United strong first quarter 2016 performance - United Hub

United Airlines Announces Strong First-Quarter 2016 Performance

April 20, 2016

CHICAGO, April 20, 2016 /PRNewswire/ -- United Airlines (UAL) today reported its first-quarter 2016 financial results.

  • Excluding special items, UAL reported first-quarter net income of $435 million, earnings per share of $1.23 per diluted share and pre-tax earnings of $688 million.
  • Including special items, UAL reported first-quarter net income of $313 million, earnings per share of $0.88 per diluted share and pre-tax earnings of $494 million.
  • During the first quarter of 2016, the company repurchased $1.5 billion worth of its common stock, representing approximately 8 percent of shares outstanding.

 

"I am extremely proud of United's nearly 86,000 aviation professionals for their contributions to these strong results – including the improvements in our reliability, customer satisfaction and financial performance," said Oscar Munoz, president and chief executive officer of United Airlines. "As we accelerate United's path forward, we will continue to focus on running a great airline today while innovating for tomorrow."

First-Quarter Revenue

For the first quarter of 2016, total revenue was $8.2 billion, a decrease of 4.8 percent year-over-year. First-quarter 2016 consolidated passenger revenue per available seat mile (PRASM) decreased 7.4 percent and consolidated yield decreased 6.1 percent compared to the first quarter of 2015. The decline in PRASM continues to be driven by economic factors including a strong U.S. dollar and lower oil prices. In addition, the company experienced a larger-than-anticipated decrease in close-in business travel during the weeks surrounding the Easter holiday and spring break.

The company continues to focus on providing customers options to personalize their travel experience and, this quarter, launched its new bundled products offering, which is exceeding expectations.

First-Quarter Costs

Total operating expense excluding special charges was $7.4 billion in the first quarter, down 5.7 percent year-over-year. Including special charges, total operating expense was $7.5 billion, a 4.1 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, increased 1.3 percent compared to the first quarter of 2015. Consolidated CASM including those items decreased 5.7 percent year-over-year.

Liquidity and Capital Allocation

In the first quarter, UAL generated $1.2 billion in operating cash flow, $376 million in free cash flow and ended the quarter with $5.3 billion in unrestricted liquidity, including $1.35 billion of undrawn commitments under its revolving credit facility. During the first quarter, the company continued to invest in its business through gross capital expenditures of approximately $820 million, excluding fully reimbursable projects, and repurchased $1.5 billion worth of its common stock, representing approximately 8 percent of shares outstanding.

UAL earned a 20.8 percent return on invested capital for the 12 months ended March 31, 2016.

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

Recent Accomplishments
Operations and Employees

  • Reported best quarterly on-time performance since the merger with a mainline arrival rate of 71.9 percent.
  • Achieved best quarterly mishandled bag rate since the merger.
  • Employees earned cash-incentive payments of approximately $30 million for achieving operational performance goals.
  • Reached ratified agreements with more than half of represented employees – pilots, dispatchers and IAM-represented employees. The company remains focused on getting contracts like these for flight attendants and technicians.

Network and Fleet

  • Announced new international routes including service between San Francisco and Hangzhou, China and San Francisco and Singapore, both with the Boeing 787-9 Dreamliner and subject to government approval.
  • Launched the first-ever nonstop service between San Francisco and Tel Aviv.
  • Announced a joint venture revenue-sharing agreement with Air New Zealand.
  • Signed a multi-year agreement to strengthen partnership and established a joint strategic initiative with Air China.
  • Ordered 65 customer-pleasing, two-cabin Boeing 737-700 aircraft, reducing reliance on 50-seat aircraft.

Customer Experience

  • Achieved highest customer satisfaction score in the combined company's history.
  • United's industry-leading mobile app topped 21 million downloads and was used by 50 percent of MileagePlus members when traveling.
  • First U.S. airline to use commercial-scale volumes of biofuel for regularly scheduled flights.

About United

United Airlines and United Express operate an average of 5,000 flights a day to 336 airports across six continents. In 2015, United and United Express operated more than 1.5 million flights carrying more than 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 715 mainline aircraft, and this year, the airline anticipates taking delivery of 21 new Boeing aircraft, including 737 NGs, 787s and 777s. The airline is a founding member of Star Alliance, which provides service to 192 countries via 28 member airlines. Approximately 86,000 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 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," "forecast," "guidance," "outlook," "goals" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: 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 and revenue-generating initiatives, including optimizing our revenue; our ability to control our costs, including realizing benefits from our resource optimization efforts, cost reduction initiatives and fleet replacement programs; 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); economic and political instability and other risks of doing business globally; 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; disruptions to our regional network; 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; 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 Part I, 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 U.S. Securities and Exchange Commission.

-tables attached-

 

UNITED CONTINENTAL HOLDINGS, INC.
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015

(In millions, except per share data)

  Three Months Ended
March 31, 2016
Three Months Ended
March 31, 2015
%
Increase/
(Decrease)
Operating revenue:
Passenger: (A)
Mainline
$5,577 $5,938 (6.1)
Operating revenue: Passenger: (A) Regional 1,413 1,482 (4.7)
Operating revenue: Passenger: (A) Total passenger revenue 6,990 7,420 (5.8)
Operating revenue: Cargo 194 242 (19.8)
Operating revenue: Other operating revenue 1,011 946 6.9
Operating revenue:Other operating revenue: Total operating revenue 8,195 8,608 (4.8)
Operating expense:
Salaries and related costs
2,490 2,301 8.2
Operating expense: Aircraft fuel(B) 1,218 1,864 (34.7)
Operating expense: Landing fees and other rent 525 543 (3.3)
Operating expense: Regional capacity purchase 522 570 (8.4)
Operating expense: Depreciation and amortization 479 429 11.7
Operating expense: Aircraft maintenance materials and outside repairs 402 397 1.3
Operating expense: Distribution expenses 303 312 (2.9)
Operating expense: Aircraft rent 178 201 (11.4)
Operating expense: Special charges (C) 190 64 NM1
Operating expense: Other operating expenses 1,239 1,186 4.5
Operating expense: Other operating expenses: Total operating expenses 7,546 7,867 (4.1)
Operating income 649 741 (12.4)
Nonoperating income (expense):
Interest expense
(159) (173) (8.1)
Nonoperating income (expense): Interest capitalized 14 12 16.7
Nonoperating income (expense): Interest income 8 5 60.0
Nonoperating income (expense): Miscellaneous, net (C) (18) (74) (75.7)
Nonoperating income (expense): Miscellaneous, net (C): Total nonoperating expense (155) (230) (32.6)
Income before income taxes 494 511 (3.3)
Income tax expense (benefit) (D) 181 3 NM1
Net income $313 $508 (38.4)
Earnings per share, basic $0.88 $1.33 (33.8)
Earnings per share, diluted $0.88 $1.32 (33.3)
Weighted average shares, basic 354 382 (7.3)
Weighted average shares, diluted 355 384 (7.6)
  1. NM means Not Meaningful

