United Announces Full-Year 2015 Profit - United Hub

United Airlines Announces Full-Year 2015 Profit

January 21, 2016

CHICAGO, Jan. 21, 2016 /PRNewswire/ -- United Airlines (UAL) today reported its fourth-quarter and full-year 2015 financial results.

  • UAL reported full-year net income of $4.5 billion, or $11.88 per diluted share, excluding special items. Including special items, UAL reported full-year net income of $7.3 billion. These results include a nonrecurring $3.1 billion non-cash benefit associated with the reversal of the company's income tax valuation allowance.
  • UAL reported fourth-quarter net income of $934 million, or $2.54 per diluted share, excluding special items. Including special items, UAL reported fourth-quarter net income of $823 million.
  • Today, UAL announced it reached an agreement to acquire 40 new Boeing 737-700 aircraft which will enter the fleet beginning in mid-2017, replacing a portion of the capacity currently operated by regional partners.
  • Employees earned a record $698 million in profit sharing for full-year 2015.

"We improved our operational performance, continued to invest in our products and services and achieved record financial performance," said Brett J. Hart, UAL's acting chief executive officer. "We have great momentum as we head into 2016 and are committed to continuously earning the trust of our customers and employees. I'm proud of what we accomplished together, running a reliable airline and making the right investments to deliver shareholder value. We expect first-quarter pre-tax margin to be between 8 and 10 percent, excluding special items."

Full-Year and Fourth-Quarter Revenue and Capacity

For the fourth quarter of 2015, total revenue was $9.0 billion, a decrease of 3.0 percent year-over-year. Fourth-quarter 2015 consolidated PRASM decreased 6.0 percent and consolidated yield decreased 7.2 percent compared to the fourth quarter of 2014. For the full-year 2015, consolidated PRASM declined 4.4 percent versus the prior year. The declines in PRASM and yield were driven largely by a strong U.S. dollar, lower surcharges, travel reductions from customers impacted by declining oil prices and softening domestic and international yields.

Passenger revenue for the fourth quarter and full year of 2015 and period-to-period comparisons of related statistics for UAL's mainline and regional operations are included in the tables in the back of this document.

Full-Year and Fourth-Quarter Costs

Total operating expense excluding special charges was $7.8 billion in the fourth quarter, down 8.1 percent year-over-year. Including special charges, total operating expense was $8.0 billion, an 8.4 percent decrease year-over-year. The decrease was largely driven by lower oil prices. Consolidated unit cost (CASM), excluding special charges, third-party business expenses, fuel and profit sharing, was flat compared to the fourth quarter of 2014. Consolidated CASM including those items decreased 10 percent year-over-year. For the full year, consolidated CASM excluding special charges, third-party business expenses, fuel and profit sharing decreased 0.7 percent year-over-year. This strong cost performance was largely the result of improved efficiency as part of the company's Project Quality and upgauging initiatives and better completion as a result of improved operational performance. Consolidated CASM including those items decreased 11.9 percent compared to full-year 2014.

Liquidity and Capital Allocation

In the fourth quarter, UAL generated $1.1 billion in operating cash flow and $324 million in free cash flow, and ended the quarter with $6.5 billion in unrestricted liquidity, including $1.35 billion of undrawn commitments under its revolving credit facility. During the fourth quarter, the company continued to invest in its business through gross capital expenditures of $791 million, excluding fully reimbursable projects, including approximately $300 million in aircraft-related deposits that shifted to the fourth quarter of 2015 from the first quarter of 2016.

The company spent $520 million toward its $3 billion share repurchase authorization in the fourth quarter. For the year, United repurchased approximately $1.2 billion worth of shares.

UAL earned a 21.0 percent return on invested capital for the 12 months ended Dec. 31, 2015.

Fleet Updates

Today, UAL announced it would take delivery of 40 new Boeing 737-700 aircraft, which will enter the fleet beginning in mid-2017. These aircraft will replace a portion of the capacity currently operated by the company's regional partners, as the company expects to reduce by more than half the number of 50-seat aircraft in its fleet by 2019.

"Our customers have a preference for an improved travel experience, including first class seats, Economy Plus, and Wi-Fi. These aircraft are an efficient way to meet those needs while reducing 50-seat flying," said Gerry Laderman, UAL's acting chief financial officer.

For more information on UAL's first-quarter 2016 guidance, please visit ir.united.com for the company's investor update.

The company will provide further details on its full-year 2015 financial results on an investor conference call today at 9:30 a.m. CT. Participants in the call will include Oscar Munoz, president and CEO; Brett J. Hart, acting CEO; Gerry Laderman, acting chief financial officer; Jim Compton, vice chairman and chief revenue officer; and Greg Hart, executive vice president and chief operations officer.

About United

United Airlines and United Express operate an average of nearly 5,000 flights a day to 342 airports across six continents. In 2015, United and United Express operated nearly two million flights carrying 140 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates more than 700 mainline aircraft, and this year, the airline anticipates taking delivery of 20 new Boeing aircraft, including 737NGs, 787s and 777s. The airline is a founding member of Star Alliance, which provides service to 192 countries via 28 member airlines. Approximately 84,000 United employees reside in every U.S. state and in countries around the world. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the NYSE under the symbol UAL.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements included in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and financial performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as "expects," "will," "plans," "anticipates," "indicates," "believes," "forecast," "guidance," "outlook," "goals" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this report are based upon information available to us on the date of this report. 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: our ability to comply with the terms of our various financing arrangements; the costs and availability of financing; our ability to maintain adequate liquidity; our ability to execute our operational plans, including optimizing our revenue; our ability to control our costs, including realizing benefits from our resource optimization efforts, cost reduction initiatives and fleet replacement programs; our ability to utilize our net operating losses; our ability to attract and retain customers; demand for transportation in the markets in which we operate; an outbreak of a disease that affects travel demand or travel behavior; demand for travel and the impact that global economic conditions have on customer travel patterns; excessive taxation and the inability to offset future taxable income; 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); our ability to cost-effectively hedge against increases in the price of aircraft fuel; any potential realized or unrealized gains or losses related to fuel or currency hedging programs; the effects of any hostilities, act of war or terrorist attack; 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; the costs and availability of aviation and other insurance; industry consolidation or changes in airline alliances; competitive pressures on pricing and on demand; our capacity decisions and the capacity decisions of our competitors; U.S. or foreign governmental legislation, regulation and other actions (including open skies agreements and environmental regulations); the impact of regulatory, investigative and legal proceedings and legal compliance risks; the impact of any management changes; our CEO's health prognosis and return from medical leave; labor costs; our ability to maintain satisfactory labor relations and the results of the collective bargaining agreement process with our union groups; any disruptions to operations due to any potential actions by our labor groups; weather conditions; and other risks and uncertainties set forth under Item 1A., Risk Factors, of UAL's Annual Report on Form 10-K, as well as other risks and uncertainties set forth from time to time in the reports we file with the SEC.

-tables attached-

 

UNITED CONTINENTAL HOLDINGS, INC.
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)
THREE MONTHS AND YEAR ENDED DECEMBER 31, 2015 AND 2014
(In millions, except per share data)

