United Airlines Announces First Quarter 2020 Financial Results - United Hub

United Airlines Announces First Quarter 2020 Financial Results

Company takes U.S. airline industry-leading steps to mitigate impacts of COVID-19
April 30, 2020

CHICAGO, April 30, 2020 /PRNewswire/ -- United Airlines (UAL) today announced first quarter 2020 financial results with a net loss of $1.7 billion, and an adjusted net loss¹ of $639 million. The company also outlined U.S. airline industry-leading efforts to manage through the most disruptive global crisis in the history of aviation. The company's total liquidity as of the close of business on Wednesday, April 29, 2020 was approximately $9.6 billion, including $2 billion under its undrawn revolving credit facility. The company currently expects daily cash burn² to average between $40 million and $45 million during the second quarter of 2020.

"Throughout the COVID-19 crisis we have maintained our focus - first on the safety of our customers and our people and second on swiftly taking action to keep United operating. We have been at the forefront of warning how deep of an impact we expect this crisis could have and how long we expect it could last. We've also led the industry in taking decisive steps to mitigate the operational and financial impacts of COVID-19 -- making deep schedule reductions, drastically reducing spending and aggressively raising liquidity," said Chief Executive Officer, Oscar Munoz. "While we are still in the midst of this crisis, we will not hesitate to make difficult decisions we believe will ensure the long term success of our company. When demand returns, we believe we'll be positioned to bounce back strongly and quickly because of our early and aggressive efforts to fight the worst financial crisis in aviation history."

COVID-19 Actions

The company took early and aggressive action intended to mitigate the impact of COVID-19 to position the company to bounce back quickly and make United stronger when demand returns.

  • First U.S. airline to make aggressive capacity reductions.
  • Suspended share repurchase program on Feb. 24, 2020, after spread of COVID-19 to Italy and terminated the program on April 24, 2020.
  • First U.S. airline to actively raise additional liquidity to manage the crisis. Since early March, the company raised $4.0 billion of new liquidity in three secured term loan facilities, new aircraft financings and an equity offering (excludes CARES Act Payroll Support Program funding and any Loan Program loans) as of the close of business April 29, 2020.
  • The company entered into an agreement with a subsidiary of BOC Aviation Limited for lease financing of six Boeing 787-9 and 16 Boeing 737 MAX 9 aircraft that are currently subject to purchase agreements between United and The Boeing Company and are scheduled to deliver in 2020, including two Boeing 787-9 aircraft that were delivered in April.
  • First U.S. airline to announce chief executive officer and president forgoing 100% of respective base salaries.
  • First U.S. airline to announce all other officers of the company will take salary reductions, with every officer base salary reduced by 50%.
  • Suspended merit salary increases for management and administrative employees and instituted a hiring freeze.
  • Offered voluntary unpaid leaves of absence for U.S.-based employees -- with more than 20,000 employees now participating.
  • Non-employee directors of the company waived 100% of cash compensation for the second and third quarters of 2020.
  • First major U.S. airline to require all flight attendants to wear masks on duty.
  • Postponed projects deemed non-critical to operation.
  • Slashed spending on vendors and outside contractors.
  • Reduced planned full-year adjusted capital expenditures by approximately $2.5 billion, bringing expected full-year adjusted capital expenditures to below $4.5 billion.3
  • Plan to only take delivery of aircraft that have financing in place.

Government Support

  • United has entered into an agreement to receive approximately $5.0 billion from the U.S. Treasury Department through the Payroll Support Program under the CARES Act in the form of a $3.5 billion grant and a $1.5 billion 10-year loan which will be used to protect the salaries and benefits of employees through Sept. 30, 2020. In connection with this funding, UAL will issue warrants to purchase approximately 4.6 million shares of UAL common stock to the federal government. The first installment of approximately $2.5 billion was received by United on April 21, 2020 and warrants to purchase approximately 2.3 million shares of UAL common stock were issued.
  • The company submitted an application to the Loan Program under the CARES Act. Under the Loan Program, the company expects to have the ability through Sept. 30, 2020 to borrow up to approximately $4.5 billion from the U.S. Treasury Department for a term of up to five years, with any loans issued expected to be senior secured obligations of the company. If the company borrows any amounts under the Loan Program, UAL expects to issue to the U.S. Treasury Department warrants to purchase shares of UAL common stock, with the number of warrants dependent on total borrowings.

First Quarter Results

  • Reported first quarter net loss of $1.7 billion, diluted loss per share of $6.86, and pre-tax loss of $2.1 billion.
  • Reported first quarter adjusted net loss of $639 million, adjusted diluted loss per share of $2.57, and adjusted pre-tax loss of $1.0 billion.¹

Additional COVID-19 Actions

Employees

  • Committed to no involuntary furloughs or reduced pay rates in the U.S. through Sept. 30, 2020.
  • Diligently enacting safety and social distancing measures designed to mitigate the spread of COVID-19 and ensure the workplace is clean and safe.
  • Utilizing temperature checks for airport employees and Flight Attendants prior to beginning work.
  • Simplified catering on flights to all shelf-stable and packaged food, and sealed and canned beverages; suspended buy on board.
  • Adjusted flight attendant jump seat locations so crew members don't have to sit directly next to or across from each other.
  • Granting additional paid days off for front line employees at several airports to limit their potential exposure to COVID-19.
  • Covering all testing costs associated with COVID-19 for anyone enrolled in a United medical plan, reduced copays for telemedicine visits.