 

UNITED CONTINENTAL HOLDINGS, INC.
NOTES (UNAUDITED)

(A) Select passenger revenue information is as follows (in millions):
  1Q 2016
Passenger
Revenue
(millions)
Passenger
Revenue
vs.
1Q 2015
PRASM
vs.
1Q 2015
Yield
vs.
1Q 2015
Available
Seat Miles
vs.
1Q 2015
Domestic $2,868 (2.8%) (5.5%) (4.3%) 2.8%
Atlantic 1,040 (11.9%) (8.9%) (4.1%) (3.3%)
Pacific 952 (10.1%) (9.4%) (7.8%) (0.8%)
Latin America 717 (4.0%) (14.5%) (15.1%) 12.3%
International 2,709 (9.3%) (10.5%) (8.7%) 1.4%
Mainline 5,577 (6.1%) (8.0%) (6.5%) 2.1%
Regional 1,413 (4.7%) (4.1%) (3.7%) (0.5%)
Consolidated $6,990 (5.8%) (7.4%) (6.1%) 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 gallon)
  Three Months Ended
March 31, 2016
Three Months Ended
March 31, 2015
%
Increase/
(Decrease)
Mainline fuel expense excluding hedge impacts $885 $1,396 (36.6)
Hedge losses reported in fuel expense 2 (138) (161) NM1
Total mainline fuel expense 1,023 1,557 (34.3)
Regional fuel expense 195 307 (36.5)
Consolidated fuel expense 1,218 1,864 (34.7)
Cash paid on settled hedges that did not qualify for hedge accounting 3 (5) (39) NM1
Fuel expense including all losses from settled hedges $1,223 $1,903 (35.7)
Mainline fuel consumption (gallons) 734 737 (0.4)
Mainline average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense $1.21 $1.89 (36.0)
Mainline average aircraft fuel price per gallon $1.39 $2.11 (34.1)
Mainline average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accounting $1.40 $2.17 (35.5)
Regional fuel consumption (gallons) 156 159 (1.9)
Regional average aircraft fuel price per gallon $1.25 $1.93 (35.2)
Consolidated fuel consumption (gallons) 890 896 (0.7)
Consolidated average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense $1.21 $1.90 (36.3)
Consolidated average aircraft fuel price per gallon $1.37 $2.08 (34.1)
Consolidated average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accounting $1.37 $2.12 (35.4)
  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:
  Three Months Ended
March 31, 2016 (In millions)
Three Months Ended
March 31, 2015 (In millions)
Operating:
Labor agreement costs
$100 $ —
Operating:Cleveland airport lease restructuring 74
Operating:Severance and benefit costs 8 50
Operating:(Gains) losses on sale of assets and other special charges 8 14
Operating: (Gains) losses on sale of assets and other special charges:Special charges 190 64
Nonoperating and income taxes:
Losses on extinguishment of debt and other
8 6
Nonoperating and income taxes:Income tax benefit related to special charges (72)
Nonoperating and income taxes: Income tax benefit related to special charges:Total operating and nonoperating special charges, net of income taxes 126 70
Nonoperating and income taxes:Mark-to-market (MTM) losses from fuel derivative contracts settling in future periods 36
Nonoperating and income taxes:Prior period gains (losses) on fuel derivative contracts settled in the current period (4) (32)
Nonoperating and income taxes: Prior period gains (losses) on fuel derivative contracts settled in the current period:Total special items, net of income taxes $122 $74

 

 
   
 

2016 - Special items

   
 

Labor agreement costs: The fleet service, passenger service, storekeeper and other employees represented by the Int'l Association of Machinists and Aerospace Workers ratified seven new contracts with the company which extended the contracts through 2021. The company recorded a $100 million ($64 million net of taxes) special charge for bonus payments to be made in conjunction with the ratification of these contracts.

   
 

Cleveland airport lease restructuring: During the three months ended March 31, 2016, the City of Cleveland agreed to amend the lease, which runs through 2029, associated with certain excess airport terminal space (principally Terminal D) and related facilities at Hopkins International Airport ("Cleveland"). The company recorded an accrual for remaining payments under the lease for facilities that the company no longer uses and will continue to incur costs under the lease without economic benefit to the company. This liability was measured and recorded at its fair value when the company ceased its right to use such facilities leased to it pursuant to the lease. The company reduced its flight operations at Cleveland in 2014 and had been evaluating its options for the excess space. The company recorded a net charge of $74 million ($47 million net of taxes) related to the amended lease.

   
 

Severance and benefit costs: During the three months ended March 31, 2016, the company recorded $8 million ($5 million net of taxes) of severance and benefit costs primarily related to a voluntary early-out program for its flight attendants. In 2014, more than 2,500 flight attendants elected to voluntarily separate from the company and will receive a severance payment, with a maximum value of $100,000 per participant, based on years of service, with retirement dates through the end of 2016.

   
 

Loss on extinguishment of debt and other: During the three months ended March 31, 2016, the company recorded $8 million of losses due to exchange rate changes in Venezuela applicable to funds held in local currency.

   
 

MTM losses from fuel derivative contracts settling in future periods and prior period losses on fuel derivative contracts settled in the current period: The company uses certain combinations of derivative contracts that are economic hedges but do not qualify for hedge accounting under U.S. generally accepted accounting principles. Additionally, the company may enter into contracts at different times and later combine those contracts into structures designated for hedge accounting. As with derivatives that qualify for hedge accounting, the economic hedges and individual contracts are part of the company's program to mitigate the adverse financial impact of potential increases in the price of fuel. The company records changes in the fair value of these various contracts that are not designated for hedge accounting to Nonoperating income (expense): Miscellaneous, net in the statements of consolidated operations. During the three months ended March 31, 2016, the company did not record any MTM gains or losses on fuel derivative contracts that will settle in future periods. For fuel derivative contracts that settled in the three months ended March 31, 2016, the company recorded MTM losses of $4 million in prior periods.

