United Airlines Reports Third-Quarter 2018 Performance - United Hub
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United Airlines Reports Third-Quarter 2018 Performance

October 16, 2018

CHICAGO, Oct. 16, 2018 /PRNewswire/ -- United Airlines (UAL) today announced its third-quarter 2018 financial results, reporting third-quarter net income of $836 million, diluted earnings per share of $3.06, pre-tax earnings of $1.1 billion and pre-tax margin of 9.6 percent. Tropical storms across the system are estimated to have reduced diluted earnings per share by approximately $0.07. Third-quarter diluted earnings per share increased 42 percent year-over-year. The company recaptured approximately 100 percent of its year-over-year fuel expense increase in the third quarter.

"Our stand-out third-quarter performance, which produced double-digit revenue growth as we more than offset the steep increase in fuel costs, is proof that United is building momentum," said Oscar Munoz, chief executive officer of United Airlines. "Our growth plan has been essential to our success, and we're more confident than ever we'll achieve the ambitious adjusted earnings per share1 target of $11 to $13 we laid out for 2020."

  • UAL reported third-quarter adjusted net income of $837 million, adjusted diluted earnings per share of $3.06, adjusted pre-tax earnings of $1.1 billion and adjusted pre-tax margin of 9.7 percent.2 Third-quarter adjusted diluted earnings per share increased 36 percent year-over-year.
  • Consolidated passenger revenue per available seat mile (PRASM) increased 6.1 percent year-over-year, above the high end of the company's third-quarter 2018 guidance range of up 4 percent to 6 percent.
  • Consolidated unit cost per available seat mile (CASM) increased 6.4 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's mid-continent hubs in Chicago, Denver and Houston had year-over-year capacity growth of 9.7 percent in the third quarter and led the system in unit revenue growth performance in the quarter.
  • UAL now expects full-year 2018 adjusted diluted earnings per share3 to be $8.00 to $8.75. The company currently expects to recapture approximately 90 percent of the estimated $2.5 billion year-over year increase in full-year 2018 fuel expense.

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

Third-Quarter Highlights

Customer Experience

  • Introduced a new boarding process at 1,000 gates around the world, designed to reduce customers' stress by spending less time waiting in line and providing them with improved boarding information.
  • United Airlines MileagePlus loyalty program voted Favorite Frequent-Flyer Program in Trazee Awards.
  • The United Polaris lounge at Chicago O'Hare International Airport voted Best Business Class Lounge in the United States by the 2018 World Airline Awards from Skytrax.
  • Debuted United Corporate Preferred, the industry's newest corporate travel program designed to offer top travel benefits to the company's most loyal business customers.
  • Launched the redesigned united.com homepage, featuring a more personalized digital experience for each customer.

Operations and Employees

  • In July, UAL had its best consolidated D :00 month of July in history and its highest consolidated load factor month ever.
  • Carried the most-ever customers to their destinations during the summer.
  • Consolidated completion factor at UAL's hubs in Houston, Chicago, Los Angeles and Washington Dulles reached third-quarter record levels.
  • 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.

Network and Fleet

  • Announced several new international routes, including year-round nonstop service between Washington Dulles and Tel Aviv, Israel, making UAL the only airline to offer nonstop service between the two cities; daily, year-round service between San Francisco and Amsterdam; and nonstop seasonal summer service between Newark/New York and Naples, Italy, and Newark/New York and Prague, all subject to government approval.
  • Added 100 flights and more than 10,000 seats daily to 12 of the country's top ski destinations during the 2018/2019 ski season, more than 8,500 seats from U.S. hubs and eight other U.S. cities connecting more customers than ever to Las Vegas for CES 2019, and more than 204,000 total seats from September through November to popular college football towns including Madison, Wisconsin, and Columbia, South Carolina.
  • Announced orders to purchase 25 new Embraer E-175 and 13 new Boeing 787-9 aircraft.
  • Took delivery of one Boeing 737 MAX 9 aircraft and two used Boeing 767-300 aircraft.

Community and Environment

  • Committed to reducing the company's greenhouse gas emissions by 50 percent by 2050, the only U.S. airline to commit to emissions reductions, further strengthening UAL's ambition to be the world's most environmentally conscious airline.
  • Launched a Crowdrise fundraising campaign to support those affected by Hurricane Florence, Typhoon Mangkhut, flooding in Western Japan, wildfires in California and other disasters.
  • 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, and a $1 million grant to the San Francisco Immigrant Legal and Education Network.

Earnings Call

UAL will hold a conference call to discuss third-quarter 2018 financial results and its financial and operational outlook for the fourth quarter and full year of 2018 on Wednesday, October 17, 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 4,700 flights a day to 356 airports across five continents. In 2017, United and United Express operated more than 1.6 million flights carrying more than 148 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 760 mainline aircraft and the airline's United Express carriers operate 546 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

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

2Excludes special charges, the mark-to-market impact of equity investments and imputed interest on certain capitalized leases. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in the tables accompanying this release.

3Excludes special charges and the mark-to-market impact of equity investments, the nature of which are not determinable at this time, and imputed interest on certain capitalized leases. Accordingly, UAL is not providing earnings guidance on a GAAP basis.

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
September 30,


%
Increase/
(Decrease)



Nine Months Ended
September 30,


%
Increase/
(Decrease)


(In millions, except per share data)


2018


2017




2018


2017



Operating revenue:















Passenger (B)


$

10,120



$

9,069



11.6




$

28,150



$

25,873



8.8



Cargo


296



279



6.1




903



790



14.3



Other operating revenue


587



551



6.5




1,759



1,670



5.3



Total operating revenue


11,003



9,899



11.2




30,812



28,333



8.7


















Operating expense:















Salaries and related costs


2,930



2,785



5.2




8,534



8,263



3.3



Aircraft fuel


2,572



1,809



42.2




6,927



5,038



37.5



Regional capacity purchase


663



567



16.9




1,963



1,652



18.8



Landing fees and other rent


596



585



1.9




1,757



1,670



5.2



Depreciation and amortization


564



556



1.4




1,662



1,610



3.2



Aircraft maintenance materials and outside repairs


455



451



0.9




1,333



1,377



(3.2)



Distribution expenses


427



377



13.3




1,162



1,081



7.5



Aircraft rent


109



145



(24.8)




355



476



(25.4)



Special charges (C)


17



50



NM




186



145



NM



Other operating expenses


1,467



1,436



2.2




4,293



4,126



4.0



Total operating expense


9,800



8,761



11.9




28,172



25,438



10.7


















Operating income


1,203



1,138



5.7




2,640



2,895



(8.8)


















Operating margin


10.9

%


11.5

%


(0.6)


pts.


8.6

%


10.2

%


(1.6)


pts.

Adjusted operating margin (Non-GAAP)


11.1

%


12.0

%


(0.9)


pts.


