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 Airlines Puts Jet Lag to Rest with Timeshifter App Partnership

November 13, 2019

CHICAGO, Nov. 13, 2019 /PRNewswire/ -- United Airlines customers now have a new, scientific way to battle jet lag through a first-of-its-kind partnership with Timeshifter®, an app that outlines the best time to see and avoid light, sleep and enjoy caffeine to adjust quickly to a new time zone.

Starting today, all MileagePlus members receive access to a free Timeshifter jet lag plan and Premier 1K members receive a complimentary subscription with unlimited plans. The app is targeted at customers flying across three or more time zones and will be a helpful tool for them to manage their jet lag as they travel throughout United's global route network.

"We want to do everything we can to help improve the experience of traveling across time zones, whether it's a business trip to Tel Aviv or a vacation to Tahiti, our customers should arrive feeling fresh and ready to hit the ground running," said Vice President of Loyalty and President of MileagePlus, Luc Bondar. "Timeshifter takes all the guesswork out of avoiding jet lag and instead uses science and algorithms to design a customized, step-by-step trip across time zones. I was a believer the first time I used the app and I think our customers will love it too."

Timeshifter was developed by top researchers in sleep and circadian neuroscience and is aimed at customers crossing three or more time zones. The app uses an algorithm to customize plans for customers based on a number of factors including normal sleep pattern, flight details and individual preferences, creating a personalized jet lag alleviation plan. Each plan includes:

  • Instructions for when travelers should prioritize exposure to bright light or avoid it.
  • A sleep and napping schedule based on his or her own sleep preferences.
  • A plan to optimize caffeine intake for alertness and sleep.
  • Optional timing for taking melatonin, should travelers choose to do so.

MileagePlus members will receive a free jet lag plan for a flight plan of their choosing in addition to the complimentary trial Timeshifter offers customers for a total of two free flight plans. MileagePlus Premier 1K members will be able to sign up for complimentary annual subscriptions for unlimited access to jet lag plans when they travel. Individual plans for the app retail at $9.99 for a round trip plan and yearly memberships are $24.99.

United's partnership with Timeshifter is an additional step in improving the travel experience for MileagePlus members. Earlier this year, United announced that MileagePlus miles no longer expire and partnered with CLEAR to provide members with free or deeply discounted memberships to help make travel easier and more predictable.

United flies some of the longest routes in the world, including the two longest flights operated by a U.S. carrier with non-stop service between Houston and Sydney and between San Francisco and Singapore. In December, United will become the only airline to fly direct from North America to Cape Town, South Africa with the start of brand-new service from New York/Newark. United flies 320 routes to 120 international destinations from the U.S.

Every customer. Every flight. Every day.

In 2019, United is focusing more than ever on its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's announcement, this year United:

  • Announced that MileagePlus award miles will never expire
  • Gave Economy customers a choice of complimentary snacks on domestic flights
  • Made DIRECTV free for every customer on more than 200 aircraft
  • Released a new version of the award-winning, most downloaded app in the airline industry
  • Launched a new tool called ConnectionSaver, dedicated to improving the experience for customers with connecting flights
  • Partnered with CLEAR on free or discounted memberships for MileagePlus members
  • Announced PlusPoints, new upgrade benefits for MileagePlus Premier members
  • And introduced products in its amenity kits made exclusively for the airline by luxury skincare line Sunday Riley

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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 788 mainline aircraft and the airline's United Express partners operate 560 regional aircraft. United is a founding member of Star Alliance, which provides service to 195 countries via 26 member airlines. For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

SOURCE United Airlines

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

United Airlines Supports Local Relief Efforts for Communities Impacted by California Wildfires

November 01, 2019

SAN FRANCISCO, Nov. 1, 2019 /PRNewswire/ -- Today, United Airlines reaffirmed its commitment to California and to lifting up communities in crisis by announcing $165,000 in direct donations to three funds that provide assistance to those impacted by the California wildfires – Center for Disaster Philanthropy's 2019 California Wildfires Recovery Fund, Community Foundation of Sonoma County's Resilience Fund and California Community Foundation's Wildfire Relief Fund. The funds will provide immediate assistance to those impacted, along with long-term health services and housing solutions.

"The effects of the wildfires on our communities in California are heartbreaking, and we want to do our part to support the organizations that are on the ground, helping those in need," said Janet Lamkin, United's president for California.

In addition to supporting these funds, United is working with the American Red Cross to provide approximately 5,000 blankets to shelters across the state of California. Today's announcement builds on United's continued commitment to California and recent campaigns to aid in response to wildfires and other disasters. United has strong partnerships with the American Red Cross, the California State Fire Foundation (Cal Fire) and the California State Parks Foundation to support California year-round, not just when disasters strike.

"As many of our neighbors return safely home, we grieve for those families who have lost so much from the Kincade Fire," said Elizabeth Brown, President and CEO, Community Foundation Sonoma County. "We established the Sonoma County Resilience Fund to help our community recover now and in the years to come, and we are incredibly grateful to United Airlines for their steadfast and generous support of Sonoma County."

Every customer. Every flight. Every day.