(In millions, except per share data) Three Months Ended
December 31, 2015
Three Months Ended
December 31, 2014
%
Increase/
(Decrease)
Year Ended
December 31, 2015
Year Ended
December 31, 2014
%
Increase/
(Decrease)
Operating revenue:
Passenger: (A)
Mainline
$6,180 $6,375 (3.1) $26,333 $26,785 (1.7)
Operating revenue: Passenger: (A) Regional 1,549 1,708 (9.3) 6,452 6,977 (7.5)
Operating revenue: Passenger: (A) Total passenger revenue 7,729 8,083 (4.4) 32,785 33,762 (2.9)
Operating revenue: Cargo 231 260 (11.2) 937 938 (0.1)
Operating revenue: Other operating revenue 1,076 970 10.9 4,142 4,201 (1.4)
Operating revenue:Other operating revenue: Total operating revenue 9,036 9,313 (3.0) 37,864 38,901 (2.7)
Operating expense:
Salaries and related costs
2,424 2,251 7.7 9,713 8,935 8.7
Operating expense: Aircraft fuel(B) 1,618 2,530 (36.0) 7,522 11,675 (35.6)
Operating expense: Regional capacity purchase 565 597 (5.4) 2,290 2,344 (2.3)
Operating expense: Landing fees and other rent 556 568 (2.1) 2,203 2,274 (3.1)
Operating expense: Depreciation and amortization 476 431 10.4 1,819 1,679 8.3
Operating expense: Aircraft maintenance materials and outside repairs 399 415 (3.9) 1,651 1,779 (7.2)
Operating expense: Distribution expenses 316 334 (5.4) 1,342 1,373 (2.3)
Operating expense: Aircraft rent 174 215 (19.1) 754 883 (14.6)
Operating expense: Special charges (C) 131 179 NM1 326 443 NM1
Operating expense: Other operating expenses 1,296 1,168 11.0 5,078 5,143 (1.3)
Operating expense: Other Operating Expenses: Total operating expenses 7,955 8,688 (8.4) 32,698 36,528 (10.5)
Operating income: Operating income 1,081 625 73.0 5,166 2,373 117.7
Nonoperating income (expense):
Interest expense
(165) (176) (6.3) (669) (735) (9.0)
Nonoperating income (expense): Interest capitalized 11 12 (8.3) 49 52 (5.8)
Nonoperating income (expense): Interest income 9 5 80.0 25 22 13.6
Nonoperating income (expense): Miscellaneous, net (C) (31) (443) (93.0) (352) (584) (39.7)
Nonoperating income (expense): Miscellaneous, net (C): Total nonoperating expense (176) (602) (70.8) (947) (1,245) (23.9)
Income before income taxes: Income before income taxes 905 23 NM 4,219 1,128 274.0
Income tax expense: Income tax expense (benefit) (D) 82 (5) NM1 (3,121) (4) NM1
Net income: Net income $823 $28 NM $7,340 $1,132 NM
Earnings per share: Earnings per share, basic $2.24 $0.08 NM $19.52 $3.05 NM
Earnings per share: Earnings per share, diluted $2.24 $0.07 NM $19.47 $2.93 NM
Weighted average shares: Weighted average shares, basic 367 372 (1.3) 376 371 1.3
Weighted average shares: Weighted average shares, diluted 367 376 (2.4) 377 390 (3.3)
  1. NM means Not Meaningful

 

UNITED CONTINENTAL HOLDINGS, INC.
NOTES (UNAUDITED)

(A) Select passenger revenue information is as follows (in millions):
4Q 2015
Passenger
Revenue
(millions)
Passenger
Revenue
vs.
4Q 2014
PRASM
vs.
4Q 2014
Yield
vs.
4Q 2014
Available
Seat Miles
vs.
4Q 2014
Domestic $3,249 0.9% (3.2%) (5.6%) 4.3%
Atlantic 1,314 (3.2%) (2.7%) (1.5%) (0.5%)
Pacific 1,012 (8.6%) (8.6%) (9.2%) 0.0%
Latin America 605 (12.6%) (20.9%) (20.8%) 10.5%
International 2,931 (7.1%) (8.9%) (8.7%) 1.9%
Mainline 6,180 (3.1%) (6.0%) (7.1%) 3.1%
Regional 1,549 (9.3%) (3.0%) (4.2%) (6.6%)
Consolidated $7,729 (4.4%) (6.0%) (7.2%) 1.8%

 

UNITED CONTINENTAL HOLDINGS, INC.
NOTES (UNAUDITED)

(B) UAL's results of operations include fuel expense for both mainline and regional operations. (In millions, except per share data)
Three Months Ended
December 31, 2015
Three Months Ended
December 31, 2014
%
Increase/
(Decrease)
Year Ended
December 31, 2015
Year Ended
December 31, 2014
%
Increase/
(Decrease)
Mainline fuel expense excluding hedge impacts $1,184 $1,982 (40.3) $5,711 $9,408 (39.3)
Hedge losses reported in fuel expense 2 (175) (85) NM1 (604) (89) NM1
Total mainline fuel expense 1,359 2,067 (34.3) 6,315 9,497 (33.5)
Regional fuel expense 259 463 (44.1) 1,207 2,178 (44.6)
Consolidated fuel expense 1,618 2,530 (36.0) 7,522 11,675 (35.6)
Cash paid on settled hedges that did not qualify for hedge accounting 3 (115) (151) NM1 (329) (138) NM1
Fuel expense including all losses from settled hedges $1,733 $2,681 (35.4) $7,851 $11,813 (33.5)
Mainline fuel consumption (gallons) 784 769 2.0 3,216 3,183 1.0
Mainline average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense $1.51 $2.58 (41.5) $1.78 $2.96 (39.9)
Mainline average aircraft fuel price per gallon $1.73 $2.69 (35.7) $1.96 $2.98 (34.2)
Mainline average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accounting $1.88 $2.88 (34.7) $2.07 $3.03 (31.7)
Regional fuel consumption (gallons) 167 179 (6.7) 670 722 (7.2)
Regional average aircraft fuel price per gallon $1.55 $2.59 (40.2) $1.80 $3.02 (40.4)
Consolidated fuel consumption (gallons) 951 948 0.3 3,886 3,905 (0.5)
Consolidated average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense $1.52 $2.58 (41.1) $1.78 $2.97 (40.1)
Consolidated average aircraft fuel price per gallon $1.70 $2.67 (36.3) $1.94 $2.99 (35.1)
Consolidated average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accounting $1.82 $2.83 (35.7) $2.02 $3.03 (33.3)
  1. Includes losses from settled hedges that were designated for hedge accounting. UAL allocates 100 percent of hedge accounting gains (losses) to mainline fuel expense.
  2. Includes ineffectiveness losses on settled hedges and losses on settled hedges that were not designated for hedge accounting. Ineffectiveness gains (losses) and gains (losses) on hedges that do not qualify for hedge accounting are recorded in Nonoperating income (expense): Miscellaneous, net.
UNITED CONTINENTAL HOLDINGS, INC.
NOTES (UNAUDITED)

(C) Special items include the following:
(In millions) Three Months Ended
December 31, 2015 (In millions)
Three Months Ended
December 31, 2014 (In millions)
Year Ended
December 31, 2015 (In millions)
Year Ended
December 31, 2014 (In millions)
Operating:
Impairment of assets
$48 $16 $79 $49
Operating:Integration-related costs 13 17 60 96
Operating:Severance and benefit costs 4 141 107 199
Operating:(Gains) losses on sale of assets and other miscellaneous (gains) losses, net 66 5 80 99
Operating: (Gains) losses on sale of assets and other special charges:Special charges 131 179 326 443
Nonoperating and income taxes:
Losses on extinguishment of debt and other, net
7 53 202 74
Nonoperating and income taxes:Income tax benefit related to special charges (11) (6) (11) (10)
Nonoperating and income taxes:Income tax expense (benefit) associated with valuation allowance release (D) 88 (3,130)
Nonoperating and income taxes: Income tax expense (benefit) associated with valuation allowance release (D): Total operating and nonoperating special charges, net of income taxes 215 226 (2,613) 507
Nonoperating and income taxes:Mark-to-market (MTM) losses from fuel derivative contracts settling in future periods 1 225 (8) 244
Nonoperating and income taxes:Prior period gains (losses) on fuel derivative contracts settled in the current period (105) (18) (241) 83
Nonoperating and income taxes: Prior period gains (losses) on fuel derivative contracts settled in the current period:Total special items, net of income taxes $111 $433 $(2,862) $834

 

   
 

2014 - Special items




Impairment of assets: During 2014, the company recorded a charge of $16 million ($10 million net of related income tax benefits) related to its annual assessment of impairment of its indefinite-lived intangible assets (certain international Pacific routes). In addition, the company also recorded $33 million for charges related primarily to impairment of its flight equipment held for disposal associated with its Boeing 737-300 and 737-500 fleets.




Integration-related costs: Integration-related costs included compensation costs related to systems integration, training, severance and relocation for employees.




Severance and benefit costs: During the fourth quarter of 2014, the company recorded $141 million of severance and benefit costs related primarily to a voluntary early-out program for its flight attendants. More than 2,500 participants elected a one-time opportunity to voluntarily separate from the company and will receive a severance payment, with a maximum value of $100,000 per participant, based on years of service, with retirement dates through the end of 2016. In addition, the company recorded $58 million of severance and benefits primarily related to reductions of management and front-line employees, including from Hopkins International Airport (Cleveland), as part of its cost savings initiatives. The company is currently evaluating its options regarding its long-term contractual lease commitments at Cleveland. The capacity reductions at Cleveland may result in further special charges, which could be significant, related to our contractual commitments.