   
 

2015 - Special items

   
 

Severance and benefit costs: During the three months ended March 31, 2015, the company recorded $50 million of severance and benefit costs primarily related to a voluntary early-out program for its flight attendants. In 2014, more than 2,500 flight attendants elected to voluntarily separate from the company and will receive a severance payment, with a maximum value of $100,000 per participant, based on years of service, with retirement dates through the end of 2016.

   
 

(Gains) losses on sale of assets and other special charges: During the three months ended March 31, 2015, the company recorded $18 million of integration-related charges, $5 million of other charges, and approximately $9 million of gains on the sale of assets.

   
 

Loss on extinguishment of debt and other: During the three months ended March 31, 2015, the company recorded $6 million of losses as part of Nonoperating income (expense): Miscellaneous, net due to the write-off of the debt discount related to the redemption of the 6% Notes due 2026 and 6% Notes due 2028.

   
 

MTM losses from fuel derivative contracts settling in future periods and prior period losses on fuel derivative contracts settled in the current period: The company uses certain combinations of derivative contracts that are economic hedges but do not qualify for hedge accounting under U.S. generally accepted accounting principles. Additionally, the company may enter into contracts at different times and later combine those contracts into structures designated for hedge accounting. As with derivatives that qualify for hedge accounting, the economic hedges and individual contracts are part of the company's program to mitigate the adverse financial impact of potential increases in the price of fuel. The company records changes in the fair value of these various contracts that are not designated for hedge accounting to Nonoperating income (expense): Miscellaneous, net in the statements of consolidated operations. During the three months ended March 31, 2015, the company recorded $36 million in MTM losses on fuel derivative contracts that will settle in future periods. For fuel derivative contracts that settled in the three months ended March 31, 2015, the company recorded MTM losses of $32 million in prior periods.

   

(D)  

The company's effective tax rate for the three months ended March 31, 2016 was 36.6%, which represented a blend of federal, state and foreign taxes and the impact of certain nondeductible items. The effective rate for the three months ended March 31, 2015 was 0.5% due primarily to the existing income tax valuation allowance against deferred income tax assets, primarily net operating losses. During 2015, after considering all positive and negative evidence, the company concluded that its deferred income taxes would be more likely than not to be realized. The company released substantially all of its valuation allowance in 2015.

 

UNITED CONTINENTAL HOLDINGS, INC.
STATISTICS
  Three Months Ended
March 31, 2016
Three Months Ended
March 31, 2015
%
Increase/
(Decrease)
Mainline:
Passengers (thousands)
22,277 21,378 4.2
Mainline:Revenue passenger miles (millions) 40,856 40,660 0.5
Mainline:Available seat miles (millions) 51,165 50,125 2.1
Mainline:Cargo ton miles (millions) 622 662 (6.0)
Mainline:Passenger load factor:
Mainline
79.9% 81.1% (1.2) pts.
Mainline:Domestic 83.4% 84.4% (1.0) pts.
Mainline:International 76.5% 78.1% (1.6) pts.
Mainline:Passenger revenue per available seat mile (cents) 10.90 11.85 (8.0)
Mainline:Average yield per revenue passenger mile (cents) 13.65 14.60 (6.5)
Mainline:Aircraft in fleet at end of period 719 700 2.7
Mainline:Average stage length (miles) 1,859 1,917 (3.0)
Mainline:Average daily utilization of each aircraft (hours) 9:36 9:55 (3.2)
Regional:
Passengers (thousands)
9,810 10,144 (3.3)
Regional:Revenue passenger miles (millions) 5,726 5,784 (1.0)
Regional:Available seat miles (millions) 7,108 7,144 (0.5)
Regional:Passenger load factor 80.6% 81.0% (0.4) pts.
Regional:Passenger revenue per available seat mile (cents) 19.88 20.74 (4.1)
Regional:Average yield per revenue passenger mile (cents) 24.68 25.62 (3.7)
Regional:Aircraft in fleet at end of period 503 532 (5.5)
Regional:Average stage length (miles) 575 561 2.5
Consolidated (Mainline and Regional):
Passengers (thousands)
32,087 31,522 1.8
Consolidated (Mainline and Regional)Revenue passenger miles (millions) 46,582 46,444 0.3
Consolidated (Mainline and Regional)Available seat miles (millions) 58,273 57,269 1.8
Consolidated (Mainline and Regional)Passenger load factor 79.9% 81.1% (1.2) pts.
Consolidated (Mainline and Regional)Passenger revenue per available seat mile (cents) 12.00 12.96 (7.4)
Consolidated (Mainline and Regional)Total revenue per available seat mile (cents) 14.06 15.03 (6.5)
Consolidated (Mainline and Regional)Average yield per revenue passenger mile (cents) 15.01 15.98 (6.1)
Consolidated (Mainline and Regional)Aircraft in fleet at end of period 1,222 1,232 (0.8)
Consolidated (Mainline and Regional)Average stage length (miles) 1,461 1,473 (0.8)
Consolidated (Mainline and Regional)Average full-time equivalent employees (thousands) 82.5 81.7 1.0
Note:See Part II, Item 6 Selected Financial Data of the company's annual report on Form 10-K for the year ended December 31, 2015 for the definition of these statistics.

 

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
March 31, 2016 (In millions)
Three Months Ended
March 31, 2015 (In millions)
$
Increase/
(Decrease)
%
Increase/
(Decrease)
Operating expenses $7,546 $7,867 $(321) (4.1)
Operating expenses:Less: Special charges (C) 190 64 126 NM1
Operating expenses, excluding special charges 7,356 7,803 (447) (5.7)
Operating expenses, excluding special charges:Less: Third-party business expenses 67 66 1 1.5
Operating expenses, excluding special charges:Less: Fuel expense 1,218 1,864 (646) (34.7)
Operating expenses, excluding special charges:Less: Profit sharing, including taxes 93 70 23 32.9
Operating expenses, excluding fuel, profit sharing, special charges and third-party business expenses $5,978 $5,803 $175 3.0
Income before income taxes $494 $511 $(17) (3.3)
Income before income taxes:Less: special items before income taxes (C) 194 74 120 NM1
Income before income taxes and excluding special items $688 $585 $103 17.6
Net income $313 $508 $(195) (38.4)
Net income:Less: special items, net of tax (C) 122 74 48 NM1
Net income, excluding special items $435 $582 $(147) (25.3)
Diluted earnings per share $0.88 $1.32 $(0.44) (33.3)
Diluted earnings per share:Add back: special items 0.35 0.20 0.15 NM1
Diluted earnings per share, excluding special items $1.23 $1.52 $(0.29) (19.1)