In 2019, United is focusing more than ever on its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's announcement, this year United:

  • Announced that MileagePlus award miles will never expire
  • Gave Economy customers a choice of complimentary snacks on domestic flights
  • Made DIRECTV free for every customer on more than 200 aircraft
  • Released a new version of the award-winning, most downloaded app in the airline industry
  • Launched a new tool called ConnectionSaver, dedicated to improving the experience for customers with connecting flights
  • Partnered with CLEAR on free or discounted memberships for MileagePlus members
  • Announced PlusPoints, new upgrade benefits for MileagePlus Premier members
  • And introduced products in its amenity kits made exclusively for the airline by luxury skincare line Sunday Riley

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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 788 mainline aircraft and the airline's United Express partners operate 560 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 Joins with Marriott International to Offer Industry's First Complimentary Baggage Delivery Service

October 29, 2019

CHICAGO, Oct. 29, 2019 /PRNewswire/ -- Starting November 1, United Airlines will begin offering Polaris customers on flights between New York/Newark and London Heathrow complimentary baggage delivery exclusively to five Marriott International properties. Whether they are bound for the boardroom or Big Ben, this first-of-its-kind service will allow United Polaris customers to start their London journey the moment they clear customs and drop their bags.

United's new baggage delivery benefit coincides with the airline operating its newly reconfigured Boeing 767-300ER on the route – an aircraft that features an extended cabin with 46 United Polaris business seats in the premium cabin and 22 United Premium Plus seats.

"The flight between New York/Newark and London is one of the most serviced routes in the world, and we are continually looking at how we can offer superior services and amenities for our customers traveling between these two major cities," said Andrew Nocella, the airline's chief commercial officer. "And as our customers continue to demand greater convenience and choices, we will be ready to deliver, offering the caring, creative solutions that will keep them choosing United."

The baggage delivery program will be offered to all customers who hold a ticket in United's Polaris business cabin on the New York/Newark to London Heathrow route, including upgraded tickets, and who are staying at select Marriott properties including JW Marriott Grosvenor House London, London Marriott Hotel Canary Wharf, London Marriott Hotel County Hall, Sheraton Grand London Park Lane and St. Pancras Renaissance Hotel London. Customers can proceed through immigration and customs as normal, and follow signs for the bag drop desk in the arrivals area of London Heathrow, which will be open seven days a week from 6:00am – 12:00pm. Customers will not need to pre-register for the service. As an added benefit, passengers who are also members of Marriott Bonvoy, Marriott's travel program, and have booked their hotel stay directly with Marriott will receive a notification on the Marriott Bonvoy app that their bags have arrived at their hotel.

United's reconfigured Boeing 767-300ER features 16 additional United Polaris business class seats – all with direct-aisle-access – bringing the total premium cabin seat count to 46. The aircraft also features 22 United Premium Plus seats – becoming the first United 767-300ER to offer this seat type – 47 Economy Plus seats and 52 Economy seats. United will be the only U.S. carrier to operate a widebody aircraft that features this many premium seats. The aircraft will operate between Newark/New York and London, offering more premium seats in the largest premium route in the world.

United Polaris business class service is designed to bring a new level of quality to every aspect of premium cabin travel – from lounge to landing – and provide the best sleep in the sky. Customers booked in the Polaris cabin will continue to receive signature amenities such as Saks Fifth Avenue bedding, amenity kits featuring custom products from luxury skincare line Sunday Riley, a variety of inflight entertainment options, elevated food and beverages and access to the Polaris lounge at Newark Liberty International Airport and the arrivals lounge and United Club at London Heathrow.

For additional details on the baggage delivery program please visit: https://www.united.com/londonbagdelivery

Every customer. Every flight. Every day.

In 2019, United is focusing more than ever on its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's announcement, this year United:

  • Announced that MileagePlus award miles will never expire
  • Gave Economy customers a choice of complimentary snacks on domestic flights
  • Made DIRECTV free for every customer on more than 200 aircraft
  • Released a new version of the award-winning, most downloaded app in the airline industry
  • Launched a new tool called ConnectionSaver, dedicated to improving the experience for customers with connecting flights
  • Partnered with CLEAR on free or discounted memberships for MileagePlus members
  • Announced PlusPoints, new upgrade benefits for MileagePlus Premier members
  • And introduced products in its amenity kits made exclusively for the airline by luxury skincare line Sunday Riley

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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 788 mainline aircraft and the airline's United Express partners operate 560 regional aircraft. United is a founding member of Star Alliance, which provides service to 195 countries via 26 member airlines. For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

SOURCE United Airlines

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

United Airlines Launches New Crowdsourcing Platform to Donate Miles to Charity

October 28, 2019

CHICAGO, Oct. 28, 2019 /PRNewswire/ -- Today, United Airlines announced the launch of Miles on a Mission, a first-of-its-kind crowdsourcing platform that gives customers a simple, easy way to donate miles to non-profit organizations and charities in need of air travel. The company has selected 12 launch partners and MileagePlus members can now visit united.com/donate to make contributions to organizations like the Transplant Life Foundation, OperationUSA and Waves for Water.

Each launch partner has 28 days to crowdsource miles from MileagePlus members, with the goal of reaching at least 250,000 miles. New partners will be added to the program as each launch partner reaches its goal.

United is donating two million miles to kick off the Miles on a Mission program, matching the first 50 thousand miles raised for each campaign.

"We want to make a difference in the communities where our customers and employees live, work and fly," said Sharon Grant, vice president and chief community engagement officer at United Airlines. "Miles on a Mission not only allows us to connect with even more organizations than before but also gives our customers a new way to use their miles in a way that supports the charities and causes that mean the most to them."