(Gains) losses on sale of assets and other miscellaneous (gains) losses, net: During 2014, the company recorded $66 million for the permanent grounding of 21 of the company's Embraer ERJ 135 regional aircraft under lease through 2018, which included an accrual for remaining lease payments and an amount for maintenance return conditions. The company decided to permanently ground these 21 Embraer ERJ 135 aircraft as a result of new Embraer E175 regional jet deliveries, the impact of pilot shortages at regional carriers and fuel prices. In addition, the company also recorded $33 million for losses on the sale of assets and other special charges.




Loss on extinguishment of debt and other, net: On October 10, 2014, United used cash to retire, at par, the entire $248 million principal balance of the 6% Convertible Junior Subordinated Debentures and the 6% Convertible Preferred Securities, Term Income Deferrable Equity Securities (TIDES). The $53 million expense is primarily associated with the write-off of non-cash debt discounts recorded on the TIDES due to purchase accounting during the company's merger transaction in 2010.




MTM losses from fuel derivative contracts settling in future periods and prior period gains (losses) on fuel derivative contracts settled in the current period: The company utilizes certain derivative instruments that are economic hedges but do not qualify for hedge accounting under U.S. generally accepted accounting principles. The company records changes in the fair value of these economic hedges to Nonoperating income (expense): Miscellaneous, net in the statements of consolidated operations. During the three months and year ended December 31, 2014, the company recorded $225 million and $244 million, respectively, in MTM losses on economic hedges that will settle in future periods. For economic hedges that settled in the three months and year ended December 31, 2014, the company recorded MTM gains (losses) of ($18) million and $83 million, respectively, in prior periods. The figures above also include an insignificant amount of ineffectiveness on hedges that are designated for hedge accounting.




(D)  

The company's income tax benefit was $3.1 billion for the year ended December 31, 2015. During 2015, after considering all positive and negative evidence and the four sources of taxable income, the Company concluded that its deferred income tax assets are more likely than not to be realized. In evaluating the likelihood of utilizing the Company's net federal and state deferred tax assets, the significant relevant factors that the Company considered are: (1) its recent history and forecasted profitability; (2) growth in the U.S. and global economies; and (3) future impact of taxable temporary differences. Therefore, the Company released almost all of its valuation allowance in 2015, resulting in a $3.1 billion benefit in its provision for income taxes.

UNITED CONTINENTAL HOLDINGS, INC.
STATISTICS
Three Months Ended
December 31, 2015
Three Months Ended
December 31, 2014
%
Increase/
(Decrease)
Year Ended
December 31, 2015
Year Ended
December 31, 2014
%
Increase/
(Decrease)
Mainline:
Passengers (thousands)
24,169 22,087 9.4 96,327 91,475 5.3
Mainline:Revenue passenger miles (millions) 44,470 42,609 4.4 183,642 179,015 2.6
Mainline:Available seat miles (millions) 53,814 52,197 3.1 219,989 214,105 2.7
Mainline:Cargo ton miles (millions) 679 674 0.7 2,614 2,487 5.1
Mainline:Passenger load factor:
Mainline
82.6% 81.6% 1.0 pts. 83.5% 83.6% (0.1) pts.
Mainline:Domestic 86.1% 84.1% 2.0 pts. 86.3% 86.0% 0.3 pts.
Mainline:International 79.1% 79.2% (0.1) pts. 80.8% 81.3% (0.5) pts.
Mainline:Passenger revenue per available seat mile (cents) 11.48 12.21 (6.0) 11.97 12.51 (4.3)
Mainline:Average yield per revenue passenger mile (cents) 13.90 14.96 (7.1) 14.34 14.96 (4.1)
Mainline:Average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense 4 $1.51 $2.58 (41.5) $1.78 $2.96 (39.9)
Mainline:Average aircraft fuel price per gallon 4 $1.73 $2.69 (35.7) $1.96 $2.98 (34.2)
Mainline:Average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accounting 3 $1.88 $2.88 (34.7) $2.07 $3.03 (31.7)
Mainline:Fuel gallons consumed (millions) 784 769 2.0 3,216 3,183 1.0
Mainline:Aircraft in fleet at end of period 715 691 3.5 715 691 3.5
Mainline:Average stage length (miles) 1,869 1,936 (3.5) 1,922 1,958 (1.8)
Mainline:Average daily utilization of each aircraft (hours) 9:59 10:11 (2.0) 10:24 10:26 (0.3)
Regional:
Passengers (thousands)
10,983 11,470 (4.2) 44,042 46,554 (5.4)
Regional:Revenue passenger miles (millions) 6,248 6,602 (5.4) 24,969 26,544 (5.9)
Regional:Available seat miles (millions) 7,490 8,016 (6.6) 30,014 31,916 (6.0)
Regional:Passenger load factor 83.4% 82.4% 1.0 pts. 83.2% 83.2% — pts.
Regional:Passenger revenue per available seat mile (cents) 20.68 21.31 (3.0) 21.50 21.86 (1.6)
Regional:Average yield per revenue passenger mile (cents) 24.79 25.87 (4.2) 25.84 26.28 (1.7)
Regional:Aircraft in fleet at end of period 524 566 (7.4) 524 566 (7.4)
Regional:Average stage length (miles) 562 570 (1.4) 559 561 (0.4)
Consolidated (Mainline and Regional):
Passengers (thousands)
35,152 33,557 4.8 140,369 138,029 1.7
Consolidated (Mainline and Regional):Revenue passenger miles (millions) 50,718 49,211 3.1 208,611 205,559 1.5
Consolidated (Mainline and Regional):Available seat miles (millions) 61,304 60,213 1.8 250,003 246,021 1.6
Consolidated (Mainline and Regional):Passenger load factor 82.7% 81.7% 1.0 pts. 83.4% 83.6% (0.2) pts.
Consolidated (Mainline and Regional):Passenger revenue per available seat mile (cents) 12.61 13.42 (6.0) 13.11 13.72 (4.4)
Consolidated (Mainline and Regional):Total revenue per available seat mile (cents) 14.74 15.47 (4.7) 15.15 15.81 (4.2)
Consolidated (Mainline and Regional):Average yield per revenue passenger mile (cents) 15.24 16.43 (7.2) 15.72 16.42 (4.3)
Consolidated (Mainline and Regional):Average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense 4 $1.52 $2.58 (41.1) $1.78 $2.97 (40.1)
Consolidated (Mainline and Regional):Average aircraft fuel price per gallon 4 $1.70 $2.67 (36.3) $1.94 $2.99 (35.1)
Consolidated (Mainline and Regional):Average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accounting 4 $1.82 $2.83 (35.7) $2.02 $3.03 (33.3)
Consolidated (Mainline and Regional):Fuel gallons consumed (millions) 951 948 0.3 3,886 3,905 (0.5)
Consolidated (Mainline and Regional):Average full-time equivalent employees (thousands) 82.1 80.5 2.0 82.1 82.0 0.1
  1. Fuel price per gallon includes aircraft fuel and related taxes.

 

UNITED CONTINENTAL HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION

UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and Non-GAAP financial measures, including income (loss) before income taxes excluding special items, net income (loss) excluding special items, net earnings (loss) per share excluding special items, and CASM, among others. CASM is a common metric used in the airline industry to measure an airline's cost structure and efficiency. Pursuant to SEC Regulation G, UAL has included the following reconciliation of reported Non-GAAP financial measures to comparable financial measures reported on a GAAP basis. UAL believes that adjusting for special items is useful to investors because special charges are non-recurring charges not indicative of UAL's ongoing performance. In addition, the company believes that adjusting for MTM gains and losses from fuel derivative contracts settling in future periods and prior period gains and losses on fuel derivative contracts settled in the current period is useful because the adjustments allow investors to better understand the cash impact of settled fuel derivative contracts in a given period. UAL also believes that excluding third-party business expenses, such as maintenance, ground handling and catering services for third parties, fuel sales and non-air mileage redemptions, provides more meaningful disclosure because these expenses are not directly related to UAL's core business. UAL also believes that excluding fuel costs from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence. UAL excludes profit sharing because this exclusion allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry. UAL also believes that adjusting capital expenditures for fully reimbursable projects is useful to investors in order to appropriately reflect the non-reimbursable funds spent on capital expenditures.