 

UNITED CONTINENTAL HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION (Continued)
  Three Months Ended
March 31, 2016 in cents
Three Months Ended
March 31, 2015 in cents
%
Increase/
(Decrease)
CASM Mainline Operations (cents)
Cost per available seat mile (CASM)
12.47 12.99 (4.0)
Cost per available seat mile (CASM):Less: Special charges (C) 0.37 0.13 NM1
CASM Mainline Operations (cents): CASM, excluding special charges 12.10 12.86 (5.9)
CASM Mainline Operations (cents): CASM, excluding special charges:Less: Third-party business expenses 0.13 0.13
CASM Mainline Operations (cents): CASM, excluding special charges and third-party business expenses 11.97 12.73 (6.0)
CASM Mainline Operations (cents): CASM, excluding special charges and third-party business expenses:Less: Fuel expense 2.00 3.10 (35.5)
CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses and fuel 9.97 9.63 3.5
CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses and fuel:Less: Profit sharing per available seat mile 0.18 0.14 28.6
CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses, fuel, and profit sharing 9.79 9.49 3.2
CASM Consolidated Operations (cents)
Cost per available seat mile (CASM)
12.95 13.74 (5.7)
CASM Consolidated Operations (cents): Cost per available seat mile (CASM):Less: Special charges (C) 0.33 0.11 NM1
CASM Consolidated Operations (cents): CASM, excluding special charges 12.62 13.63 (7.4)
CASM Consolidated Operations (cents): CASM, excluding special charges:Less: Third-party business expenses 0.11 0.12 (8.3)
CASM Consolidated Operations (cents): CASM, excluding special charges and third-party business expenses 12.51 13.51 (7.4)
CASM Consolidated Operations (cents): CASM, excluding special charges and third-party business expenses:Less: Fuel expense 2.09 3.25 (35.7)
CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses and fuel 10.42 10.26 1.6
CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses and fuel:Less: Profit sharing per available seat mile 0.16 0.13 23.1
CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses, fuel, and profit sharing 10.26 10.13 1.3

 

UNITED CONTINENTAL HOLDINGS, INC.
CAPITAL EXPENDITURES AND FREE CASH FLOW
Capital Expenditures (in millions) Three Months Ended
March 31, 2016 (in millions)
Capital Expenditures (in millions):Capital expenditures – GAAP $816
Capital Expenditures (in millions): Capital expenditures – GAAP:Property and equipment acquired through the issuance of debt 59
Capital Expenditures (in millions): Capital expenditures – GAAP:Airport construction financing 9
Capital Expenditures (in millions): Capital expenditures – GAAP:Fully reimbursable projects (61)
Capital Expenditures (in millions):Adjusted capital expenditures – Non-GAAP $823
Free Cash Flow (in millions) Three Months Ended
March 31, 2016
Free Cash Flow (in millions):Net cash provided by operating activities $1,199
Free Cash Flow (in millions): Net cash provided by operating activities:Less adjusted capital expenditures – Non-GAAP 823
Free Cash Flow (in millions):Free cash flow - Non-GAAP $376

 

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
March 31, 2016 (in millions)
Return On Invested CapitalNet Operating Profit After Tax (NOPAT)
Pre-tax income excluding special items4
$4,601
Return On Invested CapitalNOPAT adjustments 5 1,078
Return On Invested CapitalNOPAT $5,679
Return On Invested CapitalEffective cash tax rate 6 0.3%
Return On Invested CapitalInvested Capital (five-quarter average)
Total assets
$39,966
Return On Invested CapitalInvested capital adjustments 7 12,617
Return On Invested CapitalAverage Invested Capital $27,349
Return On Invested CapitalReturn on Invested Capital 20.8%
  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
March 31, 2016
Pre-tax income $4,202
Return On Invested CapitalAdd: Special items 399
Return On Invested CapitalPre-tax income excluding special items $4,601

 

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

United Reinstates Some International Flights Across the Globe to Help Customers Get Where they Need to Be

March 21, 2020

CHICAGO, March 21, 2020 /PRNewswire/ -- While travel demand continues to drop and United continues to adjust its schedules accordingly, the airline knows some people around the globe are displaced and still need to get home. While United's international schedule will still be reduced by about 90% in April, the airline will continue flying six daily operations to and from the following destinations – covering Asia, Australia, Latin America, the Middle East and Europe – in an effort to get customers where they need to be. This remains a fluid situation, but United continues to play a role in connecting people and uniting the world, especially in these challenging times.

Flights continuing from now through May schedule

  • Newark/New York – Frankfurt (Flights 960/961)
  • Newark/New York – London (Flights 16/17)
  • Newark/New York – Tel Aviv (Flights 90/91)
  • Houston – Sao Paulo (Flights 62/63)
  • San Francisco – Tokyo-Narita (Flights 837/838)
  • San Francisco – Sydney (Flights 863/870)

In addition to the above, United has reinstated the following flights to help displaced customers who still need to get home.

Flights through 3/27 outbound

  • Newark/New York – Amsterdam (Flights 70/71)
  • Newark/New York – Munich (Flights 30/31)
  • Newark/New York – Brussels (Flights 999/998)
  • Washington-Dulles – London (Flights 918/919)
  • San Francisco – Frankfurt (Flights 58/59)
  • Newark/New York – Sao Paulo (Flights 149/148)

Flights through 3/29 outbound

  • San Francisco – Seoul (Flights 893/892)

In destinations where government actions have barred us from flying, we are actively looking for ways to bring customers who have been impacted by travel restrictions back to the United States. This includes working with the U.S. State Department and the local governments to gain permission to operate service.

SOURCE United Airlines

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

United Airlines Continues Draw Down of International Schedule

March 20, 2020

CHICAGO, March 20, 2020 /PRNewswire/ -- United continues to aggressively manage the impact of the coronavirus (COVID-19) outbreak on our employees, our customers and our business. Due to government mandates or restrictions in place prohibiting travel, the airline is reducing its international schedule by 95% for April. The revised international schedule will be viewable on united.com on Sunday, March 22:

Atlantic

  • United is drawing down its remaining trans-Atlantic operation. The final westbound departures will take place on March 25, with the exception of its Cape Town-New York/Newark service which will operate as previously scheduled with the last flight departing Cape Town on March 28.

