduction initiatives and fleet replacement programs; costs associated with any modification or termination of our aircraft orders; our ability to utilize our net operating losses; our ability to attract and retain customers; potential reputational or other impact from adverse events in our operations; demand for transportation in the markets in which we operate; an outbreak of a disease that affects travel demand or travel behavior; demand for travel and the impact that global economic and political conditions have on customer travel patterns; excessive taxation and the inability to offset future taxable income; general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aircraft fuel and energy refining capacity in relevant markets); economic and political instability and other risks of doing business globally; our ability to cost-effectively hedge against increases in the price of aircraft fuel if we decide to do so; any potential realized or unrealized gains or losses related to fuel or currency hedging programs; the effects of any hostilities, act of war or terrorist attack; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; the effects of any technology failures or cybersecurity breaches; disruptions to our regional network; the costs and availability of aviation and other insurance; industry consolidation or changes in airline alliances; the success of our investments in airlines in other parts of the world; competitive pressures on pricing and on demand; our capacity decisions and the capacity decisions of our competitors; U.S. or foreign governmental legislation, regulation and other actions (including Open Skies agreements and environmental regulations); the impact of regulatory, investigative and legal proceedings and legal compliance risks; the impact of any management changes; labor costs; our ability to maintain satisfactory labor relations and the results of any collective bargaining agreement process with our union groups; any disruptions to operations due to any potential actions by our labor groups; weather conditions; and other risks and uncertainties set forth under Part I, Item 1A., "Risk Factors," of our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission.
-tables attached-
| (In millions, except per share data) | Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
% Increase/ (Decrease) |
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
% Increase/ (Decrease) |
|---|---|---|---|---|---|---|
| Operating revenue: Passenger: Mainline |
$6,582 | $6,295 | 4.6 | $26,552 | $25,414 | 4.5 |
| Operating revenue: Passenger: Regional | 1,498 | 1,466 | 2.2 | 5,852 | 6,043 | (3.2) |
| Operating revenue: Passenger: (B) Total passenger revenue | 8,080 | 7,761 | 4.1 | 32,404 | 31,457 | 3.0 |
| Operating revenue: Cargo | 304 | 250 | 21.6 | 1,035 | 876 | 18.2 |
| Operating revenue: Other operating revenue | 1,054 | 1,041 | 1.2 | 4,297 | 4,223 | 1.8 |
| Operating revenue:Other operating revenue: Total operating revenue | 9,438 | 9,052 | 4.3 | 37,736 | 36,556 | 3.2 |
| Operating expense: Salaries and related costs |
2,704 | 2,568 | 5.3 | 11,045 | 10,275 | 7.5 |
| Operating expense: Aircraft fuel(C) | 1,875 | 1,555 | 20.6 | 6,913 | 5,813 | 18.9 |
| Operating expense: Landing fees and other rent | 570 | 553 | 3.1 | 2,240 | 2,165 | 3.5 |
| Operating expense: Regional capacity purchase | 580 | 552 | 5.1 | 2,232 | 2,197 | 1.6 |
| Operating expense: Depreciation and amortization | 539 | 504 | 6.9 | 2,149 | 1,977 | 8.7 |
| Operating expense: Aircraft maintenance materials and outside repairs | 479 | 448 | 6.9 | 1,856 | 1,749 | 6.1 |
| Operating expense: Distribution expenses | 328 | 316 | 3.8 | 1,349 | 1,303 | 3.5 |
| Operating expense: Aircraft rent | 145 | 159 | (8.8) | 621 | 680 | (8.7) |
| Operating expense: Special charges (D) | 31 | (31) | NM | 176 | 638 | NM |
| Operating expense: Other operating expenses | 1,458 | 1,423 | 2.5 | 5,657 | 5,421 | 4.4 |
| Operating expense: Total operating expenses | 8,709 | 8,047 | 8.2 | 34,238 | 32,218 | 6.3 |
| Operating income: Operating income | 729 | 1,005 | (27.5) | 3,498 | 4,338 | (19.4) |
| Operating margin: | 7.7% | 11.1% | (3.4) pts. | 9.3% | 11.9% | (2.6) pts. |
| Operating margin, excluding special charges (A) (Non-GAAP) | 8.1% | 10.8% | (2.7) pts. | 9.7% | 13.6% | (3.9) pts. |
| Nonoperating income (expense): Interest expense |
(171) | (148) | 15.5 | (643) | (614) | 4.7 |
| Nonoperating income (expense): Interest capitalized | 20 | 24 | (16.7) | 84 | 72 | 16.7 |
| Nonoperating income (expense): Interest income | 16 | 11 | 45.5 | 57 | 42 | 35.7 |
| Nonoperating income (expense): Miscellaneous, net (D) | 6 | (8) | NM | 3 | (19) | NM |
| Nonoperating income (expense): Total nonoperating expense | (129) | (121) | 6.6 | (499) | (519) | (3.9) |
| Income before income taxes: Income before income taxes | 600 | 884 | (32.1) | 2,999 | 3,819 | (21.5) |
| Pre-tax margin:Pre-tax margin | 6.4% | 9.8% | (3.4) pts. | 7.9% | 10.4% | (2.5) pts. |
| Pre-tax margin: Pre-tax margin, excluding special charges and reflecting hedge adjustments (A) (Non-GAAP) | 6.7% | 9.5% | (2.8) pts. | 8.4% | 12.2% | (3.8) pts. |
| Income tax expense: Income tax expense (E) | 20 | 487 | (95.9) | 868 | 1,556 | (44.2) |
| Net income: Net income | $580 | $397 | 46.1 | $2,131 | $2,263 | (5.8) |
| Earnings per share: Earnings per share, diluted | $1.99 | $1.26 | 57.9 | $7.02 | $6.85 | 2.5 |
| Weighted average shares: Weighted average shares, diluted | 291.8 | 315.7 | (7.6) | 303.6 | 330.3 | (8.1) |
|
||||||
| Statistics: |
|
NM Not meaningful |
| Statistics: | Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
% Increase/ (Decrease) |
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
% Increase/ (Decrease) |
|---|---|---|---|---|---|---|
| Mainline: Passengers (thousands) |
26,926 | 25,590 | 5.2 | 108,017 | 101,007 | 6.9 |
| Mainline:Revenue passenger miles (millions) | 47,192 | 45,608 | 3.5 | 193,444 | 186,181 | 3.9 |
| Mainline:Available seat miles (millions) | 57,866 | 55,440 | 4.4 | 234,576 | 224,692 | 4.4 |
| Mainline:Cargo ton miles (millions) | 910 | 790 | 15.2 | 3,316 | 2,805 | 18.2 |
| Mainline:Passenger revenue per available seat mile (cents) | 11.37 | 11.35 | 0.2 | 11.32 | 11.31 | 0.1 |
| Mainline:Average yield per revenue passenger mile (cents) | 13.95 | 13.80 | 1.1 | 13.73 | 13.65 | 0.6 |
| Mainline:Aircraft in fleet at end of period | 744 | 737 | 0.9 | 744 | 737 | 0.9 |
| Mainline:Average stage length (miles) | 1,775 | 1,804 | (1.6) | 1,806 | 1,859 | (2.9) |
| Mainline:Average daily utilization of each aircraft (hours: minutes) | 10:16 | 9:54 | 3.7 | 10:27 | 10:06 | 3.5 |
| Regional: Passengers (thousands) |
10,487 | 10,433 | 0.5 | 40,050 | 42,170 | (5.0) |
| Regional:Revenue passenger miles (millions) | 5,957 | 5,930 | 0.5 | 22,817 | 24,128 | (5.4) |
| Regional:Available seat miles (millions) | 7,162 | 7,078 | 1.2 | 27,810 | 28,898 | (3.8) |
| Regional:Passenger revenue per available seat mile (cents) | 20.92 | 20.71 | 1.0 | 21.04 | 20.91 | 0.6 |
| Regional:Average yield per revenue passenger mile (cents) | 25.15 | 24.72 | 1.7 | 25.65 | 25.05 | 2.4 |
| Regional:Aircraft in fleet at end of period | 518 | 494 | 4.9 | 518 | 494 | 4.9 |
| Regional:Average stage length (miles) | 558 | 560 | (0.4) | 558 | 564 | (1.1) |
| Consolidated (Mainline and Regional): Passengers (thousands) |
37,413 | 36,023 | 3.9 | 148,067 | 143,177 | 3.4 |
| Consolidated (Mainline and Regional)Revenue passenger miles (millions) | 53,149 | 51,538 | 3.1 | 216,261 | 210,309 | 2.8 |
| Consolidated (Mainline and Regional)Available seat miles (millions) | 65,028 | 62,518 | 4.0 | 262,386 | 253,590 | 3.5 |
| Consolidated (Mainline and Regional)Passenger load factor | 81.7% | 82.4% | (0.7) pts. | 82.4% | 82.9% | (0.5) pts. |
| Consolidated (Mainline and Regional)Domestic | 85.2% | 85.2% | — | 85.2% | 85.4% | (0.2) pts. |
| Consolidated (Mainline and Regional)Internal | 77.2% | 78.9% | (1.7) pts. | 78.9% | 80.0% | (1.1) pts. |
| Consolidated (Mainline and Regional)Passenger revenue per available seat mile (cents) | 12.43 | 12.41 | 0.2 | 12.35 | 12.40 | (0.4) |
| Consolidated (Mainline and Regional)Total revenue per available seat mile (cents) | 14.51 | 14.48 | 0.2 | 14.38 | 14.42 | (0.3) |
| Consolidated (Mainline and Regional)Average yield per revenue passenger mile (cents) | 15.20 | 15.06 | 0.9 | 14.98 | 14.96 | 0.1 |
| Consolidated (Mainline and Regional)Aircraft in fleet at end of period | 1,262 | 1,231 | 2.5 | 1,262 | 1,231 | 2.5 |
| Consolidated (Mainline and Regional)Average stage length (miles) | 1,431 | 1,441 | (0.7) | 1,460 | 1,473 | (0.9) |