9.2

%


10.7

%


(1.5)


pts.
















Nonoperating income (expense):















Interest expense


(187)



(169)



10.7




(540)



(498)



8.4



Interest capitalized


18



20



(10.0)




51



64



(20.3)



Interest income


28



17



64.7




70



41



70.7



Miscellaneous, net (C)


(1)



(13)



(92.3)




(119)



(82)



45.1



Total nonoperating expense


(142)



(145)



(2.1)




(538)



(475)



13.3


















Income before income taxes


1,061



993



6.8




2,102



2,420



(13.1)


















Pre-tax margin


9.6

%


10.0

%


(0.4)


pts.


6.8

%


8.5

%


(1.7)


pts.

Adjusted pre-tax margin (Non-GAAP)


9.7

%


10.5

%


(0.8)


pts.


7.7

%


9.1

%


(1.4)


pts.
















Income tax expense (E)


225



348



(35.3)




435



855



(49.1)



Net income


$

836



$

645



29.6




$

1,667



$

1,565



6.5


















Diluted earnings per share


$

3.06



$

2.15



42.3




$

5.99



$

5.09



17.7



Diluted weighted average shares


273.6



300.6



(9.0)




278.0



307.6



(9.6)


















NM Not meaningful
















 

UNITED CONTINENTAL HOLDINGS, INC.

STATISTICS




Three Months Ended
September 30,


%

Increase/

(Decrease)



Nine Months Ended
September 30,


%

Increase/

(Decrease)




2018


2017



2018


2017


Mainline:















Passengers (thousands)


31,157



29,182



6.8




85,348



81,091



5.2



Revenue passenger miles (millions)


56,787



53,515



6.1




154,382



146,252



5.6



Available seat miles (millions)


65,819



63,183



4.2




183,678



176,710



3.9



Cargo ton miles (millions)


851



830



2.5




2,523



2,406



4.9



Passenger revenue per available seat mile (cents)


12.62



11.93



5.8




12.50



12.03



3.9



Average yield per revenue passenger mile (cents)


14.62



14.09



3.8




14.88



14.53



2.4



Aircraft in fleet at end of period


760



751



1.2




760



751



1.2



Average stage length (miles)


1,807



1,825



(1.0)




1,814



1,817



(0.2)



Average daily utilization of each aircraft (hours: minutes)


11:23



10:58



3.8




10:49



10:30



3.0



Average aircraft fuel price per gallon


$

2.29



$

1.68



36.3




$

2.21



$

1.66



33.1



Fuel gallons consumed (millions)


931



909



2.4




2,587



2,537



2.0


















Regional:















Passengers (thousands)


11,729



10,120



15.9




33,091



29,563



11.9



Revenue passenger miles (millions)


6,606



5,630



17.3




18,805



16,860



11.5



Available seat miles (millions)


7,862



6,900



13.9




22,682



20,648



9.9



Passenger revenue per available seat mile (cents)


23.10



22.19



4.1




22.86



22.36



2.2



Average yield per revenue passenger mile (cents)


27.49



27.19



1.1




27.57



27.38



0.7



Aircraft in fleet at end of period


546



489



11.7




546



489



11.7



Average stage length (miles)


552



542



1.8




556



558



(0.4)



Average aircraft fuel price per gallon


$

2.43



$

1.81



34.3




$

2.34



$

1.77



32.2



Fuel gallons consumed (millions)


180



156



15.4




514



461



11.5


















Consolidated (Mainline and Regional):















Passengers (thousands)


42,886



39,302



9.1




118,439



110,654



7.0



Revenue passenger miles (millions)


63,393



59,145



7.2




173,187



163,112



6.2



Available seat miles (millions)


73,681



70,083



5.1




206,360



197,358



4.6



Passenger load factor:















Consolidated


86.0

%


84.4

%


1.6


pts.


83.9

%


82.6

%


1.3


pts.

Domestic


86.7

%


85.3

%


1.4


pts.


85.7

%


85.2

%


0.5


pts.

International


85.2

%


83.3

%


1.9


pts.


81.6

%


79.5

%


2.1


pts.

Passenger revenue per available seat mile (cents)


13.73



12.94



6.1




13.64



13.11



4.0



Total revenue per available seat mile (cents)


14.93



14.12



5.7




14.93



14.36



4.0



Average yield per revenue passenger mile (cents)


15.96



15.33



4.1




16.25



15.86



2.5



Aircraft in fleet at end of period


1,306



1,240



5.3




1,306



1,240



5.3



Average stage length (miles)


1,454



1,480



(1.8)




1,453



1,470



(1.2)



Average full-time equivalent employees (thousands)


89.0



87.3



1.9




87.1



86.2



1.0



Average aircraft fuel price per gallon


$

2.32



$

1.70



36.5




$

2.23



$

1.68



32.7



Fuel gallons consumed (millions)


1,111



1,065



4.3




3,101



2,998



3.4




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.

RETURN ON INVESTED CAPITAL (ROIC) - Non-GAAP


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




(in millions)

Twelve Months Ended
September 30, 2018

Net Operating Profit After Tax ("NOPAT")


Pre-tax income

$

2,722


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


  Impairment of assets

155


  MTM losses on equity investments

61


  Severance and benefit costs

49


  (Gains) losses on sale of assets and other special charges

13


Pre-tax income excluding special charges and MTM losses on equity investments (Non-GAAP)

3,000


add: Interest expense (net of income tax benefit) (a)

707


add: Interest component of capitalized aircraft rent (net of income tax benefit) (a)

243


add: Net interest on pension (net of income tax benefit) (a)

(3)


less: Income taxes paid

(26)


NOPAT (Non-GAAP)

$

3,921






Average Invested Capital (five-quarter average)


Total assets

$

43,697


add: Capitalized aircraft operating leases (b)

4,005


less: Non-interest bearing liabilities (c)

(17,095)


Average invested capital (Non-GAAP)

$

30,607




ROIC (Non-GAAP)

12.8

%



(a)

Income tax benefit measured based on the effective cash tax rate. The effective cash tax rate is calculated by dividing cash taxes paid by pre-tax income excluding special charges. For the twelve months ended September 30, 2018, the effective cash tax rate was 0.9%.

(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 adjusted operating income (loss), adjusted operating margin, adjusted pre-tax income (loss), adjusted pre-tax margin, adjusted net income (loss), adjusted diluted earnings (loss) per share and CASM, excluding special charges, third-party business expenses, fuel, and profit sharing, among others. UAL believes that adjusting for special charges is useful to investors because special charges are not indicative of UAL's ongoing performance. UAL believes that adjusting for MTM gains and losses on equity investments is useful to investors because those unrealized gains or losses may not ultimately be realized on a cash basis. UAL believes that adjusting for interest expense related to capital leases of Embraer ERJ 145 aircraft is useful to investors because of the accelerated recognition of interest expense.