Pacific

  • United will reduce its remaining trans-Pacific operation starting March 22, with final eastbound departures on March 25, with the exception of service between San Francisco and Tahiti and San Francisco and Sydney which will have final returns to San Francisco on March 28.
  • United will maintain some Guam flights as well as a portion of its Island Hopper service.

Latin America

  • United will reduce its Mexico operation over the next five days. After March 24, it will only maintain a small number of daytime flights to certain destinations in Mexico.
  • United will draw down its remaining Central and South America operations. The last southbound departures will take place March 24.

Canada

  • United will temporarily suspend all flying to Canada effective April 1.

In destinations where government actions have barred us from flying, we are actively looking for ways to bring customers who have been impacted by travel restrictions back to the United States. This includes working with the U.S. State Department and the local governments to gain permission to operate service.

SOURCE United Airlines

For further information: media.relations@united.com

A Message From Oscar Munoz, Scott Kirby and Labor Leadership

March 20, 2020

CHICAGO, March 20, 2020 /PRNewswire/ -- Oscar Munoz, Chief Executive Officer, J. Scott Kirby, President, and labor leaders today issued the following message to nearly 100,000 United Airlines (NASDAQ: UAL) employees:

To our United family:

We hope you and your loved ones are well.

In these difficult and uncertain times, we want to continue to keep you updated about all the ways we are aggressively managing the impact of the coronavirus (COVID-19) on our company.

Since you last heard from Oscar and Scott on Sunday, companies around the world, especially in the travel industry, have announced painful steps they've been forced to take to deal with this crisis. Marriott shuttered a number of properties around the world, furloughing tens of thousands of workers. MGM Resorts also closed facilities and will begin furloughs next week. Scandinavian Airlines announced temporary layoffs for 90% of its staff.

In Sunday's message, Oscar and Scott were very direct about just how dire this situation has become and what the company is doing to minimize the impact on you, your families and your paycheck.

Importantly, today's message to all of you is co-signed by many of our labor union partners – and includes a specific request for actions you can take to help.

In recent years, and together with our labor leaders, United has made significant investments in our people and created tens of thousands of high-quality jobs. And we are together now, doing everything possible to protect those jobs.

Earlier this week, we jointly signed a letter to leaders in the federal government calling for bipartisan action by the Administration and the United States Congress to support you, the men and women of United Airlines. Oscar and our partners in organized labor have been front-and-center in Washington D.C. for the past month, leading the charge to educate our representatives about the severe impact COVID-19 has had on our business and all of you.

While many in Washington, D.C. now realize the gravity of this situation, time is running out. The airline has made a number of drastic cuts over the last several weeks to reduce our costs: including slashing capital spending, freezing hiring, cutting payments to contractors and vendors, eliminating all discretionary spending and even cutting our corporate officers' salary by 50% while reducing Oscar and Scott's salary to zero.

However, as travel demand continues to plummet, even more cost-cutting measures will be required soon to keep our company afloat. To be specific, if Congress doesn't act on sufficient government support by the end of March, our company will begin to take the necessary steps to reduce our payroll in line with the 60% schedule reduction we announced for April. May's schedule is likely to be cut even further.

To that end, it's time for our representatives to hear from all of you.

Your voice matters - whether you work on the ramp, greet customers in the lobby, take calls in our contact centers, prepare food for passengers, service our planes or fly on our aircraft - and our representatives in government need to understand what's at stake if they do not act.

Please consider sending a letter or email to your representatives in Washington, D.C. urging them to take quick, bipartisan action to protect airline jobs.

There's one other important way for you to pitch in and help. Thousands of United employees have applied for a company offered leave of absence - which is an important way to help the company reduce costs. As we continue to reduce our schedule, we will continue to offer additional COLA opportunities so if you have not already applied, please consider doing so.

None of us caused COVID-19. But we continue to be among the most severely affected by the economic impact of this crisis, due to the outbreak's breathtaking effect on travel demand.

The hard work you do every day matters. And the role you play in the U.S. economy matters. It's time for the people of United Airlines to put a face on what will happen if the federal government does not act.

Thank you for all you are doing for our customers and each other during this extraordinary time.

In unity,

Oscar and Scott

Captain David Bourne
Director Airline Division
International Brotherhood of Teamsters

Ken Diaz
MEC President, United Airlines Master Executive Council
Association of Flight Attendants - CWA

Sito Pantoja
General Vice President
International Association of Machinists and Aerospace Workers

Craig Symons
President
Professional Airline Flight Control Association

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 in this release are forward-looking and thus reflect the Company's 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 the Company's 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 the Company on the date of this release. The Company undertakes 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.

The Company's actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: the Company's ability to execute its strategic operating plan, including its 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 its operations in certain countries; demand for travel and the impact that global economic and political conditions have on customer travel patterns; the Company's capacity decisions and the capacity decisions of its competitors; competitive pressures on pricing and on demand; changes in aircraft fuel prices; disruptions in the Company's supply of aircraft fuel; the Company's ability to cost-effectively hedge against increases in the price of aircraft fuel, if it decides to do so; the effects of any technology failures, cybersecurity or significant data breaches; disruptions to services provided by third-party service providers; potential reputational or other impact from adverse events involving the Company's aircraft or operations, the aircraft or operations of its regional carriers or its code share partners or the aircraft or operations of another airline; the Company's 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 the Company's fleet; disruptions to the Company's regional network; the impact of regulatory, investigative and legal proceedings and legal compliance risks; the success of the Company's 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 the Company has alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; costs associated with any modification or termination of the Company's aircraft orders; disruptions in the availability of aircraft, parts or support from its suppliers; the Company's ability to maintain satisfactory labor relations and the results of any collective bargaining agreement process with its union groups; any disruptions to operations due to any potential actions by the Company's labor groups; labor costs; the existing outbreak of coronavirus and the outbreak of any other disease or similar public health threat that affects travel demand or travel behavior, such as the existing threat of COVID-19; the impact of any management changes; extended interruptions or disruptions in service at major airports where the Company operates; 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; the Company's ability to maintain adequate liquidity; the Company's ability to comply with the terms of its various financing arrangements; the Company's ability to realize the full value of its intangible assets and long-lived assets; any impact to the Company's reputation or brand image and other risks and uncertainties set forth under Part I, Item 1A., "Risk Factors," of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 as well as other risks and uncertainties set forth from time to time in the reports it files with the SEC.