Customers

  • Waiving change fees for tickets purchased through May 31, 2020 for twelve months and waiving redeposit fees for MileagePlus award travel scheduled through May 31, 2020.
  • Extended MileagePlus Premier status to 2022.
  • Utilizing electrostatic spraying to disinfect aircraft interiors, and expect to spray every operated flight by mid-June.
  • In May, start testing touchless kiosks for printing bag tags and checking bags, eliminating the need to touch the screen.
  • Made several modifications to the boarding process, including: customers scanning their own tickets prior to boarding, boarding fewer customers at a time and boarding from back to front.
  • Continue to provide the only commercial air service between Australia and the United States and Israel and the United States.
  • Enacting social distancing on flights for flight attendants and customers, including blocking middle seats.

Community

  • Since March 19, United Cargo has operated more than 800 cargo-only flights worldwide, bringing more than 28 million pounds of food and supplies to destinations worldwide.
  • Operated more than 130 repatriation flights bringing more than 18,500 Americans home who were stranded abroad.
  • Donated more than 173,327 pounds of food to food banks, hospitals and other organizations from United's catering facilities and Polaris lounges.
  • In 2019, launched Miles on a Mission, which allows members to donate miles to organizations including those that now support COVID-19 efforts.
  • Working with governments worldwide to assist moving people/supplies.
  • Partnered with California, New Jersey and New York City to provide free round-trip flights for medical volunteers traveling to heavily impacted cities, and to date have booked flights for more than 1,000 volunteers and 800 medical professionals.
  • Houston employees led effort to convert Houston cargo facility into food distribution center to aid the Houston Food Bank's efforts to feed families in need during the COVID-19 crisis.

Earnings Call

UAL will hold a conference call to discuss first-quarter 2020 financial results as well as its financial and operational outlook for second quarter and full year 2020, on Friday, May 1, at 9:00 a.m. CT/10:00 a.m. ET. A live, listen-only webcast of the conference call will be available at ir.united.com.

The webcast will be available for replay within 24 hours of the conference call and then archived on the website for three months.

About United

United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this release, including statements regarding the potential impacts of the COVID-19 pandemic and steps we plan to take in response thereto, 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," "remains," "believes," "estimates," "forecast," "guidance," "outlook," "goals," "targets" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: the existing global COVID-19 pandemic and the outbreak of any other disease or similar public health threat that affects travel demand or travel behavior; the final terms of borrowing pursuant to the Loan Program under the CARES Act, if any, and the effects of the grant and promissory note through the Payroll Support Program under the CARES Act; the costs and availability of financing; our significant amount of financial leverage from fixed obligations and ability to seek additional liquidity and maintain adequate liquidity; our ability to comply with the terms of our various financing arrangements; the material disruption of our strategic operating plan as a result of COVID-19, and our ability to execute our strategic operating plans in the long term; general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aircraft fuel and energy refining capacity in relevant markets); risks of doing business globally, including instability and political developments that may impact our operations in certain countries; demand for travel and the impact that global economic and political conditions have on customer travel patterns; our capacity decisions and the capacity decisions of our competitors; competitive pressures on pricing and on demand; changes in aircraft fuel prices; disruptions in our supply of aircraft fuel; our ability to cost-effectively hedge against increases in the price of aircraft fuel, if we decide to do so; the effects of any technology failures or cybersecurity or significant data breaches; disruptions to services provided by third-party service providers; potential reputational or other impact from adverse events involving our aircraft or operations, the aircraft or operations of our regional carriers or our code share partners or the aircraft or operations of another airline; our ability to attract and retain customers; the effects of any terrorist attacks, international hostilities or other security events, or the fear of such events; the mandatory grounding of aircraft in our fleet; disruptions to our regional network, as a result of the COVID-19 pandemic or otherwise; the impact of regulatory, investigative and legal proceedings and legal compliance risks; the success of our investments in other airlines, including in other parts of the world, which involve significant challenges and risks, particularly given the impact of the COVID-19 pandemic; industry consolidation or changes in airline alliances; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; costs associated with any modification or termination of our aircraft orders; disruptions in the availability of aircraft, parts or support from our suppliers; our ability to maintain satisfactory labor relations and the results of any collective bargaining agreement process with our union groups; any disruptions to operations due to any potential actions by our labor groups; labor costs; the impact of any management changes; extended interruptions or disruptions in service at major airports where we operate; U.S. or foreign governmental legislation, regulation and other actions (including Open Skies agreements, environmental regulations and the United Kingdom's withdrawal from the European Union); the seasonality of the airline industry; weather conditions; the costs and availability of aviation and other insurance; our ability to realize the full value of our intangible assets and long-lived assets; any impact to our reputation or brand image; 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, 2019, as updated by our Current Report on Form 8-K dated April 21, 2020, 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.

1 Excludes special charges, nonoperating credit losses and unrealized gains and losses on investments. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in the tables accompanying this release.

2 Cash burn is defined as: Net cash from operations, less investing and financing activities. Proceeds from the issuance of new debt (excluding expected aircraft financing), government grants associated with the Payroll Support Program of the CARES Act and issuance of new stock are not included in this figure.

3 Non-cash capital expenditures are not determinable at this time. Accordingly, the Company is not providing capital expenditure guidance on a GAAP basis.