CASM is a common metric used in the airline industry to measure an airline's cost structure and efficiency. UAL reports CASM excluding special charges, third-party business expenses, fuel and profit sharing. UAL believes that adjusting for special charges is useful to investors because special charges are not indicative of UAL's ongoing performance. UAL also believes that excluding third-party business expenses, such as maintenance, ground handling and catering services for third parties and fuel sales, provides more meaningful disclosure because these expenses are not directly related to UAL's core business. UAL also believes that excluding fuel costs from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence. UAL excludes profit sharing because this exclusion allows investors to better understand and analyze our 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
September 30,


%

Increase/

(Decrease)


Nine Months Ended
September 30,


%

Increase/

(Decrease)



2018


2017



2018


2017


CASM Mainline Operations (cents)













Cost per available seat mile (CASM) (GAAP)


12.82



11.98



7.0



13.13



12.43



5.6


Special charges (C)


0.03



0.08



NM



0.10



0.08



NM


Third-party business expenses


0.04



0.05



(20.0)



0.04



0.06



(33.3)


Fuel expense


3.25



2.41



34.9



3.12



2.39



30.5


Profit sharing, including taxes


0.19



0.21



(9.5)



0.14



0.17



(17.6)


CASM, excluding special charges, third-party business expenses, fuel, and profit sharing (Non-GAAP)


9.31



9.23



0.9



9.73



9.73

















CASM Consolidated Operations (cents)













Cost per available seat mile (CASM) (GAAP)


13.30



12.50



6.4



13.65



12.89



5.9


Special charges (C)


0.02



0.07



NM



0.09



0.08



NM


Third-party business expenses


0.04



0.04





0.04



0.05



(20.0)


Fuel expense


3.49



2.58



35.3



3.36



2.55



31.8


Profit sharing, including taxes


0.17



0.19



(10.5)



0.12



0.16



(25.0)


CASM, excluding special charges, third-party business expenses, fuel, and profit sharing (Non-GAAP)


9.58



9.62



(0.4)



10.04



10.05



(0.1)



NM Not Meaningful

 

UNITED CONTINENTAL HOLDINGS, INC.

NON-GAAP FINANCIAL RECONCILIATION (Continued)




Three Months Ended
September 30,


$

Increase/

(Decrease)


%

Increase/

(Decrease)


Nine Months Ended
September 30,


$

Increase/

(Decrease)


%

Increase/

(Decrease)

(in millions)


2018


2017



2018


2017


Operating expenses (GAAP)


$

9,800



$

8,761



$

1,039



11.9



$

28,172



$

25,438



$

2,734



10.7


Special charges (C)


17



50



(33)



NM



186



145



41



NM


Operating expenses, excluding special charges


9,783



8,711



1,072



12.3



27,986



25,293



2,693



10.6


Adjusted to exclude:

















Third-party business expenses


29



33



(4)



(12.1)



89



114



(25)



(21.9)


Fuel expense


2,572



1,809



763



42.2



6,927



5,038



1,889



37.5


Profit sharing, including taxes


127



130



(3)



(2.3)



252



304



(52)



(17.1)


Adjusted operating expenses (Non-GAAP)


$

7,055



$

6,739



$

316



4.7



$

20,718



$

19,837



$

881



4.4



















Operating income (GAAP)


$

1,203



$

1,138



$

65



5.7



$

2,640



$

2,895



$

(255)



(8.8)


Adjusted to exclude:

















Special charges (C)


17



50



(33)



NM



186



145



41



NM


Adjusted operating income (Non-GAAP)


$

1,220



$

1,188



$

32



2.7



$

2,826



$

3,040



$

(214)



(7.0)



















Pre-tax income (GAAP)


$

1,061



$

993



$

68



6.8



$

2,102



$

2,420



$

(318)



(13.1)


Adjusted to exclude:

















Special charges (C)


17



50



(33)



NM



186



145



41



NM


MTM (gains) losses on equity investments (C)


(29)





(29)



NM



61





61



NM


Interest expense on ERJ 145 capital leases (D)


13





13



NM



13





13



NM


Adjusted pre-tax income (Non-GAAP)


$

1,062



$

1,043



$

19



1.8



$

2,362



$

2,565



$

(203)



(7.9)



















 Net income (GAAP)


$

836



$

645



$

191



29.6



$

1,667



$

1,565



$

102



6.5


Adjusted to exclude:

















Special charges (C)


17



50



(33)



NM



186



145



41



NM


MTM (gains) losses on equity investments (C)


(29)





(29)



NM



61





61



NM


Interest expense on ERJ 145 capital leases (D)


13





13



NM



13





13



NM


Income tax expense (benefit) related to adjustments




(18)



18



NM



(58)



(52)



(6)



NM


Adjusted net income (Non-GAAP)


$

837



$

677



$

160



23.6



$

1,869



$

1,658



$

211



12.7



















 Diluted earnings per share (GAAP)


$

3.06



$

2.15



$

0.91



42.3



$

5.99



$

5.09



$

0.90



17.7


Adjusted to exclude:

















Special charges (C)


0.06



0.16



(0.10)



NM



0.67



0.47



0.20



NM


MTM (gains) losses on equity investments (C)


(0.11)





(0.11)



NM



0.22





0.22



NM


Interest expense on ERJ 145 capital leases (D)


0.05





0.05



NM



0.05





0.05



NM


Income tax expense (benefit) related to adjustments




(0.06)



0.06



NM



(0.21)



(0.17)



(0.04)



NM


Adjusted diluted earnings per share (Non-GAAP)


$

3.06



$

2.25



$

0.81



36.0



$

6.72



$

5.39



$

1.33



24.7



NM Not Meaningful

 

UNITED CONTINENTAL HOLDINGS, INC.

NON-GAAP FINANCIAL RECONCILIATION (Continued)


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




Three Months Ended
September 30,


Nine Months Ended
September 30,

Capital Expenditures (in millions)


2018


2017


2018


2017

Capital expenditures (GAAP)


$

858



$

1,120



$

2,592



$

2,900


Property and equipment acquired through the issuance of debt and capital leases




11



139



918


Airport construction financing




9



12



41


Fully reimbursable projects


(51)



(58)



(140)



(176)


Adjusted capital expenditures (Non-GAAP)


$

807



$

1,082



$

2,603



$

3,683











Free Cash Flow (in millions)









Net cash provided by operating activities (GAAP)


$

905



$

577



$

5,080



$

2,685


Less capital expenditures


858



1,120



2,592



2,900


Free cash flow, net of financings (Non-GAAP)


$

47



$

(543)



$

2,488



$

(215)











Net cash provided by operating activities (GAAP)


$

905



$

577



$

5,080



$

2,685


Less adjusted capital expenditures (Non-GAAP)


807



1,082



2,603



3,683


Free cash flow (Non-GAAP)


$

98



$

(505)



$

2,477



$

(998)


 

UNITED CONTINENTAL HOLDINGS, INC.