 

UNITED CONTINENTAL HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION (Continued)
Three Months Ended
December 31, 2015 (In millions)
Three Months Ended
December 31, 2014 (In millions)
$
Increase/
(Decrease)
%
Increase/
(Decrease)
Year Ended
December 31, 2015 (In millions)
Year Ended
December 31, 2014 (In millions)
$
Increase/
(Decrease)
%
Increase/
(Decrease)
Operating expenses $7,955 $8,688 $(733) (8.4) $32,698 $36,528 $(3,830) (10.5)
Operating expensesLess: Special charges (C) 131 179 (48) NM1 326 443 (117) NM1
Operating expenses, excluding special charges 7,824 8,509 (685) (8.1) 32,372 36,085 (3,713) (10.3)
Operating expenses, excluding special charges:Less: Third-party business expenses 86 65 21 32.3 291 534 (243) (45.5)
Operating expenses, excluding special charges:Less: Fuel expense 1,618 2,530 (912) (36.0) 7,522 11,675 (4,153) (35.6)
Operating expenses, excluding special charges:Less: Profit sharing, including taxes 153 53 100 188.7 698 235 463 197.0
Operating expenses, excluding fuel, profit sharing, special charges and third-party business expenses $5,967 $5,861 $106 1.8 $23,861 $23,641 $220 0.9
Income before income taxes $905 $23 $882 NM $4,219 $1,128 $3,091 274.0
Income before income taxes:Less: Special items before income tax benefit 34 439 (405) NM1 279 844 (565) NM1
Income before income taxes and excluding special items $939 $462 $477 103.2 $4,498 $1,972 $2,526 128.1
Net income $823 $28 $795 NM $7,340 $1,132 $6,208 NM
Net income:Less: special items, net of tax (C) 111 433 (322) NM1 (2,862) 834 (3,696) NM1
Net income, excluding special items $934 $461 $473 102.6 $4,478 $1,966 $2,512 127.8
Diluted earnings per share $2.24 $0.07 $2.17 NM $19.47 $2.93 $16.54 NM
Diluted earnings per share:Add back: special items 0.30 1.12 (0.82) NM1 (7.59) 2.12 (9.71) NM1
Diluted earnings per share:Add back: Impact of dilution, net 0.01 (0.01) NM1 0.01 (0.01) NM1
Diluted earnings per share, excluding special items $2.54 $1.20 $1.34 111.7 $11.88 $5.06 $6.82 134.8

 

UNITED CONTINENTAL HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION (Continued)
Three Months Ended
December 31, 2015 in cents
Three Months Ended
December 31, 2014 in cents
%
Increase/
(Decrease)
Year Ended
December 31, 2015 in cents
Year Ended
December 31, 2014 in cents
%
Increase/
(Decrease)
CASM Mainline Operations (cents)
Cost per available seat mile (CASM)
12.37 13.68 (9.6) 12.42 14.03 (11.5)
CASM Mainline Operations (cents): Cost per available seat mile (CASM):Less: Special charges (C) 0.24 0.34 NM1 0.15 0.21 NM1
CASM Mainline Operations (cents): CASM, excluding special charges 12.13 13.34 (9.1) 12.27 13.82 (11.2)
CASM Mainline Operations (cents): CASM, excluding special chargesLess: Third-party business expenses 0.16 0.12 33.3 0.13 0.25 (48.0)
CASM Mainline Operations (cents): CASM, excluding special charges and third-party business expenses 11.97 13.22 (9.5) 12.14 13.57 (10.5)
CASM Mainline Operations (cents): CASM, excluding special charges and third-party business expensesLess: Fuel expense 2.53 3.96 (36.1) 2.87 4.44 (35.4)
CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses and fuel 9.44 9.26 1.9 9.27 9.13 1.5
CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses and fuelLess: Profit sharing per available seat mile 0.28 0.10 180.0 0.32 0.11 190.9
CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses, fuel, and profit sharing 9.16 9.16 8.95 9.02 (0.8)
CASM Consolidated Operations (cents)
Cost per available seat mile (CASM)
12.98 14.43 (10.0) 13.08 14.85 (11.9)
CASM Consolidated Operations (cents): Cost per available seat mile (CASM)Less: Special charges (C) 0.22 0.30 NM1 0.13 0.18 NM1
CASM Consolidated Operations (cents): CASM, excluding special charges 12.76 14.13 (9.7) 12.95 14.67 (11.7)
CASM Consolidated Operations (cents): CASM, excluding special chargesLess: Third-party business expenses 0.14 0.11 27.3 0.12 0.22 (45.5)
CASM Consolidated Operations (cents): CASM, excluding special charges and third-party business expenses 12.62 14.02 (10.0) 12.83 14.45 (11.2)
CASM Consolidated Operations (cents): CASM, excluding special charges and third-party business expensesLess: Fuel expense 2.64 4.20 (37.1) 3.01 4.75 (36.6)
CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses and fuel 9.98 9.82 1.6 9.82 9.70 1.2
CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses and fuelLess: Profit sharing per available seat mile 0.25 0.09 177.8 0.28 0.09 211.1
CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses, fuel, and profit sharing 9.73 9.73 9.54 9.61 (0.7)

 

UNITED CONTINENTAL HOLDINGS, INC.
CAPITAL EXPENDITURES AND FREE CASH FLOW
Capital Expenditures (in millions) Three Months Ended
December 31, 2015
Year Ended
December 31, 2015
Capital ExpendituresCapital expenditures – GAAP $763 $2,747
Capital Expenditures: Capital expenditures – GAAP:Property and equipment acquired through the issuance of debt 69 866
Capital Expenditures: Capital expenditures – GAAP:Airport construction financing 12 17
Capital Expenditures: Capital expenditures – GAAP:Fully reimbursable projects (53) (124)
Capital Expenditures:Adjusted capital expenditures – Non-GAAP $791 $3,506
Free Cash Flow (in millions) Three Months Ended
December 31, 2015
Year Ended
December 31, 2015
Free Cash Flow:Net cash provided by operating activities $1,115 $5,992
Free Cash Flow: Net cash provided by operating activities:Less adjusted capital expenditures – Non-GAAP 791 3,506
Free Cash Flow:Free cash flow - Non-GAAP $324 $2,486

 

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

ROIC is a Non-GAAP financial measure that we believe provides useful supplemental information for management and investors by measuring the effectiveness of our operations' use of invested capital to generate profits.
Twelve Months Ended
December 31, 2015
Return On Invested CapitalNet Operating Profit After Tax (NOPAT)
Pre-tax income excluding special items 5
$4,498
Return On Invested CapitalNOPAT adjustments 6 1,100
Return On Invested CapitalNOPAT $5,598
Return On Invested CapitalEffective cash tax rate 7 0.4%
Return On Invested CapitalInvested Capital (five-quarter average)
Total assets
$39,210
Return On Invested CapitalInvested capital adjustments 8 12,507
Return On Invested CapitalAverage Invested Capital $26,703
Return On Invested CapitalReturn on Invested Capital 21.0%
  1. Non-GAAP Financial Reconciliation
  2. NOPAT adjustments include: adding back (net of tax shield) interest expense, the interest component of capitalized aircraft rent and net interest on pension.
  3. Effective cash tax rate is calculated by dividing cash taxes paid by adjusted pre-tax income.
  4. Invested capital adjustments include: adding back capital aircraft rent (at 7.0X) and deferred income taxes, less advance ticket sales, frequent flyer deferred revenue, tax valuation allowance and other non-interest bearing liabilities.
Notes: Twelve Months Ended
December 31, 2015
Pre-tax income $4,219
Return On Invested CapitalAdd: Special items 279
Return On Invested CapitalPre-tax income excluding special items $4,498

 

Photo - http://photos.prnewswire.com/prnh/20161016/429327-INFO

Logo - http://photos.prnewswire.com/prnh/20130404/MM89155LOGO

 

SOURCE United Airlines

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

More than a 'Nosh' - United Airlines Expands Kosher Culinary Choices for Customers Traveling Between the U.S. and Tel Aviv

February 10, 2020

NEW YORK, Feb. 10, 2020 /PRNewswire/ -- This month, United is taking Kosher cuisine to new heights by introducing a variety of new options for customers traveling between the U.S. and Tel Aviv, from the airline's Newark / New York, San Francisco and Washington, D.C. / Dulles based hubs. These exciting menu additions include popular choices from several leading Kosher food and beverage brands and reflects United's commitment to elevate the travel experience for our customers.

"We are thrilled to expand our already high-quality Kosher culinary choices to include new options we know our customers will love," said Charlean Gmunder, United's vice president of Catering Operations. "We know our customers and listen to their feedback and all of these new menu items – from savory new snacks to wonderful wines – are the result of our on-going efforts to exceed customer expectations. We will continue to embrace suggestions as well as seek out ways to create the best possible onboard dining experience for everyone we proudly serve."

Partnering with New Jersey-based fresh food provider Fresko, meals on the Newark to Tel Aviv flight will feature an entirely new menu. Options will include dishes such as fresh bagels, a cheese omelet, blintzes, chicken marsala, a kale quinoa burger and traditional bakery items like rugelach and black and white cookies.

