United Airlines Reports Second-Quarter 2018 Performance

July 17, 2018

CHICAGO, July 17, 2018 /PRNewswire/ -- United Airlines (UAL) today announced its second-quarter 2018 financial results.

UAL reported second-quarter net income of $684 million, diluted earnings per share of $2.48, pre-tax earnings of $857 million and pre-tax margin of 8.0 percent.
Excluding special charges and mark-to-market adjustments, UAL reported second-quarter net income of $889 million, diluted earnings per share of $3.23, pre-tax earnings of $1.1 billion and pre-tax margin of 10.4 percent.
Ranked first among largest competitors in on-time departures in the quarter.
UAL repurchased $407 million of its common shares in the second quarter.
Consolidated passenger revenue per available seat mile (PRASM) increased 3.0 percent year-over-year.
Consolidated total revenue per available seat mile (TRASM) increased 2.8 percent year-over-year.
Consolidated unit cost per available seat mile (CASM) increased 7.1 percent year-over-year.
Consolidated CASM, excluding special charges, third-party business expenses, fuel and profit sharing, decreased 0.4 percent year-over-year.
UAL now expects full-year 2018 diluted earnings per share, excluding special charges and mark-to-market adjustments, to be $7.25 to $8.75¹.

"We delivered great financial results and strong operational performance in the second quarter despite the significant headwind of higher fuel prices," said Oscar Munoz, chief executive officer of United Airlines. "These results are the strongest evidence yet that our strategic growth plan is working, and we are well positioned to carry our momentum into the second half of the year."

For more information on UAL's third-quarter 2018 guidance, please visit ir.united.com for the company's investor update.

Second-Quarter Highlights

Operations and Employees

Completed the best second-quarter on-time departure performance in United's history.
Received "Best-of-the-Best" Award from the National LGBT Chamber of Commerce and National Business Inclusion Consortium for commitment to diversity and inclusion across all communities.
Announced a total of $8 million in grants to benefit organizations in each of its domestic hub communities.
Became the first carrier to achieve certification through the new Audubon International Green Hospitality Program for the airline's United Club location in Terminal 7 of Los Angeles International Airport.

Customer Experience

Expanded personal device entertainment option to all aircraft with DIRECTV live streaming for purchase, providing at least one free entertainment option on all Wi-Fi equipped aircraft (which is any aircraft with more than 70 seats).
Opened three new United Polaris lounges located in San Francisco International Airport, Newark Liberty International Airport and Houston's George Bush Intercontinental Airport.
Announced a new relationship with The Private Suite, offering the airline's customers access to a newly built, private terminal at Los Angeles International Airport.
Introduced the new United Explorer Card which offers additional benefits, travel credits and discounts.

Network and Fleet

Launched service from Newark/New York to two new international destinations: Reykjavik, Iceland, and Porto, Portugal.
Announced the return of seasonal service to 25 destinations, including, among others: Athens, Greece; Glasgow, Scotland; Madrid and Barcelona, Spain; Rome and Venice, Italy; and Hamburg, Germany.
Announced schedule expansion at East Coast hubs in Newark/New York and Washington-Dulles to offer more nonstop flights to destinations popular with New York-area customers while reallocating largely connecting passenger flights to Washington-Dulles.
Took delivery of one Boeing 777-300ER aircraft and six Boeing 737 MAX 9 aircraft.
Became North American launch customer of the Boeing 737 MAX 9 aircraft, which took its first flight on June 7 from Houston's George Bush Intercontinental Airport to Orlando International Airport in Florida.

Earnings Call

UAL will hold a conference call to discuss second-quarter 2018 financial results and its financial and operational outlook for the third quarter and full year of 2018 on Wednesday, July 18, at 9:30 a.m. Central Time /10:30 a.m. Eastern Time. A live, listen-only webcast of the conference call will be available at ir.united.com. The webcast will be available for replay within 24 hours of the conference call and then archived on the website for three months.

About United

United Airlines and United Express operate approximately 4,600 flights a day to 357 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 757 mainline aircraft and the airline's United Express carriers operate 551 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the NYSE under the symbol "UAL".

¹ Excludes special charges, the nature of which are not determinable at this time, and mark-to-market impact of equity investments. Accordingly, UAL is not providing earnings guidance on a GAAP basis.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Certain statements included in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as "expects," "will," "plans," "anticipates," "indicates," "believes," "estimates," "forecast," "guidance," "outlook," "goals" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aircraft fuel and energy refining capacity in relevant markets); economic and political instability and other risks of doing business globally, including political developments that may impact our operations in certain countries; demand for travel and the impact that global economic and political conditions have on customer travel patterns; competitive pressures on pricing and on demand; demand for transportation in the markets in which we operate; our capacity decisions and the capacity decisions of our competitors; the effects of any hostilities, act of war or terrorist attack; the effects of any technology failures or cybersecurity breaches; the impact of regulatory, investigative and legal proceedings and legal compliance risks; disruptions to our regional network; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; costs associated with any modification or termination of our aircraft orders; potential reputational or other impact from adverse events in our operations, the operations of our regional carriers or the operations of our code share partners; our ability to attract and retain customers; our ability to execute our operational plans and revenue-generating initiatives, including optimizing our revenue; our ability to control our costs, including realizing benefits from our resource optimization efforts, cost reduction initiatives and fleet replacement programs; the impact of any management changes; our ability to cost-effectively hedge against increases in the price of aircraft fuel if we decide to do so; any potential realized or unrealized gains or losses related to any fuel or currency hedging programs; labor costs; our ability to maintain satisfactory labor relations and the results of any collective bargaining agreement process with our union groups; any disruptions to operations due to any potential actions by our labor groups; an outbreak of a disease that affects travel demand or travel behavior; U.S. or foreign governmental legislation, regulation and other actions (including Open Skies agreements and environmental regulations); industry consolidation or changes in airline alliances; our ability to comply with the terms of our various financing arrangements; the costs and availability of financing; our ability to maintain adequate liquidity; the costs and availability of aviation and other insurance; weather conditions; our ability to utilize our net operating losses to offset future taxable income; the impact of changes in tax laws; the success of our investments in airlines in other parts of the world; and other risks and uncertainties set forth under Part I, Item 1A., "Risk Factors," of our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission.

-tables attached-

On January 1, 2018, United Continental Holdings, Inc. ("UAL") adopted Accounting Standards Update No. 2014-09 (Topic 606), Revenue from Contracts with Customers, and Accounting Standards Update No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. As such, certain previously reported 2017 figures are adjusted in this report on a basis consistent with the new standards. See the Current Report on Form 8-K filed by UAL with the Securities and Exchange Commission on March 1, 2018 for additional information.

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

	Three Months Ended June 30,				% Increase/	Six Months Ended June 30,				% Increase/
(In millions, except per share data)	2018		2017		(Decrease)	2018		2017		(Decrease)
Operating revenue:
Passenger	$	9,880	$	9,151	8.0	$	18,030	$	16,804	7.3
Cargo	314		273		15.0	607		511		18.8
Other operating revenue	583		584		(0.2)	1,172		1,119		4.7
Total operating revenue	10,777		10,008		7.7	19,809		18,434		7.5

Operating expense:
Salaries and related costs	2,878		2,842		1.3	5,604		5,478		2.3
Aircraft fuel	2,390		1,669		43.2	4,355		3,229		34.9
Regional capacity purchase	681		549		24.0	1,300		1,085		19.8
Landing fees and other rent	603		541		11.5	1,161		1,085		7.0
Depreciation and amortization	557		536		3.9	1,098		1,054		4.2
Aircraft maintenance materials and outside repairs	438		472		(7.2)	878		926		(5.2)
Distribution expenses	393		385		2.1	735		704		4.4
Aircraft rent	119		152		(21.7)	246		331		(25.7)
Special charges (C)	129		44		NM	169		95		NM
Other operating expenses	1,428		1,381		3.4	2,826		2,690		5.1
Total operating expense	9,616		8,571		12.2	18,372		16,677		10.2

Operating income	1,161		1,437		(19.2)	1,437		1,757		(18.2)

Operating margin	10.8%		14.4%		(3.6)pts.	7.3%		9.5%		(2.2)pts.
Operating margin, excluding special charges (Non-GAAP)	12.0%		14.8%		(2.8)pts.	8.1%		10.0%		(1.9)pts.