-tables attached-

UNITED AIRLINES HOLDINGS, INC

STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)




Three Months Ended

March 31,


%

Increase/

(Decrease)

(In millions, except per share data)


2020


2019


Operating revenue:







Passenger


$

7,065



$

8,725



(19.0)


Cargo


264



286



(7.7)


Other operating revenue


650



578



12.5


Total operating revenue


7,979



9,589



(16.8)









Operating expense:







Salaries and related costs


2,955



2,873



2.9


Aircraft fuel


1,726



2,023



(14.7)


Regional capacity purchase


737



688



7.1


Landing fees and other rent


623



588



6.0


Depreciation and amortization


615



547



12.4


Aircraft maintenance materials and outside repairs


434



408



6.4


Distribution expenses


295



360



(18.1)


Aircraft rent


50



81



(38.3)


Special charges (B)


63



18



NM


Other operating expenses


1,453



1,508



(3.6)


Total operating expense


8,951



9,094



(1.6)









Operating income (loss)


(972)



495



NM









Operating margin


(12.2)

%


5.2

%


NM









Nonoperating income (expense):







Interest expense


(171)



(188)



(9.0)


Interest capitalized


21



22



(4.5)


Interest income


26



29



(10.3)


Unrealized gains (losses) on investments, net (B)


(319)



17



NM


Miscellaneous, net (B)


(699)



(8)



NM


Total nonoperating expense


(1,142)



(128)



NM









Income (loss) before income taxes


(2,114)



367



NM









Pre-tax margin


(26.5)

%


3.8

%


NM









Income tax expense (benefit) (D)


(410)



75



NM


Net income (loss)


$

(1,704)



$

292



NM









Diluted earnings (loss) per share


$

(6.86)



$

1.09



NM


Diluted weighted average shares


248.5



268.3



(7.4)









NM Not meaningful







UNITED AIRLINES HOLDINGS, INC.

PASSENGER REVENUE INFORMATION AND STATISTICS


Passenger revenue information is as follows (in millions, except for percentage changes):



1Q 2020

Passenger

Revenue


1Q 2019

Passenger

Revenue
(a)


Reporting
Adjustments
(b)


1Q 2019

Passenger

Revenue
(b)


Passenger

Revenue

vs.

1Q 2019
(b)


PRASM
vs. 1
Q 2019
(b)


Yield vs.
1Q 2019
(b)


Available

Seat Miles

vs.

1Q 2019


1Q 2020
Available
Seat
Miles


1Q 2020
Revenue
Passenger
Miles

Domestic

$

4,504



$

5,367



$

57



$

5,424



(17.0%)


(15.2%)


(1.2%)


(2.2%)


35,936


25,508





















Atlantic

1,073



1,331



(27)



1,304



(17.7%)


(14.8%)


(7.3%)


(3.4%)


10,265


7,029

Pacific

688



1,121



(33)



1,088



(36.8%)


(11.3%)


0.2%


(28.6%)


7,795


5,475

Latin America

800



906



3



909



(12.0%)


(6.6%)


4.0%


(5.8%)


6,942


5,217

International

2,561



3,358



(57)



3,301



(22.4%)


(10.3%)


(0.4%)


(13.5%)


25,002


17,721





















Consolidated

$

7,065



$

8,725



$



$

8,725



(19.0%)


(12.8%)


(0.5%)


(7.2%)


60,938


43,229





















(a)

As previously reported.

(b)

During the third quarter of 2019, United implemented a new revenue accounting software system which allowed it to more precisely determine the geographic regions associated with certain ancillary passenger revenue items. Prior to July 2019, those ancillary revenue items were determined using an allocation method that was based on revenue from passenger travel. While the total passenger revenue is not impacted, the geographic totals for each period are not comparable year-over-year due to the change. The first quarter 2019 passenger revenue presented in the table above reallocates these ancillary items using the revised allocation.

Select operating statistics are as follows:




Three Months Ended
March 31,


%

Increase/

(Decrease)




2020


2019



Passengers (thousands)


30,359



36,454



(16.7)



Revenue passenger miles (millions)


43,229



53,097



(18.6)



Available seat miles (millions)


60,938



65,645



(7.2)



Passenger load factor:








Consolidated


70.9

%


80.9

%


(10.0)


pts.

Domestic


71.0

%


82.6

%


(11.6)


pts.

International


70.9

%


78.7

%


(7.8)


pts.

Passenger revenue per available seat mile (cents)


11.59



13.29



(12.8)



Total revenue per available seat mile (cents)


13.09



14.61



(10.4)



Average yield per revenue passenger mile (cents)


16.34



16.43



(0.5)



Cargo ton miles


683



805



(15.2)



Aircraft in fleet at end of period


1,388



1,348



3.0



Average stage length (miles)


1,399



1,448



(3.4)



Average full-time equivalent employees


90,766



88,730



2.3



Average aircraft fuel price per gallon


$

1.90



$

2.05



(7.3)



Fuel gallons consumed (millions)


910



985



(7.6)




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, 2019, for definitions of these statistics.

UNITED AIRLINES HOLDINGS, INC

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)


(In millions)

March 31, 2020


December 31, 2019

ASSETS




Current assets:




Cash and cash equivalents

$

3,442



$

2,762


Short-term investments

1,779



2,182


Receivables, less allowance for credit losses (2020 — $30; 2019 — $9)

792



1,364


Aircraft fuel, spare parts and supplies, less obsolescence allowance (2020 — $446; 2019 — $425)

1,070



1,072


Prepaid expenses and other

822



814


Total current assets

7,905



8,194






Total operating property and equipment, net

31,811



30,170


Operating lease right-of-use assets

4,853



4,758






Other assets:




Goodwill

4,523



4,523


Intangibles, less accumulated amortization (2020 — $1,454; 2019 — $1,440)

2,945



3,009


Restricted cash

106



106


Notes receivable, less allowance for credit losses (2020 — $549)

149



671


Investments in affiliates and other, net

763



1,180


Total other assets

8,486



9,489


Total assets

$

53,055



$

52,611






LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Advance ticket sales

$

5,309



$

4,819


Accounts payable

2,436



2,703


Frequent flyer deferred revenue

1,355



2,440


Accrued salaries and benefits

1,647



2,271


Current maturities of long-term debt

4,055



1,407


Current maturities of finance leases

59



46


Current maturities of operating leases

688



686


Other

538



566


Total current liabilities

16,087



14,938






Other long-term liabilities and deferred credits:




Long-term debt

13,198



13,145


Long-term obligations under finance leases

369



220


Long-term obligations under operating leases

5,060



4,946


Frequent flyer deferred revenue

4,133



2,836


Postretirement benefit liability

775



789


Pension liability

1,514



1,446


Deferred income taxes

1,322



1,736


Other

1,179



1,024


Total other long-term liabilities and deferred credits

27,550



26,142


Stockholders' equity

9,418



11,531


Total liabilities and stockholders' equity

$

53,055



$

52,611


UNITED AIRLINES HOLDINGS, INC.

