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 Advances Innovation Through Corporate Venture Capital Fund

United Airlines Ventures will invest in high-potential companies focused on sustainability, aerospace, and other innovative technologies
June 10, 2021

CHICAGO, June 10, 2021 /PRNewswire/ -- United Airlines launched a new, corporate venture fund today – United Airlines Ventures – that will allow the airline to continue investing in emerging companies that have the potential to influence the future of travel. The new fund will concentrate on sustainability concepts that will complement United's goal of net zero emissions by 2050 - without relying on traditional carbon offsets - as well as revolutionary aerospace developments and innovative technologies that are expected to create value for customers and United's operation.

"Younger companies today have learned from aviation's rich history and are combining it with more advanced technology and creative thinking to develop new ideas that give us the ability to revolutionize how airlines operate and in turn, the experience customers have when they fly,"  said United CEO Scott Kirby. "With United Airlines Ventures, we're signaling our confidence in these companies and propelling them forward with our expertise and financial support to demonstrate that our commitment to innovation will strengthen our company and improve our customers' experience more quickly than anyone ever anticipated."

With major agreements announced in just the last six months including agreements to invest in, collaborate with and purchase aircraft from Archer Aviation, United has proven its commitment to work with companies that are developing transformational technologies and services that are designed to revolutionize the customer experience and redefine how airlines operate.

Through United Airlines Ventures, United will continue to forge a new path by accelerating the growth of small- to medium-sized companies with strong potential.

United's current Vice President of Corporate Development and Investor Relations, Michael Leskinen, will assume the role of President of United Airlines Ventures in addition to his current responsibilities.

"United has always been a pioneer within the industry and United Airlines Ventures will help us grow companies that are pushing the envelope to make air travel better for our customers, our employees and our planet," said Leskinen. "We're making more than a financial commitment to companies within this new portfolio; we're lending our expertise so that new ideas can really take off."

United continues to be a leader in the adoption of new sustainable aviation technologies and innovations. Last week, the company announced its agreement to purchase 15 of Boom Supersonic 'Overture' aircraft with an option for an additional 35 airliners. Once in service, Overture will not only re-introduce supersonic commercial flight, it is expected to be the first long-haul commercial aircraft to be net zero carbon from day one optimized to run on 100% sustainable aviation fuel (SAF).

For more information about United Airlines Ventures, please visit https://www.united.com/ventures.

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."

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements 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," "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 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, 2020, as updated by our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission.

 

SOURCE United Airlines

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

Warriors, United Airlines Launch Franchise Fund

Four-Month Program Will Support Small Business Advancement Goals, Provide Resources For Business Growth

June 08, 2021

SAN FRANCISCO The Golden State Warriors and United Airlines announced today the launch of Franchise Fund, a program designed to support minority-owned Bay Area small businesses. For a video explaining Franchise Fund, click here.

United Adding Supersonic Speeds with New Agreement to Buy Aircraft from Boom Supersonic

First U.S. airline to sign commercial agreement with Boom Supersonic

New aircraft will cut travel times in half and operate on up to 100% sustainable aviation fuel

June 03, 2021

CHICAGO and DENVER, June 3, 2021 /PRNewswire/ -- United Airlines today announced a commercial agreement with Denver-based aerospace company Boom Supersonic to add aircraft to its global fleet as well as a cooperative sustainability initiative – a move that facilitates a leap forward in returning supersonic speeds to aviation.

Flying with Pride: United, Chase and Visa Join Forces in Support of LGBTQ+ Equality

Eligible United MileagePlus Visa Cardmembers earn five total miles for every dollar donated to charities supporting the LGBTQ+ community - up to $1,000 per eligible card
June 01, 2021

CHICAGO, June 1, 2021 /PRNewswire/ -- In celebration and support of Pride Month, United Airlines, Chase and Visa are collaborating to reward United Visa Cardmembers who donate to non-profit LGBTQ+ organizations. Between June 1 and June 30, 2021, eligible United MileagePlus Visa Cardmembers will receive five total miles for every dollar up to $1,000 in donations per eligible card made to the following organizations:

  • The Trevor Project: The world's largest suicide prevention and crisis intervention organization for LGBTQ+ young people.
  • The Human Rights Campaign: An organization that works to create a world where LGBTQ+ people are ensured equality and embraced as full members of society at home, at work and in every community.
  • StartOut: A non-profit with a mission to increase the number, diversity and impact of LGBTQ+ entrepreneurs and amplify their stories to drive the economic empowerment of the community.

"This Pride Month, United is celebrating our year-round mission of advocating and supporting our LGBTQ+ employees and customers by spotlighting organizations that share our commitment for uplifting the LGBTQ+ community," said Suzi Cabo, United's managing director, global community engagement.  "We're proud to partner with Chase and Visa to offer our valued United Visa Cardmembers a special opportunity to give back and earn rewards from us for their contributions."