As part of the introduction of these new dining options, United is also testing a menu offering for its youngest customers – a Kosher child's meal in all cabins between Tel Aviv, Newark and San Francisco. If the testing is successful, the airline will roll out the meal selection on additional Tel Aviv routes.

For those customers traveling in Polaris and United Premium Plus, additional dining enhancements can be found in the all Kosher snack choices for mid-flight enjoyment. The new offerings include Deep River Potato Chips, Cheez-It® crackers, Drizzilicious Cinnamon Swirl crisps, Madi K's Almonds and M&M'S®.

New beverage options will include Kosher wine provided by Royal Wine, another New Jersey-based company, which includes Herzog Lineage Cabernet Sauvignon and Herzog Lineage Sauvignon Blanc throughout the Polaris cabin. Additionally, building on the airline's partnership with Illy coffee, United is upgrading its Kosher coffee to provide both regular and decaf Illy coffee within all cabins over the next several months.

Part of the Kosher expansion includes the airport experience where United is testing the addition of a hot Kosher à la carte meal option in the Newark Polaris Lounge to complement the already featured Kosher wines. Additionally, at both the Polaris lounge and United Clubs in Newark and LaGuardia Airports the offerings will include Kosher packaged snacks upon request.

Summary of the onboard Kosher enhancements


Kosher Option

Cabin

EWR/TLV

TLV/EWR

SFO/TLV

TLV/SFO

IAD/TLV

TLV/IAD

Locally sourced
Fresko meals

All

February
2020

-

-

-

-

-

Enhancements to
existing Kosher
meals

All

February
2020

February
2020

February
2020

February
2020

February
2020

February
2020

Testing Kosher
child's meal

All

March

2020

-

March

2020

-

-

-

Illy Kosher Coffee

All

February
2020

Summer
2020

March
2020

Summer
2020

Summer
2020

Summer
2020

Kosher mid-flight
snacks

Polaris /
United
Premium
Plus

December

2019

December

2019

December

2019

December

2019

December

2019

December

2019

Kosher Wine

Polaris

February
2020

February
2020

February
2020

February
2020

March
2020

March
2020

For images please visit: https://app.box.com/s/pp4w09s7mw8699n9zwj46thsdd6qllmp 

Every customer. Every flight. Every day.

United continues to strengthen its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's announcement, United recently:

  • Announced that MileagePlus award miles will never expire
  • Committed $40 million toward a new investment initiative focused on accelerating the development of sustainable aviation fuels and other decarbonization technologies
  • Established Miles on a Mission, a first-of-its-kind crowdsourcing platform which gives customers a simple way to donate miles to non-profit organizations and charities in need of air travel
  • Launched ConnectionSaver, a digital tool dedicated to improving the experience for customers with connecting flights
  • Instituted PlusPoints, new upgrade benefits for MileagePlus Premier members
  • Gave Economy customers a choice of complimentary snacks on domestic flights
  • Made DIRECTV free for every customer on more than 200 aircraft

About United

United's shared purpose is "Connecting People. Uniting the World." We are more focused than ever on our commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United and United Express operate approximately 4,900 flights a day to 362 airports across six continents. In 2019, United and United Express operated more than 1.7 million flights carrying more than 162 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 791 mainline aircraft and the airline's United Express partners operate 581 regional aircraft. United is a founding member of Star Alliance, which provides service to 195 countries via 26 member airlines. For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

 

SOURCE United Airlines

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

United Airlines to Offer Denver Travelers More Flights to More Places Than Ever Before

February 07, 2020

DENVER, Feb. 7, 2020 /PRNewswire/ -- United Airlines today hosted an event in partnership with Denver International Airport (DEN) celebrating the recent decision from Denver City Council to approve the lease of an additional 24 gates by the airline at DEN, paving the way for local travelers to access more flights to more places than ever before. United Airlines CEO Oscar Munoz joined Denver Mayor Michael B. Hancock to sign United's proposal to amend its current lease, solidifying United's plans to grow its Denver hub from 500 to as many as 700 daily flights by 2025. The additional gates are a combination of newly constructed and existing gates, and part of DEN's $1.5 billion Concourse Expansion Program.

"United Airlines is a vital partner for Denver International Airport, and we're proud they are continuing to invest and grow right here in Denver," said Mayor Michael B. Hancock. "As United increases daily flights and continues to add new routes, they are creating economic opportunities that benefit our entire community."

On Jan. 21, the Denver City Council unanimously approved an amendment for United's lease of additional gates.

"Just over twenty years ago I moved to Denver with what was then my young, growing family. Ever since, wherever I've lived, I continue to feel great pride at how the Mile High City seems to reach even greater heights, as well as the role United's service plays in driving the region's success," said Oscar Munoz, CEO of United Airlines. "These additional gates will take the starring role Denver plays in our growth strategy to a new level. It will mean more seats, more connections and more destinations as Denver continues to extend the global reach of its businesses and communities. This growth complements the investments we make in key infrastructure, such as the Western Hemisphere's largest flight training center at DEN, and in local communities; because Denver is not just a hub, it feels like home for so many of us in the United family."

In the past five years, United has added more than 100 flights and almost 40 new markets departing from Denver as the company continues to connect Denver to the world conveniently, comfortably and reliably. United has consistently outperformed its peers at DEN – achieving better on-time performance than its top competitor for each of the last 59 months and, despite operating twice as many flights, United had fewer cancellations the last two years than Denver's second-largest airline.

United's international offerings are also growing and the airline's Denver to London route, introduced in 2018, quickly shifted from seasonal to a daily, year-round flight. And due to the success of flights between Denver and London, Frankfurt and Tokyo, United will begin using a larger aircraft, the Boeing 787-9, on these routes starting in June, adding nearly 100 daily seats each way to these popular destinations. United's growing domestic and international flight offerings have also created thousands of additional connection opportunities for customers traveling through Denver.

United is proud to employ more than 7,000 professionals in Denver who are committed to delivering an exceptional travel experience to every customer, on every flight, every day. With their continued contributions and the airline's future growth, United will create more than a thousand new, high-quality job opportunities in the coming years.

The additional gates, located in Concourse A and B, will offer more mainline and regional capabilities. In addition to the gates, United will expand existing United Clubs and add a new Club on Concourse A.

United Airlines in Denver

United is Denver's largest airline offering more flights and more seats from the Mile High City to more destinations around the world than any other carrier. United operates approximately 500 daily flights to over 170 airports worldwide from Denver. United has a storied history in Denver, serving the community for more than 80 years, and benefits from a great partnership with local leaders who understand the importance of a thriving aviation sector. The company's commitment to Denver extends beyond the airport and is home to United's Flight Training Center, a state-of-the-art facility where the company's more than 12,000 pilots train every year. The company has a commitment to giving back to the community where many of its customers and employees live and work. United supports local organizations like Girls Inc., Mile High Youth Corps, Wings Over the Rockies and the Denver Public Schools Foundation and, in 2018, announced a $1 million grant to local Denver nonprofit Warren Village.

Every customer. Every flight. Every day.

United continues to strengthen its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's announcement, United recently:

  • Announced that MileagePlus award miles will never expire
  • Committed $40 million toward a new investment initiative focused on accelerating the development of sustainable aviation fuels and other decarbonization technologies
  • Established Miles on a Mission, a first-of-its-kind crowdsourcing platform which gives customers a simple way to donate miles to non-profit organizations and charities in need of air travel
  • Launched ConnectionSaver, a digital tool dedicated to improving the experience for customers with connecting flights
  • Instituted PlusPoints, new upgrade benefits for MileagePlus Premier members
  • Gave Economy customers a choice of complimentary snacks on domestic flights
  • Made DIRECTV free for every customer on more than 200 aircraft

About United

United's shared purpose is "Connecting People. Uniting the World." We are more focused than ever on our commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United and United Express operate approximately 4,900 flights a day to 362 airports across six continents. In 2019, United and United Express operated more than 1.7 million flights carrying more than 162 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 791 mainline aircraft and the airline's United Express partners operate 581 regional aircraft. United is a founding member of Star Alliance, which provides service to 195 countries via 26 member airlines. For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United 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 Airlines to Become Only Major U.S. Carrier To Own and Operate a Flight Training Academy

February 05, 2020

CHICAGO, Feb. 5, 2020 /PRNewswire/ -- United Airlines today further expanded its innovative Aviate pilot program by signing a purchase agreement to become the only major U.S. carrier to own a flight training academy. The United Aviate Academy will give the airline more visibility and direction over the recruitment, development and training of future pilots, enabling United to increase the percentage of women and minorities who become pilots. United expects approximately 300 students to graduate from the United Aviate Academy in its first full year of operation.