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)


(In millions)

Three Months Ended
March 31,


2020


2019

Cash Flows from Operating Activities:




Net cash provided by operating activities

$

63



$

1,915






Cash Flows from Investing Activities:




Capital expenditures

(1,959)



(1,609)


Purchases of short-term and other investments

(541)



(724)


Proceeds from sale of short-term and other investments

927



768


Other, net

1



(15)


Net cash used in investing activities

(1,572)



(1,580)






Cash Flows from Financing Activities:




Proceeds from issuance of short-term debt

2,500




Proceeds from issuance of long-term debt

348



646


Payments of long-term debt

(235)



(250)


Repurchases of common stock

(353)



(513)


Principal payments under finance leases

(18)



(20)


Capitalized financing costs

(35)



(17)


Other, net

(18)



(29)


Net cash provided (used) in financing activities

2,189



(183)


Net increase in cash, cash equivalents and restricted cash

680



152


Cash, cash equivalents and restricted cash at beginning of the period

2,868



1,799


Cash, cash equivalents and restricted cash at end of the period

$

3,548



$

1,951






Investing and Financing Activities Not Affecting Cash:




Property and equipment acquired through the issuance of debt

$

109



$

92


Right-of-use assets acquired through operating leases

30



51


Property and equipment acquired through finance leases

19



8


Lease modifications and lease conversions

439



36






UNITED AIRLINES 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
March 31, 2020

Net Operating Profit After Tax ("NOPAT")


Pre-tax income

$

1,433


Adjustments:


Special charges and unrealized losses on investments, net:


Impairment of assets

213


Severance and benefit costs

10


Nonoperating credit loss on BRW Aviation Holding LLC and BRW Aviation LLC ("BRW") term loan and related guarantee

697


Unrealized losses on investments, net

183


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

68


Pre-tax income excluding special charges and unrealized losses on investments, net (Non-GAAP)

2,604


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

709


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

127


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

(47)


less: Income taxes paid

(20)


NOPAT (Non-GAAP)

$

3,373






Average Invested Capital (five-quarter average)


Total assets

$

52,131


less: Non-interest bearing liabilities (b)

(18,432)


Average invested capital (Non-GAAP)

$

33,699




ROIC (Non-GAAP)

10.0

%





(a)

Income tax benefit measured based on the effective cash tax rate. The effective cash tax rate is calculated by dividing net cash taxes paid by pre-tax income excluding special charges and unrealized (gains) losses on investments, net. For the three months ended March 31, 2020, the effective cash tax rate was 0.8%.

(b)

Non-interest bearing liabilities include advance ticket sales, frequent flyer deferred revenue, deferred income taxes and other non-interest bearing liabilities.

UNITED AIRLINES 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 and for nonoperating credit losses is useful to investors because these items are not indicative of UAL's ongoing performance. UAL believes that adjusting for unrealized (gains) losses on investments, net 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 finance 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 operating 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
March 31,


%

Increase/

(Decrease)



2020


2019


CASM (cents)







Cost per available seat mile (CASM) (GAAP)


14.69



13.85



6.1


Special charges (B)


0.10



0.02



NM


Third-party business expenses


0.08



0.05



60.0


Fuel expense


2.83



3.08



(8.1)


Profit sharing, including taxes




0.05



(100.0)


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


11.68



10.65



9.7



NM Not Meaningful

UNITED AIRLINES HOLDINGS, INC.

NON-GAAP FINANCIAL RECONCILIATION (Continued)



Three Months Ended
March 31,



Increase/
(Decrease)


%
Increase/
(Decrease)

(in millions)

2020


2019



Operating expenses (GAAP)

$

8,951



$

9,094



$

(143)



(1.6)


Special charges (B)

63



18



45



NM


Operating expenses, excluding special charges

8,888



9,076



(188)



(2.1)


Adjusted to exclude:








Third-party business expenses

44



30



14



46.7


Fuel expense

1,726



2,023



(297)



(14.7)


Profit sharing, including taxes



33



(33)



(100.0)


Adjusted operating expenses (Non-GAAP) (A)

$

7,118



$

6,990



$

128



1.8










Operating income (loss) (GAAP)

$

(972)



$

495



$

(1,467)



NM


Adjusted to exclude:








Special charges (B)

63



18



45



NM


Adjusted operating income (Non-GAAP) (A)

$

(909)



$

513



$

(1,422)



NM


Operating margin

(12.2)

%


5.2

%


(17.4)



pts.


Adjusted operating margin (Non-GAAP) (A)

(11.4)

%


5.3

%


(16.7)



pts.










Pre-tax income (loss) (GAAP)

$

(2,114)



$

367



$

(2,481)



NM


Adjusted to exclude:








Special charges (B)

63



18



45



NM


Nonoperating credit loss on BRW term loan and related guarantee (B)

697





697



NM


Unrealized (gains) losses on investments, net (B)

319



(17)



336



NM


Interest expense on ERJ 145 finance leases (C)



21



(21)



NM


Adjusted pre-tax income (loss) (Non-GAAP) (A)

$

(1,035)



$

389



$

(1,424)



NM


Pre-tax margin

(26.5)

%


3.8

%


(30.3)



pts.