Customers will receive five total miles per dollar donated from the following cards: United GatewaySM Visa Card, UnitedSM Explorer Visa Card, United QuestSM Visa Card, United ClubSM Infinite Visa Card, United ClubSM Visa Card, UnitedSM Business Visa Card and United ClubSM Business Visa.

United has an ongoing commitment to LGBTQ+ equality which includes a proud history of firsts.  United was the first U.S. airline to fully recognize domestic partnerships in 1999 and the first U.S. airline to offer non-binary gender options throughout all its booking channels. United also was the first public company to be inducted into Pride Live's Stonewall Ambassador program in recognition of the airline's commitment to LGBTQ+ equality in 2019. Through EQUAL, the airline's LGBTQ+ Business Resource Group, more than 2,600 members work together to advocate on behalf of the LGBTQ+ community, working with members and leaders companywide to develop ways to deliver resources, education and advocacy.

This year, EQUAL designed United branded Pride merchandise including a special edition enamel pin. Proceeds from sales of the pin will be donated to Togetheride, the virtual AIDS/LifeCycle event supporting San Francisco AIDS Foundation and the Los Angeles LGBT Center. The pin and other Pride items are available in the United Shop.

"To celebrate Pride Month, we wanted to reward cardmembers who donate to organizations that serve and advocate for our LBGT+ employees, cardmembers and their families: The Trevor Project, The Human Rights Campaign, and StartOut," said Brad Baumoel, global head of LGBT+ Affairs for JPMorgan Chase. "We are thrilled to join Visa and United to offer miles for donations that support the LBGT+ community."

"Visa believes economies that include everyone, everywhere uplift everyone, everywhere," said Kirk Stuart, senior vice president and head of North America merchant sales and acquiring at Visa. "We are committed to using the power of our network to support the LGBTQ+ community and other diverse populations in their recovery from the global pandemic and beyond. Driving engagement through strategic partnerships is an important part of our strategy to help local communities recover and thrive."

To learn more or to donate to these organizations, customers can visit united.com/pride2021, About Visa, visa.com/blog and @VisaNews.

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".

About Visa

Visa Inc. (NYSE: V) is the world's leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network – enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company's relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce.

About Chase

Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading global financial services firm with assets of $3.7 trillion and operations worldwide. Chase serves more than 60 million American households with a broad range of financial services, including personal banking, credit cards, mortgages, auto financing, investment advice, small business loans and payment processing. Customers can choose how and where they want to bank: More than 4,700 branches in 38 states and the District of Columbia, 16,000 ATMs, mobile, online and by phone. For more information, go to chase.com.

 

SOURCE United Airlines

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

United Names Chief Customer Officer Toby Enqvist Executive Vice President

A 25-year industry veteran, Enqvist's promotion reflects airline's commitment to customers
May 28, 2021

CHICAGO, May 28, 2021 /PRNewswire/ -- United announced today that Chief Customer Officer Toby Enqvist has been named the airline's newest executive vice president. Enqvist was promoted yesterday by the United Airlines Holdings, Inc. Board of Directors. The promotion is effective immediately.

United Airlines to Present at the Bernstein 37th Annual Strategic Decisions Conference

May 28, 2021

CHICAGO, May 28, 2021 /PRNewswire/ -- United will present at the Bernstein Strategic Decisions Conference on Thursday, June 3. The presentation will begin at 2:30 p.m. CT / 3:30 p.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.

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 Names Edward 'Ted' Philip as Non-Executive Chairman of Its Board of Directors

May 27, 2021

CHICAGO, May 27, 2021 /PRNewswire/ -- United Airlines Holdings, Inc. (UAL) today announced that Edward "Ted" Philip will assume the role of non-executive chairman of the board of directors. Philip has served as a United board member since 2016, and as lead director since May 2020. Philip brings nearly three decades of corporate leadership across several industries.

United Sweepstakes Gives Vaccinated Customers a Shot to Win Free Flights, a Year of Travel

"Your Shot to Fly" sweepstakes aims to encourage COVID-19 vaccinations in support of the Biden administration's national effort to encourage people to get vaccinated

United is only U.S. airline where customers can upload COVID-19 testing and vaccination records directly to the airline's app and website via the Travel-Ready Center

May 24, 2021

CHICAGO, May 24, 2021 /PRNewswire/ -- United Airlines is offering its loyalty program members the chance to win free flights for a year's worth of travel, in support of the Biden administration's national effort to encourage more people to get their COVID-19 vaccination.

Under the terms of the "Your Shot to Fly" sweepstakes, any new or existing MileagePlus® member who uploads their vaccination records to the airline's mobile app or website between today and June 22 can be entered to win a roundtrip flight for two, in any class of service, to anywhere in the world United flies. United will give away 30 pairs of tickets throughout the month of June. In addition – on July 1 United will announce five randomly selected lucky MileagePlus members who have entered our sweepstakes for a grand prize of travel for a year for themselves and a companion – also in any class of service, anywhere in the world United flies. For video and photos of the upload process, click here.