Nonoperating income (expense):
Interest expense	(177)		(167)		6.0	(353)		(329)		7.3
Interest capitalized	14		21		(33.3)	33		44		(25.0)
Interest income	25		13		92.3	42		24		75.0
Miscellaneous, net (C)	(166)		(27)		NM	(118)		(69)		71.0
Total nonoperating expense	(304)		(160)		90.0	(396)		(330)		20.0

Income before income taxes	857		1,277		(32.9)	1,041		1,427		(27.0)

Pre-tax margin	8.0%		12.8%		(4.8)pts.	5.3%		7.7%		(2.4)pts.
Pre-tax margin, excluding special charges and mark-to-market ("MTM") losses on equity investments (Non-GAAP)	10.4%		13.2%		(2.8)pts.	6.6%		8.3%		(1.7)pts.

Income tax expense (D)	173		456		(62.1)	210		507		(58.6)
Net income	$	684	$	821	(16.7)	$	831	$	920	(9.7)

Earnings per share, diluted	$	2.48	$	2.67	(7.1)	$	2.96	$	2.96	—
Weighted average shares, diluted	275.6		307.7		(10.4)	280.2		311.1		(9.9)

NM Not meaningful

UNITED CONTINENTAL HOLDINGS, INC.
STATISTICS

	Three Months Ended June 30,				% Increase/	Six Months Ended June 30,				% Increase/
	2018		2017		(Decrease)	2018		2017		(Decrease)
Mainline:
Passengers (thousands)	29,589		28,084		5.4	54,191		51,909		4.4
Revenue passenger miles (millions)	53,485		50,554		5.8	97,595		92,737		5.2
Available seat miles (millions)	63,061		60,473		4.3	117,859		113,527		3.8
Cargo ton miles (millions)	855		828		3.3	1,672		1,576		6.1
Passenger revenue per available seat mile (cents)	12.76		12.39		3.0	12.44		12.08		3.0
Average yield per revenue passenger mile (cents)	15.04		14.82		1.5	15.02		14.79		1.6
Aircraft in fleet at end of period	757		748		1.2	757		748		1.2
Average stage length (miles)	1,823		1,821		0.1	1,818		1,812		0.3
Average daily utilization of each aircraft (hours: minutes)	11:07		10:46		3.3	10:32		10:16		2.6
Average aircraft fuel price per gallon	$	2.24	$	1.62	38.3	$	2.17	$	1.66	30.7
Fuel gallons consumed (millions)	885		867		2.1	1,656		1,628		1.7

Regional:
Passengers (thousands)	11,469		10,163		12.9	21,362		19,443		9.9
Revenue passenger miles (millions)	6,460		5,802		11.3	12,199		11,230		8.6
Available seat miles (millions)	7,641		6,994		9.3	14,820		13,748		7.8
Passenger revenue per available seat mile (cents)	24.02		23.72		1.3	22.73		22.44		1.3
Average yield per revenue passenger mile (cents)	28.41		28.59		(0.6)	27.62		27.47		0.5
Aircraft in fleet at end of period	551		475		16.0	551		475		16.0
Average stage length (miles)	552		558		(1.1)	558		565		(1.2)
Average aircraft fuel price per gallon	$	2.38	$	1.71	39.2	$	2.29	$	1.75	30.9
Fuel gallons consumed (millions)	173		156		10.9	334		305		9.5

Consolidated (Mainline and Regional):
Passengers (thousands)	41,058		38,247		7.3	75,553		71,352		5.9
Revenue passenger miles (millions)	59,945		56,356		6.4	109,794		103,967		5.6
Available seat miles (millions)	70,702		67,467		4.8	132,679		127,275		4.2
Passenger load factor:
Consolidated	84.8%		83.5%		1.3pts.	82.8%		81.7%		1.1pts.
Domestic	87.1%		86.8%		0.3pts.	85.1%		85.2%		(0.1)pts.
International	81.7%		79.5%		2.2pts.	79.7%		77.5%		2.2pts.
Passenger revenue per available seat mile (cents)	13.97		13.56		3.0	13.59		13.20		3.0
Total revenue per available seat mile (cents)	15.24		14.83		2.8	14.93		14.48		3.1
Average yield per revenue passenger mile (cents)	16.48		16.24		1.5	16.42		16.16		1.6
Aircraft in fleet at end of period	1,308		1,223		7.0	1,308		1,223		7.0
Average stage length (miles)	1,460		1,475		(1.0)	1,452		1,464		(0.8)
Average full-time equivalent employees (thousands)	86.7		86.0		0.8	86.2		85.6		0.7
Average aircraft fuel price per gallon	$	2.26	$	1.63	38.7	$	2.19	$	1.67	31.1
Fuel gallons consumed (millions)	1,058		1,023		3.4	1,990		1,933		2.9

Note: See Part II, Item 6, Selected Financial Data, of UAL's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, for definitions of these statistics.

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

	Three Months Ended June 30,				% Increase/	Six Months Ended June 30,				% Increase/
	2018		2017		(Decrease)	2018		2017		(Decrease)
(In millions, except per share data)
Operating income	$	1,161	$	1,437	(19.2)	$	1,437	$	1,757	(18.2)
Operating margin	10.8%		14.4%		(3.6)pts.	7.3%		9.5%		(2.2)pts.
Operating income, excluding special charges (Non-GAAP)	1,290		1,481		(12.9)	1,606		1,852		(13.3)
Operating margin, excluding special charges (Non-GAAP)	12.0%		14.8%		(2.8)pts.	8.1%		10.0%		(1.9)pts.

EBITDA, excluding special charges and MTM losses on equity investments (Non-GAAP)	$	1,816	$	1,990	(8.7)	$	2,676	$	2,837	(5.7)
EBITDA margin, excluding special charges and MTM losses on equity investments (Non-GAAP)	16.9%		19.9%		(3.0)pts.	13.5%		15.4%		(1.9)pts.

Pre-tax income	$	857	$	1,277	(32.9)	$	1,041	$	1,427	(27.0)
Pre-tax margin	8.0%		12.8%		(4.8)pts.	5.3%		7.7%		(2.4)pts.
Pre-tax income, excluding special charges and MTM losses on equity investments (Non-GAAP)	1,121		1,321		(15.1)	1,300		1,522		(14.6)
Pre-tax margin, excluding special charges and MTM losses on equity investments (Non-GAAP)	10.4%		13.2%		(2.8)pts.	6.6%		8.3%		(1.7)pts.

Net income	$	684	$	821	(16.7)	$	831	$	920	(9.7)
Net income, excluding special charges and MTM losses on equity investments (Non-GAAP)	889		849		4.7	1,032		981		5.2

Diluted earnings per share	$	2.48	$	2.67	(7.1)	$	2.96	$	2.96	—
Diluted earnings per share, excluding special charges and MTM losses on equity investments (Non-GAAP)	3.23		2.76		17.0	3.68		3.15		16.8

Net cash provided by operating activities	$	2,442	$	1,561	56.4	$	4,175	$	2,108	98.1

Capital expenditures	$	755	$	1,089	(30.7)	$	1,734	$	1,780	(2.6)
Adjusted capital expenditures (Non-GAAP)	783		1,247		(37.2)	1,796		2,601		(30.9)

Free cash flow, net of financings (Non-GAAP)	$	1,687	$	472	257.4	$	2,441	$	328	NM
Free cash flow (Non-GAAP)	1,659		314		428.3	2,379		(493)		NM

NM Not meaningful

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

ROIC is a non-GAAP financial measure that we believe provides useful supplemental information for management and investors by measuring the effectiveness of our operations' use of invested capital to generate profits.