Adjusted pre-tax margin (Non-GAAP) (A)

(13.0)

%


4.1

%


(17.1)



pts.










Net income (loss) (GAAP)

$

(1,704)



$

292



$

(1,996)



NM


Adjusted to exclude:








Special charges (B)

63



18



45



NM


Nonoperating credit loss on BRW term loan and related guarantee (B)

697





697



NM


Unrealized (gains) losses on investments, net (B)

319



(17)



336



NM


Interest expense on ERJ 145 finance leases (C)



21



(21)



NM


Income tax benefit related to adjustments above, net of valuation allowance

(14)



(5)



(9)



NM


Adjusted net income (loss) (Non-GAAP) (A)

$

(639)



$

309



$

(948)



NM










Diluted earnings (loss) per share (GAAP)

$

(6.86)



$

1.09



$

(7.95)



NM


Adjusted to exclude:








Special charges (B)

0.25



0.07



0.18



NM


Nonoperating credit loss on BRW term loan and related guarantee (B)

2.81





2.81



NM


Unrealized (gains) losses on investments, net (B)

1.29



(0.07)



1.36



NM


Interest expense on ERJ 145 finance leases (C)



0.08



(0.08)



NM


Income tax benefit related to adjustments, net of valuation allowance

(0.06)



(0.02)



(0.04)



NM


Adjusted diluted earnings (loss) per share (Non-GAAP) (A)

$

(2.57)



$

1.15



$

(3.72)



NM



NM Not Meaningful

UNITED AIRLINES HOLDINGS, INC.

NON-GAAP FINANCIAL RECONCILIATION (Continued)


UAL believes that adjusting capital expenditures for assets acquired through the issuance of debt and finance leases is useful to investors in order to appropriately reflect the total amounts spent on capital expenditures. UAL also believes that adjusting net cash provided by operating activities for capital expenditures, adjusted capital expenditures, and aircraft operating lease additions 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
March 31,

Capital Expenditures (in millions)


2020


2019

Capital expenditures (GAAP)


$

1,959



$

1,609


Property and equipment acquired through the issuance of debt


109



92


Property and equipment acquired through finance leases


19



8


Adjusted capital expenditures (Non-GAAP)


$

2,087



$

1,709







Free Cash Flow (in millions)





Net cash provided by operating activities (GAAP)


$

63



$

1,915


Less capital expenditures


1,959



1,609


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


$

(1,896)



$

306







Net cash provided by operating activities (GAAP)


$

63



$

1,915


Less adjusted capital expenditures (Non-GAAP)


2,087



1,709


Less aircraft operating lease additions


21




Free cash flow (Non-GAAP)


$

(2,045)



$

206


UNITED AIRLINES HOLDINGS, INC.

NOTES (UNAUDITED)


(B) Special charges and unrealized (gains) losses on investments, net include the following:




Three Months Ended
March 31,

(In millions)


2020


2019

Operating:





Impairment of assets


$

50



$

8


Severance and benefit costs




6


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


13



4


Total operating special charges


63



18


Nonoperating credit loss on BRW term loan and related guarantee


697




Nonoperating unrealized (gains) losses on investments, net


319



(17)


Total special charges, credit losses and unrealized (gains) losses on investments, net


1,079



1


Income tax benefit, net of valuation allowance


(14)




Total special charges, credit losses and unrealized (gains) losses on investments, net of income taxes


$

1,065



$

1



Impairment of assets: During the three months ended March 31, 2020, the company recorded a $50 million impairment for its China routes. The company conducted impairment reviews of certain intangible assets in the first quarter of 2020, which consisted of a comparison of the book value of those assets to their fair value calculated using the discounted cash flow method. Due to the COVID-19 pandemic and the subsequent suspension of flights to China, the company determined that the value of its China routes had been impaired.


During the three months ended March 31, 2019, the company recorded an $8 million fair value adjustment for aircraft purchased off lease.


Severance and benefit costs: During the three months ended March 31, 2019, the company recorded $2 million of severance and benefit costs related to a voluntary early-out program for its technicians and related employees represented by the International Brotherhood of Teamsters and management severance of $4 million.


Gains (loss) on sale of other assets and other special charges: During the three months ended March 31, 2020, the company recorded a $10 million one-time special charge related to the wind-down of the capacity purchase agreement with Trans States Airlines, LLC and $3 million for costs related to the transition of fleet types within other regional carrier contracts.


Nonoperating credit loss on BRW term loan and related guarantee: During the three months ended March 31, 2020, the company recorded a $697 million expected credit loss allowance for the BRW term loan and related guarantee. United recorded the allowance based on United's assessment of Avianca Holdings S.A.'s ("AVH") financial uncertainty due to its high level of leverage and the fact that the airline has currently ceased operations due to the COVID-19 pandemic. BRW's equity and BRW's holdings of AVH equity are secured as a pledge under the BRW term loan, which is currently in default.


Unrealized (gains) losses on investments, net: During the three months ended March 31, 2020, the company recorded losses of $319 million primarily for the $293 million decrease in the market value of its investment in Azul Linhas Aéreas Brasileiras S.A. ("Azul") and $24 million for the decrease in fair value of the AVH share call options, AVH share appreciation rights, and AVH share-based upside sharing agreement (collectively, the "AVH Derivative Assets") that United obtained as part of the BRW term loan agreement and related agreements with Kingsland Holdings Limited.


During the three months ended March 31, 2019, the company recorded gains of $14 million for the change in market value of its investment in Azul and gains of $3 million for the change in fair value of certain the AVH Derivative Assets.


(C) Interest expense related to finance 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 finance leases up until the purchase date. The company recognized $21 million of additional interest expense in the three months ended March 31, 2019 as a result of this change.