United Airlines Applauds Spain's Decision to Reopen to Vaccinated Travelers

United flies to more European destinations than any other U.S. carrier; United will expand its service to Italy and Spain which are opening to tourists
May 21, 2021

CHICAGO, May 21, 2021 /PRNewswire/ -- United Airlines applauds Spain following its decision to reopen travel to vaccinated visitors beginning June 7. The announcement comes following the European Union Council's formal recommendation that EU Member States can reopen to fully vaccinated tourists and United looks forward to welcoming back customers on over 30 daily flights to 16 destinations in Europe this summer, including service between New York/Newark and Barcelona and Madrid.

United to Present at the 14th Annual Wolfe Research Global Transportation & Industrials Conference

May 20, 2021

CHICAGO, May 20, 2021 /PRNewswire/ -- United will present at the 14th Annual Wolfe Research Global Transportation & Industrials Conference on Tuesday, May 25. The presentation will begin at 12:00 p.m. CT / 1:00 p.m. ET.

United Wins 'People's Voice' Webby Award for Best Travel App

Customers recognize United's redesigned app for its accessibility options for the visually impaired, personalization options and improved navigation
May 19, 2021

CHICAGO, May 19, 2021 /PRNewswire/ -- The recently redesigned United Airlines mobile app was voted the Best Travel App in the 25th annual Webby Awards. United's app was one of five nominees in the Travel App and Software category, and was named the "People's Voice" winner. United debuted its redesigned app in October of last year, featuring enhanced accessibility for visually impaired customers, more intuitive navigation and faster processing. United has continued to enhance the app to make it an all-in-one solution for customers to seamlessly navigate their travel experience. In January, United introduced the "Travel-Ready Center" to its mobile app, which allows customers to upload and validate test results, review local entry requirements, find and schedule appointments with testing providers, and store vaccination records.

"We're honored that our customers voted for United to win this award, and we plan to continue introducing new features and enhancements to ensure we are offering the most innovative and inclusive airline app in the industry," said Linda Jojo, executive vice president for technology and chief digital officer, United. "Over the last year, it has been a top priority for us to make travel easier and more accessible for all, and United's mobile app gives customers everything they need for their travels right in the palm of their hand."

Already the top downloaded airline app for Apple and Android phones, with up to 2.5 million users interacting with the app daily, the United app was redesigned last year to help make travel easier for people with visual disabilities. Some of the enhanced features include increased color contrast, more space between graphics and reordering how information is displayed and announced to better integrate with the screen reader technologies built into most handheld devices like VoiceOver and TalkBack  that read aloud on-screen messages and notifications. By restructuring the way the information is organized, screen readers are better able to convert text to audio in the proper, logical sequence, allowing customers to better understand and navigate the app.

In addition to the accessibility enhancements, United also introduced a refreshed account experience for MileagePlus® members to easily check balances, track Premier® progress, explore MileagePlus benefits, access past activity and more. The airline also updated its design and navigation to make the app more intuitive and help customers find everything they may need for their travels. All of these changes are underpinned by a new back-end platform, which ultimately makes the app faster and more responsive.

United has continued to add industry-leading features to its app in the months since the redesign, including:

  • Travel-Ready Center: A digital solution that allows customers to view COVID-19 entry requirements, find, schedule and receive uploaded test results from local providers and upload any required testing and vaccination records for domestic and international travel, all in one place. United is the first and only U.S. airline to integrate all these features into its mobile app and website.
  • Agent on Demand: Customers at select airports can receive virtual, on demand customer service, giving people an easy, contact-free option to get real-time information and support. Customers can access "Agent on Demand" on the United app to call, text or video chat live with an agent and get answers on everything from seat assignments to boarding times.
  • United Map Search: An interactive map feature powered by Google Flight Search Enterprise Technology, that lets customers easily compare and shop for flights, based on departure city, budget and location type, including popular national park, skiing and cultural destinations. This new digital tool available on the United app and website displays fares in a map view, allowing customers to simultaneously compare travel to a variety of destinations in a single search.
  • Contactless Payment: On flights offering for-purchase food and beverage options, United customers can now use United's new contactless payment system that allows them to store their payment information in a digital wallet on the United app and on United.com prior to departure. Rather than handing the flight attendant a credit card, the flight attendant will ask for the customer's name and seat to confirm the card on file. Once confirmed, customers will receive their products and the card on file will be charged accordingly.

The Webby Awards is the leading international awards organization honoring excellence on the Internet, and United's app was the only major U.S. carrier app nominated for a Webby award this year. In 2019, United's mobile app was awarded a People's Voice Webby Award in the Business and Finance category.

Committed to Ensuring a Safer 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

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