The flight training academy – currently operating as Westwind School of Aeronautics in Phoenix, Arizona – will be an extension of the airline's Aviate program, a pilot development and recruitment program that offers aspiring aviators the most direct path to achieve their dreams of becoming a United pilot. The airline anticipates hiring more than 10,000 pilots by 2029.

"We have developed the Aviate program in collaboration with the Air Line Pilots Association, International to have greater influence on the next generation of aviators at United," said Captain Bebe O'Neil, United's managing director of Aviate. "Launching our own academy provides us with the unique opportunity to not only ensure we maintain the ideal number of quality candidates within our pilot pipeline, but also play a significant role in recruiting, developing and welcoming those with diverse backgrounds to the United family."

In addition to launching the flight academy, United plans to reduce financial barriers to joining the program, making the dream of becoming a United pilot even more accessible to more individuals. The carrier is currently engaging with financial institutions with the goal of making attractive financing terms – such as industry-tailored grace periods and competitive interest rates – available to qualified individuals. Additionally, United plans to launch a scholarship program specifically focused on encouraging women and minorities to consider joining the United family. The airline will provide more details regarding these financing options as they become available.

Aviate partners currently include:

· Embry-Riddle Aeronautical University

· Western Michigan University

· Lufthansa Aviation Training Academy

· University of North Dakota

· Hillsboro Aero Academy

· US Aviation Academy

· FlightSafety International

· Ameriflight

· Boutique Air

· ATP Flight School

· ExpressJet

· CommutAir

· Air Wisconsin

· Mesa Airlines

· Florida Institute of Technology


Aviate: Love to fly, born to lead

Last year, United launched Aviate, its innovative pilot recruitment and development program. Those who apply to Aviate and are successful in the selection process will receive a program acceptance job offer with United. Aviate also provides support and coaching for pilots to develop into leaders who exemplify the professionalism, level of excellence and commitment to providing safe, caring, dependable and efficient service that United expects from its pilots. Additionally, Aviate provides those who aspire to a career as a United captain with the most direct route to achieving that goal.

United's Aviate career path program offers pilots competitive benefits, including:

  • The most direct path within the industry to a major airline, with an Aviate regional partner minimum requirement of 24 months and 2,000 hours
  • More options in program entry points throughout a pilot's career and choice of select United Express carriers
  • Increased transparency and clarity along the path from program entry to flying for United
  • Improved career development, mentoring and access to United pilots and learning tools.
  • Immediate inclusion in the United family, with access to senior leadership, site visits and tours, and certain travel privileges

For more information on Aviate, please visit unitedaviate.com

About United

United's shared purpose is "Connecting People. Uniting the World." We are more focused than ever on our commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United and United Express operate approximately 4,900 flights a day to 362 airports across six continents. In 2019, United and United Express operated more than 1.7 million flights carrying more than 162 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 791 mainline aircraft and the airline's United Express partners operate 581 regional aircraft. United is a founding member of Star Alliance, which provides service to 195 countries via 26 member airlines. For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United 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 Airlines Earns 100% Score on Human Rights Campaign Foundation's Annual Scorecard on LGBTQ+ Workplace Equality

January 27, 2020

CHICAGO, Jan. 27, 2020 /PRNewswire/ -- United Airlines today announced it has received a perfect score of 100% on the 2020 Corporate Equality Index (CEI), a premier benchmarking survey and report on corporate policies and practices related to LGBTQ+ workplace equality, administered by the Human Rights Campaign (HRC) Foundation. This is the ninth consecutive year the airline receives a 100% score.

"United is proud to receive this recognition as it speaks to our commitment to not only promoting an LGBTQ+-friendly workplace but LGBTQ+-friendly skies," said Kate Gebo, United's Executive Vice President of Human Resources and Labor Relations. "We will continue working with organizations like the Human Rights Campaign to help champion LGBTQ+ inclusion because United believes in breaking down barriers to create a more welcoming world for all who explore it."

"The impact of the Human Rights Campaign's Corporate Equality Index over its 18-year history is profound. In this time, the corporate community has worked with us to adopt LGBTQ+-inclusive policies, practices and benefits, establishing the Corporate Equality Index as a primary driving force for LGBTQ+ workplace inclusion in America and across the globe," said HRC President Alphonso David. "These companies know that protecting their LGBTQ+ employees and customers from discrimination is not just the right thing to do -- it is also the best business decision."

United's commitment to LGBTQ+ equality includes being the first U.S. airline to fully recognize domestic partnerships in 1999 to becoming the first U.S. airline to offer non-binary gender options throughout all of its booking channels in 2019. Additionally, during its Pride Month celebration in 2019, United became the first public company to be inducted into Pride Live's Stonewall Ambassador program

United has partnered with the Human Rights Campaign on training initiatives including educating employees about preferred pronouns and the persistence of gender norms and other steps to make United an inclusive space for both customers and employees. The airline's latest efforts include developing comprehensive training modules and exercises to continue employee education on how to be a better ally in both the workplace and to customers. Over the past year, United has also opened more LGBTQ+ Business Resource Groups across the country, reaching more employees.

Alongside partner organizations, customers and employees, United will continue working to build the world's most inclusive airline. For more information on United's commitment to diversity and inclusion, visit https://hub.united.com/diversity-inclusion-fact-sheet/.

Every customer. Every flight. Every day.

United continues to strengthen its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's announcement, United recently:

  • Announced that MileagePlus award miles will never expire
  • Committed $40 million toward a new investment initiative focused on accelerating the development of sustainable aviation fuels and other decarbonization technologies
  • Established Miles on a Mission, a first-of-its-kind crowdsourcing platform which gives customers a simple way to donate miles to non-profit organizations and charities in need of air travel
  • Launched ConnectionSaver, a digital tool dedicated to improving the experience for customers with connecting flights
  • Instituted PlusPoints, new upgrade benefits for MileagePlus Premier members
  • Gave Economy customers a choice of complimentary snacks on domestic flights
  • Made DIRECTV free for every customer on more than 200 aircraft

About United

United's shared purpose is "Connecting People. Uniting the World." We are more focused than ever on our commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United and United Express operate approximately 4,900 flights a day to 362 airports across six continents. In 2019, United and United Express operated more than 1.7 million flights carrying more than 162 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 791 mainline aircraft and the airline's United Express partners operate 581 regional aircraft. United is a founding member of Star Alliance, which provides service to 195 countries via 26 member airlines. For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United 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 is Onboard as the Official Airline of the 92nd Street Y’s Acclaimed Talks Series

January 24, 2020

NEW YORK, January 24, 2020 – United is teaming up with famed New York community and cultural center, the 92nd Street Y (92Y), to serve as the official airline of the nonprofit's renowned Recanati-Kaplan Talks Series for 2020. For decades, 92Y has been home to New York City's largest and most successful talks series, featuring prominent artists, entertainers, musicians, scientists, comedians, political figures, fashion designers, dancers, economists and many others.

Pop TV's Schitt's Creek: A Screening and Conversation with Eugene Levy, Catherine O'Hara, Daniel Levy and Annie Murphy, Moderated by Vanity Fair's Richard Lawson at the 92Y.

Jamie McCarthy/Getty Images

🙂

"United's shared purpose drives us to unite the world by connecting people to what matters most, which is why we are thrilled to be aligned with an organization such as the 92nd Street Y which embodies our brand's commitment," said Jill Kaplan, President, New York / New Jersey for United Airlines. "We are extremely proud to join this iconic institution in treating New Yorkers to another season of compelling commentary and captivating stories that will lift hearts, illuminate minds and bring our community together."

"We are delighted to collaborate with United Airlines for our 2020 season of Recanati-Kaplan Talks," said Susan Engel, executive director of 92Y Talks. "Their generosity helps us to continue to present unforgettable events with some of the most interesting and culturally significant speakers of our times."

Talks for the 2020 season include Larry David, the cast of Schitt's Creek, John Mulaney, Jeffrey Toobin, Paul Krugman, Samantha Bee, Queer Eye's Antoni Porowski, Diane Keaton, Issa Rae, Edie Falco, Seth Rogen, the cast of Outlander, Kevin Kline, Pod Save America's Dan Pfeiffer, Roy Wood Jr., Ronny Chieng, Noah Centineo, Ezra Klein, Malcolm Gladwell, Fareed Zakaria, Ramit Sethi, Glennon Doyle, Nicholas Kristof, Sheryl WuDunn and many more.