(D) Effective tax rate


The company's effective tax rate for the three months ended March 31, 2020 and 2019 was 19.4% and 20.4%, respectively. The provision for income taxes is based on the estimated annual effective tax rate which represents a blend of federal, state and foreign taxes and includes the impact of certain nondeductible items and the impact of a change in the company's mix of domestic and foreign earnings. The first quarter 2020 rate was impacted by a $66 million valuation allowance related to unrealized capital losses.


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

United Airlines to Lead Industry Switch to Sustainable Aviation Fuel with Global Corporations, Customers

New United Eco-Skies Alliance Program includes global corporate leaders who, with United, will pay towards more sustainable aviation fuel, all companies invited to participate
April 13, 2021

CHICAGO, April 13, 2021 /PRNewswire/ -- United Airlines continues to lead the industry towards a more sustainable future with the launch of the first-of-its-kind Eco-Skies Alliance SM  program. Working with the airline, more than a dozen leading global corporations will collectively contribute towards the purchase of approximately 3.4 million gallons of sustainable aviation fuel (SAF) this year. With its nearly 80% emissions reductions on a lifecycle basis compared to conventional jet fuel, this is enough SAF to eliminate approximately 31,000 metric tons of greenhouse gas emissions, or enough to fly passengers over 220 million miles.

As inaugural participants, the following companies are taking a lead within their respective industries, reducing their aviation-related impact on the environment at the source, and creating demand for more SAF production.

  • Autodesk
  • Boston Consulting Group
  • CEVA Logistics
  • Deloitte
  • DHL Global Forwarding
  • DSV Panalpina
  • HP Inc.
  • Nike
  • Palantir
  • Siemens
  • Takeda Pharmaceuticals

"While we've partnered with companies for years to help them offset their flight emissions, we applaud those participating in the Eco-Skies Alliance for recognizing the need to go beyond carbon offsets and support SAF-powered flying, which will lead to more affordable supply and ultimately, lower emissions," said United CEO Scott Kirby. "This is just the beginning. Our goal is to add more companies to the Eco-Skies Alliance program, purchase more SAF and work across industries to find other innovative paths towards decarbonization."

United has made the airline industry's single largest investment in SAF and has purchased more SAF than any other airline in the world. World Energy, a long-term partner of United, will supply the SAF to Los Angeles International Airport (LAX), which makes it conveniently accessible to United's operations.

Customers traveling with United can now purchase SAF

In addition to the Eco-Skies Alliance program, United is giving customers the ability to contribute funds for additional SAF purchase or for use on initiatives United believes will help decarbonize aviation – the first of any U.S. airline to do so. Understanding there is a growing interest among customers for real, lasting solutions, this new capability will be available starting immediately via portal on united.com/ecoskiesalliance.

Advocating for sustainable travel, together with United

Strong federal and state policy leadership will be essential to reducing the climate impacts of air travel, so starting immediately United will help individuals connect with elected representatives to advocate for policies that would make air travel more sustainable for the long term. United will be the first airline in the world to connect customers directly with policy makers to voice the support that is needed to advance and accelerate permanent, scalable solutions that hold the potential to decarbonize the air transportation industry – and not just offset emissions.

 "We know there is a growing demand from a wide range of our customers including corporations, cargo shippers and individuals who share the same concern we do – that climate change is the most pressing issue of our generation," Kirby said.

United's 100% Green Commitment

At United, we believe the airline industry needs to be bolder when it comes to making decisions that confront the climate crisis. That's why we've committed to become 100% green and reduce our greenhouse gas emissions 100% by 2050 by taking the harder, better path of reducing emissions from flying, rather than relying on traditional carbon offsets.

Here are some of the ways we're making sustainability the new standard in flight:

United's Award-Winning Eco-Skies Program

United's award-winning Eco-Skies® program represents the company's commitment to the environment and the actions taken every day to create a more sustainable future. The Carbon Disclosure Project (CDP) named United as the only airline globally to its 2020 Climate 'A List' for the airline's actions to cut emissions, mitigate climate risks and develop the low-carbon economy, marking the seventh consecutive year that United had the highest CDP score among U.S. airlines.

In 2017, Air Transport World magazine named United its Eco-Airline of the Year for the second time since the airline launched the Eco-Skies program. Additionally, United ranked No. 1 among global carriers inNewsweek's2017 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/sustainability.

About United

United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of UAL 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 Sets New Diversity Goal: 50% of Students at New Pilot Training Academy To Be Women and People of Color

United Airlines is only major U.S. airline to own flight school: United Aviate Academy
April 06, 2021

CHICAGO, April 6, 2021 /PRNewswire/ -- United Airlines, the only major U.S. airline to own a flight school, will begin accepting applications today as it embarks on an ambitious plan to train 5,000 new pilots by 2030, at least half of them women and people of color. Backed by scholarship commitments from United Airlines and JPMorgan Chase, United Aviate Academy will create opportunities for thousands of students, including women and people of color to pursue a career as a commercial airline pilot, one of the most lucrative careers in the industry.

United Returns to JFK With Coast-to-Coast Flights and the Most Premium Seats From the NYC Area

Flights feature a reconfigured Boeing 767-300ER airplane with 46 business class seats and 22 United Premium Plus® seats
March 29, 2021

NEW YORK, March 29, 2021 /PRNewswire/ -- United is back at John F. Kennedy Airport (JFK), now operating direct service to the airline's West Coast hubs – Los Angeles International Airport (LAX) and San Francisco International Airport (SFO) from New York City. The airline will use its Boeing 767-300ER aircraft which features 46 business class all-aisle-access seating, and 22 United Premium Plus® seats. The airline operates the most premium seats between the New York City area and Los Angeles and San Francisco combined.