(in millions)	Twelve Months Ended June 30, 2018
Net Operating Profit After Tax ("NOPAT")
Pre-tax income	$	2,654
Special charges and MTM losses on equity investments (C):
Impairment of assets	159
MTM losses on equity investments	90
Severance and benefit costs	63
(Gains) losses on sale of assets and other special charges	28
Pre-tax income excluding special charges and MTM losses on equity investments (Non-GAAP)	2,994
add: Interest expense (net of income tax benefit) (a)	689
add: Interest component of capitalized aircraft rent (net of income tax benefit) (a)	260
add: Net interest on pension (net of income tax benefit) (a)	10
less: Income taxes paid	(24)
NOPAT (Non-GAAP)	$	3,929


Average Invested Capital (five-quarter average)
Total assets	$	43,205
add: Capitalized aircraft operating leases (b)	4,227
less: Non-interest bearing liabilities (c)	(16,957)
Average invested capital (Non-GAAP)	$	30,475

Return on invested capital (Non-GAAP)	12.9		%


(a)	Income tax benefit measured based on the effective cash tax rate. The effective cash tax rate is calculated by dividing cash taxes paid by pre-tax income excluding special charges. For the twelve months ended June 30, 2018, the effective cash tax rate was 0.8%.
(b)	The purpose of this adjustment is to capitalize the impact of aircraft operating leases. The company uses a multiple of seven times its annual aircraft rent expense to estimate the potential capitalized value and related liability of its aircraft. This is a simplified method used by many rating agencies and financial analysts to assist with the impact of operating leases on financial measures like return on invested capital.
(c)	Non-interest bearing liabilities include advance ticket sales, frequent flyer deferred revenue, deferred income taxes and other non-interest bearing liabilities.

UNITED CONTINENTAL HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION

(A) UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and Non-GAAP financial measures, including operating income (loss), excluding special charges, operating margin excluding special charges, pre-tax income (loss), excluding special charges and MTM gains and losses on equity investments, pre-tax margin, excluding special charges and MTM gains and losses on equity investments, net income (loss), excluding special charges and MTM gains and losses on equity investments, diluted earnings (loss) per share, excluding special charges and MTM gains and losses on equity investments, and CASM, excluding special charges, third-party business expenses, fuel, and profit sharing, among others. UAL believes that adjusting for special charges is useful to investors because special charges are not indicative of UAL's ongoing performance. UAL believes that adjusting for MTM gains and losses on equity investments is useful to investors because those unrealized gains or losses may not ultimately be realized on a cash basis.

CASM is a common metric used in the airline industry to measure an airline's cost structure and efficiency. UAL reports CASM excluding special charges, third-party business expenses, fuel and profit sharing. UAL believes that adjusting for special charges is useful to investors because special charges are not indicative of UAL's ongoing performance. UAL also believes that excluding third-party business expenses, such as maintenance, ground handling and catering services for third parties and fuel sales, provides more meaningful disclosure because these expenses are not directly related to UAL's core business. UAL also believes that excluding fuel costs from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence. UAL excludes profit sharing because this exclusion allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.
Reconciliations of reported non-GAAP financial measures to the most directly comparable GAAP financial measures are included below.

	Three Months Ended June 30,		% Increase/	Six Months Ended June 30,		% Increase/
	2018	2017	(Decrease)	2018	2017	(Decrease)
CASM Mainline Operations (cents)
Cost per available seat mile (CASM)	13.08	12.27	6.6	13.31	12.68	5.0
Special charges (C)	0.20	0.07	NM	0.14	0.09	NM
Third-party business expenses	0.05	0.07	(28.6)	0.05	0.06	(16.7)
Fuel expense	3.14	2.32	35.3	3.05	2.38	28.2
CASM, excluding special charges, third-party business expenses and fuel	9.69	9.81	(1.2)	10.07	10.15	(0.8)
Profit sharing per available seat mile	0.17	0.25	(32.0)	0.10	0.15	(33.3)
CASM, excluding special charges, third-party business expenses, fuel, and profit sharing	9.52	9.56	(0.4)	9.97	10.00	(0.3)

CASM Consolidated Operations (cents)
Cost per available seat mile (CASM)	13.60	12.70	7.1	13.85	13.10	5.7
Special charges (C)	0.18	0.07	NM	0.13	0.07	NM
Third-party business expenses	0.04	0.05	(20.0)	0.05	0.06	(16.7)
Fuel expense	3.38	2.47	36.8	3.28	2.54	29.1
CASM, excluding special charges, third-party business expenses and fuel	10.00	10.11	(1.1)	10.39	10.43	(0.4)
Profit sharing per available seat mile	0.16	0.23	(30.4)	0.09	0.14	(35.7)
CASM, excluding special charges, third-party business expenses, fuel, and profit sharing	9.84	9.88	(0.4)	10.30	10.29	0.1

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

	Three Months Ended June 30,				$ Increase/		% Increase/	Six Months Ended June 30,				$ Increase/		% Increase/
(in millions)	2018		2017		(Decrease)		(Decrease)	2018		2017		(Decrease)		(Decrease)
Operating expenses	$	9,616	$	8,571	$	1,045	12.2	$	18,372	$	16,677	$	1,695	10.2
Special charges (C)	129		44		85		NM	169		95		74		NM
Operating expenses, excluding special charges	9,487		8,527		960		11.3	18,203		16,582		1,621		9.8
Third-party business expenses	29		41		(12)		(29.3)	60		81		(21)		(25.9)
Fuel expense	2,390		1,669		721		43.2	4,355		3,229		1,126		34.9
Profit sharing, including taxes	108		154		(46)		(29.9)	125		174		(49)		(28.2)
Operating expenses, excluding fuel, profit sharing, special charges and third-party business expenses	$	6,960	$	6,663	$	297	4.5	$	13,663	$	13,098	$	565	4.3

Operating income	$	1,161	$	1,437	$	(276)	(19.2)	$	1,437	$	1,757	$	(320)	(18.2)
Special charges (C)	129		44		85		NM	169		95		74		NM
Operating income, excluding special charges	$	1,290	$	1,481	$	(191)	(12.9)	$	1,606	$	1,852	$	(246)	(13.3)

Pre-tax income	$	857	$	1,277	$	(420)	(32.9)	$	1,041	$	1,427	$	(386)	(27.0)
Special charges and MTM losses on equity investments before income taxes (C)	264		44		220		NM	259		95		164		NM
Pre-tax income excluding special charges and MTM losses on equity investments	$	1,121	$	1,321	$	(200)	(15.1)	$	1,300	$	1,522	$	(222)	(14.6)

Net income	$	684	$	821	$	(137)	(16.7)	$	831	$	920	$	(89)	(9.7)
Special charges and MTM losses on equity investments, net of tax (C)	205		28		177		NM	201		61		140		NM
Net income, excluding special charges and MTM losses on equity investments	$	889	$	849	$	40	4.7	$	1,032	$	981	$	51	5.2

Diluted earnings per share	$	2.48	$	2.67	$	(0.19)	(7.1)	$	2.96	$	2.96	$	—	—
Special charges and MTM losses on equity investments	0.96		0.14		0.82		NM	0.92		0.31		0.61		NM
Tax effect related to special charges and MTM losses on equity investments	(0.21)		(0.05)		(0.16)		NM	(0.20)		(0.12)		(0.08)		NM
Diluted earnings per share, excluding special charges and MTM losses on equity investments	$	3.23	$	2.76	$	0.47	17.0	$	3.68	$	3.15	$	0.53	16.8

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

UAL provides financial metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA), excluding special charges and MTM gains and losses on equity investments that we believe provide useful supplemental information for management and investors by measuring profit and profit as a percentage of total operating revenues. UAL believes that adjusting for special charges is useful to investors because special charges are not indicative of UAL's ongoing performance. UAL believes that adjusting for MTM gains and losses on equity investments is useful to investors because those unrealized gains or losses may not ultimately be realized on a cash basis.