| Consolidated (Mainline and Regional)Average full-time equivalent employees (thousands) | 85.6 | 84.8 | 0.9 | 86.0 | 83.9 | 2.5 |
| Note:See Part II, Item 6 Selected Financial Data of the company's annual report on Form 10-K for the year ended December 31, 2016 for the definition of these statistics. | ||||||
| (In millions, except per share data) | Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
% Increase/ (Decrease) |
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
% Increase/ (Decrease) |
|---|---|---|---|---|---|---|
| Operating income: Operating income | $729 | $1,005 | (27.5) | $3,498 | $4,338 | (19.4) |
| Operating margin:Operating margin: | 7.7% | 11.1% | (3.4) pts. | 9.3% | 11.9% | (2.6) pts. |
| Operating income, excluding special charges (Non-GAAP) | 760 | 974 | (22.0) | 3,674 | 4,976 | (26.2) |
| Operating margin, excluding special charges (Non-GAAP) | 8.1% | 10.8% | (2.7) pts. | 9.7% | 13.6% | (3.9) pts. |
| Adjusted EBITDA, excluding special charges and reflecting hedge adjustments (a) (Non-GAAP) | $1,305 | $1,474 | (11.5) | $5,826 | $6,939 | (16.0) |
| Adjusted EBITDA margin, excluding special charges and reflecting hedge adjustments (a) (Non-GAAP) | 13.8% | 16.3% | (2.5) pts. | 15.4% | 19.0% | (3.6) pts. |
| Pre-tax income | $600 | $884 | (32.1) | $2,999 | $3,819 | (21.5) |
| Pre-tax margin | 6.4% | 9.8% | (3.4) pts. | 7.9% | 10.4% | (2.5) pts. |
| Pre-tax income, excluding special charges and reflecting hedge adjustments (a) (Non-GAAP) | 631 | 857 | (26.4) | 3,175 | 4,462 | (28.8) |
| Pre-tax margin, excluding special charges and reflecting hedge adjustments (a) (Non-GAAP) | 6.7% | 9.5% | (2.8) pts. | 8.4% | 12.2% | (3.8) pts. |
| Net income: Net income | $580 | $397 | 46.1 | $2,131 | $2,263 | (5.8) |
| Net income: Net income, excluding special charges and reflecting hedge adjustments (a) (Non-GAAP) | 408 | 562 | (27.4) | 2,052 | 2,857 | (28.2) |
| Diluted earnings per share: Diluted earnings per share | $1.99 | $1.26 | 57.9 | $7.02 | $6.85 | 2.5 |
| Diluted earnings per share: Diluted earnings per share, excluding special charges and reflecting hedge adjustments (a) (Non-GAAP) | 1.40 | 1.78 | (21.3) | 6.76 | 8.65 | (21.8) |
| Net cash provided by operating activities: Net cash provided by operating activities | $728 | $658 | 10.6 | $3,413 | $5,542 | (38.4) |
| Capital expenditures: Capital expenditures | $1,098 | $880 | 24.8 | $3,998 | $3,223 | 24.0 |
| Capital expenditures: Adjusted capital expenditures (Non-GAAP) | 1,046 | 1,078 | (3.0) | 4,729 | 3,347 | 41.3 |
| Free cash flow: Free cash flow, net of financings (Non-GAAP) | $(370) | $(222) | NM | $(585) | $2,319 | NM |
| Free cash flow: Free cash flow (Non-GAAP) | (318) | (420) | NM | (1,316) | 2,195 | NM |
| (a) Hedge adjustments include prior period gains (losses) on fuel derivative contracts settled in the current period. See note D for further information. | ||||||
| (b) The company recorded a special income tax benefit adjustment of $192 million in 2017 and a special income tax expense adjustment of $180 million in 2016. See note E for further information on the income tax adjustments. | ||||||
| (in millions) | Twelve Months Ended December 31, 2017 |
||||
|---|---|---|---|---|---|
| Return On Invested CapitalNet Operating Profit After Tax (NOPAT) Pre-tax income |
$2,999 | ||||
| Return On Invested CapitalSpecial charges (D): Severance and benefit costs |
116 | ||||
| Return On Invested Capital Impairment of assets |
25 | ||||
| Return On Invested Capital (Gains) losses on sale of assets and other special charges |
35 | ||||
Pre-tax income excluding special charges and reflecting hedge adjustments - Non-GAAP |
3,175 | ||||
add: Interest expense (net of income tax benefit) (a) |
639 | ||||
add: Interest component of capitalized aircraft rent (net of income tax benefit) (a) |
302 | ||||
add: Net interest on pension (net of income tax benefit) (a) |
41 | ||||
less: Income taxes paid |
(20) | ||||
NOPAT - Non-GAAP |
$4,137 | ||||
| Return On Invested CapitalInvested Capital (five-quarter average) Total assets |
$41,753 | ||||
add: Capitalized aircraft operating leases (b) |
4,585 | ||||
less: Non-interest bearing liabilities (c) |
(16,394) | ||||
Average invested capital - Non-GAAP |
$29,944 | ||||
Return On Invested Capital - Non-GAAP |
13.8% | ||||
|
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|
UNITED CONTINENTAL HOLDINGS, INC. |
|
(A) UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and Non-GAAP financial measures, including operating income (loss) excluding special charges, income (loss) before income taxes excluding special charges and reflecting hedge adjustments, net income (loss) excluding special charges and reflecting hedge adjustments, net earnings (loss) per share excluding special charges and reflecting hedge adjustments, and CASM, as adjusted, among others. CASM is a common metric used in the airline industry to measure an airline's cost structure and efficiency. UAL reports CASM excluding special charges, third-party business expenses, fuel and profit sharing. UAL believes that adjusting for special charges is useful to investors because special charges are non-recurring charges not indicative of UAL's ongoing performance. UAL also believes that excluding third-party business expenses, such as maintenance, ground handling and catering services for third parties, fuel sales and non-air mileage redemptions, provides more meaningful disclosure because these expenses are not directly related to UAL's core business. UAL also believes that excluding fuel costs from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence. UAL excludes profit sharing because this exclusion allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry. In addition, the company believes that adjusting for prior period gains and losses on fuel derivative contracts settled in the current period is useful because the adjustments allow investors to better understand the cash impact of settled fuel derivative contracts in a given period. Pursuant to SEC Regulation G, UAL has included the following reconciliations of reported Non-GAAP financial measures to comparable financial measures reported on a GAAP basis. |
| Statistics: | Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
% Increase/ (Decrease) |
Nine Months Ended December 31, 2017 |
Nine Months Ended December 31, 2016 |
% Increase/ (Decrease) |
|---|---|---|---|---|---|---|
| CASM Mainline Operations (cents) Cost per available seat mile (CASM) |
12.90 | 12.43 | 3.8 | 12.59 | 12.22 | 3.0 |
| Cost per available seat mile (CASM)Special charges (D) | 0.06 | (0.06) | NM | 0.07 | 0.29 | NM |
| Cost per available seat mile (CASM)Third-party business expenses | 0.12 | 0.13 | (7.7) | 0.12 | 0.11 | 9.1 |
| Cost per available seat mile (CASM)Fuel expense | 2.68 | 2.33 | 15.0 | 2.46 | 2.16 | 13.9 |
| CASM Mainline OperationsCASM, excluding special charges, third-party business expenses and fuel | 10.04 | 10.03 | 0.1 | 9.94 | 9.66 | 2.9 |
| CASM Mainline OperationsProfit sharing per available seat mile | 0.08 | 0.22 | (63.6) | 0.15 | 0.28 | (46.4) |
| CASM Mainline OperationsCASM, excluding special charges, third-party business expenses, fuel, and profit sharing | 9.96 | 9.81 | 1.5 | 9.79 | 9.38 | 4.4 |
| CASM Consolidated Operations (cents)Cost per available seat mile (CASM) | 13.39 | 12.87 | 4.0 | 13.05 | 12.70 | 2.8 |
| CASM Mainline Operations (cents)Special charges (D) | 0.04 | (0.05) | NM | 0.07 | 0.25 | NM |
| CASM Mainline Operations (cents)Third-party business expenses | 0.12 | 0.11 | 9.1 | 0.10 | 0.10 | — |
| CASM Mainline Operations (cents) Fuel expense | 2.88 | 2.49 | 15.7 | 2.64 | 2.29 | 15.3 |
| CASM Mainline Operations (cents) CASM, excluding special charges, third-party business expenses and fuel | 10.35 | 10.32 | 0.3 | 10.24 | 10.06 | 1.8 |
| CASM Mainline Operations (cents) Profit sharing per available seat mile | 0.07 | 0.19 | (63.2) | 0.13 | 0.25 | (48.0) |
| CASM Mainline Operations (cents) CASM, excluding special charges, third-party business expenses, fuel, and profit sharing | 10.28 | 10.13 | 1.5 | 10.11 | 9.81 | 3.1 |
| (In millions) | Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
$ Increase/ (Decrease) |
% Increase/ (Decrease) |
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
$ Increase/ (Decrease) |
% Increase/ (Decrease) |
|---|---|---|---|---|---|---|---|---|
| Operating expenses | $8,709 | $8,047 | $662 | 8.2 | $34,238 | $32,218 | $2,020 | 6.3 |
| Operating expensesSpecial charges (D) | 31 | (31) | 62 | NM | 176 | 638 | (462) | NM |
| Operating expenses, excluding special charges Operating expenses, excluding special charges | 8,678 | 8,078 | 600 | 7.4 | 34,062 | 31,580 | 2,482 | 7.9 |