United is currently flying one round-trip flight, five days a week to each West Coast airport, with plans to double the number of flights as demand grows. The carrier is back at JFK following a five-year hiatus and now offers service from all three major airports in the New York City area.

"United's return to JFK reflects not only our strong commitment to the New York City area, but also to increasing service to and from the places our customers want to fly," said Ankit Gupta, Vice President of Domestic Network Planning and Scheduling. "With the addition of JFK, United now offers unmatched service, greater convenience, more choice and a best-in-class product for travelers throughout the New York City region as they return to the skies."

"We're happy to welcome United Airlines back to Kennedy Airport," said Charles Everett, General Manager of John F. Kennedy International Airport. "We remain committed to providing the highest level of safety, accessibility and ease of travel for all of the passengers who use the Port Authority's airport facilities, and United's decision is a great step in that direction."

United's premium cabin features flat-bed seats on all flights similar to the current Newark-Los Angeles and Newark-San Francisco offerings, providing a consistent and comprehensive NYC-West Coast product. This includes the signature cooling gel pillow along with the Saks Fifth Avenue day blanket and pillow. The routes offer seasonal menus crafted by renowned chefs and distinctive amenities. This includes both travelers in United Business and United Premium Plus sections who enjoy a complimentary hot entrée, mixed nuts, salad and dessert, as well as complimentary alcoholic beverages. The Economy Plus® and Economy sections feature the United all-in-one snack bag as well as the airline's buy on board program, which returns on April 12. Eligible customers will have access to the United ClubSM location at either LAX or SFO.

United's operations at JFK's Terminal 7 will provide seamless access for customers. The lobby area offers self-service kiosks, along with eight podiums which are conveniently located steps away from the TSA check point. Just a short walk from security screening, travelers will find the United-operated gates. Customers will also benefit from easy connections to more than a dozen Star Alliance partners at JFK, including access to 15 destinations in 14 countries as of March 2021.

For images and video footage please click here. Tickets are now available for purchase on United.com.

Committed to Ensuring a Safe Journey

United is committed to putting health and safety at the forefront of every customer's journey, with the goal of delivering an industry-leading standard of cleanliness through its United CleanPlusSM program. United has teamed up with Clorox and Cleveland Clinic to redefine cleaning and health safety procedures from check-in to landing and has implemented more than a dozen new policies, protocols and innovations designed with the safety of customers and employees in mind. For more details on all the ways United is helping keep customers safe during their journey, please visit united.com/cleanplus.

About United

United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

 

SOURCE United Airlines

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

United to Hold Webcast of First-Quarter 2021 Financial Results

March 26, 2021

CHICAGO, March 26, 2021 /PRNewswire/ -- United Airlines will hold a conference call to discuss first-quarter 2021 financial results on Tuesday, April 20 at 9:30 a.m. CT/10:30 a.m. ET. A live, listen-only webcast of the conference call will be available at ir.united.com. The company will issue its first-quarter financial results after market close on Monday, April 19.

United Airlines Adds New Direct Flights to Coastal Vacation Destinations Starting Memorial Day Weekend

Airline adds 26 new routes between Midwest cities and popular summer getaway destinations in the South and New England
March 25, 2021

CHICAGO, March 25, 2021 /PRNewswire/ -- As more travelers begin to plan long-awaited getaways with family and friends, United Airlines is kicking off summer vacation season with a robust May schedule that includes the addition of 26 new nonstop routes between Midwest cities such as Cleveland, Cincinnati and Milwaukee and popular vacation destinations such as Hilton Head, S.C.; Pensacola, Fla.; and Portland, Maine. The airline also plans to resume more than 20 domestic routes and will start new service between Orange County, Calif., and Honolulu.

Internationally, in May United will fly more than 100% of its pre-pandemic schedule to Latin America compared to what it operated in 2019, including more flights to Mexico, the Caribbean, Central America and South America. The airline also plans to resume flights between Chicago and Tokyo Haneda, resume passenger flights between New York/Newark and Milan and Rome, and restart service between Chicago and Amsterdam. In total, United plans to operate 52% of its overall schedule compared to May 2019, whereas in May 2020 United operated 14% of its overall schedule compared to May 2019.

"In the past few weeks, we have seen the strongest flight bookings since the start of the pandemic," said Ankit Gupta, vice president of United's domestic network planning and scheduling. "As we rebuild our schedule to meet that demand, adding in seasonal point-to-point flying is just one of the ways we are finding opportunities to add new and exciting service. And as we have done throughout the entire pandemic, we will continue being nimble and strategic with our network to add the right service to the destinations our customers want to visit."

Domestic May Schedule

Starting May 27, United will begin point-to-point service to Charleston, S.C.; Hilton Head, S.C.; Myrtle Beach, S.C.; Pensacola, Fla. and Portland, Maine from seven cities including Cleveland, Cincinnati and Columbus, Ohio; St. Louis, Mo.; Pittsburgh, Pa.; Milwaukee, Wis. and Indianapolis, Ind. United plans to operate these point-to-point routes through Labor Day weekend. Most customers on these flights will experience United's new Bombardier CRJ-550 – the world's first 50-seater aircraft with two cabins. The spacious CRJ-550 is equipped with 10 first class seats, 20 Economy Plus seats, 20 standard economy seats, Wi-Fi, more legroom and enough overhead bin space for every customer to bring a roller bag on board.

For video and photos of the CRJ-550 click here.

United also continues to be a leading airline to Hawaii, offering more than 200 weekly flights, including new service between Orange County and Honolulu. In May, United will begin offering United Premium Plus® service on select Hawaii routes, which includes a bigger, more comfortable seat and a complimentary meal. United Premium Plus will be available for customers traveling to Honolulu and Maui from Chicago and Denver and will be expanded in June to flights between Chicago and Kona, Houston and Honolulu, and New York/Newark and Maui. United allows customers with valid negative COVID-19 tests to pre-clear before departing to Hawaii so they can save time and skip document screening lines upon arrival in the islands.