	Three Months Ended June 30,				Six Months Ended June 30,
EBITDA, excluding special charges and MTM losses on equity investments (in millions)	2018		2017		2018		2017

Net income	$	684	$	821	$	831	$	920
Adjusted for:
Depreciation and amortization	557		536		1,098		1,054
Interest expense	177		167		353		329
Interest capitalized	(14)		(21)		(33)		(44)
Interest income	(25)		(13)		(42)		(24)
Income tax expense (D)	173		456		210		507
Special charges before income taxes (C)	129		44		169		95
MTM losses on equity investments (C)	135		—		90		—
EBITDA, excluding special charges and MTM losses on equity investments (Non-GAAP)	$	1,816	$	1,990	$	2,676	$	2,837



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

	Three Months Ended June 30,				Six Months Ended June 30,
Capital Expenditures (in millions)	2018		2017		2018		2017
Capital expenditures	$	755	$	1,089	$	1,734	$	1,780
Property and equipment acquired through the issuance of debt and capital leases	65		196		139		907
Airport construction financing	—		11		12		32
Fully reimbursable projects	(37)		(49)		(89)		(118)
Adjusted capital expenditures (Non-GAAP)	$	783	$	1,247	$	1,796	$	2,601

Free Cash Flow (in millions)
Net cash provided by operating activities	$	2,442	$	1,561	$	4,175	$	2,108
Less capital expenditures	755		1,089		1,734		1,780
Free cash flow, net of financings (Non-GAAP)	$	1,687	$	472	$	2,441	$	328

Net cash provided by operating activities	$	2,442	$	1,561	$	4,175	$	2,108
Less adjusted capital expenditures (Non-GAAP)	783		1,247		1,796		2,601
Free cash flow (Non-GAAP)	$	1,659	$	314	$	2,379	$	(493)

UNITED CONTINENTAL HOLDINGS, INC.
NOTES (UNAUDITED)

(B) Select passenger revenue information is as follows (in millions):

	2Q 2018 Passenger Revenue (millions)		Passenger Revenue vs. 2Q 2017	PRASM vs. 2Q 2017	Yield vs. 2Q 2017	Available Seat Miles vs. 2Q 2017

Mainline	$	4,395	8.7%	1.7%	1.6%	6.9%
Regional	1,786		10.6%	0.9%	(1.0%)	9.6%
Domestic	6,181		9.2%	1.7%	1.3%	7.4%

Atlantic	1,824		12.9%	7.9%	0.9%	4.7%
Pacific	1,103		3.7%	3.4%	4.3%	0.2%
Latin America	772		(5.2%)	(2.9%)	(4.2%)	(2.3%)
International	3,699		5.9%	4.3%	1.4%	1.6%

Consolidated	$	9,880	8.0%	3.0%	1.5%	4.8%


Mainline	$	8,045	7.4%	3.0%	1.5%	4.3%
Regional	1,835		10.6%	1.3%	(0.6%)	9.3%
Consolidated	$	9,880

UNITED CONTINENTAL HOLDINGS, INC.
NOTES (UNAUDITED)

(C) Special charges and MTM losses on equity investments include the following:

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2018		2017		2018		2017
Operating:
Impairment of assets	$	111	$	—	$	134	$	—
Severance and benefit costs	11		41		25		78
(Gains) losses on sale of assets and other special charges	7		3		10		17
Total special charges	129		44		169		95
Nonoperating MTM losses on equity investments	135		—		90		—
Total special charges and MTM losses on equity investments	264		44		259		95
Income tax benefit related to special charges	(29)		(16)		(38)		(34)
Income tax benefit related to MTM losses on equity investments	(30)		—		(20)		—
Total special charges and MTM losses on equity investments, net of income taxes	$	205	$	28	$	201	$	61

Impairment of assets: In May 2018, the Brazil–United States open skies agreement was ratified, which provides air carriers with unrestricted access between the United States and Brazil. The company determined that the approval of the open skies agreement impaired the entire value of its Brazil route authorities because the agreement removes all limitations or reciprocity requirements for flights between the United States and Brazil. Accordingly, the company recorded a $105 million special charge ($82 million net of taxes) to write off the entire value of the intangible asset associated with its Brazil routes. This asset is not part of any collateral pledged against any of the company's borrowings. The company continues to maintain its slot assets related to Brazil since airport access is still restricted by slot allocations that are limited by airport facility constraints. For the three and six months ended June 30, 2018, the company also recorded $6 million ($5 million net of taxes) and $29 million ($22 million net of taxes), respectively, of fair value adjustments related to aircraft purchased off lease and other impairments related to certain fleet types and international slots no longer in use.

Severance and benefit costs: During the three and six months ended June 30, 2018, the company recorded severance and benefit costs related to a voluntary early-out program for its technicians and related employees represented by the International Brotherhood of Teamsters of $6 million ($4 million net of taxes) and $14 million ($11 million net of taxes), respectively. In the first quarter of 2017, approximately 1,000 technicians and related employees elected to voluntarily separate from the company and will receive a severance payment, with a maximum value of $100,000 per participant, based on years of service, with retirement dates through 2018. Also during the three and six months ended June 30, 2018, the company recorded other management severance of $5 million ($4 million net of taxes) and $11 million ($8 million net of taxes), respectively.

During the three and six months ended June 30, 2017, the company recorded $36 million ($23 million net of taxes) and $57 million ($37 million net of taxes), respectively, of severance and benefit costs related to the voluntary early-out program for its technicians and related employees, and $5 million ($3 million net of taxes) and $21 million ($13 million net of taxes), respectively, of management severance.

(Gains) losses on sale of assets and other special charges: During the three and six months ended June 30, 2018, the Company recorded $7 million ($5 million net of taxes) and $10 million ($8 million net of taxes), respectively, of other special charges related primarily to contract termination of regional aircraft operations in Guam.

MTM losses on equity investments: During the three and six months ended June 30, 2018, the company recorded losses of $135 million ($105 million net of taxes) and $90 million ($70 million net of taxes), respectively, for the change in market value of its investment in Azul, S.A. For equity investments subject to MTM accounting, the company records gains and losses to Nonoperating income (expense): Miscellaneous, net in its statements of consolidated operations.

(D) Effective tax rate

The company's effective tax rate for the three and six months ended June 30, 2018 was 20.2%, and the effective tax rate for the three and six months ended June 30, 2017 was 35.7% and 35.5%, respectively. The effective tax rate represents a blend of federal, state and foreign taxes and included the impact of certain nondeductible items. The effective tax rate for the three and six months ended June 30, 2018 also reflects the reduced federal corporate income tax rate as a result of the enactment of the Tax Cuts and Jobs Act (the "Tax Act") in December 2017 and the impact of a change in the company's mix of domestic and foreign earnings. We continue to analyze the different aspects of the Tax Act which could potentially affect the provisional estimates that were recorded at December 31, 2017.

SOURCE United Airlines

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

United Airlines MileagePlus Voted Favorite Frequent-Flyer Program in Trazee Awards

August 15, 2018

SAN DIEGO, Aug. 15, 2018 /PRNewswire/ -- United Airlines' MileagePlus loyalty program was awarded Favorite Frequent-Flyer program at the fourth-annual Trazee Awards last night at a special awards event at the Global Business Travel Association convention in San Diego.

"We are extremely proud that our customers voted MileagePlus as the favorite frequent-flyer program," said Luc Bondar, United's president of MileagePlus and vice president of Loyalty. "United continues to build and improve our loyalty program that provides great value for all of our members while offering a variety of earning and redemption opportunities."

"As the winner in this category, it is clear United MileagePlus is a trendsetter in the industry and a favorite of the millennial traveler, the most sought-after travel demographic," said Francis X. Gallagher, Publisher and CEO, FX Express Publications, Inc.

The Trazee Awards are hosted by Trazee Travel, a publication created for travelers by the teams at FX Express Publications, Inc. and Global Traveler. Reader nominations were collected from December 2017 to March 2018 via an online ballot on Trazee Travel. MileagePlus also holds the award for best loyalty program from Global Traveler for the past 14 years, every year since the inception of the GT Tested Reader Survey in 2004.

MileagePlus Explorer Card Enhancements

MileagePlus members continue to see enhancements to the program, including the new United MileagePlus Explorer Card, launched in June 2018, which now offers an expanded 2 miles per $1 spent on hotel stays and restaurant purchases in addition to 2 miles per $1 spent on purchases with United, valuable travel credits and inflight benefits and discounts. Customers can earn award miles by flying United, United Express, Star Alliance airlines or other airline partners and by purchasing products or services from partners around the globe, such as a recently announced partnership with BP.

MileagePlus Exclusives

Through MileagePlus Exclusives, members are also able to use their miles on unique and memorable experiences with a VIP touch across the widest range of mileage levels. Upcoming examples of MileagePlus Exclusives include: an opportunity to be among the first to fly United's new route from San Francisco to Tahiti, be a VIP at Red Carpet events at the 70th Emmy® Awards, dine at world-renowned restaurants, and obtain club level and luxury suites packages for a variety of sporting events.