Every customer. Every flight. Every day.

United continues to strengthen its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's announcement, United recently:

  • Announced that MileagePlus award miles will never expire
  • Committed $40 million toward a new investment initiative focused on accelerating the development of sustainable aviation fuels and other decarbonization technologies
  • Established Miles on a Mission, a first-of-its-kind crowdsourcing platform which gives customers a simple way to donate miles to non-profit organizations and charities in need of air travel
  • Launched ConnectionSaver, a digital tool dedicated to improving the experience for customers with connecting flights
  • Instituted PlusPoints, new upgrade benefits for MileagePlus Premier members
  • Gave Economy customers a choice of complimentary snacks on domestic flights
  • Made DIRECTV free for every customer on more than 200 aircraft

About United

United's shared purpose is "Connecting People. Uniting the World." We are more focused than ever on our commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United and United Express operate approximately 5,000 flights a day to 362 airports across five continents. In 2019, United and United Express operated more than 1.7 million flights carrying more than 162 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 791 mainline aircraft and the airline's United Express partners operate 579 regional aircraft. United is a founding member of Star Alliance, which provides service to 195 countries via 26 member airlines. For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

About 92Y

92nd Street Y is a world-class, nonprofit cultural and community center that fosters the mental, physical and spiritual health of people throughout their lives, offering: wide-ranging conversations with the world's best minds; an outstanding range of programming in the performing, visual and literary arts; fitness and sports programs; and activities for children and families. 92Y is reimagining what it means to be a community center in the digital age with initiatives like the award-winning #GivingTuesday, launched by 92Y in 2012 and now recognized across the US and in a growing number of regions worldwide as a day to celebrate and promote giving. These kinds of initiatives are transforming the way people share ideas and translate them into action both locally and around the world. More than 300,000 people visit 92Y annually; millions more participate in 92Y's digital and online initiatives. A proudly Jewish organization since its founding in 1874, 92Y embraces its heritage and welcomes people of all backgrounds and perspectives. For more information, visit www.92Y.org.

United Adds 29 New Flights to Miami for the Big Game

January 23, 2020

CHICAGO, Jan. 23, 2020 /PRNewswire/ -- United Airlines is offering football fans across the United States more options to get to Miami for the Big Game. United is offering fans more than 5,600 seats through 29 additional nonstop flights to Miami from its seven U.S. hubs including Los Angeles and seven special point-to-point flights between Kansas City and Miami. Tickets are now available for purchase on united.com.

"This year we're offering football fans from every corner of the country more opportunities than ever to get to Miami for the Big Game including extra flights between San Francisco and Miami and new service between Kansas City and Miami," said Ankit Gupta, United's vice president of Domestic Network Planning. "In addition to our expanded network to Miami for the game, travelers can easily get to Miami via United's 25 daily flights to Fort Lauderdale's Hollywood International Airport from Chicago, Denver, Houston, New York/Newark, San Francisco, Washington Dulles and Cleveland."

United's Big Game Service to Miami


Day

From

To

Frequency

Friday

San Francisco

Miami

3 Flights

Friday

Kansas City

Miami

2 Flights

Friday

Chicago

Miami

5 Flights

Friday

Denver

Miami

1 Flight

Friday

Houston

Miami

5 Flights

Friday

Los Angeles

Miami

1 Flight

Friday

New York/Newark

Miami

8 Flights

Friday

Washington Dulles

Miami

2 Flights





Saturday

San Francisco

Miami

3 Flights

Saturday

Kansas City

Miami

2 Flights

Saturday

Chicago

Miami

5 Flights

Saturday

Denver

Miami

1 Flight

Saturday

Houston

Miami

6 Flights

Saturday

New York/Newark

Miami

6 Flights

Saturday

Washington Dulles

Miami

2 Flights





Monday

Miami

San Francisco

5 Flights

Monday

Miami

Kansas City

3 Flights

Monday

Miami

Chicago

4 Flights

Monday

Miami

Denver

1 Flight

Monday

Miami

Houston

5 Flights

Monday

Miami

Los Angeles

2 Flights

Monday

Miami

New York/Newark

9 Flights

Monday

Miami

Washington Dulles

3 Flights

Every customer. Every flight. Every day.

United continues to strengthen its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's announcement, United recently:

  • Announced that MileagePlus award miles will never expire
  • Committed $40 million toward a new investment initiative focused on accelerating the development of sustainable aviation fuels and other decarbonization technologies
  • Established Miles on a Mission, a first-of-its-kind crowdsourcing platform which gives customers a simple way to donate miles to non-profit organizations and charities in need of air travel
  • Launched ConnectionSaver, a digital tool dedicated to improving the experience for customers with connecting flights
  • Instituted PlusPoints, new upgrade benefits for MileagePlus Premier members
  • Gave Economy customers a choice of complimentary snacks on domestic flights
  • Made DIRECTV free for every customer on more than 200 aircraft

About United

United's shared purpose is "Connecting People. Uniting the World." We are more focused than ever on our commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United and United Express operate approximately 4,900 flights a day to 362 airports across six continents. In 2019, United and United Express operated more than 1.7 million flights carrying more than 162 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 791 mainline aircraft and the airline's United Express partners operate 581 regional aircraft. United is a founding member of Star Alliance, which provides service to 195 countries via 26 member airlines. For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

 

SOURCE United Airlines

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

United Airlines Reaches 2020 Adjusted Earnings Per Share Target One Year Ahead Of Schedule

January 21, 2020

CHICAGO, Jan. 21, 2020 /PRNewswire/ -- United Airlines (UAL) today announced it reached its 2020 goal -- first announced in January 2018 -- to achieve adjusted diluted earnings per share (EPS) target2 of $11 to $13 a full year ahead of schedule. The company also achieved full year pre-tax margin growth of 2.6 points, which is expected to outpace its largest competitors for 2019.

  • Reported fourth quarter net income of $641 million, diluted EPS of $2.53, up 50% versus the fourth quarter of 2018, pre-tax earnings of $844 million and pre-tax margin of 7.8 percent, expanding pre-tax margin 2.5 points versus the fourth quarter of 2018.
  • Reported fourth quarter adjusted net income of $676 million, adjusted diluted EPS of $2.67, up 11% versus the fourth quarter of 2018, adjusted pre-tax earnings of $889 million and adjusted pre-tax margin of 8.2 percent, expanding adjusted pre-tax margin 0.5 points versus the fourth quarter of 2018.1
  • Reported full year net income of $3.0 billion, diluted EPS of $11.58, up 51% versus full year 2018, pre-tax earnings of $3.9 billion and pre-tax margin of 9.0 percent, expanding pre-tax margin 2.6 points versus full year 2018.
  • Reported full year adjusted net income of $3.1 billion, adjusted diluted EPS of $12.05, up 32% versus full year 2018, adjusted pre-tax earnings of $4.1 billion and adjusted pre-tax margin of 9.4 percent, expanding adjusted pre-tax margin 1.7 points versus full year 2018.1
  • Consolidated fourth quarter passenger revenue per available seat mile (PRASM) increased 0.8 percent year-over-year.
  • Consolidated fourth quarter unit cost per available seat mile (CASM) decreased 1.3 percent year-over-year and consolidated full year unit cost per available seat mile (CASM) decreased 1.2 percent year-over-year.
  • Consolidated fourth quarter CASM, excluding special charges, third party business expenses, fuel and profit sharing, increased 2.7 percent year-over-year. Consolidated full year CASM, excluding special charges, third-party business expenses, fuel and profit sharing, increased 1.0 percent year-over-year.
  • Repurchased $216 million of its common shares in the fourth quarter of 2019, at an average purchase price of $88.95 per share, bringing share repurchases for full year 2019 to $1.6 billion.

"2019 was a great year for our United team -- highlighted by achieving our $11 to $13 adjusted EPS target a full year ahead of schedule," said Oscar Munoz, CEO of United Airlines. "With a four-quarter streak of expanding profit margins, when all the results are in we expect our full year 2019 pre-tax margin growth to be the highest amongst our largest competitors. When I look at United's fundamental strength, I could not be prouder of what we've accomplished in such a short time. This is the New United we set out to build more than four years ago. As we embark on a new year and decade, I believe the outlook for United's future has never been brighter."

1 Excludes special charges, unrealized gains and losses on investments and imputed interest on certain finance leases. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in the tables accompanying this release.
2 Excludes special charges and unrealized gains and losses on investments, the nature of which are not determined at this time. Accordingly, UAL does not provide earnings guidance on a GAAP basis.