SOURCE United Airlines

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

United Airlines Further Reduces Domestic and International Schedules

March 17, 2020

CHICAGO, March 17, 2020 /PRNewswire/ -- United continues to aggressively manage the impact of the coronavirus (COVID-19) outbreak on our employees, our customers and our business. Due to a continued drop in travel demand as a result of this outbreak and government mandates or restrictions in place prohibiting travel, the airline today announced a 60 percent schedule reduction in April - this includes a 42 percent reduction across the U.S. and Canada and an 85 percent decrease in international flights.

International

Across the Atlantic, Pacific and Latin America, United will operate approximately 45 daily flights in April.

United's International Schedule for April 2020


Atlantic

New York/Newark

Brussels

Frankfurt

London-Heathrow

Mumbai

New Delhi

Tel Aviv

Daily

Daily

Daily

Daily

Daily

Daily

Washington Dulles

London-Heathrow

Daily

Pacific

New York/Newark

Tokyo-Narita

4x / weekly

San Francisco

Melbourne

Osaka

Seoul

Singapore

Sydney

Tokyo-Haneda

Tokyo-Narita

3x / weekly

5x / weekly

3x / weekly

Daily

Daily

Daily

Daily

Latin America

Mexico

Houston

Cancún

Guadalajara

Leon

Los Cabos

Mazatlán

México City

Monterrey

Puerto Vallarta

Daily

Daily

Daily

Daily

Saturdays

Daily

Daily

Daily

Los Angeles

Los Cabos

Daily

San Francisco

Los Cabos

Puerto Vallarta

Cancun

Daily

Daily

Daily

Chicago

Cancun

Daily

New York / Newark

Cancun

Daily

Caribbean

New York / Newark

Antigua

Nassau

Providenciales

Punta Cana

Santo Domingo

San Juan

St. Lucia

St. Thomas

Saturdays

Daily

Daily

Daily

Daily

Daily

Saturdays

Daily

Central and South America

Houston

Belize City

Sao Paulo

Daily

Daily

Domestic

While United does not plan to suspend service to any single U.S. city now - with the exception of Mammoth Lakes, CA - the airline is closely monitoring demand as well as changes in state and local curfews and government restrictions across the U.S. and will adjust its schedule accordingly throughout the month.

United's Domestic Suspensions


Hub

Route Suspensions

Remaining Service

Denver

Arcata/Eureka

LAX, SFO

New York/Newark

Akron/Canton

ORD

Hilton Head

IAD, ORD

Honolulu

DEN, IAH, LAX, ORD, SFO

Omaha

DEN, IAH, ORD

Portland, Oregon

DEN, IAH, ORD, SFO

Seattle

DEN, IAD, IAH, LAX, ORD, SFO

Sacramento

DEN, IAH, LAX, ORD, SFO

Knoxville

DEN, IAH, IAD, ORD

Fayetteville

DEN, IAH, ORD

Salt Lake City

DEN, IAH, LAX, ORD, SFO

Washington Dulles

Grand Rapids

DEN, EWR, ORD

Honolulu

DEN, IAH, LAX, ORD, SFO

Portland, Oregon

DEN, IAH, ORD, SFO

Sacramento

DEN, IAH, LAX, ORD, SFO

Houston

Hartford

DEN, IAD, ORD

Boise

DEN, LAX, ORD, SFO

Grand Rapids

DEN, EWR, ORD

Lexington

IAD, ORD

Ontario, California

DEN, SFO

Palm Springs

DEN, LAX, SFO

San Jose, California

DEN

Akron/Canton

ORD

Reno

DEN, LAX, SFO

Edmonton, Canada

DEN

Vancouver, Canada

DEN, LAX, ORD, SFO

Los Angeles

Austin

DEN, EWR, IAD, IAH, ORD, SFO

Baltimore

DEN, IAH, ORD

Kahului (Maui)

DEN, SFO

Kona

DEN, SFO

Lihue

DEN, SFO

Madison

DEN, EWR, IAD, ORD

San Antonio

DEN, EWR, IAD, IAH, ORD

St. George

DEN

Mammoth, California

Seasonal Suspension

Chicago

Bismarck

DEN

Kahului (Maui)

DEN, SFO

Chicago

Bozeman

DEN, LAX, SFO

Fresno

DEN, LAX, SFO

Spokane

DEN, SFO

Palm Springs

DEN, LAX, SFO

Reno

DEN, LAX, SFO

San Jose, California

DEN

Ottawa, Canada

IAD

Eugene

DEN, LAX, SFO

Wilmington

IAD

Jackson, Mississippi

IAH

San Francisco

Nashville

DEN, EWR, IAD, IAH, ORD

Baltimore

DEN, IAH, ORD

Columbus, Ohio

DEN, EWR, IAD, IAH, ORD

Detroit

DEN, EWR, IAD, IAH, ORD

Indianapolis

DEN, EWR, IAD, IAH, ORD

Kansas City

DEN, EWR, IAD, IAH, ORD

Madison

DEN, EWR, IAD, ORD

Omaha

DEN, IAH, ORD

Philadelphia

DEN, IAD, IAH, ORD

Pittsburgh

DEN, EWR, IAD, IAH, ORD

Raleigh/Durham

DEN, EWR, IAD, IAH, ORD

San Antonio

DEN, EWR, IAD, IAH, ORD

St. Louis

DEN, EWR, IAD, IAH, ORD

Tampa

DEN, EWR, IAD, IAH, ORD

Toronto, Canada

DEN, EWR, IAD, IAH, ORD

Mammoth Lakes, California

Seasonal Suspension

Fort Lauderdale

DEN, EWR, IAD, IAH, ORD

New Orleans

DEN, EWR, IAD, IAH, ORD

Fayetteville

DEN, IAH, ORD

SOURCE United Airlines

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

A Message From Oscar Munoz and Scott Kirby

March 15, 2020

CHICAGO, March 15, 2020 /PRNewswire/ -- Oscar Munoz, Chief Executive Officer, and J. Scott Kirby, President, today issued the following message to nearly 100,000 United Airlines (NASDAQ: UAL) employees:

To our United family:

In the message we sent to you last Thursday, we promised to stay in close touch about the impact of the coronavirus on our business and the steps that we're taking to aggressively manage it.