| Operating expenses, excluding special chargesThird-party business expenses | 72 | 69 | 3 | 4.3 | 277 | 257 | 20 | 7.8 |
| Operating expenses, excluding special chargesFuel expense | 1,875 | 1,555 | 320 | 20.6 | 6,913 | 5,813 | 1,100 | 18.9 |
| Operating expensesProfit sharing, including taxes | 45 | 122 | (77) | (63.1) | 349 | 628 | (279) | (44.4) |
| Operating expensesOperating expenses, excluding fuel, profit sharing, special charges and third-party business expenses | $6,686 | $6,332 | $354 | 5.6 | $26,523 | $24,882 | $1,641 | 6.6 |
| Operating income | $729 | $1,005 | $(276) | (27.5) | $3,498 | $4,338 | $(840) | (19.4) |
| Operating incomeLess: Special charges (D) | 31 | (31) | 62 | NM | 176 | 638 | (462) | NM |
| Operating incomeOperating income, excluding special charges | $760 | $974 | $(214) | (22.0) | $3,674 | $4,976 | $(1,302) | (26.2) |
| Operating incomeIncome before income taxes | $600 | $884 | $(284) | (32.1) | $2,999 | $3,819 | $(820) | (21.5) |
| Operating incomeSpecial charges and hedge adjustments before income taxes (D) | 31 | (27) | 58 | NM | 176 | 643 | (467) | NM |
| Operating incomeIncome before income taxes and excluding special items | $631 | $857 | $(226) | (26.4) | $3,175 | $4,462 | $(1,287) | (28.8) |
| Operating incomeNet income | $580 | $397 | $183 | 46.1 | $2,131 | $2,263 | $(132) | (5.8) |
| Operating incomeSpecial charges and hedge adjustments, net of tax (D) | (172) | 165 | (337) | NM | (79) | 594 | (673) | NM |
| Operating incomeNet income, excluding special charges and reflecting hedge | $408 | $562 | $(154) | (27.4) | $2,052 | $2,857 | $(805) | (28.2) |
| Diluted earnings per shareDiluted earnings per share | $1.99 | $1.26 | $0.73 | 57.9 | $7.02 | $6.85 | $0.17 | 2.5 |
| Diluted earnings per shareSpecial charges and hedge adjustments | 0.11 | (0.09) | 0.20 | NM | 0.58 | 1.95 | (1.37) | NM |
| Diluted earnings per shareTax effect related to special charges and hedge adjustments | (0.70) | 0.61 | (1.31) | NM | (0.84) | (0.15) | (0.69) | NM |
| Diluted earnings per shareDiluted earnings per share, excluding special items | $1.40 | $1.78 | $(0.38) | (21.3) | $6.76 | $8.65 | $(1.89) | (21.8) |
|
UAL provides financial metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA), that we believe provide useful supplemental information for management and investors by measuring profit and profit as a percentage of total operating revenues. Adjusted EBITDA is EBITDA excluding special charges that are non-recurring and that management believes are not indicative of UAL's ongoing performance. Adjusted EBITDA also includes hedge adjustments to reflect the cash impact of fuel derivative contracts settled in the current period. |
||||||||||||||||
| EBITDA (In millions) |
Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income: Net income |
$580 | $397 | $2,131 | $2,263 | ||||||||||||
| Net income Adjusted for:Depreciation and amortization | 539 | 504 | 2,149 | 1,977 | ||||||||||||
| Net income Adjusted for:Interest expense | 171 | 148 | 643 | 614 | ||||||||||||
| Net income Adjusted for:Interest capitalized | (20) | (24) | (84) | (72) | ||||||||||||
| Net income Adjusted for:Interest income | (16) | (11) | (57) | (42) | ||||||||||||
| Net income Adjusted for:Income tax expense(E) | 20 | 487 | 868 | 1,556 | ||||||||||||
| Net income Adjusted for:Special charges and hedge adjustments before income taxes (D) | 31 | (27) | 176 | 643 | ||||||||||||
| Adjusted EBITDA, excluding special charges and reflecting hedge adjustments - Non-GAAPAdjusted EBITDA, excluding special charges and reflecting hedge adjustments - Non-GAAP | $1,305 | $1,474 | $5,826 | $6,939 | ||||||||||||
|
UAL believes that adjusting capital expenditures for assets acquired through the issuance of debt and capital leases, airport construction financing and excluding fully reimbursable projects is useful to investors in order to appropriately reflect the non-reimbursable funds spent on capital expenditures. UAL also believes that adjusting net cash provided by operating activities for capital expenditures and adjusted capital expenditures is useful to allow investors to evaluate the company's ability to generate cash that is available for debt service or general corporate initiatives. |
||||||||||||||||
| Capital Expenditures (In millions) |
Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
||||||||||||
| Capital expenditures:Capital expenditures | $1,098 | $880 | $3,998 | $3,223 | ||||||||||||
| Capital expenditures:Property and equipment acquired through the issuance of debt and capital leases | 17 | 271 | 935 | 386 | ||||||||||||
| Capital expenditures:Airport construction financing | 1 | 23 | 42 | 91 | ||||||||||||
| Capital expenditures:Fully reimbursable projects | (70) | (96) | (246) | (353) | ||||||||||||
| Capital expenditures:Adjusted capital expenditures – Non-GAAP | $1,046 | $1,078 | $4,729 | $3,347 | ||||||||||||
| Free Cash Flow (In millions) |
||||||||||||||||
| Free Cash Flow:Net cash provided by operating activities | $728 | $658 | $3,413 | $5,542 | ||||||||||||
| Free Cash Flow:Less capital expenditures | 1,098 | 880 | 3,998 | 3,223 | ||||||||||||
| Free Cash Flow:Free cash flow, net of financings - Non-GAAP | $(370) | $(222) | $(585) | $2,319 | ||||||||||||
| Free Cash Flow:Net cash provided by operating activities | $728 | $658 | $3,413 | $5,542 | ||||||||||||
| Free Cash Flow:Less adjusted capital expenditures – Non-GAAP | 1,046 | 1,078 | 4,729 | 3,347 | ||||||||||||
| Free Cash Flow:Free cash flow - Non-GAAP | $(318) | $(420) | $(1,316) | $2,195 | ||||||||||||
| Notes (Unaudited): | 4Q 2017 Passenger Revenue (millions) |
Passenger Revenue vs. 4Q 2016 |
PRASM vs. 4Q 2016 |
Yield vs. 4Q 2016 |
Available Seat Miles vs. 4Q 2016 |
|---|---|---|---|---|---|
| Mainline:Mainline | $3,626 | 7.3% | 0.3% | 0.1% | 7.1% |
| Regional:Regional | 1,453 | 2.7% | 1.0% | 1.9% | 1.7% |
| Domestic:Domestic | 5,079 | 6.0% | (0.1%) | 0.0% | 6.0% |
| Atlantic:Atlantic | 1,312 | 5.3% | 1.3% | 1.5% | 4.0% |
| Pacific:Pacific | 986 | (4.3%) | (2.9%) | 0.6% | (1.4%) |
| Latin America:Latin America | 703 | 1.6% | (0.6%) | 2.6% | 2.3% |
| International:International | 3,001 | 1.1% | (0.4%) | 1.9% | 1.4% |
| Consolidated:Consolidated | 8,080 | 4.1% | 0.2% | 0.9% | 4.0% |
| Mainline:Mainline | $6,582 | 4.6% | 0.2% | 1.1% | 4.4% |
| Regional:Regional | 1,498 | 2.2% | 1.0% | 1.7% | 1.2% |
| Consolidated:Consolidated | 8,080 |
| (In millions, except per gallon) | Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
% Increase/ (Decrease) |
Nine Months Ended December 31, 2017 |
Nine Months Ended December 31, 2016 |
% Increase/ (Decrease) |
|---|---|---|---|---|---|---|
| Mainline fuel expense excluding hedge impacts Mainline fuel expense excluding hedge impacts | $1,551 | $1,270 | 22.1 | $5,770 | $4,640 | 24.4 |
| Hedge losses reported in fuel expense (a) | — | (20) | NM | (2) | (217) | NM |
| Total mainline fuel expenseTotal mainline fuel expense | 1,551 | 1,290 | 20.2 | 5,772 | 4,857 | 18.8 |
| Regional fuel expense Regional fuel expense | 324 | 265 | 22.3 | 1,141 | 956 | 19.4 |
| Consolidated fuel expenseConsolidated fuel expense | $1,875 | $1,555 | 20.6 | $6,913 | $5,813 | 18.9 |
| Mainline fuel consumption (gallons)Mainline fuel consumption (gallons) | 820 | 804 | 2.0 | 3,357 | 3,261 | 2.9 |
| Mainline average aircraft fuel price per gallonMainline average aircraft fuel price per gallon | $1.89 | $1.60 | 18.1 | $1.72 | $1.49 | 15.4 |
| Mainline average aircraft fuel price per gallon excluding hedge losses recorded in fuel expenseMainline average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense | $1.89 | $1.58 | 19.6 | $1.72 | $1.42 | 21.1 |
| Regional fuel consumption (gallons)Regional fuel consumption (gallons) | 160 | 158 | 1.3 | 621 | 643 | (3.4) |
| Regional average aircraft fuel price per gallonRegional average aircraft fuel price per gallon | $2.03 | $1.68 | 20.8 | $1.84 | $1.49 | 23.5 |
| Consolidated fuel consumption (gallons)Consolidated fuel consumption (gallons) | 980 | 962 | 1.9 | 3,978 | 3,904 | 1.9 |
| Consolidated average aircraft fuel price per gallonConsolidated average aircraft fuel price per gallon | $1.91 | $1.62 | 17.9 | $1.74 | $1.49 | 16.8 |
| Consolidated average aircraft fuel price per gallon excluding hedge losses recorded in fuel expenseConsolidated average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense | $1.91 | $1.60 | 19.4 | $1.74 | $1.43 | 21.7 |
|
||||||
|
(a) UAL allocates 100 percent of losses from settled hedges that were designated for hedge accounting to mainline fuel expense. |
