United Airlines Reports Third-Quarter 2018 Performance
"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 | % | Nine Months Ended | % | |||||||||||||||||||||
(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 | % Increase/ (Decrease) | Nine Months Ended | % 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 | ||
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 | % Increase/ (Decrease) | Nine Months Ended | % 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 | $ Increase/ (Decrease) | % Increase/ (Decrease) | Nine Months Ended | $ 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 | Nine Months Ended | |||||||||||||||
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 | Nine Months Ended | |||||||||||||||
(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 Makes Connecting the World Easier Than Ever with ConnectionSaver
United's ConnectionSaver technology automatically scans flights for customers who are making tight connections to determine if the connecting flight can be held without inconveniencing other customers. The ConnectionSaver tool takes into account factors such as the time it will take for late connecting customers to travel gate-to-gate as well as the impact the hold may have on other flights and customers.
"Through improved technology and our dedication to running a reliable operation, customers with tight connections are making their flights. With summer travel picking up, as many as 150,000 customers will make connections on United flights every day and our goal is to provide our employees and these customers with the most up-to-date information to make connecting as stress-free as possible," said Toby Enqvist, chief customer officer at United.
United launched its ConnectionSaver tool on all flights at Denver International Airport in February, and then expanded it to Chicago O'Hare International Airport – two of the airline's busiest hubs with thousands of connecting customers every day. During the past four months, more than 14,400 customers, who would have otherwise missed their connections, were able to make their flights thanks to ConnectionSaver. Flights that were held for connecting customers were delayed an average of six minutes. This ConnectionSaver technology will expand to the airline's hubs by this fall and to all other airports that United operates at in the future.
"ConnectionSaver only works if it allows us to care for as many customers as possible – without inconveniencing others – and that's exactly what this technology has shown it can do. We're determined to capitalize on as many opportunities as possible to better serve and care for our customers and that's part of what sets United apart from our competitors," said Enqvist.
The ConnectionSaver program also includes text notifications personalized for customers making connections through the airline's hub airports, that will help them navigate and travel efficiently to the gate for their next flight. Once customers land at their connecting airport, they will receive a text message that tells them the gate where they are arriving, the gate where they will depart and the expected travel time between the two gates. The texts will also include a link with step-by-step directions to the next gate and a map of nearby amenities.
Earlier this year United added more detailed and helpful connection information to its reimagined mobile app. Customers using the latest version of the app will be prompted with information about their arrival and departing gates and a map of the airport once they land.
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 announced that luxury skincare line Sunday Riley will make products exclusively for United customers to experience in amenity kits, 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.
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 4,900 flights a day to 355 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 779 mainline aircraft and the airline's United Express carriers operate 569 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 Names Sarah Murphy Senior Vice President of United Express
"With Sarah, the United Express team is gaining a versatile leader who will guide our strong regional operations to new levels of success. Her diverse background at United, leading teams in finance and our operation, is a perfect fit for this role as we strive to improve the overall experience for our customers and make their journey seamless, whether on United or United Express," said Hart.
Murphy was instrumental in launching United's core4 service model founded on four standards – safe, caring, dependable and efficient. The airline began core4 training with its customer-facing employees and eventually rolled out the training to all 93,000 United employees.
Previously, Murphy served as United's vice president of financial planning and analysis, overseeing the airline's operating and capital budgets. Murphy also served as United's managing director of financial and capital planning and leading investor relations.
Prior to joining United in 2006, Murphy worked at Merrill Lynch in its investment banking division.
In 2015, Murphy was named one of Crain's Chicago's "40 Under 40." She holds a Bachelor of Science degree from Columbia University School of Engineering and Applied Sciences. Murphy and her husband Tom have two children and reside in Chicago's Lincoln Park neighborhood.