In addition to the new point-to-point service, United will resume 20 domestic flights to popular destinations and introduce three new domestic routes. This new nonstop service includes flights between Houston and Kalispell, Mont.; Washington, D.C. and Bozeman, Mont.; and between Chicago and Nantucket, Mass. Overall, United plans to operate 58% of its domestic schedule compared to May 2019.

International May Schedule

United will fly 46% of its international schedule compared to its May 2019 schedule. As customers continue to travel to warm beach destinations, United will operate more flights to Mexico, the Caribbean, Central America and South America than the carrier flew in 2019, providing more options to travel to Central America than any other U.S. carrier. Across the Pacific, United will resume flights between Chicago and Tokyo's Haneda airport and increase service from Los Angeles to Sydney and Tokyo Narita. Across the Atlantic, United will resume service between Newark and Milan and Rome as well as between Chicago and Amsterdam, Munich and Tel Aviv.

New Summer Point-to-Point Frequencies


Service from Cleveland to:

Destination

Frequency

Charleston, S.C.

3x weekly

Hilton Head, S.C.

3x weekly

Myrtle Beach, S.C.

3x weekly

Pensacola, Fla.

3x weekly

Portland, Maine

3x weekly


Service from Cincinnati to:

Charleston, S.C.

3x weekly

Hilton Head, S.C.

3x weekly

Pensacola, Fla.

3x weekly

Portland, Maine

3x weekly


Service from Columbus to:

Charleston, S.C.

3x weekly

Hilton Head, S.C.

4x weekly

Portland, Maine

4x weekly


Service from Indianapolis to:

Charleston, S.C.

4x weekly

Hilton Head, S.C.

3x weekly

Portland, Maine

4x weekly


Service from Milwaukee to:

Charleston, S.C.

2x weekly

Myrtle Beach, S.C.

2x weekly

Pensacola, Fla.

2x weekly

Portland, Maine

2x weekly

Savannah, Ga.

2x weekly


Service from St. Louis to:

Hilton Head, S.C.

3x weekly

Myrtle Beach, S.C.

3x weekly


Service from Pittsburgh to:

Charleston, S.C.

3x weekly

Hilton Head, S.C.

3x weekly

Pensacola, Fla.

3x weekly

Portland, Maine

3x weekly

Committed to Ensuring a Safe Journey

United is committed to putting health and safety at the forefront of every customer's journey, with the goal of delivering an industry-leading standard of cleanliness through its United CleanPlus program. United has teamed up with Clorox and Cleveland Clinic to redefine cleaning and health safety procedures from check-in to landing and has implemented more than a dozen new policies, protocols and innovations designed with the safety of customers and employees in mind.

About United

United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of UAL 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 the 2021 J.P. Morgan Industrials Conference

March 09, 2021

CHICAGO, March 9, 2021 /PRNewswire/ -- United Airlines will present at the J.P. Morgan Industrials Conference on Monday, March 15. United Airlines' Chief Executive Officer Scott Kirby will present at the conference beginning at 8:40 a.m. CT / 9:40 a.m. ET.

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.

From Airline to Landline: United Offers Seamless Travel from Denver International Airport to Breckenridge and Fort Collins

New luxury bus collaboration allows customers to fly into DEN, have their bags and ski equipment automatically transferred and be driven to Breckenridge and Fort Collins
February 26, 2021

DENVER, Feb. 26, 2021 /PRNewswire/ -- United announced today that it is making it easier for customers to travel to Breckenridge and Fort Collins, Colorado with convenient year-round ground transportation service connecting through its Denver hub. This is the first time Breckenridge has ever been served by an airline and will be Fort Collins' first global network carrier service in 25 years.

United Airlines Names Laysha Ward to Board of Directors

February 24, 2021

CHICAGO, Feb. 24, 2021 /PRNewswire/ -- United Airlines Holdings, Inc. (UAL) announced today that Laysha Ward is joining its Board of Directors. Ward, currently Executive Vice President and Chief External Engagement Officer of Target Corporation, brings an impressive resume with more than three decades of corporate leadership experience to the UAL Board.

United Announces Plans to Begin New Daily Nonstop Service Between Boston Logan and London Heathrow

United will be the only U.S. carrier to offer nonstop service between the nation's top seven business markets and London Heathrow
February 19, 2021

CHICAGO, Feb. 19, 2021 /PRNewswire/ -- United Airlines today announced plans to expand its global route network with new, nonstop service between Boston Logan International Airport and London Heathrow. This new service builds upon United's growing presence in London and provides customers on the East Coast with another convenient option to get to London. United plans to operate its premium Boeing 767-300ER aircraft on the route, with 46 United Polaris Business Class and 22 United Premium Plus seats. The aircraft features the highest proportion of premium seats on any widebody aircraft operated by a U.S. carrier between London and the United States.

Aloha, Summer! United to Offer the Only Nonstop Flights Between Orange County, California and Honolulu

New Orange County service begins May 6 and new, first-ever nonstop service between Chicago and Kona and between New York/Newark and Maui starts June 3

Customers departing Orange County and United's hub airports can save time by showing proof of negative tests to skip document screening process in Hawaii

February 12, 2021

February 12, 2021 – United Airlines today announced new convenient options for Hawaiian getaways this summer, offering the only nonstop flights between Orange County, California and Honolulu. The new route joins United's previously announced service between Chicago and Kona and New York/Newark and Maui. With the additional new flights, United will offer nonstop service on more than 20 routes between the mainland and Hawaii. United's Orange County – Honolulu service will be available for purchase on united.com beginning Saturday, February 13.