| (In millions) | Three Months Ended December 31, 2017 |
Three Months Ended December 31, 2016 |
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
|---|---|---|---|---|
| Operating: Severance and benefit costs |
$15 | $10 | $116 | $37 |
| Operating:Impairment of assets | 10 | — | 25 | 412 |
| Operating:Labor agreement costs | — | (60) | — | 64 |
| Operating:Cleveland airport lease restructuring | — | — | — | 74 |
| Operating:(Gains) losses on sale of assets and other special charges | 6 | 19 | 35 | 51 |
| Operating:Subtotal | 31 | (31) | 176 | 638 |
| Other nonoperating (gains) losses:Other nonoperating (gains) losses | — | — | — | (1) |
| Total special charges:Total special charges | 31 | (31) | 176 | 637 |
| Income tax benefit related to special charges:Income tax benefit related to special charges | (11) | 12 | (63) | (229) |
| Total special charges, net of income taxes:Total special charges, net of income taxes | 20 | (19) | 113 | 408 |
| Income tax adjustments (E) | (192) | 180 | (192) | 180 |
| Hedge adjustments: prior period gains on fuel derivative contracts settled in the current period:Hedge adjustments: prior period gains on fuel derivative contracts settled in the current period | — | 4 | — | 6 |
| Total special charges and hedge adjustments, net of income taxes:Total special charges and hedge adjustments, net of income taxes | $(172) | $165 | $(79) | $594 |
|
Special charges, hedge adjustments and income tax adjustments |
|
Severance and benefit costs: During the three months and year ended December 31, 2017, the company recorded $10 million ($6 million net of taxes) and $83 million ($53 million net of taxes), respectively, of severance and benefit costs related to a voluntary early-out program for its technicians and related employees represented by the International Brotherhood of Teamsters (the "IBT"). In the first quarter of 2017, approximately 1,000 technicians and related employees elected to voluntarily separate from the company and will receive a severance payment, with a maximum value of $100,000 per participant, based on years of service, with retirement dates through early 2019. Also during the three months and year ended December 31, 2017, the company recorded $5 million ($3 million net of taxes) and $33 million ($21 million net of taxes), respectively, of severance primarily related to its management reorganization initiative. |
|
During the three months and year ended December 31, 2016, the company recorded $10 million ($6 million net of taxes) and $37 million ($24 million net of taxes), respectively, of severance and benefit costs related to a voluntary early-out program for the company's flight attendants and other severance agreements. |
|
Impairment of assets: In the fourth quarter of 2017, the company recorded a $10 million ($6 million net of taxes) impairment charge related to obsolete spare parts inventory. During 2017, United recorded a $15 million ($10 million net of taxes) intangible asset impairment charge related to a maintenance service agreement. |
|
In April 2016, the Federal Aviation Administration ("FAA") announced that, effective October 30, 2016, it would designate Newark Liberty International Airport ("Newark") as a Level 2 schedule-facilitated airport under the International Air Transport Association Worldwide Slot Guidelines. The designation was associated with an updated demand and capacity analysis of Newark by the FAA. In the second quarter of 2016, the company determined that the FAA's action impaired the entire value of its Newark slots because the slots are no longer the mechanism that governs take-off and landing rights. Accordingly, the company recorded a $412 million special charge ($264 million net of taxes) to write off the intangible asset. |
|
Labor agreement costs and related items: In 2016, the fleet service, passenger service, storekeeper and other employees represented by the International Association of Machinists and Aerospace Workers (IAM) ratified seven new contracts with the company which extended the contracts through 2021. Also in 2016, the technicians and related employees represented by the International Brotherhood of Teamsters (IBT) ratified a six-year joint collective bargaining agreement which extended the contract through 2022. During 2016, the company recorded $171 million ($110 million net of taxes) of special charges primarily for payments in conjunction with the IAM and IBT agreements described above. As part of the ratified contract with the IBT, the company amended some of its technicians and related employees' postretirement medical plans. The amendments triggered curtailment accounting, resulting in the recognition of a one-time $60 million gain ($38 million net of taxes) for accelerated recognition of a prior service credit in one of the plans. Also, as part of the ratified contract with the Association of Flight Attendants, the company amended two of its flight attendant postretirement medical plans. The amendments triggered curtailment accounting, resulting in the recognition of a one-time $47 million gain ($30 million net of taxes) for accelerated recognition of a prior service credit. |
|
Cleveland airport lease restructuring: During 2016, the City of Cleveland agreed to amend the company's lease, which runs through 2029, associated with certain excess airport terminal space (principally Terminal D) and related facilities at Hopkins International Airport. The company recorded an accrual for remaining payments under the lease for facilities that the company no longer uses and will continue to incur costs under the lease without economic benefit to the company. This liability was measured and recorded at its fair value when the company ceased its right to use such facilities leased to it pursuant to the lease. The company recorded a special charge of $74 million ($47 million net of taxes) related to the amended lease. |
|
Hedge adjustments: Prior to 2017, the company used certain combinations of derivative contracts that were economic hedges but did not qualify for hedge accounting under U.S. generally accepted accounting principles. As with derivatives that qualified for hedge accounting, the economic hedges and individual contracts were part of the company's program to mitigate the adverse financial impact of potential increases in the price of fuel. The company recorded changes in the fair value of the various contracts that were not designated for hedge accounting to Nonoperating income (expense): Miscellaneous, net in the statements of consolidated operations. During the three months and year ended December 31, 2016, for fuel derivative contracts that settled in the three months and year ended December 31, 2016, the company recorded mark-to-market gains of $4 million and $6 million, respectively, in prior periods. |
|
(E) Effective tax rate: The company's effective tax rate for the three months and year ended December 31, 2017 was 3.5% and 29.0%, respectively. The company's effective tax rate for the three months and year ended December 31, 2016 was 55.1% and 40.7%, respectively. The rate for both 2017 periods was impacted by a one-time, $192 million benefit due to the passage of the Tax Cuts and Jobs Act in the fourth quarter of 2017. The rate for both 2016 periods was impacted by a special tax expense of $180 million. In 2016, the company recorded approximately $180 million of deferred income tax expense adjustments in AOCI, which related to losses on fuel hedges designated for hedge accounting. Accounting rules required the adjustments to remain in AOCI as long as the company had fuel derivatives designated for cash flow hedge accounting. In 2016, we settled all of our fuel hedges and have not entered into any new fuel derivative contracts for hedge accounting. Accordingly, the company reclassified the $180 million to income tax expense in 2016. |
|
The effective tax rates for the 2017 and 2016 periods represented a blend of federal, state and foreign taxes and the impact of certain nondeductible items. The effective tax rate for the three months and year ended December 31, 2017 reflects the impact of a change in the mix of domestic and foreign earnings. |
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
Readers also voted MileagePlus Best Frequent-Flyer Bonus Program for the seventh consecutive year. The airline's co-brand MileagePlus Club Card from Chase was voted Best Overall Credit Card Program and Best Credit Card Rewards Program for the eighth consecutive year. The United Explorer Card from Chase was named Best Frequent-Flyer Affinity Credit Card Redemptions in this year's survey.