Non-profit organizations with current live campaigns include:

  • OperationUSA: An international disaster relief organization with a live campaign development agency that helps communities around the world overcome the effects of disaster, disease, violence and endemic poverty abroad.
  • Holocaust Museum Houston: An organization that is looking to fund travel for teachers to provide further education and classroom resources concerning the Holocaust and Human Rights.
  • NJ LEEP: A college access and success program serving first-generation and low-income students from the greater Newark, NJ area. The organization helps students build academic and social-emotional skills, develop the habits necessary for lasting success, and gain exposure to professional role models.
  • Swim Across America: An organization that hosts swimming events across the world to raise money for cancer research and clinical trials at major research institutions to supplement government funded research projects.
  • Watts of Love: A non-profit that provides solar technology and education to the 1 billion people living without electricity. They offer clean and sustainable forms of energy as an alternative to dangerous forms of energy.
  • Waves for Water: An organization that provides access to clean water for communities by creating portable water filter systems, digging/renovating wells and constructing rainwater harvesting and storing solutions.
  • The Transplant Life Foundation: The nation's leading advocacy group for those in the donation and transplantation world, including transplant recipients, living donors and donor families. Transplant Life Foundation strives each day to enhance and improve the lives of its members through its education programs, social networking platforms, TransplantNATION magazine and Transplant Games of America.
  • Off-The-Grid Missions: An organization dedicated to providing the Deaf and Hard-of-Hearing with access to life-saving resources, especially in high-risk and remote regions around the world.
  • Miles4Migrants: Dedicated to using donated frequent flyer miles, points and money to reunite and relocate individuals and families around the world separated by war, persecution, and disaster.
  • Animal Lighthouse Rescue: Dedicated to the rescue, rehabilitation, and finding of loving homes for satos, or stray dogs in Puerto Rico, through their local partner, no-kill shelter El Faro de los Animales, and a team of staff, volunteers, and foster families in NY.
  • Adaptive Cycling Foundation: An organization that supplies, manufactures and adapts bicycles for injured service members, first responders or heroes as a means for recovery and rehabilitation, both mentally and physically, from injuries and traumas.

The Miles on a Mission platform went live on Friday, October 25, and one of the inaugural non-profits, Veterans Community Project, has already reached its crowdsourcing goals. A new campaign will launch on the platform within the coming days.

"The Adaptive Cycling Foundation is very excited and honored to be included in United's Miles on a Mission campaign, continuing our alliance with United of giving back," said Scott Moro, Adaptive Cycling Foundation's mechanic and founder. "We create One of a Kind Bicycles for One of a Kind Heroes, Heroes that have already paid enough. The United Miles from the Miles on a Mission campaign helps us to provide zero cost travel to individually fit and consult with these Hero Veteran and Active Duty Service Members and First Responders. It's exciting, motivating, and we are honored to be involved in United's continuing mission of giving back."

Eligible charities can apply for the opportunity to launch a 28-day campaign to raise miles for their organization through MileagePlus member donations. Approved charities will work with United to reach goals of raising between 250,000 and 5 million miles. Organizations looking to launch a campaign can visit the Miles on a Mission website for full application details.

Every customer. Every flight. Every day.

In 2019, United is focusing more than ever on its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's announcement, this year United:

  • Announced that MileagePlus award miles will never expire
  • Gave Economy customers a choice of complimentary snacks on domestic flights
  • Made DIRECTV free for every customer on more than 200 aircraft
  • Released a new version of the award-winning, most downloaded app in the airline industry
  • Launched a new tool called ConnectionSaver, dedicated to improving the experience for customers with connecting flights
  • Partnered with CLEAR on free or discounted memberships for MileagePlus members
  • Announced PlusPoints, new upgrade benefits for MileagePlus Premier members
  • And introduced products in its amenity kits made exclusively for the airline by luxury skincare line Sunday Riley

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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 788 mainline aircraft and the airline's United Express partners operate 560 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

Fly the Friendly Galaxy: United Airlines Joins Forces with Star Wars: The Rise of Skywalker to Offer Customers Unforgettable Star Wars Experiences

October 25, 2019

CHICAGO, Oct. 25, 2019 /PRNewswire/ -- United Airlines today announced that the carrier has teamed up with Star Wars: The Rise of Skywalker – the epic conclusion of the Skywalker saga, to offer customers and employees alike exciting opportunities in the coming weeks to experience the Star Wars saga first-hand on the ground, in the air and throughout the airline's galaxy.

Customers will begin flying the friendly galaxy in November when United officially unveils an all-new Star Wars-themed paint design on one of its Boeing 737-800 aircraft with a re-designed onboard experience to celebrate the movie. The airline will also offer Star Wars: The Rise of Skywalker-themed amenity kits and launch its latest inflight safety demonstration video featuring characters from the new film. In addition, the airline will provide once-in-a-lifetime opportunities for MileagePlus members – including access to attend the US premiere of Star Wars: The Rise of Skywalker – through MileagePlus Exclusives, the airline's platform that lets MileagePlus members use miles to bid and buy exclusive items and experiences.

"United Airlines and the Star Wars franchise share a common goal: connect people and unite the world," said Mark Krolick, United's vice president of marketing. "We are thrilled to join forces and help promote the concluding chapter of the Skywalker story, while at the same time enlisting help from our new friends from the Star Wars universe to demonstrate the importance of safety for our customers and colleagues."

United and Star Wars take to the skies

Next month, United will officially introduce into service a special Star Wars-themed Boeing 737-800 aircraft featuring the Star Wars: The Rise of Skywalker-themed paint livery and onboard experience. The new paint design, which the airline teased last spring on its social media channels, captures the exotic atmosphere of the Star Wars galaxy and features imagery of famous Star Wars spacecraft, including the X-wing and TIE fighter starships. The aircraft's tail starkly displays a different colored lightsaber – the weapon of the Jedi – against a black backdrop on each side, reflecting the two sides of the Force.