In just the last few days, the impact of the coronavirus has really hit home and disrupted the daily routines of hundreds of millions of people in the United States and around the world. State and local governments continue to close schools, encourage people to avoid bars and restaurants and cancel more large gatherings. This weekend, President Trump announced new travel restrictions for the United Kingdom and Ireland. Watching this unfold, you won't be surprised to hear that the impact of the coronavirus on our business has also gotten quite a bit worse.

As the leaders of the 100,000 people of United, we feel a deep obligation to each of you to run our company in a way that protects you -- and your ability to provide for your family at home. We also owe it to you, especially in a crisis, to be open with you about important decisions we face.

We want to share some numbers to help you understand just how bad the impact of the coronavirus has been on our business. As you know, March is typically our busiest month of the year. But this year, in just the first two weeks of March, we have welcomed more than one million fewer customers on board our aircraft than the same period last year. We're also currently projecting that revenue in March will be $1.5 billion lower than last March.

The bad news is that it's getting worse. We expect both the number of customers and revenue to decline sharply in the days and weeks ahead.

Since late January, we have taken steps to aggressively manage this crisis and to keep you informed every step of the way - sharply reducing schedules, imposing a hiring freeze, introducing a voluntary leave program, dramatically reducing discretionary spending, cutting CEO base salary 100% and deferring a salary increase. Our competitors have started to follow suit: on Friday, Delta announced a 40% schedule reduction and a 100% salary cut for their CEO and over the weekend, American said it will reduce its international capacity by 75%.

We took early, aggressive action because we have been determined to do everything possible to avoid painful steps that affect your paycheck. But, based on the severity of the situation, that no longer appears realistic.

This weekend, we began conversations with our union leadership about how to reduce our payroll expense in a way that minimizes what we know will be painful for all of us. Earlier this evening, we convened a call with Corporate Officers to update them on the severity of the situation and let them know we will be cutting their salary by 50%.

Let us be clear: these are not the only next steps. Tomorrow, we will announce an approximately 50% cut in capacity for April and May. We also now expect these deep cuts to extend into the summer travel period. Even with those cuts, we're expecting load factors to drop into the 20-30% range -- and that's if things don't get worse.

Together, we're facing an unprecedented challenge. When medical experts say that our health and safety depends on people staying home and practicing social distancing, it's nearly impossible to run a business whose shared purpose is "Connecting people. Uniting the world."

We both hate to have to write a note like this, but we have made a commitment to be honest and transparent with you. While it's now clear that this is going to painful for our people, we promise that you are at the very top of our priority list. We are working night and day on support and ideas to keep as much pay as we possibly can flowing to you -- even if gets worse from here and demand temporarily plummets to zero.

This crisis is moving really quickly. It's having an impact on nearly every aspect of our lives, and it may feel to you like everything is changing. But, the most important thing about our business hasn't changed: you've shown us that even in these difficult times, we're still United and focused on caring for our customers and each other together. That's always been the essential ingredient to our success. It's what will get us through this crisis in the near term, and it's also what will allow us to fulfill United's incredible potential in the long-term.

We'll continue to communicate frequently and transparently in the days ahead.

With resolve,

Oscar and Scott

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 in this release are forward-looking and thus reflect the Company's 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 the Company's 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 the Company on the date of this release. The Company undertakes 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.

The Company's actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: the Company's ability to execute its strategic operating plan, including its 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 its operations in certain countries; demand for travel and the impact that global economic and political conditions have on customer travel patterns; the Company's capacity decisions and the capacity decisions of its competitors; competitive pressures on pricing and on demand; changes in aircraft fuel prices; disruptions in the Company's supply of aircraft fuel; the Company's ability to cost-effectively hedge against increases in the price of aircraft fuel, if it decides to do so; the effects of any technology failures, cybersecurity or significant data breaches; disruptions to services provided by third-party service providers; potential reputational or other impact from adverse events involving the Company's aircraft or operations, the aircraft or operations of its regional carriers or its code share partners or the aircraft or operations of another airline; the Company's 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 the Company's fleet; disruptions to the Company's regional network; the impact of regulatory, investigative and legal proceedings and legal compliance risks; the success of the Company's 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 the Company has alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; costs associated with any modification or termination of the Company's aircraft orders; disruptions in the availability of aircraft, parts or support from its suppliers; the Company's ability to maintain satisfactory labor relations and the results of any collective bargaining agreement process with its union groups; any disruptions to operations due to any potential actions by the Company's labor groups; labor costs; the existing outbreak of coronavirus and the outbreak of any other disease or similar public health threat that affects travel demand or travel behavior, such as the existing threat of COVID-19; the impact of any management changes; extended interruptions or disruptions in service at major airports where the Company operates; 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; the Company's ability to maintain adequate liquidity; the Company's ability to comply with the terms of its various financing arrangements; the Company's ability to realize the full value of its intangible assets and long-lived assets; any impact to the Company's reputation or brand image and other risks and uncertainties set forth under Part I, Item 1A., "Risk Factors," of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 as well as other risks and uncertainties set forth from time to time in the reports it files with the SEC.

SOURCE United Airlines

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

United Airlines to Present at the 2020 J.P. Morgan Industrials Conference

March 04, 2020

CHICAGO, March 4, 2020 /PRNewswire/ -- United Airlines will present at the J.P. Morgan Industrials Conference on Tuesday, March 10. United Airlines' President Scott Kirby will be the keynote speaker at the conference beginning at 11:50 a.m. CT / 12:50 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.

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

Take a Break in the Big Easy: United Airlines Debuts New Club Location in New Orleans

February 28, 2020

NEW ORLEANS, Feb. 28, 2020 /PRNewswire/ -- United Airlines will unveil the newest addition to its network of United Club locations with the opening of a brand-new 6,000-square-foot United Club at Louis Armstrong New Orleans International Airport. Located in the airport's brand-new terminal, near gate C7, the club offers customers a wide variety of amenities to work, relax and refresh during their travels. The new United Club opens starting Saturday, Feb. 29.


"Our expansion into New Orleans showcases United's commitment to transforming the customer experience across all touch points and complements the beautiful new terminal at Louis Armstrong New Orleans International Airport," said Alexander Dorow, United's managing director of premium services. "It's a fresh location for us to begin our evolution to become more local and reach new audiences."

Menu highlights in the new club location include inventive twists on regional favorites including muffuletta and pimento cheese sliders, gumbo and rice, Cajun pepper dip and Creole egg salad. The drink selection includes local staples like Abita Amber beer and Southern Comfort, along with a variety of beer, wine and cocktail options.