"MileagePlus earning the Best Overall Frequent Flyer program for the 16th straight year is a sweet achievement for us, most importantly because it is voted on by members and frequent travelers around the world," said Luc Bondar, president of MileagePlus and vice president of loyalty at United. "This year we made a number of improvements to the MileagePlus program, including announcing that miles never expire, and we know these changes continue to make MileagePlus an award-winning program for our members."
This year, United made numerous enhancements to MileagePlus to make it a more rewarding loyalty program for members at each level. The airline announced that MileagePlus miles never expire, began offering discounted or free CLEAR memberships for members and introduced an industry leading way for Premier Platinum members and above to manage upgrades with the introduction of PlusPoints. United and Star Alliance offer members more than 1,300 destinations for award travel, more than any other U.S. airline. MileagePlus members also have more ways to earn and use their miles than any other U.S. airline loyalty program including opportunities to use miles for once in a lifetime experiences through MileagePlus Exclusives and opportunities to redeem as low as 1,000 miles for eGift cards.
Every customer. Every flight. Every day.
In 2019, United is focusing more than ever on 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, this year United:
- Announced that MileagePlus award miles will never expire
- Gave Economy customers a choice of complimentary snacks on domestic flights
- Made DIRECTV free for every customer on more than 200 aircraft
- Released a new version of the award-winning, most downloaded app in the airline industry
- Launched a new tool called ConnectionSaver, dedicated to improving the experience for customers with connecting flights
- Partnered with CLEAR on free or discounted memberships for MileagePlus members
- Announced PlusPoints, new upgrade benefits for MileagePlus Premier members
- And introduced products in its amenity kits made exclusively for the airline by luxury skincare line Sunday Riley
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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 788 mainline aircraft and the airline's United Express partners operate 560 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
"With United in a stronger position than ever, now is the right time to begin the process of passing the baton to a new leader," Munoz said. "One of my goals as CEO was to put in place a successful leadership transition for United Airlines. I brought Scott to United three years ago, and I am confident that there is no one in the world better equipped to lead United to even greater heights. It has been the honor of my career to lead the 95,000 dedicated professionals who serve United's customers every day. I look forward to continuing to work closely with Scott in the months ahead and supporting the company's ongoing success in my new role."
Kirby was recruited to United Airlines by Munoz in August 2016, after a three-decade career in the commercial airline business. His appointment reflects a commitment from Munoz and the Board to preserve leadership continuity and demonstrates confidence in the airline's strategy and current trajectory.
"When I joined United as CEO, I laid out ambitious goals to build a new spirit of United by regaining the trust of our employees and customers – and I'm proud of how far we've come," Munoz said. "Along with the successful implementation of the plan our team laid out in January 2018, United's operational and financial performance isn't just better – it's better than ever. By instilling a culture of 'proof not promise,' we have transformed United even faster than we expected and there's an incredible sense of excitement about the future."
Kirby, a highly-regarded industry leader, has played a pivotal role in enabling United's cultural transformation and successfully executing the company's strategic growth plan.
"I am honored to be named the next CEO of United and to succeed Oscar, whose leadership has been truly transformational for United Airlines," Kirby said. "I look forward to working with Oscar, the Board, our established leadership team and every United employee as we drive forward our proven strategy and focus on being the airline customers choose to fly and return to time and again."
Munoz will serve as Executive Chairman for a one-year term and will continue to work closely with Kirby, the Board and the United team in shaping United's employee and customer-centric culture. He will also lead the company's Board and continue to engage on behalf of United with a range of external stakeholders.
As part of this transition, United's current Chairman, Jane Garvey, will retire from the Board in May 2020 after more than a decade of exceptional service, including serving as Chairman since May 2018. At the request of the Board, Garvey agreed to remain in her role for a year beyond the Board's mandatory retirement age.
"On behalf of the Board of Directors, I cannot thank Oscar enough for his outstanding leadership and commitment to United, and we are pleased that we will continue to benefit from his expertise and experience in his role as Executive Chairman," Garvey said. "Oscar became CEO at one of the most challenging points in United's history, and his focus on putting customers and employees first has transformed United's culture today and successfully positioned the company for tomorrow. One of Oscar's greatest legacies is the best-in-class leadership team he has built, and we have full confidence that Scott is the ideal candidate to lead United into the bright future that lies ahead."
The company also announced that Ted Philip will become Lead Independent Director following the 2020 Annual Meeting of Shareholders. Philip joined the Board in July 2016 and chairs the Nominating/Governance Committee. He also currently serves on the Board of Directors of Hasbro, Inc. and BRP Inc.
"I could not be more excited about the opportunity that we have at United over the next several years to fulfill this airline's incredible potential," Philip said. "I am proud to work alongside Oscar in guiding United's Board and leadership team, and I am eager to get to work on delivering for all of our stakeholders. The entire Board and I want to thank Jane for her many contributions to United over the last decade, including her highly successful tenure as Chairman."
All of the changes announced today will take effect following the company's Annual Meeting of Shareholders, scheduled for May 20, 2020.
Every customer. Every flight. Every day.
In 2019, United is focusing more than ever on 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 news, United recently announced that MileagePlus miles will now never expire, giving members a lifetime to use miles on flights and experiences. Customers now have more free on board snack options as well, with a choice of Lotus Biscoff cookies, pretzels and the Stroopwafel. The airline also recently released a re-imagined version of the most downloaded app in the airline industry, introduced ConnectionSaver – a tool dedicated to improving the experience for customers connecting from one United flight to the next – and launched PlusPoints, a new upgrade benefit for MileagePlus premier members.
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 356 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 783 mainline aircraft and the airline's United Express partners operate 561 regional aircraft. United is a founding member of Star Alliance, which provides service to 193 countries via 27 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.
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
"The new Airbus A321XLR aircraft is an ideal one-for-one replacement for the older, less-efficient aircraft currently operating between some of the most vital cities in our intercontinental network," said Andrew Nocella, United's executive vice president and chief commercial officer. "In addition to strengthening our ability to fly more efficiently, the A321XLR's range capabilities open potential new destinations to further develop our route network and provide customers with more options to travel the globe."
The next-generation A321XLR offers customers an elevated inflight experience and features modern amenities including LED lighting, larger overhead bin space and Wi-Fi connectivity. Additionally, the new aircraft lowers overall fuel burn per seat by about 30% when compared to previous generation aircraft, enabling United to further minimize its environmental impact as the carrier moves towards its ambitious goal of reducing its carbon footprint by 50% relative to 2005 levels by 2050.
United plans to begin taking delivery of the Airbus A321XLR in 2024. Additionally, the airline will defer the delivery of its order of Airbus A350s until 2027 to better align with the carrier's operational needs.
Every customer. Every flight. Every day.
In 2019, United is focusing more than ever on 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, this year United:
- Announced that MileagePlus award miles will never expire
- Gave economy customers a choice of complimentary snacks on domestic flights
- Made DIRECTV free for every customer on more than 200 aircraft
- Released a new version of the award-winning, most downloaded app in the airline industry
- Launched a new tool called ConnectionSaver, dedicated to improving the experience for customers with connecting flights
- Partnered with CLEAR on free or discounted memberships for MileagePlus members
- Announced PlusPoints, new upgrade benefits for MileagePlus Premier members
- And introduced products in its amenity kits made exclusively for the airline by luxury skincare line Sunday Riley
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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 788 mainline aircraft and the airline's United Express partners operate 560 regional aircraft. United is a founding member of Star Alliance, which provides service to 193 countries via 27 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
CHICAGO, Dec. 3, 2019 /PRNewswire/ -- United Airlines continues its successful Miles on a Mission campaign this Giving Tuesday by pledging to match customer donations up to a total of 10 million MileagePlus® miles to featured Miles on a Mission partners. The campaign is a first-of-its-kind crowdsourcing platform that gives customers a simple, and easy way to donate miles to non-profit organizations and charities in need of air travel. Brian Kelly, founder and CEO of The Points Guy, will kick off a holiday donation drive today in Terminal C at Newark Liberty International Airport by meeting and encouraging MileagePlus members to donate miles to the effort.