About United

SOURCE United Airlines

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

Foodies and Flyers Unite: United Airlines Named Official Partner of MICHELIN Guides USA

August 13, 2018

CHICAGO, Aug. 13, 2018 /PRNewswire/ -- In an effort to continue offering travel inspiration while highlighting some of the top cities in the U.S., United Airlines today announced a new partnership as the official airline partner of the MICHELIN^® Guides USA. Created in France in 1900, the MICHELIN Guide was originally published as an aid to the very first motorists and was filled with handy information such as maps, how to change a tire, where to fill up with petrol and the best places to eat and sleep. The four MICHELIN Guides for the USA highlight cities known for tourism and cuisine – New York, Washington D.C., San Francisco and Chicago – all of which serve as hub markets for United.

As part of this partnership, MileagePlus members will have a one-of-a-kind opportunity to attend Michelin events in these cities. Through the MileagePlus Exclusives program, MileagePlus members will be able to bid their miles to attend five unique events. Experiences include guide launch events with cocktails and tasting stations from some of the newly selected and highly talented Michelin chefs of 2019 in each of the different MICHELIN Guide cities.

"This partnership is exciting on so many levels. Discovering new foods, flavors, and dining destinations is an integral part of any great travel experience and our relationship with MICHELIN guides not only continues to promote travel to some of our favorite cities, but also gives our MileagePlus customers the unique opportunity to redeem their miles to enjoy delicious experiences around the world," said Luc Bondar, United's vice president of Loyalty. "Foodies have long recognized the MICHELIN Guides as the preeminent authority on culinary excellence and we're thrilled to be their official airline partner, and to be able to extend the benefits of this partnership to our customers."

"As a mobility company, Michelin is proud to partner with United Airlines in the spirit of creating unforgettable experiences for travelers throughout the world," said Alexandre Taisne, director of Michelin Travel Partner. "MileagePlus members will enjoy exclusive access to private launch events that celebrate culinary excellence in outstanding establishments."

MileagePlus members will be able to bid their miles to attend the following Michelin events:

D.C. Guide Launch event at the French Embassy on September 13
Chicago Guide Launch event at The Loyalist on September 26
New York City Guide Launch event on November 6
New York City Matter of Taste wine event on November 10
San Francisco Guide Launch event on November 29

For more information on each of these experiences, and to bid miles, customers can visit exclusives.mileageplus.com/michelin.

About the MICHELIN Guide

The MICHELIN guide selects the best restaurants and hotels in the 30 countries it covers. Providing a showcase of gourmet dining around the world, it highlights the culinary dynamism of a country, as well as new trends and emerging young chefs. Creating value for restaurants through the distinctions that it attributes each year, the MICHELIN guide contributes to the prestige of the local gastronomy, thereby making cities and countries more attractive to tourists. Backed by its rigorous selection method and longstanding knowledge of the hospitality industry, the MICHELIN guide provides customers with unique expertise that enables it to offer them a true quality service.

The different selections are available in both print and digital versions. They are accessible via the Web and on a full range of mobile media that offer navigation capabilities adapted to individual usage as well as an on-line booking service. With the MICHELIN guide, the Group continues to support millions of travelers, allowing them to live a unique mobility experience.

About United

SOURCE United Airlines

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

United Airlines Strengthens Commitment to Top Corporate Customers with Launch of United Corporate Preferred

August 13, 2018

SAN DIEGO, Aug. 13, 2018 /PRNewswire/ -- United Airlines today debuted United Corporate Preferred, the industry's newest corporate travel program designed to offer top travel benefits to the airline's most loyal business customers. United announced the new program this morning at the Global Business Traveler Association (GBTA) Convention in San Diego.

United Corporate Preferred is a new and exclusive benefits program that provides added perks for the airline's top corporate customers. A multi-level program, United Corporate Preferred offers escalating benefits at three levels, including United Corporate Preferred, United Corporate Preferred Plus and United Corporate Preferred Elite. Eligibility for the new program is determined by a corporation's contract status, revenue contribution and loyalty with United. Eligible corporate agreements include United corporate share agreements, United PassPlus and United Meetings.

"Every day thousands of road warriors are jetting off on United to work events and business meetings all over the world," said Jake Cefolia, United's senior vice president of Worldwide Sales. "We designed our United Corporate Preferred program with the customer's entire travel experience in mind, from booking to landing, to identify opportunities to show our appreciation to our loyal business customers with a program that offers extra perks and travel benefits."

Benefits offered to all United Corporate Preferred customers include:

Preferred upgrades – tie-breaker preferences for upgrades.
Preferred standby – prioritization when traveling on standby for a different flight and when waitlisting for a seat in a different cabin or booking class.
Operational adjustment protection – protection during travel interruptions, as well as seat protection to retain the same or similar seat in the event of an aircraft swap.
Preferred discounts and offers – eligibility to receive exclusive promotions offered by both United and its partners in the near future.

Customers in the airline's new United Corporate Preferred Elite level will also receive the following:

Additional travel waiver flexibility – when United has a travel waiver in place, customers will receive additional flexibility to adjust their travel beyond restrictions in place on the standard waiver.
Preferred boarding – later this year, customers will receive priority boarding in group two.
Preferred seating – later this year, customers will have access to book designated standard economy seats closer to the front of the plane.

To receive these benefits, tickets must be flown on United or United Express flights, reservations must include the customer's corporate account number at the time of booking, and the travel must be for the corporate customer's business. Companies invited to participate in United Corporate Preferred will receive a tailored webpage with information on benefits eligible to their employees. For more information on the program, visit unitedcorporatepreferred.com.

About United

SOURCE United Airlines

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

United Reports July 2018 Operational Performance

August 08, 2018

CHICAGO, Aug. 8, 2018 /PRNewswire/ -- United Airlines (UAL) today reported July 2018 operational results.

UAL's July 2018 consolidated traffic (revenue passenger miles) increased 6.9 percent and consolidated capacity (available seat miles) increased 4.0 percent versus July 2017. UAL's July 2018 consolidated load factor increased 2.4 points compared to July 2017.

July Highlights

Set several company records in the month of July by flying more than 15.4 million customers, having more than 73,000 mainline departures and filling more than 90 percent of total mainline seats.
Announced orders to purchase 25 new Embraer E-175 and 4 new Boeing 787-9 aircraft.
As part of a previously announced $8 million commitment, announced a $2 million grant to be split between the Community FoodBank of New Jersey, Urban League of Essex County, and Year Up New York, as well as a $1 million grant to First Place for Youth in Los Angeles.
Unveiled the redesigned united.com homepage, featuring a more personalized digital experience for each customer and an updated, more modern, user-friendly design.
Achieved the top score of 100 percent on the 2018 Disability Equality Index (DEI), a prominent benchmarking metric that rates U.S. companies on their disability inclusion policies and practices, also earning UAL a place on DEI's 2018 "Best Places to Work" list.
Voted Best Business Class Lounge in the United States by the 2018 World Airline Awards from Skytrax for the Chicago O'Hare United Polaris lounge.

About United

Preliminary Operational Results

		July			Year-to-Date

		2018	2017	Change	2018	2017	Change

REVENUE PASSENGER MILES (000)
	Domestic	13,093,444	11,997,825	9.1%	76,184,306	71,335,547	6.8%
	Mainline	10,851,145	10,090,634	7.5%	62,195,944	58,637,052	6.1%
	Regional	2,242,299	1,907,191	17.6%	13,988,362	12,698,495	10.2%
	International	9,909,733	9,515,935	4.1%	56,612,407	54,145,312	4.6%
	Atlantic	4,483,915	4,038,394	11.0%	22,672,129	20,348,359	11.4%
	Pacific	3,144,719	3,135,175	0.3%	20,132,256	19,898,718	1.2%
	Latin	2,281,099	2,342,366	(2.6%)	13,808,022	13,898,235	(0.6%)
	Mainline	2,192,591	2,258,147	(2.9%)	13,267,088	13,374,813	(0.8%)
	Regional	88,508	84,219	5.1%	540,934	523,422	3.3%
	Consolidated	23,003,177	21,513,760	6.9%	132,796,713	125,480,859	5.8%