United will greet customers with classic Star Wars-themed music during the boarding process and distribute commemorative pins throughout December in celebration of the movie's premiere. The aircraft's interior will also feature a special plaque reflecting United's relationship with Star Wars: The Rise of Skywalker and include headrests affixed with the emblems of the film's dueling factions, the Resistance and the First Order.

While not everyone will have the chance to see the new livery in person, anyone will be able to track United's Star Wars: The Rise of Skywalker-themed aircraft via special icon on FlightAware, the world's largest online flight tracking platform. For the first time, aviation and Star Wars enthusiasts can track past and future flights on both desktop and mobile by entering the plane's tail number and the new livery will appear on FlightAware's flight tracking maps as the X-Wing starship.

Safety is our highest priority

The new inflight safety demonstration video highlights United's lasting commitment to the safety of all the airline's customers and employees traveling to places "far, far away." In addition to United employees providing safety instructions on what do to in the unlikely event of an emergency, the video features special appearances by several iconic Star Wars characters and thrilling, space-themed sequences scored to some of the most recognizable musical themes in both motion picture and commercial aviation history. The safety video also highlights some of the many international destinations United serves within the airline's galaxy. To view the safety video, please visit: united.com/starwars.

Connecting People. Uniting the Worlds

Beginning today, on MileagePlus Exclusives, members will be able to bid award miles on several unique Star Wars experiences including:

  • Access to attend the premieres of Star Wars: The Rise of Skywalker in Los Angeles and London
  • Travel packages for four to visit Star Wars filming locations in Jordan to see how the filmmakers transformed the landscape for the movie
  • Access to exclusive screenings of Star Wars: The Rise of Skywalker in United hub cities on December 19
  • Special collectors package enabling members to take home a piece of Star Wars and United Airlines. The package features commemorative United and Star Wars branded items including Star Wars: The Rise of Skywalker-themed amenity kits, special pins and a model aircraft of United's Star-Wars-themed Boeing 737-800

For more information, please visit: MileagePlus Exclusives.

Every customer. Every flight. Every day.

In 2019, United is focusing more than ever on its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's announcement, this year United:

  • Announced that MileagePlus award miles will never expire
  • Gave Economy customers a choice of complimentary snacks on domestic flights
  • Made DIRECTV free for every customer on more than 200 aircraft
  • Released a new version of the award-winning, most downloaded app in the airline industry
  • Launched a new tool called ConnectionSaver, dedicated to improving the experience for customers with connecting flights
  • Partnered with CLEAR on free or discounted memberships for MileagePlus members
  • Announced PlusPoints, new upgrade benefits for MileagePlus Premier members
  • And introduced products in its amenity kits made exclusively for the airline by luxury skincare line Sunday Riley

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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 788 mainline aircraft and the airline's United Express partners operate 560 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 Star Wars: The Rise of Skywalker

Lucasfilm and director J.J. Abrams join forces once again to take viewers on an epic journey to a galaxy far, far away with Star Wars: The Rise of Skywalker, the riveting conclusion of the seminal Skywalker saga, where new legends will be born and the final battle for freedom is yet to come.

The film stars Carrie Fisher, Mark Hamill, Adam Driver, Daisy Ridley, John Boyega, Oscar Isaac, Anthony Daniels, Naomi Ackie, Domhnall Gleeson, Richard E. Grant, Lupita Nyong'o, Keri Russell, Joonas Suotamo, Kelly Marie Tran, with Ian McDiarmid and Billy Dee Williams

Star Wars: The Rise of Skywalker is directed by J.J. Abrams and produced by Kathleen Kennedy, Abrams and Michelle Rejwan. Callum Greene, Tommy Gormley and Jason McGatlin serve as executive producers. Star Wars: The Rise of Skywalker was written by J.J. Abrams & Chris Terrio and opens in U.S. theaters on December 20.

Miles, awards and benefits are subject to the rules of the United MileagePlus program. For details, see www.united.com. For details relating to United's MileagePlus Exclusives see https://exclusives.mileageplus.com/Home/Terms

SOURCE United Airlines

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

United Airlines Pledges $40 Million To Further Decarbonize Commercial Air Travel

October 25, 2019

CHICAGO, Oct. 25, 2019 /PRNewswire/ -- United Airlines today further strengthened its reputation as an aviation industry leader in environmental sustainability by committing $40 million toward a new investment vehicle focused on accelerating the development of sustainable aviation fuels and other decarbonization technologies. The carrier, which earlier this year agreed to purchase up to 10 million gallons of sustainable aviation fuel over the next two years, will look to collaborate with other environmentally conscious partners on this extraordinary initiative. Among all airlines around the world, United holds more than 50% of all publicly announced purchase commitments to using sustainable aviation fuels and is the only U.S. carrier to currently use this fuel on a continuous basis.

"United has been an industry leader in environmental sustainability – including being the first U.S. carrier to announce a bold pledge to cut our carbon footprint in half by 2050 relative to 2005," said Scott Kirby, United's president. "However, to achieve this goal, we can't be content as a leading airline undergoing an evolution to adapt to climate change. We aspire to be the airline leading the revolution to fight climate change, and this new initiative will further empower us to reduce our impact on the environment and fly towards a more sustainable future."