The inaugural round of Miles on a Mission assisted 12 charity campaigns, which raised more than 11 million MileagePlus miles in just 28 days. MileagePlus members can now visit united.com/donate to make contributions to non-profit organizations in need of air travel.
"As our customers begin to think about ways to give back this holiday season, we are proud to offer more options to use miles in support of causes and charities that are meaningful to our customers," said Sharon Grant, vice president and chief community engagement officer at United Airlines. "We know many of our customers are looking to make a difference and we want to give them opportunities to make the giving of their miles go even further. Donating miles is a powerful way to contribute to an organization."
The following non-profit organizations are participating in the Giving Tuesday campaign:
- A Walk on Water
- Surf Therapy organization serving families of children with unique needs by offering transformative experiences at the beach.
- Compass to Care
- Chicago-based organization that assists children suffering from cancer with travel to receive life-saving cancer treatment. Thirty percent of children diagnosed with cancer do not have treatment options within 60 miles of their homes.
- The Extra Mile
- Chicago-based organization that gives flights to those in need of visiting terminally ill loved ones, who cannot otherwise afford the trip to say their final goodbyes.
- I AM ALS
- I AM ALS is uniting patients, advocates, and the scientific community to reshape public understanding of ALS, provide key resources to the community to fight ALS, and empower them to lead the search for treatments and cures for this currently terminal disease.
- PeaceJam
- A global peace organization teaching young people the skills they need to tackle today's most pressing issues. Your miles will support youth to work directly with PeaceJam's 14 Nobel Peace Laureates at summits around world.
- Rainbow Railroad
- Organization that helps those who identify as LGBTQI seek asylum from their countries of origin. They will use the miles they raise to book flights for individuals they are helping to travel to safety.
- The Station Foundation
- Organization committed to protecting and empowering U.S. Special Operations veterans returning from combat, their spouses, families and Gold Star children.
- Up2Us Sports
- Organization that works to engage, train and support sports coaches to serve as mentors and role models to youth in underserved communities all across America.
Eligible charities can apply for the opportunity to launch a 28-day rotation to raise miles for their organization through MileagePlus member donations. Approved charities will work with United to reach goals of raising between 250,000 and 5 million miles. Organizations looking to launch a campaign can visit the Miles on a Mission website for full application details.
Every customer. Every flight. Every day.
In 2019, United is focusing more than ever on 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, this year United:
- Announced that MileagePlus award miles will never expire
- Gave Economy customers a choice of complimentary snacks on domestic flights
- Made DIRECTV free for every customer on more than 200 aircraft
- Released a new version of the award-winning, most downloaded app in the airline industry
- Launched a new tool called ConnectionSaver, dedicated to improving the experience for customers with connecting flights
- Partnered with CLEAR on free or discounted memberships for MileagePlus members
- Announced PlusPoints, new upgrade benefits for MileagePlus Premier members
- And introduced products in its amenity kits made exclusively for the airline by luxury skincare line Sunday Riley
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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 788 mainline aircraft and the airline's United Express partners operate 560 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
"We want to do everything we can to help improve the experience of traveling across time zones, whether it's a business trip to Tel Aviv or a vacation to Tahiti, our customers should arrive feeling fresh and ready to hit the ground running," said Vice President of Loyalty and President of MileagePlus, Luc Bondar. "Timeshifter takes all the guesswork out of avoiding jet lag and instead uses science and algorithms to design a customized, step-by-step trip across time zones. I was a believer the first time I used the app and I think our customers will love it too."
Timeshifter was developed by top researchers in sleep and circadian neuroscience and is aimed at customers crossing three or more time zones. The app uses an algorithm to customize plans for customers based on a number of factors including normal sleep pattern, flight details and individual preferences, creating a personalized jet lag alleviation plan. Each plan includes:
- Instructions for when travelers should prioritize exposure to bright light or avoid it.
- A sleep and napping schedule based on his or her own sleep preferences.
- A plan to optimize caffeine intake for alertness and sleep.
- Optional timing for taking melatonin, should travelers choose to do so.
MileagePlus members will receive a free jet lag plan for a flight plan of their choosing in addition to the complimentary trial Timeshifter offers customers for a total of two free flight plans. MileagePlus Premier 1K members will be able to sign up for complimentary annual subscriptions for unlimited access to jet lag plans when they travel. Individual plans for the app retail at $9.99 for a round trip plan and yearly memberships are $24.99.
United's partnership with Timeshifter is an additional step in improving the travel experience for MileagePlus members. Earlier this year, United announced that MileagePlus miles no longer expire and partnered with CLEAR to provide members with free or deeply discounted memberships to help make travel easier and more predictable.
United flies some of the longest routes in the world, including the two longest flights operated by a U.S. carrier with non-stop service between Houston and Sydney and between San Francisco and Singapore. In December, United will become the only airline to fly direct from North America to Cape Town, South Africa with the start of brand-new service from New York/Newark. United flies 320 routes to 120 international destinations from the U.S.
Every customer. Every flight. Every day.
In 2019, United is focusing more than ever on 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, this year United:
- Announced that MileagePlus award miles will never expire
- Gave Economy customers a choice of complimentary snacks on domestic flights
- Made DIRECTV free for every customer on more than 200 aircraft
- Released a new version of the award-winning, most downloaded app in the airline industry
- Launched a new tool called ConnectionSaver, dedicated to improving the experience for customers with connecting flights
- Partnered with CLEAR on free or discounted memberships for MileagePlus members
- Announced PlusPoints, new upgrade benefits for MileagePlus Premier members
- And introduced products in its amenity kits made exclusively for the airline by luxury skincare line Sunday Riley
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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 788 mainline aircraft and the airline's United Express partners operate 560 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
In addition to supporting these funds, United is working with the American Red Cross to provide approximately 5,000 blankets to shelters across the state of California. Today's announcement builds on United's continued commitment to California and recent campaigns to aid in response to wildfires and other disasters. United has strong partnerships with the American Red Cross, the California State Fire Foundation (Cal Fire) and the California State Parks Foundation to support California year-round, not just when disasters strike.
"As many of our neighbors return safely home, we grieve for those families who have lost so much from the Kincade Fire," said Elizabeth Brown, President and CEO, Community Foundation Sonoma County. "We established the Sonoma County Resilience Fund to help our community recover now and in the years to come, and we are incredibly grateful to United Airlines for their steadfast and generous support of Sonoma County."
Every customer. Every flight. Every day.
In 2019, United is focusing more than ever on 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, this year United:
- Announced that MileagePlus award miles will never expire
- Gave Economy customers a choice of complimentary snacks on domestic flights
- Made DIRECTV free for every customer on more than 200 aircraft
- Released a new version of the award-winning, most downloaded app in the airline industry
- Launched a new tool called ConnectionSaver, dedicated to improving the experience for customers with connecting flights
- Partnered with CLEAR on free or discounted memberships for MileagePlus members
- Announced PlusPoints, new upgrade benefits for MileagePlus Premier members
- And introduced products in its amenity kits made exclusively for the airline by luxury skincare line Sunday Riley
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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 788 mainline aircraft and the airline's United Express partners operate 560 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's new baggage delivery benefit coincides with the airline operating its newly reconfigured Boeing 767-300ER on the route – an aircraft that features an extended cabin with 46 United Polaris business seats in the premium cabin and 22 United Premium Plus seats.
"The flight between New York/Newark and London is one of the most serviced routes in the world, and we are continually looking at how we can offer superior services and amenities for our customers traveling between these two major cities," said Andrew Nocella, the airline's chief commercial officer. "And as our customers continue to demand greater convenience and choices, we will be ready to deliver, offering the caring, creative solutions that will keep them choosing United."
The baggage delivery program will be offered to all customers who hold a ticket in United's Polaris business cabin on the New York/Newark to London Heathrow route, including upgraded tickets, and who are staying at select Marriott properties including JW Marriott Grosvenor House London, London Marriott Hotel Canary Wharf, London Marriott Hotel County Hall, Sheraton Grand London Park Lane and St. Pancras Renaissance Hotel London. Customers can proceed through immigration and customs as normal, and follow signs for the bag drop desk in the arrivals area of London Heathrow, which will be open seven days a week from 6:00am – 12:00pm. Customers will not need to pre-register for the service. As an added benefit, passengers who are also members of Marriott Bonvoy, Marriott's travel program, and have booked their hotel stay directly with Marriott will receive a notification on the Marriott Bonvoy app that their bags have arrived at their hotel.
United's reconfigured Boeing 767-300ER features 16 additional United Polaris business class seats – all with direct-aisle-access – bringing the total premium cabin seat count to 46. The aircraft also features 22 United Premium Plus seats – becoming the first United 767-300ER to offer this seat type – 47 Economy Plus seats and 52 Economy seats. United will be the only U.S. carrier to operate a widebody aircraft that features this many premium seats. The aircraft will operate between Newark/New York and London, offering more premium seats in the largest premium route in the world.