NOTES (UNAUDITED)


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




3Q 2018

Passenger

Revenue

(millions)


Passenger

Revenue

vs.

3Q 2017


PRASM

vs.

3Q 2017


Yield

vs.

3Q 2017


Available

Seat Miles

vs.

3Q 2017












Mainline


$

4,489



13.6%


6.8%


5.4%


6.4%

Regional


1,764



18.3%


4.1%


0.8%


13.7%

Domestic


6,253



14.9%


6.7%


5.0%


7.6%












Atlantic


1,933



12.1%


7.1%


1.3%


4.7%

Pacific


1,163



3.4%


5.3%


5.1%


(1.9%)

Latin America


771



(0.8%)


(3.4%)


(1.2%)


2.7%

International


3,867



6.6%


4.5%


2.2%


2.0%












Consolidated


$

10,120



11.6%


6.1%


4.1%


5.1%























Mainline


$

8,304



10.2%


5.8%


3.8%


4.2%

Regional


1,816



18.6%


4.1%


1.1%


13.9%

Consolidated


$

10,120










 

UNITED CONTINENTAL HOLDINGS, INC.

NOTES (UNAUDITED)


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




Three Months Ended
September 30,


Nine Months Ended
September 30,

(In millions)


2018


2017


2018


2017

Operating:









Impairment of assets


$

11



$

15



$

145



$

15



















Severance and benefit costs


9



23



34



101


(Gains) losses on sale of assets and other special charges


(3)



12



7



29


     Total special charges


17



50



186



145


Nonoperating MTM (gains) losses on equity investments


(29)





61




     Total special charges and MTM (gains) losses on equity investments


(12)



50



247



145


Income tax benefit related to special charges


(3)



(18)



(41)



(52)


Income tax expense (benefit) related to MTM (gains) losses on equity investments


6





(14)




     Total special charges and MTM (gains) losses on equity investments, net of income taxes


$

(9)



$

32



$

192



$

93



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, in the second quarter of 2018, the company recorded a $105 million special charge ($82 million net of taxes) to write off the entire value of the intangible asset associated with its Brazil routes. This asset 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 regulated by slot allocations that are limited by airport facility constraints. For the three and nine months ended September 30, 2018, the company also recorded $11 million ($9 million net of taxes) and $40 million ($31 million net of taxes), respectively, of fair value adjustments related to aircraft purchased off lease, write-off of unexercised aircraft purchase options and other impairments related to certain fleet types and international slots no longer in use.


During the three months ended September 30, 2017, the company recorded a $15 million ($10 million net of taxes) intangible asset impairment charge related to a maintenance service agreement.


Severance and benefit costs:  During the three and nine months ended September 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 $5 million ($4 million net of taxes) and $19 million ($15 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 nine months ended September 30, 2018, the company recorded other management severance of $4 million ($3 million net of taxes) and $15 million ($12 million net of taxes), respectively.


During the three and nine months ended September 30, 2017, the company recorded $16 million ($10 million net of taxes) and $73 million ($47 million net of taxes), respectively, of severance and benefit costs related to the voluntary early-out program for its technicians and related employees, and $7 million ($5 million net of taxes) and $28 million ($18 million net of taxes), respectively, of management severance.


(Gains) losses on sale of assets and other special charges:  During the three and nine months ended September 30, 2018, the company recorded $3 million ($2 million net of taxes) of gains primarily related to the sale of aircraft engines and $7 million ($5 million net of taxes) of losses primarily related to contract termination of regional aircraft operations in Guam, respectively.


During the three months ended September 30, 2017, the company recorded $12 million ($7 million net of taxes) of charges primarily related to damages from tropical storms. During the nine months ended September 30, 2017, in addition to the $12 million of third-quarter charges, the company recorded $17 million ($11 million net of taxes) of charges primarily associated with aircraft gains and losses.


MTM gains and losses on equity investments:  During the three and nine months ended September 30, 2018, the company recorded gains of $29 million ($23 million net of taxes) and losses of $61 million ($47 million net of taxes), respectively, for the change in market value of certain of its equity investments. 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)    Interest expense related to capital leases of Embraer ERJ 145 aircraft


During the third quarter of 2018, United entered into an agreement with the lessor of 54 Embraer ERJ 145 aircraft to purchase those aircraft in 2019. The provisions of the new lease agreement resulted in a change in accounting classification of these new leases from operating leases to capital leases up until the purchase date. The company recognized $13 million of additional interest expense in the third quarter as a result of this change.


(E)    Effective tax rate


The company's effective tax rate for the three and nine months ended September 30, 2018 was 21.2% and 20.7%, respectively, and the effective tax rate for the three and nine months ended September 30, 2017 was 35.0% and 35.3%, 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 nine months ended September 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. The company continues 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 further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com

United Airlines Announces Headquarters to Remain at Iconic Willis Tower

March 13, 2019

CHICAGO, March 13, 2019 /PRNewswire/ -- United Airlines announced today it will keep its headquarters at the iconic Willis Tower in the airline's hometown of Chicago, while partnering with the building's owner, Blackstone, in making major investments to completely transform the current workspace and experience.

The new deal to remain at Willis Tower provides the airline with a tremendous opportunity to completely reimagine the workspace from the bottom up. Over the coming months and years, United will be embarking on a process to redesign workspaces to allow employees to better collaborate, use the latest technology and interact with each other with the end goal of providing unmatched service to front-line employees and customers. By making these investments, it also enables United to better recruit and retain top talent from the Chicagoland area and beyond who have come to expect modern and more efficient places of work.

"As one of the city's largest private employers and its hometown airline, we are excited to deepen our roots here in Chicago while making the investments needed to reimagine the headquarters for our employees," said Oscar Munoz, United's chief executive officer. "The investments we are making will help our employees provide unparalleled service to our front-line colleagues and to our customers as we continue to improve and realize our airline's full potential."

The new agreement extends United's existing lease to March 31, 2033. Additionally, Blackstone is already investing more than $500 million into Willis Tower for all tenants, which will transform the building from the inside out.

"We are thrilled with United's decision to remain at Willis Tower in a reimagined headquarters," said Jon Gray, Blackstone's president. "This is terrific news for Chicago and a testament to our exciting $500 million revitalization program underway at the property. We look forward to partnering with United in this effort. Willis Tower will continue its role as an iconic business, retail and tourist destination in the heart of the city."

As one of the most ideally situated buildings in the city, with easy access to all CTA train lines, Union and Ogilvie Stations, as well as nearby bus stops, Willis Tower already provides distinct advantages and will remain attractive to future job seekers throughout the metropolitan region. Commercial real estate services firm JLL represented United in the deal.