United's Commitment to the Environment

United's latest commitment to invest in the development of sustainable aviation fuel and decarbonization technologies, along with its pledge to reduce its greenhouse gas emissions, represents yet another leadership position the airline has undertaken to reduce its impact on the environment. Several of United's most significant environmental achievements include:

  • Becoming the first airline to incorporate sustainable aviation fuel in regular operations on a continuous basis, marking a significant milestone in the industry by moving beyond test programs and demonstrations to the everyday use of low-carbon fuel in ongoing operations.
  • Investing more than $30 million in California-based sustainable aviation fuels producer Fulcrum BioEnergy, which remains the single largest investment by any airline globally in sustainable fuels. United's option to purchase, subject to availability, nearly 1 billion gallons from Fulcrum BioEnergy is the largest offtake agreement for sustainable aviation fuel in the airline industry.
  • Operating the Flight for the Planet last June, which represented the most-eco-friendly commercial flight of its kind in the history of commercial aviation.
  • Becoming the first airline to fly with Boeing's Split Scimitar winglets, which reduce fuel consumption by an additional 2 percent versus standard winglets; United is the largest Scimitar winglet operator today, with nearly 400 aircraft equipped with these winglets.
  • Becoming the first U.S. airline to repurpose items from the carrier's international premium cabin amenity kits and partnering with Clean the World to donate hygiene products to those in critical need.
  • Eliminating non-recyclable plastic stirring sticks and cocktail picks on aircraft and replacing them with a more environmentally friendly product made of 100% bamboo.
  • Continuing to replace its eligible ground equipment with cleaner, electrically powered alternatives, with 40% of the fleet converted to date.

United's Award-Winning Eco-Skies Program

United's award-winning Eco-Skies program represents the company's commitment to the environment and the actions taken every day to create a more sustainable future. In 2017, Air Transport World magazine named United the Eco-Airline of the Year for the second time since the airline launched the Eco-Skies program. Additionally, United Airlines ranked No. 1 among global carriers in Newsweek's 2017 Global 500 Green Rankings, one of the most recognized environmental performance assessments of the world's largest publicly traded companies.

For more information on United's commitment to environmental sustainability, visit united.com/ecoskies.

About United

United's shared purpose is "Connecting People. Uniting the World." We are more focused than ever on our commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United and United Express operate approximately 4,900 flights a day to 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 788 mainline aircraft and the airline's United Express partners operate 560 regional aircraft. United is a founding member of Star Alliance, which provides service to 193 countries via 27 member airlines. For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

SOURCE United Airlines

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

United Airlines and Air New Zealand Announce First Ever Nonstop Service Between New York/Newark and Auckland, New Zealand

October 23, 2019

NEWARK, N.J. and AUCKLAND, New Zealand, Oct. 23, 2019 /PRNewswire/ -- Air New Zealand and United Airlines today announced the only nonstop service between New Zealand and the United States East Coast will begin in October 2020. Air New Zealand announced it will begin three-times weekly new nonstop service between Auckland and New York/Newark, further strengthening the joint venture relationship between Air New Zealand and United Airlines.

In 2018, Air New Zealand and United Airlines announced new year-round nonstop Air New Zealand service between Chicago and Auckland.

"Air New Zealand's nonstop flight will cut travel time by around three hours, putting New Zealand in easy reach of New York and the East Coast United States," said Jeff McDowall, Air New Zealand's acting Chief Executive Officer. "It's terrific we can make a seamless journey a reality for Kiwis wanting to experience New York and for U.S. travelers who have added New Zealand to their bucket list and we look forward to partnering with United Airlines to grow travel in both directions."

"United's strong, strategic alliance partnership with Air New Zealand provides our customers with more options to travel between the United States and New Zealand than any other airline in the world and we are proud to partner on this first ever nonstop service connecting New Zealand with our hub at Newark Liberty International Airport," said John Gebo, United's senior vice president of Alliances. "We are excited to offer our shared customers another option when planning travel to beautiful New Zealand while conveniently connecting visitors to more than 90 destinations across the United States with just one-stop connections at our New York hub."

Air New Zealand service between New York/Newark and Auckland

Air New Zealand will operate three times weekly, year-round service with its newly configurated Boeing 787-9 Dreamliner aircraft. Flight time will be approximately 17 hours and 40 minutes southbound and 15 hours 40 minutes northbound.

Air New Zealand code share service will be offered on 90 flights across the U.S. for convenient connections to Auckland via New York/Newark. United Airlines operates more flights from its hub at Newark Liberty International Airport than any other airline, with more than 400 flights in the U.S. and around the world.

Since United and Air New Zealand began their alliance in 2016, the joint venture has opened up more travel options for U.S. and New Zealand travelers than ever before. Overall passenger volumes have grown as customers traveling from New Zealand to the U.S. connect to United's broad domestic network through its hubs in Chicago, Houston, Los Angeles and San Francisco.

Air New Zealand's new flights between New York/Newark and Auckland will be available for purchase beginning in November on united.com:

Flight No.

Operated by

Aircraft

Departs

Arrives

Frequency

NZ1

Air New Zealand

Boeing 787-9
Dreamliner

New
York/Newark

19:05

Auckland

06:45+2 days

Mon,
Thurs, Sat

NZ2

Air New Zealand

Boeing 787-9
Dreamliner

Auckland

19:55

New York/Newark

17:35

Mon,
Thurs, Sat


Subject to Government Approval

The above timings are subject to change

Every customer. Every flight. Every day.