United Polaris business class service is designed to bring a new level of quality to every aspect of premium cabin travel – from lounge to landing – and provide the best sleep in the sky. Customers booked in the Polaris cabin will continue to receive signature amenities such as Saks Fifth Avenue bedding, amenity kits featuring custom products from luxury skincare line Sunday Riley, a variety of inflight entertainment options, elevated food and beverages and access to the Polaris lounge at Newark Liberty International Airport and the arrivals lounge and United Club at London Heathrow.
For additional details on the baggage delivery program please visit: https://www.united.com/londonbagdelivery
Every customer. Every flight. Every day.
In 2019, United is focusing more than ever on 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, this year United:
- Announced that MileagePlus award miles will never expire
- Gave Economy customers a choice of complimentary snacks on domestic flights
- Made DIRECTV free for every customer on more than 200 aircraft
- Released a new version of the award-winning, most downloaded app in the airline industry
- Launched a new tool called ConnectionSaver, dedicated to improving the experience for customers with connecting flights
- Partnered with CLEAR on free or discounted memberships for MileagePlus members
- Announced PlusPoints, new upgrade benefits for MileagePlus Premier members
- And introduced products in its amenity kits made exclusively for the airline by luxury skincare line Sunday Riley
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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 788 mainline aircraft and the airline's United Express partners operate 560 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
Each launch partner has 28 days to crowdsource miles from MileagePlus members, with the goal of reaching at least 250,000 miles. New partners will be added to the program as each launch partner reaches its goal.
United is donating two million miles to kick off the Miles on a Mission program, matching the first 50 thousand miles raised for each campaign.
"We want to make a difference in the communities where our customers and employees live, work and fly," said Sharon Grant, vice president and chief community engagement officer at United Airlines. "Miles on a Mission not only allows us to connect with even more organizations than before but also gives our customers a new way to use their miles in a way that supports the charities and causes that mean the most to them."
Non-profit organizations with current live campaigns include:
- OperationUSA: An international disaster relief organization with a live campaign development agency that helps communities around the world overcome the effects of disaster, disease, violence and endemic poverty abroad.
- Holocaust Museum Houston: An organization that is looking to fund travel for teachers to provide further education and classroom resources concerning the Holocaust and Human Rights.
- NJ LEEP: A college access and success program serving first-generation and low-income students from the greater Newark, NJ area. The organization helps students build academic and social-emotional skills, develop the habits necessary for lasting success, and gain exposure to professional role models.
- Swim Across America: An organization that hosts swimming events across the world to raise money for cancer research and clinical trials at major research institutions to supplement government funded research projects.
- Watts of Love: A non-profit that provides solar technology and education to the 1 billion people living without electricity. They offer clean and sustainable forms of energy as an alternative to dangerous forms of energy.
- Waves for Water: An organization that provides access to clean water for communities by creating portable water filter systems, digging/renovating wells and constructing rainwater harvesting and storing solutions.
- The Transplant Life Foundation: The nation's leading advocacy group for those in the donation and transplantation world, including transplant recipients, living donors and donor families. Transplant Life Foundation strives each day to enhance and improve the lives of its members through its education programs, social networking platforms, TransplantNATION magazine and Transplant Games of America.
- Off-The-Grid Missions: An organization dedicated to providing the Deaf and Hard-of-Hearing with access to life-saving resources, especially in high-risk and remote regions around the world.
- Miles4Migrants: Dedicated to using donated frequent flyer miles, points and money to reunite and relocate individuals and families around the world separated by war, persecution, and disaster.
- Animal Lighthouse Rescue: Dedicated to the rescue, rehabilitation, and finding of loving homes for satos, or stray dogs in Puerto Rico, through their local partner, no-kill shelter El Faro de los Animales, and a team of staff, volunteers, and foster families in NY.
- Adaptive Cycling Foundation: An organization that supplies, manufactures and adapts bicycles for injured service members, first responders or heroes as a means for recovery and rehabilitation, both mentally and physically, from injuries and traumas.
The Miles on a Mission platform went live on Friday, October 25, and one of the inaugural non-profits, Veterans Community Project, has already reached its crowdsourcing goals. A new campaign will launch on the platform within the coming days.
"The Adaptive Cycling Foundation is very excited and honored to be included in United's Miles on a Mission campaign, continuing our alliance with United of giving back," said Scott Moro, Adaptive Cycling Foundation's mechanic and founder. "We create One of a Kind Bicycles for One of a Kind Heroes, Heroes that have already paid enough. The United Miles from the Miles on a Mission campaign helps us to provide zero cost travel to individually fit and consult with these Hero Veteran and Active Duty Service Members and First Responders. It's exciting, motivating, and we are honored to be involved in United's continuing mission of giving back."
Eligible charities can apply for the opportunity to launch a 28-day campaign to raise miles for their organization through MileagePlus member donations. Approved charities will work with United to reach goals of raising between 250,000 and 5 million miles. Organizations looking to launch a campaign can visit the Miles on a Mission website for full application details.
Every customer. Every flight. Every day.
In 2019, United is focusing more than ever on 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, this year United:
- Announced that MileagePlus award miles will never expire
- Gave Economy customers a choice of complimentary snacks on domestic flights
- Made DIRECTV free for every customer on more than 200 aircraft
- Released a new version of the award-winning, most downloaded app in the airline industry
- Launched a new tool called ConnectionSaver, dedicated to improving the experience for customers with connecting flights
- Partnered with CLEAR on free or discounted memberships for MileagePlus members
- Announced PlusPoints, new upgrade benefits for MileagePlus Premier members
- And introduced products in its amenity kits made exclusively for the airline by luxury skincare line Sunday Riley
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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 788 mainline aircraft and the airline's United Express partners operate 560 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 and the Star Wars franchise share a common goal: connect people and unite the world," said Mark Krolick, United's vice president of marketing. "We are thrilled to join forces and help promote the concluding chapter of the Skywalker story, while at the same time enlisting help from our new friends from the Star Wars universe to demonstrate the importance of safety for our customers and colleagues."
United and Star Wars take to the skies
Next month, United will officially introduce into service a special Star Wars-themed Boeing 737-800 aircraft featuring the Star Wars: The Rise of Skywalker-themed paint livery and onboard experience. The new paint design, which the airline teased last spring on its social media channels, captures the exotic atmosphere of the Star Wars galaxy and features imagery of famous Star Wars spacecraft, including the X-wing and TIE fighter starships. The aircraft's tail starkly displays a different colored lightsaber – the weapon of the Jedi – against a black backdrop on each side, reflecting the two sides of the Force.
United will greet customers with classic Star Wars-themed music during the boarding process and distribute commemorative pins throughout December in celebration of the movie's premiere. The aircraft's interior will also feature a special plaque reflecting United's relationship with Star Wars: The Rise of Skywalker and include headrests affixed with the emblems of the film's dueling factions, the Resistance and the First Order.
While not everyone will have the chance to see the new livery in person, anyone will be able to track United's Star Wars: The Rise of Skywalker-themed aircraft via special icon on FlightAware, the world's largest online flight tracking platform. For the first time, aviation and Star Wars enthusiasts can track past and future flights on both desktop and mobile by entering the plane's tail number and the new livery will appear on FlightAware's flight tracking maps as the X-Wing starship.
Safety is our highest priority
The new inflight safety demonstration video highlights United's lasting commitment to the safety of all the airline's customers and employees traveling to places "far, far away." In addition to United employees providing safety instructions on what do to in the unlikely event of an emergency, the video features special appearances by several iconic Star Wars characters and thrilling, space-themed sequences scored to some of the most recognizable musical themes in both motion picture and commercial aviation history. The safety video also highlights some of the many international destinations United serves within the airline's galaxy. To view the safety video, please visit: united.com/starwars.
Connecting People. Uniting the Worlds
Beginning today, on MileagePlus Exclusives, members will be able to bid award miles on several unique Star Wars experiences including:
- Access to attend the premieres of Star Wars: The Rise of Skywalker in Los Angeles and London
- Travel packages for four to visit Star Wars filming locations in Jordan to see how the filmmakers transformed the landscape for the movie
- Access to exclusive screenings of Star Wars: The Rise of Skywalker in United hub cities on December 19
- Special collectors package enabling members to take home a piece of Star Wars and United Airlines. The package features commemorative United and Star Wars branded items including Star Wars: The Rise of Skywalker-themed amenity kits, special pins and a model aircraft of United's Star-Wars-themed Boeing 737-800
For more information, please visit: MileagePlus Exclusives.
Every customer. Every flight. Every day.