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, United recently released a re-imagined version of the most downloaded app in the airline industry and made DIRECTV free for every passenger on 211 aircraft, offering more than 100 channels on seat back monitors on more than 30,000 seats. The multimillion-dollar investment in improving inflight entertainment options will benefit the more than 29 million people expected to fly United's DIRECTV-enabled planes this year.

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 Airlines and United Express operate approximately 4,800 flights a day to 353 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. United 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 and Instagram or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

SOURCE United Airlines

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

Meet United Airlines' New Meetings Portal, Available on United Jetstream

March 11, 2019

CHICAGO, March 11, 2019 /PRNewswire/ -- United Airlines is improving the way customers plan travel for meetings, conferences, conventions and more with the launch of its new state-of-the-art United Meetings product, available on the airline's business portal, United Jetstream. The new product makes managing travel and redeeming rewards for meetings and events quicker and more streamlined with enhancements that include discounts accessible in one business day, instant amenity redemption and personalized reports accessible at the click of a mouse.

"At United, our mission is to connect people and unite the world. This new Meetings portal on Jetstream allows us to do just that by making it easier and more rewarding to bring people together for meetings, events, conferences and more," said Jake Cefolia, senior vice president of worldwide sales at United. "We're listening to our customers and making changes that they ask for as we continue to make traveling and working with United better every day."

United Meetings handles the work of getting attendees to events around the world in comfort and with a discount. The new portal makes it easy for meeting planners to make a request and receive flexible discounts for participants within one business day, and quickly turn travel funds into rewards such as beverage coupons, travel certificates, United Club passes and memberships and more. The site also provides planners with a personalized dashboard to track the number of tickets booked, flights flown, amenities funds earned and the number of tickets needed for the next amenity award, helping users stay up-to-date on rewards and meetings attendance.

United Meetings is available to organizations around the world who are interested in hosting a meeting of 10 or more participants. Discounts are extended to travel on United's Star Alliance and joint venture partners, making traveling and connecting on partner airlines seamless.

United is continuing to add value to its Meetings product to deliver an experience and tool that meets and exceeds the needs of its customers. To get started with hosting a meeting, or to become a United Meetings customer visit http://www.united.business/meetings.

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. United recently announced the addition of more than 1,600 new premium seats to international, domestic and regional aircraft, creating more comfort for more customers in the skies. Additionally, United recently released a re-imagined version of the most downloaded app in the airline industry and made DIRECTV free for every passenger on 211 aircraft, offering more than 100 channels on seat back monitors on more than 30,000 seats. The multimillion-dollar investment in improving inflight entertainment options will benefit the more than 29 million people expected to fly United's DIRECTV-enabled planes this year.

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 Airlines and United Express operate approximately 4,800 flights a day to 353 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. United 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 and Instagram or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

SOURCE United Airlines

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

United Airlines Springs Forward with New Routes Starting this Month

March 08, 2019

CHICAGO, March 8, 2019 /PRNewswire/ -- United Airlines is expanding its route network this month by launching service this weekend from Cleveland, Denver and Los Angeles to eight cities in California, Florida and Texas. The new service, announced last year, offers customers even more options when traveling over spring break and to warmer destinations this summer.

"These new routes demonstrate our continued commitment to offer our customers more choices than any other airline while making the travel experience more convenient," said Ankit Gupta, United's vice president of domestic network planning.

New routes starting this weekend:

Depart

Arrive

Start Day

Los Angeles (LAX)

Redding, CA (RDD)

March 8, 2019

Denver (DEN)

Santa Rosa, CA (STS)

March 8, 2019

Denver (DEN)

Brownsville, TX (BRO)

March 9, 2019

Denver (DEN)

West Palm Beach, FL (PBI)

March 9, 2019

Denver (DEN)

Pensacola, FL (PNS)

March 9, 2019

Denver (DEN)

Sarasota, FL (SRQ)

March 9, 2019

Denver (DEN)

Destin/Fl. Walton Beach, FL (VPS)

March 9, 2019

Cleveland (CLE)

Tampa, FL (TPA)

March 9, 2019

Later this month, United customers can look forward to 10 more cities from Denver, Los Angeles, New York/Newark, San Francisco and Washington, D.C., including inaugural service from Paine Field in Everett, Washington to Denver and San Francisco. Paine Field airport, is located north of Seattle and is among the fasting growing areas in the nation. By connecting Paine Field to two of the airline's largest hubs, United customers will now have more convenient access to United's worldwide network.

New domestic routes include:

Depart

Arrive

Start Day

Los Angeles (LAX)

Eugene, OR (EUG)

March 30, 2019

Denver (DEN)

Everett, WA (PAE)

March 31, 2019

Denver (DEN)

Flagstaff, AZ (FLG)

March 31, 2019

Newark (EWR)

Hilton Head Island, SC (HHH)

March 31, 2019

Dulles (IAD)

Elmira, NY (ELM)

March 31, 2019

Dulles (IAD)

Manchester, NH (MHT)

March 31, 2019

Dulles (IAD)

Hilton Head Island, SC (HHH)

March 31, 2019

Los Angeles (LAX)

Madison, WI (MSN)

March 31, 2019

Los Angeles (LAX)

Pasco, WA (PSC)

March 31, 2019

San Francisco (SFO)

Everett, WA (PAE)

March 31, 2019

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. United recently announced the addition of more than 1,600 new premium seats to international, domestic and regional aircraft, creating more comfort for more customers in the skies. Additionally, United recently released a re-imagined version of the most downloaded app in the airline industry and made DIRECTV free for every passenger on 211 aircraft, offering more than 100 channels on seat back monitors on more than 30,000 seats. The multimillion-dollar investment in improving inflight entertainment options will benefit the more than 29 million people expected to fly United's DIRECTV-enabled planes this year.

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 Airlines and United Express operate approximately 4,800 flights a day to 353 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. United 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 and Instagram or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

SOURCE United Airlines

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

New Maintenance Complex Deepens United Airlines' Commitment to Los Angeles, with Nearly $1 Billion Recent Investment at LAX

February 28, 2019

LOS ANGELES, Feb. 28, 2019 /PRNewswire/ -- Today, United Airlines and Los Angeles World Airports (LAWA) broke ground on a state-of-the-art Technical Operations Center (TOC) at Los Angeles International Airport (LAX) that will enable the airline to provide exceptional service for all of its aircraft fleets. The new facility will include two connected buildings – a ground service equipment and facilities maintenance building and a line maintenance hangar, including an engine support shop that will focus on the aircraft's Dreamliner fleet. The commencement of this $352 million TOC pushes the airline's investments at its Los Angeles hub to nearly $1 billion in recent years.