AVAILABLE SEAT MILES (000)
	Domestic	14,474,602	13,651,010	6.0%	88,574,766	83,314,230	6.3%
	Mainline	11,898,478	11,355,336	4.8%	71,790,867	67,902,738	5.7%
	Regional	2,576,124	2,295,674	12.2%	16,783,899	15,411,492	8.9%
	International	11,284,307	11,114,243	1.5%	69,863,152	68,725,754	1.7%
	Atlantic	5,108,634	4,865,154	5.0%	28,266,231	27,127,637	4.2%
	Pacific	3,631,892	3,662,096	(0.8%)	25,257,484	24,941,947	1.3%
	Latin	2,543,781	2,586,993	(1.7%)	16,339,437	16,656,170	(1.9%)
	Mainline	2,441,401	2,492,076	(2.0%)	15,624,449	15,929,365	(1.9%)
	Regional	102,380	94,917	7.9%	714,988	726,805	(1.6%)
	Consolidated	25,758,909	24,765,253	4.0%	158,437,918	152,039,984	4.2%

PASSENGER LOAD FACTOR
	Domestic	90.5%	87.9%	2.6 pts	86.0%	85.6%	0.4 pts
	Mainline	91.2%	88.9%	2.3 pts	86.6%	86.4%	0.2 pts
	Regional	87.0%	83.1%	3.9 pts	83.3%	82.4%	0.9 pts
	International	87.8%	85.6%	2.2 pts	81.0%	78.8%	2.2 pts
	Atlantic	87.8%	83.0%	4.8 pts	80.2%	75.0%	5.2 pts
	Pacific	86.6%	85.6%	1.0 pt	79.7%	79.8%	(0.1) pts
	Latin	89.7%	90.5%	(0.8) pts	84.5%	83.4%	1.1 pts
	Mainline	89.8%	90.6%	(0.8) pts	84.9%	84.0%	0.9 pts
	Regional	86.5%	88.7%	(2.2) pts	75.7%	72.0%	3.7 pts
	Consolidated	89.3%	86.9%	2.4 pts	83.8%	82.5%	1.3 pts

ONBOARD PASSENGERS (000)
	Mainline	11,309	10,650	6.2%	65,500	62,559	4.7%
	Regional	4,111	3,542	16.1%	25,473	22,985	10.8%
	Consolidated	15,420	14,192	8.7%	90,973	85,544	6.3%

CARGO REVENUE TON MILES (000)
	Total	293,576	278,743	5.3%	1,965,792	1,854,475	6.0%

OPERATIONAL PERFORMANCE
	Mainline Departure Performance ¹	62.3%	63.3%	(1.0) pt
	Mainline Completion Factor	99.3%	99.3%	0.0 pts

¹Based on mainline scheduled flights departing by or before scheduled departure time

Note: See Part II, Item 6, Selected Financial Data, of the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017 for the definitions of these statistics

Safe Harbor Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements included in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as "expects," "will," "plans," "anticipates," "indicates," "believes," "estimates," "forecast," "guidance," "outlook," "goals" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aircraft fuel and energy refining capacity in relevant markets); economic and political instability and other risks of doing business globally, including political developments that may impact our operations in certain countries; demand for travel and the impact that global economic and political conditions have on customer travel patterns; competitive pressures on pricing and on demand; demand for transportation in the markets in which we operate; our capacity decisions and the capacity decisions of our competitors; the effects of any hostilities, act of war or terrorist attack; the effects of any technology failures or cybersecurity breaches; the impact of regulatory, investigative and legal proceedings and legal compliance risks; disruptions to our regional network; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; costs associated with any modification or termination of our aircraft orders; potential reputational or other impact from adverse events in our operations, the operations of our regional carriers or the operations of our code share partners; our ability to attract and retain customers; our ability to execute our operational plans and revenue-generating initiatives, including optimizing our revenue; our ability to control our costs, including realizing benefits from our resource optimization efforts, cost reduction initiatives and fleet replacement programs; the impact of any management changes; our ability to cost-effectively hedge against increases in the price of aircraft fuel if we decide to do so; any potential realized or unrealized gains or losses related to any fuel or currency hedging programs; labor costs; our ability to maintain satisfactory labor relations and the results of any collective bargaining agreement process with our union groups; any disruptions to operations due to any potential actions by our labor groups; an outbreak of a disease that affects travel demand or travel behavior; U.S. or foreign governmental legislation, regulation and other actions (including Open Skies agreements and environmental regulations); industry consolidation or changes in airline alliances; our ability to comply with the terms of our various financing arrangements; the costs and availability of financing; our ability to maintain adequate liquidity; the costs and availability of aviation and other insurance; weather conditions; our ability to utilize our net operating losses to offset future taxable income; the impact of changes in tax laws; the success of our investments in airlines in other parts of the world; and other risks and uncertainties set forth under Part I, Item 1A., "Risk Factors," of our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission.

SOURCE United Airlines

For futher information: United Airlines Worldwide Media Relations, 872.825.8640, media.relations@united.com

United Airlines Names Jake Cefolia Senior Vice President, Worldwide Sales

August 06, 2018

CHICAGO, Aug. 6, 2018 /PRNewswire/ -- United Airlines today announced Jake Cefolia has been promoted to senior vice president of Worldwide Sales. A veteran sales leader, he will be responsible for directing the efforts of a team of 725 sales professionals who manage sales programs, services, relationships and revenue with corporations, travel management companies and distributors around the world.

Cefolia has been with United since 2007, most recently serving as vice president of Sales for the Americas. In this role, he oversaw sales for the United States, Canada and Latin America as well as the Global Accounts Division. He has also served as vice president of Atlantic and Pacific Sales, as managing director of the Global Accounts Division and as managing director for United's Pacific region, based in Hong Kong. Before joining United, he held various sales leadership roles at Northwest Airlines and British Airways.

Cefolia will report to Scott Kirby, president of United, and begins his new role today. He succeeds Dave Hilfman, who announced earlier this year his plans to retire. Hilfman will continue to serve in an advisory capacity through the end of 2018.

"During his more than 35 years in the industry, Dave has established a legacy for his commitment to customers and colleagues, and we're fortunate to have had him on the United team," said Kirby. "In Jake, we have a leader with a proven ability to develop meaningful relationships with corporate and travel agency customers around the globe and to motivate and equip the Sales team to deliver outstanding results as they have done this year. Sales is a critical department helping to fuel our growth, with corporate revenues up double digits year-over-year, and with Jake at the helm, United is well positioned to continue to find opportunities to better meet the needs of today's corporate traveler."

"It's an honor for me to build on the already strong foundation established by my predecessor and friend, Dave Hilfman," said Cefolia. "I look forward to evolving our offerings for both new and loyal corporate and travel agency clients of all sizes, simplifying the travel management process and enhancing the tools and technology we provide."

Cefolia graduated from Embry-Riddle Aeronautical University with a degree in management.

About United

SOURCE United Airlines

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United Airlines Announces New Nonstop Service Between Washington, D.C. and Tel Aviv

August 02, 2018

WASHINGTON, Aug. 2, 2018 /PRNewswire/ -- United Airlines today announced it will begin its 20^th year of service to Israel with a new nonstop flight between its hub at Washington Dulles International Airport and Tel Aviv's Ben Gurion International Airport starting May 22, 2019 - subject to government approval. The new flight will be the first to be operated by a U.S. carrier between the two cities.

Offering more nonstop service between the United States and Tel Aviv than any other U.S. airline, United's new route to Tel Aviv will be the carrier's fourth flight to Israel. United currently operates twice-daily service between New York/Newark and Tel Aviv and daily nonstop service between San Francisco and Tel Aviv.

Washington Dulles (IAD) – Tel Aviv (TLV) Starts May 22, 2019

Flight	Frequency	City Pair	Depart	Arrive	Aircraft
UA 72	Weds, Fri, Sun	IAD - TLV	10:30 p.m.	4:30 p.m. +1	Boeing 777-200ER
UA 73	Tues, Fri, Sun	TLV - IAD	12:20 a.m.	5:50 a.m.	Boeing 777-200ER

"As we begin celebrating 20 years of service in Israel, we want to thank our customers and employees who have helped make United the top U.S. airline serving Israel," said Patrick Quayle, United's vice president of International Network. "We thank the Israeli government for its ongoing support and partnership. We look forward to continuing to serve Israel with this new service for our customers traveling between the U.S. capital and one of the most advanced science and technology sectors in the world."

United's new service between Washington Dulles and Tel Aviv will offer convenient connections to nearly 70 destinations in the United States, including Houston, Chicago, Atlanta, Boston, Cleveland, Dallas and Miami.