In 2019, United is focusing more than ever on its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's news, United recently announced that MileagePlus miles will now never expire, giving members a lifetime to use miles on flights and experiences. Customers now have more free on board snack options as well, with a choice of Lotus Biscoff cookies, pretzels and the Stroopwafel. The airline also recently released a re-imagined version of the most downloaded app in the airline industry, introduced ConnectionSaver – a tool dedicated to improving the experience for customers connecting from one United flight to the next – and launched PlusPoints, a new upgrade benefit for MileagePlus 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 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 788 mainline aircraft and the airline's United Express partners operate 560 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 Air New Zealand

Air New Zealand is a multi-award winning international airline which delivers uniquely Kiwi journeys to more than 17 million customers who fly to, from and within New Zealand each year.

The airline operates on average more than 3,500 flights each week, connecting customers to 21 destinations within New Zealand and to international ports across Asia, Europe, Australia, North and South America and the Pacific Islands. For more information, visit www.airnewzealand.co.nz or follow the airline on Facebook or Twitter.

About Star Alliance

The Star Alliance network was established in 1997 as the first truly global airline alliance to offer worldwide reach, recognition and seamless service to the international traveller. Its acceptance by the market has been recognized by numerous awards, including the Air Transport World Market Leadership Award and Best Airline Alliance by both Business Traveller Magazine and Skytrax. The member airlines are: Aegean Airlines, Air Canada, Air China, Air India, Air New Zealand, ANA, Asiana Airlines, Austrian, Avianca, Brussels Airlines, Copa Airlines, Croatia Airlines, EGYPTAIR, Ethiopian Airlines, EVA Air, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Shenzhen Airlines, Singapore Airlines, South African Airways, SWISS, TAP Portugal, Turkish Airlines, THAI and United. Overall, the Star Alliance network currently offers more than 19,000 daily flights to 1,250 airports in 195 countries. Further connecting flights are offered by Star Alliance Connecting Partner, Juneyao Airlines. For more information about Star Alliance visit www.staralliance.com and/or follow Star Alliance on Facebook, Twitter, Youtube, LinkedIn or Instagram.

SOURCE United Airlines

For further information: United Airlines Worldwide Media Relations, 872.825.8640, media.relations@united.com

United Airlines Raises Full Year 2019 Adjusted Diluted Earnings Per Share Guidance

October 15, 2019

CHICAGO, Oct. 15, 2019 /PRNewswire/ -- United Airlines (UAL) today announced that it has achieved third quarter diluted earnings per share (EPS) of $3.99 and adjusted diluted EPS2 of $4.07, and raised its full year 2019 adjusted diluted EPS1 guidance, with a new range of $11.25 to $12.25.

"Thanks to the outstanding efforts of our employees, United extended our streak of expanding pre-tax margin on a quarterly basis. It provides us further confidence to raise our full year 2019 adjusted diluted EPS guidance, putting us ahead of pace to achieve our goal of $11 to $13 in adjusted diluted EPS by the end of 2020," said Oscar Munoz, CEO of United Airlines. "While headwinds affected the sector as a whole this quarter, United's team once again demonstrated a robust ability to overcome adverse cost pressure, managing to continue growing our network while investing in winning our customers' loyalty through smart enhancements to the United experience."

  • Reported third quarter net income of $1.0 billion, diluted earnings per share of $3.99, pre-tax earnings of $1.3 billion and pre-tax margin of 11.9 percent, expanding pre-tax margin 2.3 points versus the third quarter of 2018.
  • Reported third quarter adjusted net income of $1.0 billion, adjusted diluted EPS of $4.07, adjusted pre-tax earnings of $1.4 billion and adjusted pre-tax margin of 12.1 percent, expanding adjusted pre-tax margin 2.5 points versus the third quarter of 2018.²
  • Consolidated third quarter passenger revenue per available seat mile (PRASM) increased 1.7 percent year-over-year.
  • Consolidated third quarter unit cost per available seat mile (CASM) decreased 0.9 percent year-over-year.
  • Consolidated third quarter CASM, excluding special charges, third party business expenses, fuel and profit sharing, increased 2.1 percent year-over-year.
  • Repurchased $363 million of its common shares in the third quarter of 2019 at an average purchase price of $88.22 per share.
  • Raised $1.2 billion in Enhanced Equipment Trust Certificates at a record low blended interest rate of 2.8% in connection with the financing of certain aircraft.

1 Excludes special charges and the mark-to-market impact of financial instruments, the nature of which are not determined at this time, and imputed interest on certain finance leases. Accordingly, UAL is not providing earnings guidance on a GAAP basis.

2 Excludes special charges, the mark-to-market impact of financial instruments and imputed interest on certain finance leases. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in the tables accompanying this release.

For more information on UAL's fourth quarter and full year 2019 guidance, please visit ir.united.com for the company's investor update.

Third Quarter 2019 Highlights
Customer Experience

  • Announced MileagePlus award miles never expire, giving members a lifetime to use miles on flights, experiences, hotels and more.
  • Announced partnership with CLEAR which includes a free or discounted CLEAR membership for U.S. based MileagePlus members.
  • MileagePlus members between the ages of 18 to 22 receive a 10% discount on domestic flights when booked through the United mobile app by Dec. 31, 2019.
  • Announced improvements to United PassPlus, the airline's prepaid program that offers discounts, fixed fares and amenities to both individual and corporate customers.
  • Customers are now provided three inflight snack options on domestic flights regardless of departure time, including the Stroopwafel.
  • Customers can now pre pay for bags as soon as their ticket is issued. Previously customers had to wait until check-in to pay for their bags.
  • MileagePlus loyalty program was awarded Favorite Frequent-Flyer Program for the fourth time by Trazee Awards and the United Explorer Card from Chase was awarded Favorite Credit Card for the second consecutive year.