The new TOC will consolidate two facilities that United currently operates at LAX that are located a mile and a half apart, improving efficiency with not only moving aircraft around the airport but with transporting employees, parts, tools and other supplies – ultimately leading to a more efficient operation for customers. The TOC will be located near the airline's terminal and stand at 407,408 square feet. The facility's hangar will be able to accommodate up to six narrow-body or two widebody aircraft at a time, supporting United's 150 flights that depart from LAX every day. The TOC will help United's growing operation in Los Angeles by continuing to deliver an on time, safe and reliable operation.

"Our continued investments emphasize our commitment to our customers in Los Angeles as California's global airline. This modern, world-class facility will create more than 800 jobs in L.A. during the construction process, and will be home to more than 500 United employees once it is completed," said Greg Hart, chief operations officer at United. "This builds on our recently completed nearly $600 million renovation to our terminal at LAX, including opening a brand-new United Polaris lounge earlier this year."

"Los Angeles World Airports and United Airlines have a shared vision for modern and efficient facilities," said Deborah Flint, CEO, LAWA. "United Airlines' new LAX Technical Operations Center integrates state-of-the-art technology and a modern design that complements the transformation that is taking place across LAX. This project will create hundreds of local jobs and bring us one step closer to the Gold-Standard airport that Los Angeles deserves."

United tapped AECOM Hunt to be the prime contractor for the project, and selected FSB as lead architect for the facility. The airline is also partnering with AvAirPros, which is providing project management services during construction of the TOC.

United is also investing in additional maintenance facilities at key airports around the country. Tampa airport authorities recently approved a ground lease for a new hangar that will have room for two Boeing 737MAX aircraft. The airline is also continuing construction on an expansive new technical operations center at Houston's George Bush Intercontinental Airport, which consolidates the airline's maintenance operations in a complex that provides greater efficiency and flexibility. United is also moving into a new hangar in Portland, Oregon and working with the City of Chicago to create a new hangar as part of the O'Hare Modernization Program.

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. United recently announced the addition of more than 1,600 new premium seats to international, domestic and regional aircraft, creating more comfort for more customers in the skies. Additionally, United recently released a re-imagined version of the most downloaded app in the airline industry and made DIRECTV free for every passenger on 211 aircraft, offering more than 100 channels on seat back monitors on more than 30,000 seats. The multimillion-dollar investment in improving inflight entertainment options will benefit the more than 29 million people expected to fly United's DIRECTV-enabled planes this year.

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 Airlines and United Express operate approximately 4,800 flights a day to 353 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. United 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 and Instagram or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL"

SOURCE United Airlines

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

United Airlines Giving Women Artists A Larger Than Life Canvas: An Aircraft

February 28, 2019

CHICAGO, Feb. 28, 2019 /PRNewswire/ -- In advance of Women's History Month beginning on Friday, United Airlines is launching a first-of-its-kind contest designed to find and uplift underrepresented women artists by providing a chance to paint a canvas like no other — a United Airlines aircraft. While 51% of today's artists are women, less than 13% of art on display in museums is by women artists according to The National Museum of Women in the Arts. Painting a Boeing 757 provides artists with a traveling canvas that flies on average 1.6 million miles a year and 476 cross-country trips. The aircraft is roughly 3,666 times larger than the typical 18" x 24" canvas.

"As a company, we believe in the importance of equality of women in what has historically been a male dominated field," said Jill Kaplan, United's president for New York and New Jersey. "When we heard the statistics about how underrepresented women are when it comes to displaying their art, we thought what better way to contribute to changing this narrative than by offering the biggest canvas we have access to – an aircraft."

United has long been committed to being a leader in advancing women in the aviation industry. Today the carrier has more women who are pilots than any other airline in the world, including Bebe O'Neil, United's System Chief Pilot, who manages the carrier's 12,600 pilots. The airline has worked with Women in Aviation, a nonprofit organization which provides networking, education, mentoring, and scholarship opportunities, for more than 25 years and Girls in Aviation Day to ensure a growing number of female pilots.

"As a global company with inclusion at our core, we constantly seek unique opportunities to celebrate and showcase diverse talents," United's California President Janet Lamkin commented. "We are thrilled to have the opportunity through this unique contest to bring visibility to the work of these exceptional female artists. We take pride in leveraging our global presence to showcase their great work to millions of people who see our planes on the ground and in the sky."

To enter, individuals must identify as a woman, including cisgender, transgender, woman-aligned or non-binary, and reside in the United States, who can visually represent either New York/New Jersey or California, two key markets for the airline, in their own style, while combining the company's mission and what the communities in each region mean to the artist. Two winners, one representing each region, will be chosen and given a chance to work alongside renowned artist Shantell Martin to finalize a design for their respective region's plane. Shantell brings to the contest her talents and work, from the New York City Ballet to a collaboration with Pulitzer Prize-winning artist Kendrick Lamar, which are full of whimsical drawings and storytelling, that are dedicated to making sure other women artists are seen.

To enter, individuals are encouraged to visit united.com/HerArtHere and submit a design idea, examples of their work portfolio along with a short video by March 24, 2019. Submissions will be judged and narrowed down to three finalists by a panel of judges from each region, led by each region's president, Janet Lamkin in California and Jill Kaplan in New York/New Jersey from March 25 – April 9, 2019, followed by a public vote from April 10 – April 19, 2019 to determine the winning artists from each region. Finalists and winners will also receive their own open gallery show, have their art work on display inside United Airlines terminals through 2019 with their works available to purchase and they will also be awarded 100,000 MileagePlus award miles. The final designs will take flight this fall.

Customers in Los Angeles and New York have an opportunity to visit murals by Shantell Martin as part of this contest. Each mural showcases interactive airplane windows that lead to videos with more information. The murals will be on display from now until March 18 at 799 West 8th Street, Los Angeles, CA and at 38 Norman Ave, Brooklyn, NY.

For additional information and complete rules visit: united.com/HerArtHere

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, United recently released a re-imagined version of the most downloaded app in the airline industry and made DIRECTV free for every passenger on 211 aircraft, offering more than 100 channels on seat back monitors on more than 30,000 seats. The multimillion-dollar investment in improving inflight entertainment options will benefit the more than 29 million people expected to fly United's DIRECTV-enabled planes this year.

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 Airlines and United Express operate approximately 4,800 flights a day to 353 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. United 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 and Instagram or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

SOURCE United Airlines

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

United Airlines to Present at 2019 J.P. Morgan Aviation, Transportation and Industrials Conference

February 27, 2019

CHICAGO, Feb. 27, 2019 /PRNewswire/ -- United Airlines (UAL) will present at the 2019 J.P. Morgan Aviation, Transportation and Industrials Conference on Tuesday, March 5. Scott Kirby, president of United Airlines, will present at the conference beginning at 9:30 a.m. ET / 8:30 a.m. CT.

The live webcast and accompanying presentation will be available on the investor relations section of United's website at ir.united.com. The company will archive the audio webcast on the website within 24 hours of the presentation and the webcast will be available for a limited time.