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 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 4,900 flights a day to 355 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 779 mainline aircraft and the airline's United Express carriers operate 569 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 Makes History Flying the Most Eco-Friendly Commercial Flight of its Kind
United is using the Flight for the Planet to evaluate key measures of flying as sustainably as possible using the airline's current technology, resources and fuel-saving procedures. The flight departed from gate B12 at United's hometown hub of Chicago O'Hare for its "eco-hub" in Los Angeles, where sustainable aviation biofuel has helped power all the airline's flights from the Southern California hub since 2016.
"The historic Flight for the Planet showcases United's philosophy of working together to find new and innovative ways to lead us into a more sustainable future," said Scott Kirby, United's president. "As an airline, we see our environment from a unique perspective every day and we know we must do our part to protect our planet and our skies."
The Flight for the Planet further illustrates United's commitment to its bold pledge to reduce its carbon footprint by 50% by 2050.
Sustainable Aviation Biofuel
United is powering the Flight for the Planet using a 30/70 blend of low-carbon, sustainable aviation fuel provided by Boston-based World Energy, and traditional jet fuel. The biofuel alone achieves a greater than 60% reduction in greenhouse gas emissions on a lifecycle basis compared to traditional jet fuel, and using biofuel is one of the most effective ways an airline can reduce its impact on the environment.
United recently renewed its contract with World Energy, agreeing to purchase up to 10 million gallons of cost-competitive, sustainable aviation biofuel over the next two years. United was the first airline globally to use sustainable aviation biofuel on a continuous basis and the only airline in the United States to currently do so.
Zero Cabin Waste and Industry-First, Recyclable-Paper Cup
In the Economy cabin, United is swapping traditional snack options with a complimentary plated service featuring fully recyclable or compostable serviceware, including a test of an industry-first, recyclable-paper, hot beverage cup.
In the premium cabin, United is continuing to use reusable service ware and swap plastic lids for beeswax food wrappers. The airline is also removing the paper wrapping from silverware roll-ups. United has already eliminated non-recyclable stirring sticks and cocktail picks on aircraft systemwide and replaced them with an environmentally-friendly product made of 100% bamboo.
Carbon Offsetting
United is offsetting the remainder of the flight's emissions via the airline's new carbon offset provider, Conservation International. Conservation International now partners with United on the airline's consumer carbon offset program – Eco-Skies CarbonChoice – and together the two allies will focus on CI's mission to promote nature-based solutions to climate change.
Operational Efficiencies
United has made significant investments in a modern, fuel-efficient fleet while implementing operational and procedural changes to drive fuel conservation. The Flight for the Planet is demonstrating single-engine taxiing, Air Traffic Control prioritization and a continuous descent approach into Los Angeles, which saves fuel while also reducing noise impact to the city. United is operating the flight using its Eco-Skies livery Boeing 737-900ER, which on average carries passengers 77 miles on a single gallon of fuel.
Additionally, 40% of United's eligible ground service equipment (GSE) is electric-powered, with more than 70% of the airline's ground operation at its Los Angeles eco-hub utilizing electric GSE equipment. United is the first airline to use new ITW 7400 electric ground power units that drastically reduce workplace noise pollution and cut carbon emissions by 90%. United is also using electric-powered ground equipment to service the Flight for the Planet at the departure and arrival gates.
United's Commitment to the Environment
United's Flight for the Planet represents yet another innovative initiative the airline has undertaken to reduce its overall footprint and further ensure its reputation as the world's most environmentally conscious airlines. Several of United's most significant environmental achievements include:
- Becoming the first airline globally to use sustainable aviation biofuel on a continuous basis, marking a significant milestone in the industry by moving beyond test programs and demonstrations to the everyday use of low-carbon fuel in ongoing operations.
- Investing more than $30 million in California-based sustainable aviation fuels producer Fulcrum BioEnergy, which remains the single largest investment by any airline globally in sustainable fuels. United's agreement to purchase nearly 1 billion gallons from Fulcrum BioEnergy is the largest offtake agreement for biofuel in the airline industry.
- Becoming the first airline to fly with Boeing's Split Scimitar winglets, which reduce fuel consumption by an additional 2 percent versus standard winglets; United is the largest Scimitar winglet operator today, with nearly 400 aircraft equipped with these winglets.