Operations

  • Achieved No. 1 in on-time departures in all hubs where United faces large hub competitors: Denver, Chicago and Los Angeles.
  • Completed introduction of ConnectionSaver to all of seven domestic hubs, saving over 35,000 connections in the quarter.

Employees

  • Honored with being recognized by search site indeed.com as a "Top 50 Workplace" for 2019.
  • Recognized for fourth consecutive year as a top-scoring company and best place to work for disability and inclusion with a perfect score of 100% on the 2019 Disability Equality Index.
  • Expects to hire about 8,000 people by the end of 2019.

Network

  • Announced 12 new and expanded international routes from Chicago, Denver, New York/Newark and San Francisco including Nice, France; Palermo, Italy; and Curacao.
  • Announced nonstop service to Tokyo Haneda with routes from Chicago, Los Angeles, New York/Newark and Washington, D.C., beginning March 28, 2020.
  • Resumed daily nonstop service between New York/Newark and Delhi and Mumbai on September 6.

Fleet

  • Launched Boeing 767-300ER ultra-premium United Polaris business class configuration on all flights between New York/Newark and London-Heathrow starting Sept. 15, 2019.
  • Took delivery of six used Airbus A319 aircraft and nine new Embraer E175 aircraft.

Community

  • Launched Crowdrise fundraising campaign for those affected by Hurricane Dorian.
  • Operated a Boeing 787-8 Dreamliner crewed exclusively by women to the largest airshow in the world, EAA AirVenture in Oshkosh, Wisconsin, to symbolize the airline's commitment to supporting women in aviation.

Investor Day

On March 5, 2020 United will host an investor event in New York. More details will be provided at a later date.

Earnings Call

UAL will hold a conference call to discuss its third-quarter 2019 financial results and its financial and operational outlook for fourth-quarter and full-year 2019 on Wednesday, October 16, 2019, at 9:30 a.m. Central time /10:30 a.m. Eastern time. A live, listen-only webcast of the conference call will be available at ir.united.com. The webcast will be available for replay within 24 hours of the conference call and then archived on the website for three months.

Every customer. Every flight. Every day.

In 2019, United is focusing more than ever on its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers' best interests at the heart of its service. In addition to today's announcement, this year United:

  • Announced that MileagePlus award miles will never expire
  • Gave Economy customers a choice of complimentary snacks on domestic flights
  • Made DIRECTV free for every customer on more than 200 aircraft
  • Released a new version of the award-winning, most downloaded app in the airline industry
  • Launched a new tool called ConnectionSaver, dedicated to improving the experience for customers with connecting flights
  • Partnered with CLEAR on free or discounted memberships for MileagePlus members
  • Announced PlusPoints, new upgrade benefits for MileagePlus Premier members
  • And introduced products in its amenity kits made exclusively for the airline by luxury skincare line Sunday Riley

About United

United's shared purpose is "Connecting People. Uniting the World." We are more focused than ever on our commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United Airlines and United Express operate approximately 4,900 flights a day to 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 788 mainline aircraft and the airline's United Express carriers operate 560 regional aircraft. United is a founding member of Star Alliance, which provides service to 195 countries via 26 member airlines. For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements included in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as "expects," "will," "plans," "anticipates," "indicates," "believes," "estimates," "forecast," "guidance," "outlook," "goals," "targets" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: our ability to execute our strategic operating plan, including our growth, revenue-generating and cost-control initiatives; general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aircraft fuel and energy refining capacity in relevant markets); risks of doing business globally, including instability and political developments that may impact our operations in certain countries; demand for travel and the impact that global economic and political conditions have on customer travel patterns; our capacity decisions and the capacity decisions of our competitors; competitive pressures on pricing and on demand; changes in aircraft fuel prices; disruptions in our supply of aircraft fuel; our ability to cost-effectively hedge against increases in the price of aircraft fuel, if we decide to do so; the effects of any technology failures or cybersecurity breaches; disruptions to services provided by third-party service providers; potential reputational or other impact from adverse events involving our aircraft or operations, the aircraft or operations of our regional carriers or our code share partners or the aircraft or operations of another airline; our ability to attract and retain customers; the effects of any terrorist attacks, international hostilities or other security events, or the fear of such events; the mandatory grounding of aircraft in our fleet; disruptions to our regional network; the impact of regulatory, investigative and legal proceedings and legal compliance risks; the success of our investments in other airlines, including in other parts of the world; industry consolidation or changes in airline alliances; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; costs associated with any modification or termination of our aircraft orders; disruptions in the availability of aircraft, parts or support from our suppliers; our ability to maintain satisfactory labor relations and the results of any collective bargaining agreement process with our union groups; any disruptions to operations due to any potential actions by our labor groups; labor costs; an outbreak of a disease that affects travel demand or travel behavior; the impact of any management changes; extended interruptions or disruptions in service at major airports where we operate; U.S. or foreign governmental legislation, regulation and other actions (including Open Skies agreements, environmental regulations and the United Kingdom's withdrawal from the European Union); the seasonality of the airline industry; weather conditions; the costs and availability of aviation and other insurance; the costs and availability of financing; our ability to maintain adequate liquidity; our ability to comply with the terms of our various financing arrangements; our ability to realize the full value of our intangible assets and long-lived assets; and other risks and uncertainties set forth under Part I, Item 1A., "Risk Factors," of our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, our Quarterly Report on Form 10-Q for the quarter ended June 30, 2019, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission.