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, United recently released a re-imagined version of the most downloaded app in the airline industry and made DIRECTV free for every passenger on 211 aircraft, offering more than 100 channels on seat back monitors on more than 30,000 seats. The multimillion-dollar investment in improving inflight entertainment options will benefit the more than 29 million people expected to fly United's DIRECTV-enabled planes this year.

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 Airlines and United Express operate approximately 4,800 flights a day to 353 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. United 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 and Instagram or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

SOURCE United Airlines

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

United Airlines Taps Industry Veteran for Senior Role; Robert Rivkin Named SVP and General Counsel

February 22, 2019

CHICAGO, Feb. 22, 2019 /PRNewswire/ -- United Airlines today named transportation industry veteran Robert S. Rivkin senior vice president and general counsel. For the last three decades, Rivkin has drawn on his exceptional legal skills while serving in leadership positions in the airline industry, the U.S. Department of Transportation (DOT) and local government. Rivkin brings this unique background and extraordinary skill set to a top role at one of the world's leading airlines. At United, he will be responsible for all legal matters, as well as ethics, compliance, government contracting and security. Rivkin will report to Executive Vice President and Chief Administrative Officer Brett Hart.

"Bob's distinguished career in public service, the legal community and the airline industry make him an ideal fit for this critical role on our United team. He's a proven leader who will make an immediate impact as we work to fulfill United's incredible potential," said United Airlines Chief Executive Officer Oscar Munoz.

Rivkin is no stranger to the commercial aviation industry, having served as deputy general counsel for Delta Air Lines from 2013 to 2016. Prior to joining Delta, he served as general counsel for the DOT from 2009 to 2013, where he was sworn in following a unanimous confirmation by the U.S. Senate. Currently, Rivkin serves as the deputy mayor of the City of Chicago. He has also worked in private law practice and as a federal prosecutor.

Rivkin graduated magna cum laude from Harvard College, and received a juris doctorate degree from Stanford Law School, where he was an associate editor of the Stanford Law Review. Rivkin and his wife of more than 30 years have three children. Rivkin's last day as Chicago's deputy mayor will be February 28, and he will start his new role at United the week of March 18.

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, United recently released a re-imagined version of the most downloaded app in the airline industry and made DIRECTV free for every passenger on 211 aircraft, offering more than 100 channels on seat back monitors on more than 30,000 seats. The multimillion-dollar investment in improving inflight entertainment options will benefit the more than 29 million people expected to fly United's DIRECTV-enabled planes this year.

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 Airlines and United Express operate approximately 4,800 flights a day to 353 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. United 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 and Instagram or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

SOURCE United Airlines

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

United Applies to Serve Tokyo Haneda from Six Leading U.S. Hubs

February 21, 2019

CHICAGO, Feb. 21, 2019 /PRNewswire/ -- United Airlines announced today it has filed an application with the U.S. Department of Transportation (DOT) for a total of six daily nonstop flights to Tokyo Haneda Airport (HND) from Newark Liberty International Airport (EWR), Chicago O'Hare International Airport (ORD), Washington Dulles International Airport (IAD), Los Angeles International Airport (LAX), Houston George Bush Intercontinental Airport (IAH) and Guam's A.B. Won Pat International Airport (GUM). Pending completion of an aviation agreement between the U.S. and Japanese governments later this year, and slots awarded by DOT, the flights are expected to begin service by the summer of 2020.

United has presented a proposal maximized to meet consumer demand and benefit U.S. travelers. Together, the flights from five U.S. mainland hub cities and Guam will connect Tokyo Haneda with 112 U.S. airports, representing approximately two thirds of U.S.-Tokyo demand, or more than three million annual Tokyo bookings. With United's proposed routes representing five of the six largest metropolitan areas in the U.S. mainland and a combined population of nearly 56 million, the new flights requested in this proceeding will provide consumers with more choices and more convenient options when selecting Tokyo Haneda for their travel plans.

"If awarded by the DOT, these new nonstop flights would expand United's best-in-class Japan route network to better meet demand from U.S. consumers and businesses," said United Airlines President Scott Kirby. "Tokyo is a hub of 21st century global commerce and innovation and one of the world's most popular tourist destinations. Today's filing demonstrates United's unparalleled commitment to helping more Americans travel between our nation and Japan's capital city. Our proposed flights to Tokyo Haneda will offer an unrivaled experience and maximize choice and convenience for our customers traveling between the United States and Tokyo for the Olympic Games Tokyo 2020 and beyond."

United's proposed daily flights from Newark/New York, Los Angeles and Guam would supplement the airline's existing daily flights between those hubs and Tokyo's Narita International Airport (NRT), while United would shift existing daily nonstop Chicago, Washington D.C. and Houston flights from Tokyo Narita to Tokyo Haneda.

United's application will also support American businesses and help grow the U.S. economy by offering direct flights from key business, government and cultural hubs where demand for flights to Haneda, the closest airport to central Tokyo, is the highest. With these new flights in place, United would provide Haneda service from:

  • The largest market for travel demand between the U.S. mainland and Tokyo (Los Angeles);
  • The two largest markets for travel demand between the East Coast and Tokyo (Newark/New York and Washington, D.C.);
  • The two largest markets for travel demand between the central U.S. and Tokyo (Chicago and Houston); and
  • Guam, a market with significant travel demand from a Japanese tourist base that is critical to the island's tourism industry, economy and job market.

United's proposal would help realize the full potential of these new routes for U.S. consumers and businesses by expanding United's broad-based and end-to-end network between the United States and Japan. United's proposed flights to Haneda would allow U.S. consumers to make connections to 37 points in Japan via United's joint venture partner All Nippon Airways (ANA), strengthening United's existing comprehensive network when combined with nonstop or single-connection service from 112 U.S. airports.

United has proven its long-term commitment to Tokyo as a key gateway in Asia, serving Tokyo from 100 percent of its U.S. hubs. United also serves 31 markets in the Asia/Pacific region, more than any other U.S. carrier, and has successfully launched 11 new nonstop flights from the U.S. mainland to destinations throughout the Asia/Pacific region since 2014.

United's application is in response to the U.S. DOT instituting a competitive route proceeding to allocate slot pairs, with today's application filed under DOT proceeding # DOT-OST-2019-0014. For more information about United's bid, please visit UnitedToHaneda.com.

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, United recently released a re-imagined version of the most downloaded app in the airline industry and made DIRECTV free for every passenger on 211 aircraft, offering more than 100 channels on seat back monitors on more than 30,000 seats. The multimillion-dollar investment in improving inflight entertainment options will benefit the more than 29 million people expected to fly United's DIRECTV-enabled planes this year.