The New Orleans United Club features 95 seats, with a variety of seating areas for productivity, privacy and dining. For customers looking to stay connected, the club offers complimentary high-speed Wi-Fi and many power outlets and USB ports.

The New Orleans United Club location is the first United Club to open this year and is part of United's ongoing commitment to renovate and introduce new United Club locations throughout its network. The company is also working on brand-new United Club locations at Newark Liberty International Airport – to open in 2021 – and Phoenix Sky Harbor International Airport, which will open later this year. Construction will also begin on a brand-new and larger United Club location at Daniel K. Inouye International Airport in Honolulu. Additionally, this summer, United will unveil its United Polaris lounge at Washington Dulles International Airport – the sixth location in the United Polaris lounge network. For more information on United Club locations, visit united.com/unitedclub.

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, Chase and Visa Announce Multi-Year Extension of United MileagePlus Credit Card Program

February 21, 2020

CHICAGO, Feb. 21, 2020 /PRNewswire/ -- United Airlines, Chase Card Services and Visa today announced a multi-year extension of the United MileagePlus credit card program. The extension continues the more than 30-year relationship between the number one card issuer in the U.S., the U.S. airline with service to the most U.S. cities and most countries around the world and the world's leader in digital payments.

The agreement, which extends into 2029, builds on one of the industry's strongest co-brand card portfolios with seven consecutive quarters of double-digit year-over-year growth and a long history of providing cardmembers with extra benefits that reward people traveling United's expansive global route network.

"United Airlines, Chase and Visa have a longstanding partnership that delivers top benefits to customers to help them get the most out of their travel, while returning robust value to our respective businesses," said Luc Bondar, United's vice president of Loyalty. "This extension strengthens ties with our partners at Chase and Visa and is expected to drive growth across our industry-leading credit card portfolio, enhance our cardholders travel experience and provide more opportunities to easily earn and redeem miles to travel United's industry leading route network."

"We're pleased to extend our decades-long relationship with United and Visa in order to deliver even more value to our joint cardmembers," said Ed Olebe, president of Chase Co-Brand Cards. "The program has deep cardmember loyalty and fantastic momentum, with exciting new offerings and experiences for our customers to look forward to in 2020 and beyond."

The extended agreement will build on one of the world's strongest co-brand card portfolios, with premium customers in premium markets. The portfolio of cards includes the new United Business Card, United Explorer Card, United Club Card, United Club Business Card and United TravelBank Card. Customers traveling with eligible MileagePlus credit cards have access to benefits that make traveling United's leading route network better than ever including perks such as free checked bags, priority boarding and increased mileage earn on every day spending.

"Visa is proud to extend our partnership with United and Chase to bring best-in-class card benefits and travel experiences to cardholders," said Kirk Stuart, senior vice president, head of North America Merchant at Visa. "We look forward to building on the program's success to deliver more value, enhance cardholder engagement and create rewarding payment experiences."

Earlier this year, United and Chase launched a new Business card and celebrated with the highest ever bonuses for all United co-brand cards for the first time ever. In 2018, United and Chase launched the award-winning United Explorer card, with even more best-in-class benefits including an up to $100 Global Entry or TSA Pre-Check statement credit and 2X earn on hotel stays and restaurant purchases.

United also continues to invest in making MileagePlus the top loyalty program for its members. Last year the airline announced that MileagePlus miles never expire and announced a partnership with CLEAR to offer free and discounted memberships to MileagePlus members. United also introduced PlusPoints, a new industry-leading upgrade benefit for Premier members.

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".

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 $2.7 trillion and operations worldwide. Chase serves nearly half of America's 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 4,900 branches in 38 states and the District of Columbia, 16,000 ATMs, mobile, online and by phone. For more information, go to chase.com.

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. For more information, visit About Visa, visa.com/blog and @VisaNews

SOURCE United Airlines

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

Making Travel Easier - United Airlines and Vistara Launch Codeshare Agreement

February 19, 2020

CHICAGO, Feb. 19, 2020 /PRNewswire/ -- United Airlines and Vistara announced the start of a new codeshare agreement allowing United customers to book travel on 68 Vistara-operated flights to 26 destinations throughout India for travel beginning February 28. The codeshare builds on the agreement between the airlines in which MileagePlus and Vistara's loyalty program members earn and redeem miles when flying on either of the airline's route network.

The United and Vistara agreement offers customers a simplified experience when planning travel between dozens of destinations throughout India including Ahmedabad, Bengaluru, Chandigarh, Goa, Hyderabad, Jodhpur, Srinagar, Thiruvananthapuram, Udaipur, Varanasi and more.

"We are excited to offer our shared customers the option of building a seamless itinerary when planning travel to cities beyond New Delhi and Mumbai," said John Gebo, United's senior vice president of Alliances. "United has connected customers to India for more than 15 years with daily flights between New York/Newark and Delhi and Mumbai and our new service between San Francisco and New Delhi. Our relationship with Vistara opens up even more options for customers to travel between our East and West Coast hubs and multiple destinations throughout India."

Vistara's Chief Commercial Officer, Vinod Kannan said, "Vistara today connects the length and breadth of India, and we are delighted to offer the country's only five-star flying experience to customers of United on their Indian domestic flights. The U.S. continues to be one of the biggest source markets for foreign travelers into India and the region, and this partnership allows us to provide a seamless travel offering for customers to and from the U.S."

As India's highest-rated airline on Skytrax and TripAdvisor, winner of several 'Best Airline' awards, and the only 5-star rated airline in India (Apex 2020), Vistara has consistently raised the bar for operations and service delivery in the Indian aviation industry in a short span of five years. The airline is poised to grow its fleet by adding more than 50 narrow-body and wide-body aircraft, including Airbus A321neo and Boeing B787-9, in the next three years.

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".

About Vistara (TATA SIA Airlines Limited)

TATA SIA Airlines Limited, known by the brand name Vistara, is a joint venture between Tata Sons Limited and Singapore Airlines Limited (SIA) with Tata Sons holding the majority stake of 51% in the company and SIA holding the remaining 49%. Vistara brings together Tata's and SIA's legendary hospitality and renowned service excellence to offer the finest full-service flying experience in India. Vistara commenced its commercial operations on January 9, 2015 with an aim to set new standards in the aviation industry in India and it today connects destinations across India and abroad. The airline now connects 35 destinations, operates over 200 flights a day with a fleet of 32 Airbus A320 and 7 Boeing 737-800NG aircraft, and has flown more than 20 million customers since starting operations.

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