In 2019, United is focusing more than ever on 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, this year United:
- Announced that MileagePlus award miles will never expire
- Gave Economy customers a choice of complimentary snacks on domestic flights
- Made DIRECTV free for every customer on more than 200 aircraft
- Released a new version of the award-winning, most downloaded app in the airline industry
- Launched a new tool called ConnectionSaver, dedicated to improving the experience for customers with connecting flights
- Partnered with CLEAR on free or discounted memberships for MileagePlus members
- Announced PlusPoints, new upgrade benefits for MileagePlus Premier members
- And introduced products in its amenity kits made exclusively for the airline by luxury skincare line Sunday Riley
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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 788 mainline aircraft and the airline's United Express partners operate 560 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 Star Wars: The Rise of Skywalker
Lucasfilm and director J.J. Abrams join forces once again to take viewers on an epic journey to a galaxy far, far away with Star Wars: The Rise of Skywalker, the riveting conclusion of the seminal Skywalker saga, where new legends will be born and the final battle for freedom is yet to come.
The film stars Carrie Fisher, Mark Hamill, Adam Driver, Daisy Ridley, John Boyega, Oscar Isaac, Anthony Daniels, Naomi Ackie, Domhnall Gleeson, Richard E. Grant, Lupita Nyong'o, Keri Russell, Joonas Suotamo, Kelly Marie Tran, with Ian McDiarmid and Billy Dee Williams
Star Wars: The Rise of Skywalker is directed by J.J. Abrams and produced by Kathleen Kennedy, Abrams and Michelle Rejwan. Callum Greene, Tommy Gormley and Jason McGatlin serve as executive producers. Star Wars: The Rise of Skywalker was written by J.J. Abrams & Chris Terrio and opens in U.S. theaters on December 20.
Miles, awards and benefits are subject to the rules of the United MileagePlus program. For details, see www.united.com. For details relating to United's MileagePlus Exclusives see https://exclusives.mileageplus.com/Home/Terms
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
"United has been an industry leader in environmental sustainability – including being the first U.S. carrier to announce a bold pledge to cut our carbon footprint in half by 2050 relative to 2005," said Scott Kirby, United's president. "However, to achieve this goal, we can't be content as a leading airline undergoing an evolution to adapt to climate change. We aspire to be the airline leading the revolution to fight climate change, and this new initiative will further empower us to reduce our impact on the environment and fly towards a more sustainable future."
United's Commitment to the Environment
United's latest commitment to invest in the development of sustainable aviation fuel and decarbonization technologies, along with its pledge to reduce its greenhouse gas emissions, represents yet another leadership position the airline has undertaken to reduce its impact on the environment. Several of United's most significant environmental achievements include:
- Becoming the first airline to incorporate sustainable aviation fuel in regular operations on a continuous basis, marking a significant milestone in the industry by moving beyond test programs and demonstrations to the everyday use of low-carbon fuel in ongoing operations.
- Investing more than $30 million in California-based sustainable aviation fuels producer Fulcrum BioEnergy, which remains the single largest investment by any airline globally in sustainable fuels. United's option to purchase, subject to availability, nearly 1 billion gallons from Fulcrum BioEnergy is the largest offtake agreement for sustainable aviation fuel in the airline industry.
- Operating the Flight for the Planet last June, which represented the most-eco-friendly commercial flight of its kind in the history of commercial aviation.
- Becoming the first airline to fly with Boeing's Split Scimitar winglets, which reduce fuel consumption by an additional 2 percent versus standard winglets; United is the largest Scimitar winglet operator today, with nearly 400 aircraft equipped with these winglets.
- Becoming the first U.S. airline to repurpose items from the carrier's international premium cabin amenity kits and partnering with Clean the World to donate hygiene products to those in critical need.
- Eliminating non-recyclable plastic stirring sticks and cocktail picks on aircraft and replacing them with a more environmentally friendly product made of 100% bamboo.
- Continuing to replace its eligible ground equipment with cleaner, electrically powered alternatives, with 40% of the fleet converted to date.
United's Award-Winning Eco-Skies Program
United's award-winning Eco-Skies program represents the company's commitment to the environment and the actions taken every day to create a more sustainable future. In 2017, Air Transport World magazine named United the Eco-Airline of the Year for the second time since the airline launched the Eco-Skies program. Additionally, United Airlines ranked No. 1 among global carriers in Newsweek's 2017 Global 500 Green Rankings, one of the most recognized environmental performance assessments of the world's largest publicly traded companies.
For more information on United's commitment to environmental sustainability, visit united.com/ecoskies.
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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 788 mainline aircraft and the airline's United Express partners operate 560 regional aircraft. United is a founding member of Star Alliance, which provides service to 193 countries via 27 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
In 2018, Air New Zealand and United Airlines announced new year-round nonstop Air New Zealand service between Chicago and Auckland.
"Air New Zealand's nonstop flight will cut travel time by around three hours, putting New Zealand in easy reach of New York and the East Coast United States," said Jeff McDowall, Air New Zealand's acting Chief Executive Officer. "It's terrific we can make a seamless journey a reality for Kiwis wanting to experience New York and for U.S. travelers who have added New Zealand to their bucket list and we look forward to partnering with United Airlines to grow travel in both directions."
"United's strong, strategic alliance partnership with Air New Zealand provides our customers with more options to travel between the United States and New Zealand than any other airline in the world and we are proud to partner on this first ever nonstop service connecting New Zealand with our hub at Newark Liberty International Airport," said John Gebo, United's senior vice president of Alliances. "We are excited to offer our shared customers another option when planning travel to beautiful New Zealand while conveniently connecting visitors to more than 90 destinations across the United States with just one-stop connections at our New York hub."
Air New Zealand service between New York/Newark and Auckland
Air New Zealand will operate three times weekly, year-round service with its newly configurated Boeing 787-9 Dreamliner aircraft. Flight time will be approximately 17 hours and 40 minutes southbound and 15 hours 40 minutes northbound.
Air New Zealand code share service will be offered on 90 flights across the U.S. for convenient connections to Auckland via New York/Newark. United Airlines operates more flights from its hub at Newark Liberty International Airport than any other airline, with more than 400 flights in the U.S. and around the world.
Since United and Air New Zealand began their alliance in 2016, the joint venture has opened up more travel options for U.S. and New Zealand travelers than ever before. Overall passenger volumes have grown as customers traveling from New Zealand to the U.S. connect to United's broad domestic network through its hubs in Chicago, Houston, Los Angeles and San Francisco.
Air New Zealand's new flights between New York/Newark and Auckland will be available for purchase beginning in November on united.com:
Flight No. | Operated by | Aircraft | Departs | Arrives | Frequency |
NZ1 | Air New Zealand | Boeing 787-9 | New 19:05 | Auckland 06:45+2 days | Mon, |
NZ2 | Air New Zealand | Boeing 787-9 | Auckland 19:55 | New York/Newark 17:35 | Mon, |
Subject to Government Approval | |||||
The above timings are subject to change | |||||
Every customer. Every flight. Every day.
In 2019, United is focusing more than ever on 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 news, United recently announced that MileagePlus miles will now never expire, giving members a lifetime to use miles on flights and experiences. Customers now have more free on board snack options as well, with a choice of Lotus Biscoff cookies, pretzels and the Stroopwafel. The airline also recently released a re-imagined version of the most downloaded app in the airline industry, introduced ConnectionSaver – a tool dedicated to improving the experience for customers connecting from one United flight to the next – and launched PlusPoints, a new upgrade benefit for MileagePlus premier members.
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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 788 mainline aircraft and the airline's United Express partners operate 560 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 Air New Zealand
Air New Zealand is a multi-award winning international airline which delivers uniquely Kiwi journeys to more than 17 million customers who fly to, from and within New Zealand each year.
The airline operates on average more than 3,500 flights each week, connecting customers to 21 destinations within New Zealand and to international ports across Asia, Europe, Australia, North and South America and the Pacific Islands. For more information, visit www.airnewzealand.co.nz or follow the airline on Facebook or Twitter.
About Star Alliance
The Star Alliance network was established in 1997 as the first truly global airline alliance to offer worldwide reach, recognition and seamless service to the international traveller. Its acceptance by the market has been recognized by numerous awards, including the Air Transport World Market Leadership Award and Best Airline Alliance by both Business Traveller Magazine and Skytrax. The member airlines are: Aegean Airlines, Air Canada, Air China, Air India, Air New Zealand, ANA, Asiana Airlines, Austrian, Avianca, Brussels Airlines, Copa Airlines, Croatia Airlines, EGYPTAIR, Ethiopian Airlines, EVA Air, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Shenzhen Airlines, Singapore Airlines, South African Airways, SWISS, TAP Portugal, Turkish Airlines, THAI and United. Overall, the Star Alliance network currently offers more than 19,000 daily flights to 1,250 airports in 195 countries. Further connecting flights are offered by Star Alliance Connecting Partner, Juneyao Airlines. For more information about Star Alliance visit www.staralliance.com and/or follow Star Alliance on Facebook, Twitter, Youtube, LinkedIn or Instagram.
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, 872.825.8640, media.relations@united.com