"We are thrilled to welcome another United Airlines flight to Israel from the United States," said Yariv Levin, Israel's Minister of Tourism. "Today's announcement is a wonderful way to celebrate United's 20 year history in Israel and opens many more opportunities for both countries to continue to build strong relationships while growing business and expanding tourism."

Washington Dulles, a United hub since 1986, offers customers more than 230 flights daily across its domestic network and more than 30 international flights to key business and leisure destinations to 24 countries in Europe, Asia and the Americas. The airport is the region's key gateway to international economic and tourism development.

This year, Virginia's Fairfax County Economic Development Authority announced nearly 1,000 new jobs to the area, many with direct ties to businesses based in Israel, which is known as a leader in technology, biotechnology, life sciences, pharmaceuticals and defense industries. United's new flight will offer customers convenient, nonstop access between Israel and Washington, D.C., and surrounding areas, including high-tech business centers in Fairfax and Loudoun Counties in Virginia. Customers traveling beyond Washington, D.C., will find convenient connecting opportunities to more than 200 United flights throughout the United States to key business and leisure destinations.

United Airlines has continuously served Israel since August 1999, when the airline began daily service between its New York/Newark hub and Tel Aviv, and in 2004 it increased to two flights daily. In response to a growing demand for business and tourism travel, United became the first U.S. airline to operate nonstop service between the U.S. West Coast and Tel Aviv from its hub in San Francisco in March 2016, operating three flights weekly with Boeing 787-9 aircraft. In October 2016, United increased its service to daily and earlier this year began operating its newest aircraft, the Boeing 777-300ER, from San Francisco (seasonally) and New York/Newark (year-round).

About United

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

United Airlines Strengthens Domestic Route Network: Announces New Washington Dulles - Miami Service and Expands to 33 New Destinations in Four Months

July 30, 2018

CHICAGO, July 30, 2018 /PRNewswire/ -- United Airlines today announced it will begin new daily service between its hub at Washington Dulles International Airport and Miami International Airport. United's newest route announcement builds on the airline's focus to offer its customers more opportunities to conveniently connect to more domestic and international destinations than ever before by boosting connectivity and expanding service from its seven U.S. gateways.

United is also increasing flying between its Washington Dulles hub and Orlando and Tampa. Beginning Nov. 28, 2018, through Jan. 6, 2019, United will increase to five daily flights to Orlando, and between Dec. 26, 2018, through Jan. 26, 2019, the airline will increase to four daily flights to Tampa.

From Dec.19, 2018, through March 30, 2019, United will offer daily service between Washington Dulles and Miami and twice daily service during peak holiday travel, Dec. 24, 2018, through Jan. 6, 2019, with Airbus A319 aircraft. Tickets are now available for purchase.

In addition to its new service between Washington Dulles and Miami, United offers up to 16 daily flights to Miami from its hubs in Chicago, Denver, Houston, New York/Newark and San Francisco.

New Washington Dulles – Miami service begins Dec. 19
Depart	Time	Arrive	Time
Washington Dulles (IAD)	8:15 a.m.	Miami (MIA)	11:05 a.m.
Miami (MIA)	1:24 p.m.	Washington Dulles (IAD)	4:19 p.m.
Washington Dulles (IAD)	5:50 p.m.	Miami (MIA)	8:40 p.m.
Miami (MIA)	8:55 a.m.	Washington Dulles (IAD)	11:50 a.m.

This year, United has expanded service throughout Florida including Key West, Fort Lauderdale, Fort Myers, Orlando, Tampa, Sarasota and West Palm Beach from its hubs in New York/Newark and Washington Dulles.

Boosting hub connectivity to domestic and international destinations

In the last four months, United has launched service to 33 destinations in 18 states from its domestic hubs. From each hub, the new flights offer customers hundreds of connection opportunities to destinations throughout the United States and to more than 110 international destinations in more than 50 countries around the world. In addition to new destinations, United has expanded service to more than 40 U.S. cities by adding either more flights or larger aircraft.

"We want to make United the first choice for customers when planning travel," said Ankit Gupta, United's vice president of Domestic Network Planning. "To do this we are focusing on the strengths of our hub cities, which are the largest centers for business and tourism travel in the country and key gateways for customers to easily and conveniently connect to thousands of cities throughout the United States and beyond. The new destinations and the service expansions that we're launching this year provide customers more choice and more opportunities to travel to the destinations that are most important to them."

United's new routes include:
United Hub	New Destination
Chicago (ORD)	Bismarck, ND (BIS) Brownsville, TX (BRO) El Paso, TX (ELP) Fresno, CA (FAT) Salina, KS (SLN) Shenandoah, VA (SHD) Wilmington, NC (ILM)
Denver (DEN)	Appleton, WI (ATW) Jacksonville, FL (JAX) Mammoth, CA (MMH) Moab, UT (CNY) Monterey, CA (MRY) Norfolk, VA (ORF) Prescott, AZ (PRC) Vernal, UT (VEL)
Houston (IAH)	Akron-Canton, OH (CAK) Dayton, OH (DAY)
Los Angeles (LAX)	Eureka, CA (ACV) Glacier National Park/Kalispell, MT (FCA) Mammoth, CA (MMH) Medford, OR (MFR) Missoula, MT (MSO) Prescott, AZ (PRC) Redmond, OR (RDM) Sun Valley, ID (SUN)
New York/Newark (EWR)	Elmira, NY (ELM) Presque Isle, ME (PQI) Rapid City, SD (RAP)
San Francisco (SFO)	Madison, WI (MSN)
Washington Dulles (IAD)	Lewisburg, WV (LWB) Plattsburgh, NY (PBG) Shenandoah, VA (SHD) Wilmington, NC (ILM)

About United

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

The Airport Lounge Scene's Brightest Star: United Polaris Lounge Named Best Business Class Lounge in the U.S.

July 19, 2018

CHICAGO, July 19, 2018 /PRNewswire/ -- The United Polaris lounge at Chicago O'Hare International Airport has been voted Best Business Class Lounge in the United States by the 2018 World Airline Awards from Skytrax. The highly-coveted award, referred to as the Passenger's Choice Awards, was voted on by more than 20 million airline customers across the globe.

"What is especially exciting about this distinction is that it comes from passengers," said United's Vice President of Marketing, Mark Krolick. "This win is a testament to United's efforts to provide our customers with a dramatically-redesigned, luxurious, sleep-enhancing travel experience, which begins with our Polaris lounges."

With a focus on providing a more tranquil journey from departure-to-landing, United has opened an exclusive portfolio of United Polaris lounges at Chicago O'Hare International Airport, Houston's George Bush Intercontinental Airport, Newark Liberty International Airport and San Francisco International Airport.

The only lounge of its kind offered by a U.S. airline to international business class customers, United Polaris lounges feature a custom scent, curated music playlist and subtle mood lighting which come together to create a notable sensory experience. Each location offers a variety of seating areas to meet the needs of customers, whether they want to charge their mobile devices, take advantage of complimentary high-speed Wi-Fi, enjoy a gourmet meal, or simply rest before their flight. United Polaris lounge signature seats are designed with an oversized chair, integrated work or dining table, large privacy dividers and a personal side lamp.

Tucked away from the rest of the lounge, daybeds outfitted with a Saks Fifth Avenue blanket and pillow offer a quiet place to rest. Visitors also have the option to freshen up in spa-like shower suites featuring Soho House & Co's Cowshed Spa products, with a valet available to steam clothes.

When it comes to dining, customers can look forward to a culinary journey with an inventive, seasonal menu that includes nods to both the local city as well as the popular destinations the airline serves. Visitors are able to grab something from the buffet before boarding or settle in for a full meal in the private dining space. Each lounge has an extensive drinks menu featuring popular wines, beers and craft cocktails that rival any speakeasy, with house-made anise-infused vodka and house-made oolong-steeped bourbon.

Customers traveling in United Polaris business class or United Polaris first class on long-haul international flights have Polaris lounge access as well as customers traveling on select long-haul international flights on a Star Alliance partner airline in international first or business class.

United Polaris business class represents the airline's most significant product transformation in more than a decade and the airline continues to increase momentum of its roll-out. On average, United plans to add one aircraft with the new United Polaris business class seat every 10 days from now through 2020, and the United Polaris lounge at Los Angeles International Airport is expected to open later this year.