- Becoming the first U.S. airline to repurpose items from the carrier's international premium cabin amenity kits and partnering with Clean the World to donate hygiene products to those in critical need.
- Partnering with Audubon International to protect raptors – including hawks, owls and kestrels – in and around United's hubs and resettle the birds of prey at habitats where the species are more likely to thrive.
For more information on United's commitment to environmental sustainability, visit united.com/ecoskies.
About United
United's shared purpose is "Connecting People. Uniting the World." We are more focused than ever on our commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United Airlines and United Express operate approximately 4,900 flights a day to 355 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 779 mainline aircraft and the airline's United Express carriers operate 569 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
We're Moving: United Airlines Begins Flight Operations at LaGuardia Airport's New Terminal B Eastern Concourse on June 2
CHICAGO, May 30, 2019 /PRNewswire/ -- This weekend United customers traveling through New York-LaGuardia Airport will experience new gates on the Terminal B Eastern Concourse, following the first phase of the $4 billion, 1.3-million-square-foot redevelopment project of Terminal B, operated by LaGuardia Gateway Partners. With soaring ceilings up to 55-feet high and plenty of natural light, customers will have thirteen new shops, restaurants and services in the concourse to visit; all inspired by the best of New York – from the iconic Shake Shack and local Irving Farm Coffee Roasters to an outpost of New York's famous toy store, FAO Schwarz.
"United customers depend on LaGuardia for frequent service to key business cities such as Chicago and Denver and the new Terminal B represents a huge improvement in the facilities we are able to provide, including a gorgeous new United Club," said Jill Kaplan, United's President of New York and New Jersey. "A world-class city like New York deserves a state-of-the-art airport – which is why we are absolutely thrilled to be moving our operations to the spectacular new Terminal B Eastern Concourse at LaGuardia Airport."
"The move of United and its passengers into the first new concourse at Terminal B marks another key milestone of the $8 billion redevelopment of an entirely new LaGuardia Airport," said Rick Cotton, Executive Director of the Port Authority of New York & New Jersey. "This is another important step in our ongoing commitment to provide world class facilities that turn Governor Cuomo's vision for a 21st century LaGuardia into reality. And we are undertaking this comprehensive rebuilding of LaGuardia Airport while continuing full operation at LaGuardia and serving record numbers of passengers."
The new concourse features ample gate seating, with charging stations throughout the seating area along with free unlimited high-speed Wi-Fi, offered by the Port Authority of New York and New Jersey. Additional features include a "park area" complete with greenery and benches, an airport themed children's play area which contains a 16-foot interactive display and restrooms with spacious stalls and above sink shelves that will keep belongings dry while washing hands.
As part of the terminal redevelopment, United will open its newest United Club on June 2. Conveniently located after security near United's gates, the new club offers a private oasis of 10,500 square feet with sweeping views of the tarmac. The Club, which is 30 percent larger than the prior LGA United Club location, combines the sleek styles of New York City with the modern touches travelers desire and features more than 200 seats. Customers can enjoy an expanded food menu including distinctly New York selections such as the iconic New York Bagel provider, Ess-a-Bagel, which will be paired with assorted cream cheese, jams and smokehouse salmon spread, a Greek salad bar and rotating hot foods including oven-baked Neapolitan ziti, fast-fired pesto and goat cheese flatbread, bite sized reuben corned beef with sauerkraut and more. Menu options will rotate throughout the day with hot and cold entrees available all-day. Additional amenities include complimentary high-speed Wi-Fi, wellness rooms and phone booths.
To download images of LGA United Club and new gates within Terminal B: https://app.box.com/s/tt6yu4d8y2d136xkxjgk0mwnprkmxu27
United Airlines Operations at LGA
Within the new Terminal B Eastern Concourse at LaGuardia Airport, United Airlines will operate out of five gates, offering more than 40 daily flights, including the most flights and seats between LaGuardia Airport and key business markets like Denver and Houston. The airline offers 17 daily flights between LaGuardia Airport and Chicago's O'Hare International Airport, more than any other airline at LGA. Additionally, United offers the only service from LaGuardia Airport to Washington-Dulles Airport (IAD) and the Northern Virginia business corridor.