-tables attached-

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

UNITED AIRLINES HOLDINGS, INC.

STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)



Three Months Ended

September 30,


%

Increase/



Nine Months Ended

September 30,


%

Increase/


(In millions, except per share data)

2019


2018


(Decrease)



2019


2018


(Decrease)


Operating revenue:














Passenger

$

10,481



$

10,120



3.6




$

29,692



$

28,150



5.5



Cargo

282



296



(4.7)




863



903



(4.4)



Other operating revenue

617



587



5.1




1,816



1,759



3.2



Total operating revenue

11,380



11,003



3.4




32,371



30,812



5.1

















Operating expense:














Salaries and related costs

3,063



2,930



4.5




8,993



8,534



5.4



Aircraft fuel

2,296



2,572



(10.7)




6,704



6,927



(3.2)



Regional capacity purchase

721



676



6.7




2,124



1,999



6.3



Landing fees and other rent

645



618



4.4




1,893



1,822



3.9



Depreciation and amortization

575



545



5.5




1,682



1,607



4.7



Aircraft maintenance materials and outside repairs

490



455



7.7




1,319



1,333



(1.1)



Distribution expenses

432



427



1.2




1,234



1,162



6.2



Aircraft rent

67



109



(38.5)




221



355



(37.7)



Special charges (B)

27



17



NM




116



186



NM



Other operating expenses

1,591



1,467



8.5




4,645



4,293



8.2



Total operating expense

9,907



9,816



0.9




28,931



28,218



2.5

















Operating income

1,473



1,187



24.1




3,440



2,594



32.6

















Operating margin

12.9

%


10.8

%


2.1


pts.


10.6

%


8.4

%


2.2


pts.

Adjusted operating margin (Non-GAAP) (A)

13.2

%


10.9

%


2.3


pts.


11.0

%


9.0

%


2.0


pts.















Nonoperating income (expense):














Interest expense

(191)



(172)



11.0




(570)



(497)



14.7



Interest capitalized

22



16



37.5




65



46



41.3



Interest income

36



28



28.6




103



70



47.1



Miscellaneous, net (B)

9



(1)



NM




32



(118)



NM



Total nonoperating expense

(124)



(129)



(3.9)




(370)



(499)



(25.9)

















Income before income taxes

1,349



1,058



27.5




3,070



2,095



46.5

















Pre-tax margin

11.9

%


9.6

%


2.3


pts.


9.5

%


6.8

%


2.7


pts.

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

12.1

%


9.6

%


2.5


pts.


9.8

%


7.6

%


2.2


pts.















Income tax expense (D)

325



225



44.4




702



434



61.8



Net income

$

1,024



$

833



22.9




$

2,368



$

1,661



42.6

















Diluted earnings per share

$

3.99



$

3.05



30.8




$

9.04



$

5.98



51.2



Diluted weighted average shares

256.4



273.6



(6.3)




262.0



278.0



(5.8)




NM Not meaningful

UNITED AIRLINES HOLDINGS, INC.

PASSENGER REVENUE INFORMATION AND STATISTICS


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



3Q 2019

Passenger

Revenue


3Q 2018

Passenger

Revenue (a)


Reporting
Adjustments
(b)


3Q 2018

Passenger

Revenue
(b)


Passenger

Revenue

vs.

3Q 2018
(b)


PRASM
vs.
3Q 2018
(b)


Yield vs.
3Q 2018
(b)


Available

Seat Miles

vs.

3Q 2018


3Q 2019
Available
Seat
Miles


3Q 2019
Revenue
Passenger
Miles

Domestic

$

6,554



$

6,253



$

56



$

6,309



3.9%


2.1%


2.3%


1.7%


42,670


36,940





















Atlantic

1,963



1,933



(38)



1,895



3.6%


0.8%


1.0%


2.8%


15,219


13,216

Pacific

1,121



1,163



(30)



1,133



(1.1)%


(3.4)%


(4.0)%


2.3%


10,858


9,038

Latin America

843



771



12



783



7.7%


7.2%


5.9%


0.4%


6,329


5,435

International

3,927



3,867



(56)



3,811



3.0%


0.9%


0.5%


2.2%


32,406


27,689





















Consolidated

$

10,481



$

10,120



$



$

10,120



3.6%


1.7%


1.6%


1.9%


75,076


64,629


(a) As previously reported.

(b) During the third quarter of 2019, United implemented a new revenue accounting software system which allowed it to more precisely determine the geographic regions associated with certain ancillary passenger revenue items. Prior to July 2019, those ancillary revenue items were determined using an allocation method that was based on revenue from passenger travel. While the total passenger revenue is not impacted, the geographic totals for each period are not comparable year-over-year due to the change. The third quarter 2018 passenger revenue presented in the table above, and utilized in the year-over-year comparisons displayed, was adjusted using the third quarter 2019 percentages.

Select operating statistics are as follows:



Three Months Ended

September 30,


%

Increase/

(Decrease)



Nine Months Ended

September 30,


%

Increase/

(Decrease)



2019


2018





2019


2018




Passengers (thousands)

43,091



42,886



0.5




122,137



118,439



3.1



Revenue passenger miles (millions)

64,629



63,393



1.9




180,727



173,187



4.4



Available seat miles (millions)

75,076



73,681



1.9




213,961



206,360



3.7



Passenger load factor:














Consolidated