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 Airlines and United Express operate approximately 4,800 flights a day to 353 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. United 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 and Instagram or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

SOURCE United Airlines

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

United Airlines to Present at Barclays Industrial Select Conference 2019

February 18, 2019

CHICAGO, Feb. 18, 2019 /PRNewswire/ -- United Airlines will present at Barclays Industrial Select Conference on Wednesday, February 20. United Airlines' Vice President of Pricing and Revenue Management Dave Bartels and Vice President of Finance and CFO of Commercial Jonathan Ireland will present at the conference beginning at 1:15 p.m. ET / 12:15 p.m. CT.

The live webcast will be available on the investor relations section of United's website at ir.united.com. The company will archive the audio webcast on the website within 24 hours of the presentation, and the webcast will be available for a limited time.

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 Airlines and United Express operate approximately 4,800 flights a day to 353 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. United 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 and Instagram or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

SOURCE United Airlines

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

United Adds More Than 1,600 New Premium Seats to International, Domestic and Regional Aircraft; More Comfort for More Customers in the Skies

February 06, 2019

CHICAGO, Feb. 6, 2019 /PRNewswire/ -- United Airlines today announced the next step in its commitment to making more customers more comfortable by adding more than 1,600 United Polaris® business class and United First seats to nearly 250 international and domestic aircraft. Additionally, United will revolutionize the regional flying experience by introducing the two-cabin, 50-seat Bombardier CRJ 550 aircraft to its fleet, offering customers on key regional routes more legroom, storage and amenities than any other 50-seat regional aircraft operating today.

Click here to view an infographic on United's newly reconfigured aircraft

"In an era where many airlines are adding seats to their aircraft to crowd more passengers onto the plane, we're re-configuring more than 100 of our aircraft and doing exactly the opposite – for the benefit of our customers," said Andrew Nocella, United's executive vice president and chief commercial officer. "From adding more premium seats on aircraft that serve some of our most traveled routes, introducing a revolutionary, best-in-class 50-seat experience or simply offering free DIRECTV on more than 200 aircraft, we are committed to making United the airline that our customers choose to fly."

More United Polaris business seats on Boeing 767-300ER aircraft

In the next several weeks, United will introduce to its fleet the first of 21 reconfigured Boeing 767-300ER aircraft featuring 16 additional United Polaris business seats in the premium cabin – a more than 50 percent increase in all-aisle-access seating – bringing the total premium cabin seat count to 46. The newly reconfigured aircraft will also feature 22 United® Premium Plus seats (becoming the first 767-300ER to offer this seat type); 47 Economy Plus® seats and 52 Economy seats. United will first operate the reconfigured 767 – which will feature the highest proportion of premium seats on any widebody operated by any U.S. carrier – between Newark/New York and London, offering 50 percent more premium seats in the largest premium route in the world. The airline expects to introduce all the reconfigured aircraft to its fleet by the end of next year.

More United First seats on Airbus A319 and A320 aircraft

United is also adding more United First® seats to its fleet of Airbus aircraft, offering customers greater opportunities to upgrade and enjoy a premium flying experience. Beginning this fall, the carrier will add four United First seats on its fleet of Airbus A319s, increasing the total count from eight to 12. The reconfigured aircraft will also feature 36 Economy Plus and 78 Economy seats.

Beginning early next year, United will add four United First seats on its fleet of nearly 100 Airbus A320 aircraft, increasing the total count from 12 to 16. The reconfigured aircraft will also feature 39 Economy Plus seats and 95 Economy seats. United expects to complete the reconfiguration of the Airbus A320 and A319s by the middle of next year.

Introducing the first-of-its-kind Bombardier CRJ 550

By the end of this year, United will revolutionize the regional flying experience with the planned introduction of 50 spacious, 50-seat Bombardier CRJ 550 aircraft to its regional fleet, subject to government certification. In addition to becoming the only 50-seat aircraft in the world to offer true first-class seating, the innovative new aircraft will provide customers with a truly exceptional flying experience, including a state-of-the-art interior featuring LED lighting, a self-serve beverage and snack station for customers seated in the premium cabin, Wi-Fi and more overall legroom per seat than any other 50-seat aircraft flown by any U.S. carrier. Additionally, the CRJ 550 will feature four storage closets, providing customers ample room to store their carryon bags and making the CRJ 550 the only regional jet in the skies where customers will not need to routinely gate check their bags.

The two-cabin CRJ 550 will feature 10 United First seats; 20 Economy Plus seats and 20 Economy seats. The CRJ 550 aircraft will eventually replace existing single-cabin 50-seat aircraft and will bring a higher percentage of two-cabin departures to smaller cities across the carrier's network. Additionally, the innovative aircraft will enable United to offer premium seats on more connecting flights from smaller cities to the airline's overall global network, further strengthening its competitive position and emphasizing its role as an industry innovator.

United expects that its regional partner GoJet will begin operating the CRJ 550 in the second half of this year – subject to agreement on final terms and conditions – on select routes from Chicago, O'Hare followed by Newark/New York, offering customers connecting through the hub the opportunity to enjoy a premium cabin experience at every step of their journey.

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, United recently released a re-imagined version of the most downloaded app in the airline industry and made DIRECTV free for every passenger on 211 aircraft, offering more than 100 channels on seat back monitors on more than 30,000 seats. The multimillion-dollar investment in improving inflight entertainment options will benefit the more than 29 million people expected to fly United's DIRECTV-enabled planes this year.

About United

United Airlines and United Express operate approximately 4,800 flights a day to 353 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

SOURCE United Airlines

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

United Airlines Announces Four New Domestic United Club Locations for 2019

February 04, 2019

CHICAGO, Feb. 4, 2019 /PRNewswire/ -- United Airlines today welcomed the newest addition to its network of more than 50 United Club locations around the world with the opening of a brand-new 5,000 square foot United Club at Fort Lauderdale-Hollywood International Airport. Located near Gate C1, this new United Club is the first of four new United Club locations set to open in 2019.

"United Clubs are the perfect spot for our customers to relax and recharge and we are excited to open the first of four new United Clubs this year," said United's Chief Customer Officer Toby Enqvist. "Our multimillion-dollar investment in the United Clubs is one of many ways we are working to improve every aspect of our customers' experience."

In addition to the Fort Lauderdale renovation, the airline is expanding its United Club network by introducing new locations in popular destinations. This summer, United plans to open a new United Club in New Orleans in conjunction with the opening of the new terminal at Louis Armstrong New Orleans International Airport. United will also open a brand-new United Club location in New York's La Guardia Airport to coincide with the relocation of its operations to the airport's Terminal B. Additionally, United will introduce its first-ever United Club location in Raleigh-Durham International Airport.

Designed with today's customers in mind, each United Club location is created to serve the distinct needs of customers traveling to and from that destination and feature complimentary high-speed Wi-Fi, wellness rooms and specially curated local food and beverage offerings. United Club members enjoy access to more than 50 United Club locations and participating Star Alliance partner lounges around the world.

About United

United Airlines and United Express operate approximately 4,800 flights a day to 353 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

SOURCE United Airlines

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

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