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 announced that luxury skincare line Sunday Riley will make products exclusively for United customers to experience in amenity kits, 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.
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 4,900 flights a day to 355 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 779 mainline aircraft and the airline's United Express carriers operate 569 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 Expands Industry-Leading Commitment to Biofuel, Powering More Flights With More Biofuel Than Any Other U.S. Carrier
United's contract renewal follows the airline's original purchase agreement in 2013, helping United make history in 2016 when it became the first airline in the world to use sustainable aviation biofuel on a continuous basis. United is currently the only U.S. airline to use biofuel in its regular operations. World Energy's biofuel is made from agricultural waste and has received sustainability certification from the Roundtable on Sustainable Biomaterials.
World Energy recently announced that it will invest $350 million to fully convert its Paramount, California, facility to renewable diesel and sustainable aviation jet fuel, bringing its total capacity to more than 300 million gallons of production annually at that location, one of the company's six low-carbon fuel manufacturing plants.
"Investing in sustainable aviation biofuel is one of the most effective measures a commercial airline can take to reduce its impact on the environment," said Scott Kirby, United's president. "As leaders in this space, United and World Energy are setting an example for the industry on how innovators can work together to bring our customers, colleagues and communities toward a more sustainable future."
"Great companies lead," said Gene Gebolys, World Energy's chief executive officer. "We are honored to renew our commitment to United to advance their efforts to drive change to a lower carbon future."
United's contract renewal with World Energy will further assist the airline in achieving its recently announced commitment to reduce its greenhouse gas emissions by 50% by 2050. United's pledge to reduce emissions by 50% relative to 2005 represents the equivalent of removing 4.5 million vehicles from the road, or the total number of cars in New York City and Los Angeles combined. United's biofuel supply agreements represent more than 50% of the commercial aviation industry's total agreements for sustainable aviation biofuel.
United's Commitment to the Environment
United's latest investment in sustainable aviation biofuel, along with its commitment to reduce its greenhouse gas emissions, represents yet another innovative initiative the airline has undertaken to minimize its impact on the environment. Several of United's most significant environmental achievements include:
- Becoming the first airline to fly with Boeing's Split Scimitar winglets, which reduce fuel consumption by an additional 2% versus standard winglets; United is the largest Scimitar winglet operator today, with nearly 400 aircraft equipped with these winglets.
- Becoming the first U.S. airline to repurpose items from the carrier's international premium cabin amenity kits and partnering with Clean the World to donate hygiene products to those in critical need.
- Eliminating non-recyclable plastic stirring sticks and cocktail picks on aircraft and replacing them with an environmentally friendly product made of 100% bamboo.
- Partnering with Audubon International to protect raptors – including hawks, owls and kestrels – in and around United's hubs and resettle the birds of prey at habitats where the species are more likely to thrive.
- Continuing to replace its eligible ground equipment with cleaner, electrically powered alternatives, with nearly 40% of the fleet converted to date.
United's Award-Winning Eco-Skies Program
United's award-winning Eco-Skies program represents the company's commitment to the environment and the actions taken every day to create a sustainable future. In 2017, Air Transport World magazine named United the Eco-Airline of the Year for the second time since the airline launched the Eco-Skies program. Last year, United Airlines ranked No. 1 among global carriers in Newsweek's Global 500 Green Rankings, one of the most recognized environmental performance assessments of the world's largest publicly traded companies.
For more information on United's commitment to environmental sustainability, visit united.com/ecoskies.
About United
United's shared purpose is "Connecting People. Uniting the World." We are more focused than ever on our commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United Airlines and United Express operate approximately 4,900 flights a day to 355 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 779 mainline aircraft and the airline's United Express carriers operate 569 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