Star Alliance, of which United is a founding member, was also victorious in this year's Awards, claiming the Best Airline Alliance title for the third consecutive year. Star Alliance was the first airline alliance to receive the Best Alliance Award when the category was introduced in 2005 and has since won the award nine times.

Through the world's largest airline alliance, United customers have seamless travel options to destinations in nearly 200 countries. MileagePlus members may earn and use miles on United and 27 other Star Alliance member airlines, and Premier members are recognized with added benefits around the world. Star Alliance's Los Angeles Lounge retained the Best Airline Alliance Lounge Award for the fourth year in a row. With more than 1,000 locations, the Star Alliance lounge network is the largest in the world.

The World Airline Awards were introduced by Skytrax in 1999 to provide a customer satisfaction study that was independent, impartial and global. Over 100 customer nationalities voted in the largest airline passenger satisfaction survey to determine the award winners.

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

United Airlines Names Lori Bradley Senior Vice President, Talent Management and Organizational Effectiveness

July 18, 2018

CHICAGO, July 18, 2018 /PRNewswire/ -- United Airlines today announced Lori Bradley has been named senior vice president, Talent Management and Organizational Effectiveness. Bradley is a veteran human resources executive, bringing more than 25 years of talent management expertise with large corporations to this newly created role with United. She will be responsible for setting and leading a global talent management strategy, including organizational design and effectiveness, talent acquisition, and diversity and inclusion, as well as learning and development programs.

United Airlines Announces $2 Million Grant Among Three New York and New Jersey Non-Profits

July 18, 2018

NEWARK, N.J., July 18, 2018 /PRNewswire/ -- United Airlines (UAL) announced today a $2 million grant to be split between the Community FoodBank of New Jersey, Urban League of Essex County, and Year Up New York. These organizations were selected for their work within the local communities that surround Newark Liberty International Airport and their dedication to vital workforce development programs giving people opportunities for the future.

"We are thrilled to be able to provide support to multiple New York and New Jersey communities to help individuals build their professional and personal development job skills," said Jill Kaplan, president, New York/New Jersey for United Airlines. "The Community FoodBank of New Jersey, Urban League of Essex County, and Year Up New York align to our core values as a company and the grants will provide new opportunities for each organization to further promote their missions."

United's contribution of a half-million dollars to the Community FoodBank of New Jersey, which serves the city of Elizabeth and neighboring counties, will support the Food Service Training Academy (FSTA). The Academy is a 15 week culinary program which provides the skills and training necessary for an entry-level job in the food-service industry. FSTA is open to low-income people who are facing obstacles to employment, including formerly incarcerated individuals seeking re-entry, people in recovery from substance use disorders and women re-entering the workforce.

"The Food Service Training Academy exemplifies the Community FoodBank of New Jersey's commitment to addressing poverty, the root cause of hunger, by providing graduates with marketable job skills that can lead to a living wage," said Carlos Rodriguez, President & CEO, Community FoodBank of New Jersey. "United's generous contribution will sponsor the recruitment and education of incoming FSTA students to help break the cycle of poverty for dozens of Elizabeth residents."

Further, the donation of a half-million dollars to Urban League of Essex County will support the development and improvement of a new soft skills program for residents within the city of Newark, New Jersey to support the Newark 2020 Hire. Buy. Live. initiative. The organization supports disadvantaged urban residents through programs that drive sustainable social and economic self-sufficiency.

"The Urban League of Essex County's mission is to help families achieve economic self-sufficiency and we are very grateful for the generous grant from United Airlines to help families secure meaningful employment and manage their finances and build assets," said Vivian Cox Fraser, President and CEO, Urban League of Essex County. "The grant will allow the Urban League to provide integrated services to families that will ensure longer term success. When we help people develop the skills they need to compete for living-wage jobs, we are creating opportunities to increase economic vitality of our communities."

Lastly, the investment of one million dollars to Year Up New York will support the organization in its efforts to scale the program in New York City and create a pilot software development track, which will include data analytics, software development, and an increased focus on cyber security.

"There is a growing technology job market in New York City that is out of reach for many individuals," said John Galante, Executive Director at Year Up New York. "United's investment in Year Up New York's software development track and expansion will enable us to train our young adults with the right skills that are in-demand now and will continue to be in-demand in the future. The impact of this work will change the lives of many and give opportunities for deserving youth in New York City."

Today's announcement is the sixth in a series of announcements United is making in all its domestic hub markets over the coming weeks. Each grant is a part of a total of $8 million in grants to help address critical needs identified by local leadership in each of its hub market communities – Chicago, Denver, Houston, Los Angeles, San Francisco, Newark/New York and Washington, D.C. The announcement represents United's commitment to invest in and lift up the communities where many of its customers and employees live and work. With these grants, United will work hand-in-hand with local organizations and engage with city and community leadership to create profound, sustainable advancements.

About United

About Urban League of Essex County

The Urban League of Essex County was founded in 1917 by William Ashby, the first black social worker in New Jersey. The organization is an affiliate of the National Urban League, the nation's oldest and largest community based movement devoted to empowering African Americans to enter the economic and social mainstream. The Urban League of Essex County offers programs and services in education, employment, housing and economic development that empower communities and change lives.

About The Community FoodBank of New Jersey

The Community FoodBank of New Jersey, a member of Feeding America®, provides people across the state with food, help and hope. The FoodBank distributed over 56 million pounds of food last year to its more than 1,000 community partners including pantries, soup kitchens, emergency shelters, mobile pantries, and child and senior feeding programs. More than 4.7 million times a year, someone in need is fed by the FoodBank's network of partners. For our neighbors, especially families, and for the volunteers and donors who support them, the Community FoodBank of New Jersey is the powerful change agent that fills the emptiness caused by hunger with the basic human essentials people need to survive.

About Year Up

Year Up is an award-winning, national 501(c)3 organization that provides talented and motivated young adults ages 18-24 with the skills, experience, and support that will empower them to reach their potential through professional careers and higher education. Through a one-year, intensive training program, Year Up utilizes a high support, high expectations model that combines marketable job skills, stipends, coursework eligible for college credit, and corporate internships at more than 250 top companies. Its holistic approach focuses on students' professional and personal development to enable young adults with a viable path to economic self-sufficiency and meaningful careers. Year Up has served more than 19,500 young adults since its founding in 2000, and will serve more than 4,000 young adults in 2018 across 21 U.S. cities in Arizona, Baltimore, Bay Area, Chicago, Dallas/Fort Worth, Greater Atlanta, Greater Boston, Greater Philadelphia, Jacksonville, Los Angeles, National Capital Region, New York City, Providence, Puget Sound, South Florida and Wilmington. Year Up has been voted one of the "Best Non-Profits to Work For" by The NonProfit Times for eight consecutive years, and rated a 4-star charity by Charity Navigator for twelve consecutive years, placing them in the top 1% of tracked organizations.

SOURCE United Airlines

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

United Airlines Announces Fleet Update

July 16, 2018

CHICAGO, July 16, 2018 /PRNewswire/ -- United Airlines (UAL) today announced orders to purchase 25 new Embraer E-175 and 4 new Boeing 787-9 aircraft. United expects to take delivery of the Embraer E-175 aircraft in 2019 and expects to take delivery of the Boeing 787-9 aircraft in 2020.

The 25 new E-175 aircraft will replace 25 CRJ-700 aircraft currently being flown by our United Express partners. These new E-175 purchases will allow United to offer a more comfortable and efficient aircraft to its customers.

The new 787-9 aircraft are part of United's widebody fleet replacement strategy. The 787-9 is the longest-range version of the aircraft, while using 20 percent less fuel than older-generation aircraft. It will offer the airline's all-new United Polaris business class seats and other modern amenities to provide a superior onboard experience to United's customers.

"These new 787 aircraft are another step in our widebody replacement strategy, and we will continue to roll out new announcements in the future as we implement our comprehensive fleet plan," said Gerry Laderman, United's senior vice president of finance and acting chief financial officer. "The new E-175 aircraft will provide our customers with a superior product that offers the latest in onboard amenities and comfort and will be a terrific addition to our fleet."

Today's announcement does not change UAL's previous adjusted capital expenditure guidance. The company will continue to evaluate opportunities to purchase used aircraft.

About United

SOURCE United Airlines

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

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United Airlines Reports Second-Quarter 2018 Performance

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United Airlines Announces Fleet Update

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