For more information on UAL's first quarter and full year 2020 guidance, please visit ir.united.com for the company's investor update.

2019 Highlights

Operations and Employees

  • Flew most revenue passengers in company history.
  • Set new company record for most mainline departures with nearly 800,000 departures.
  • Number one in on-time departures at all hubs with direct competitors -- Chicago, Denver and Los Angeles.
  • Hosted Backstage 2019, which brought all 25,000 flight attendants to Chicago for an event which was designed to underscore the important role flight attendants play in delivering great service.
  • Profit sharing for 2019 was on average 45 percent higher per participating employee year-over-year.
  • Launched Aviate, a new pilot recruiting and development program and career website to establish a more structured career path to becoming a United pilot.
  • Hired nearly 9,000 aviation professionals in well paying careers with great benefits in 2019.

Customer Experience

  • Introduced ConnectionSaver, a new tool dedicated to improving the experience for customers connecting from one United flight to the next, saving nearly 100,000 connections to be made in 2019.
  • Became the first U.S. airline to offer non-binary gender options throughout all booking channels in addition to providing the option to select the title "Mx." during booking.
  • Announced MileagePlus award miles never expire, giving members a lifetime to use miles on flights, experiences, hotels and more.
  • Announced free live DIRECTV on 211 Boeing 737 United aircraft equipped with seat back TV, providing more than 100 channels of live television.
  • Introduced a re-imagined mobile app to customers featuring a more dynamic experience that updates customers at each step of their travel journey.
  • Customers are now provided three inflight snack options on domestic flights regardless of departure time, including the Stroopwafel.
  • MileagePlus members between the ages of 18 to 22 received a discount on domestic flights when booked through the United mobile app through the end of 2019.
  • Opened the fifth of its award-winning United Polaris Lounges at Los Angeles International Airport.
  • Opened three new United Clubs at Fort Lauderdale-Hollywood International Airport, LaGuardia Airport and Raleigh-Durham International Airport.
  • Announced the addition of more than 1,600 United Polaris® business class and United First seats to nearly 250 international and domestic aircraft.
  • Began flight operations at LaGuardia Airport's new Terminal B Eastern Concourse.
  • Customers can now pre-pay for bags as soon as their ticket is issued. Previously customers had to wait until check-in to pay for their bags.
  • Announced partnership with CLEAR which includes a free or discounted CLEAR membership for U.S.-based MileagePlus members.

Network

  • Announced a total of nine new international routes and two new expanded routes beginning in 2020, including four new daily nonstop flights to Tokyo Haneda Airport.
  • Strengthened the domestic route network with 69 new routes including launching 54 new routes and announcing 15 routes beginning in 2020.
  • Launched 11 new international routes in 2019, including direct flights from Newark Liberty International Airport to Cape Town, South Africa; Prague, Czech Republic; and Naples, Italy.

Fleet

  • Took delivery of 49 aircraft in 2019, including eight Boeing 787-10 aircraft, becoming the first carrier in the world to operate all three Dreamliner models.
  • Signed agreements to purchase 50 Airbus A321 XLR, 20 used Boeing 737-700 aircraft and 20 Embraer E175 aircraft operated by our regional partners.
  • Introduced a brand new and revolutionary regional flying experience with the addition of the two-cabin, 50-seat Bombardier CRJ 550 aircraft.
  • Unveiled next paint design, which brings a refreshed look to its fleet, serving as a visual representation of the airline's ongoing brand evolution.
  • Launched Boeing 767-300ER ultra-premium United Polaris business class configuration on all flights between New York/Newark and Chicago to London-Heathrow.

Community and Environment

  • Launched Miles on a Mission, a first-of-its-kind crowdsourcing platform which gives customers a simple way to donate miles to non-profit organizations and charities in need of air travel.
  • Pledged on Giving Tuesday to match up to 10 million MileagePlus miles to featured Miles on a Mission partners.
  • Committed $40 million toward a new investment initiative focused on accelerating the development of sustainable aviation fuels and other decarbonization technologies.
  • Made history with the departure of the "Flight for the Planet," the most eco-friendly commercial flight of its kind in the history of aviation.
  • Renewed contract with Boston-based World Energy to purchase up to 10 million gallons of cost-competitive, commercial-scale, sustainable aviation biofuel.
  • Launched Her Art Here, a contest where two women artists were chosen to have their work painted on California- and New York/New Jersey-themed Boeing 757s to uplift underrepresented women artists.
  • Celebrated Women in Aviation International's annual Girls in Aviation Day by hosting more than 500 girls in 14 locations around the world.
  • Became the first public company to be inducted into Pride Live's Stonewall Ambassador program in recognition of the airline's commitment to LGBTQ+ equality.
  • Reached a milestone of 1 million meals packed for charity partner Rise Against Hunger.
  • Donated $1 million to Feeding America's Shutdown Response Fund to directly support the food banks providing food for families of federal workers.

Earnings Call

UAL will hold a conference call to discuss its fourth quarter and full year 2019 financial results as well as its financial and operational outlook for first quarter and full year 2020 on Wednesday, January 22, at 9:30 a.m. Central time / 10:30 a.m. Eastern time. A live, listen-only webcast of the conference call will be available at ir.united.com. The webcast will be available for replay within 24 hours of the conference call and then archived on the website for three months.

About United

United's shared purpose is "Connecting People. Uniting the World." We are more focused than ever on our commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United and United Express operate approximately 4,900 flights a day to 362 airports across six continents. In 2019, United and United Express operated more than 1.7 million flights carrying more than 162 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 791 mainline aircraft and the airline's United Express partners operate 581 regional aircraft. United is a founding member of Star Alliance, which provides service to 195 countries via 26 member airlines. For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United 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 included in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as "expects," "will," "plans," "anticipates," "indicates," "believes," "estimates," "forecast," "guidance," "outlook," "goals," "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: our ability to execute our strategic operating plan, including our growth, revenue-generating and cost-control initiatives; 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 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; 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; 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; an outbreak of a disease that affects travel demand or travel behavior; 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; the costs and availability of financing; our ability to maintain adequate liquidity; our ability to comply with the terms of our various financing arrangements; our ability to realize the full value of our intangible assets and long-lived assets; 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, 2018, our Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission.

-tables attached-

On January 1, 2019, United Airlines Holdings, Inc. ("UAL") adopted Accounting Standards Update No. 2016-02, Leases ("Topic 842"). As such, certain previously reported 2018 figures are adjusted in this report on a basis consistent with Topic 842.

UNITED AIRLINES HOLDINGS, INC,

STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)




Three Months Ended
December 31,


%
Increase/
(Decrease)



Year Ended
December 31,


%
Increase/
(Decrease)


(In millions, except per share data)


2019


2018




2019


2018



Operating revenue:















Passenger


$

9,933



$

9,556



3.9




$

39,625



$

37,706



5.1



Cargo


316



334



(5.4)




1,179



1,237



(4.7)



Other operating revenue


639



601



6.3




2,455



2,360



4.0



Total operating revenue


10,888



10,491



3.8




43,259



41,303



4.7


















Operating expense:















Salaries and related costs


3,078



2,924



5.3




12,071



11,458



5.3



Aircraft fuel


2,249



2,380



(5.5)




8,953



9,307



(3.8)



Regional capacity purchase


725



650



11.5




2,849



2,649



7.6



Landing fees and other rent


650



627



3.7




2,543



2,449



3.8



Depreciation and amortization


606



558



8.6




2,288



2,165



5.7



Aircraft maintenance materials and outside repairs


475



434



9.4




1,794



1,767



1.5



Distribution expenses


417



396



5.3




1,651



1,558



6.0



Aircraft rent


67



78



(14.1)




288



433



(33.5)



Special charges (B)


130



301



NM




246



487



NM



Other operating expenses


1,630



1,508



8.1




6,275



5,801



8.2



Total operating expense


10,027



9,856



1.7




38,958



38,074



2.3


















Operating income


861



635



35.6




4,301



3,229



33.2


















Operating margin


7.9

%


6.1

%


1.8

pts.



9.9

%


7.8

%


2.1

pts.

















Nonoperating income (expense):















Interest expense


(161)



(173)



(6.9)




(731)



(670)



9.1



Interest capitalized


20



19



5.3




85



65



30.8



Interest income


30



31



(3.2)




133



101



31.7



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


81



56



44.6




153



(5)



NM


Miscellaneous, net


13



(15)



NM




(27)



(72)



(62.5)



Total nonoperating expense