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United Airlines Reports First-Quarter 2017 Performance

April 17, 2017

CHICAGO, April 17, 2017 /PRNewswire/ -- United Airlines (UAL) today announced its first-quarter 2017 financial results.

  • UAL reported first-quarter net income of $96 million, diluted earnings per share of $0.31, pre-tax earnings of $145 million and pre-tax margin of 1.7 percent.
  • Excluding special items, UAL reported first-quarter net income of $129 million, diluted earnings per share of $0.41, pre-tax earnings of $196 million and pre-tax margin of 2.3 percent.

Oscar Munoz, chief executive officer of United Airlines, said, "In the first quarter of 2017, our financial and operational performance gives us a lot of confidence about the foundation we are building. It is obvious from recent experiences that we need to do a much better job serving our customers. The incident that took place aboard Flight 3411 has been a humbling experience, and I take full responsibility. This will prove to be a watershed moment for our company, and we are more determined than ever to put our customers at the center of everything we do. We are dedicated to setting the standard for customer service among U.S. airlines, as we elevate the experience our customers have with us from booking to baggage claim."

First-Quarter Revenue

For the first quarter of 2017, revenue was $8.4 billion, an increase of 2.7 percent year-over-year. First-quarter 2017 consolidated passenger revenue per available seat mile (PRASM) was flat and consolidated yield increased 0.4 percent compared to the first quarter of 2017.

Scott Kirby, president of United Airlines, said, "United is delivering on the commitments we made at investor day last fall. We saw positive trends in the revenue environment in the quarter and are optimistic about the year ahead. Looking forward, we expect second-quarter consolidated PRASM to be up 1.0 to 3.0 percent. This would mark the fifth straight quarter of sequential improvement and the first quarter of positive unit revenue growth in two years."

First-Quarter Costs

Operating expense was $8.1 billion in the first quarter, up 7.9 percent year-over-year. Excluding special charges, operating expense was $8.1 billion, a 10.0 percent increase year-over-year. Consolidated unit cost per available seat mile (CASM) increased 5.1 percent compared to the first quarter of 2017 due largely to higher fuel expense and the impact of labor agreements ratified in 2017. First-quarter consolidated CASM, excluding special charges, third-party business expenses, fuel and profit sharing, increased 5.0 percent year-over-year, driven mainly by higher labor expense.

Liquidity and Capital Allocation

In the first quarter of 2017, UAL increased its revolving credit facility by $650 million to a total capacity of $2.0 billion with the full amount currently undrawn and increased its existing term loan by approximately $440 million with more favorable terms and rates. Also in the first quarter, the company raised $300 million of unsecured debt at 5 percent.

UAL generated $547 million in operating cash flow and ended the quarter with $6.4 billion in unrestricted liquidity, including its $2.0 billion revolving credit facility. The company's capital expenditures were $691 million in the first quarter. Including assets acquired through the issuance of debt and airport construction financing and excluding fully reimbursable projects, the company invested $1.4 billion during the first quarter in adjusted capital expenditures. The company contributed $80 million to its pension plans and made debt and capital lease principal payments of $346 million in the first quarter.

For the 12 months ended March 31, 2017, the company's pre-tax income was $3.5 billion and return on invested capital (ROIC) was 17.5 percent. In the quarter, UAL purchased $0.3 billion of its common shares at an average price of $68.41 per share. As of March 31, 2017, the company had approximately $1.5 billion remaining to purchase shares under its existing share repurchase authority.

Andrew Levy, executive vice president and chief financial officer of United Airlines, said, "During the quarter, we improved our liquidity and continued to return cash to shareholders. We remain focused on maintaining a strong balance sheet and finding incremental cost savings opportunities."

For more information on UAL's second-quarter 2017 guidance, please visit ir.united.com for the company's investor update.

First-Quarter Highlights

Customer Experience

  • Modernized airport screening experience with fully redesigned security checkpoint at Newark Liberty International Airport.
  • Debuted new Terminal C North at Houston's George Bush Intercontinental Airport – elevating the customer experience with roomier gate areas, the latest technology and chef-inspired dining choices.
  • United named "Eco-Airline of the Year" from Air Transport World magazine for its leadership in environmental action.
  • Launched United Jetstream, a new online portal for corporate and travel agency customers that simplifies the travel management process and gives customers an intuitive suite of self-service tools.
  • Launched new Basic Economy fare for travel between Minneapolis/St. Paul and any of United's seven U.S. hubs.

Network and Fleet

  • Began implementing plan to improve the company's route network with more destinations, more flights and more convenient connections, with expectations to add service to 31 destinations across the U.S. and Europe in 2017.
  • Took delivery of six Boeing 777-300ER aircraft, two Boeing 787-9 aircraft and one used Airbus A319 aircraft in the quarter.
  • Purchased 12 currently operated Boeing 737NG aircraft previously leased to the company.
  • Entered into a new partnership with Air Wisconsin Airlines to operate 50 regional jets under the United Express brand.

Operations and Employees

  • Achieved a record-setting 25 zero-cancellation days for the mainline operation in the quarter.
  • Consolidated completion factor was 97.5 percent in the first quarter, 0.6 points higher than the 96.9 percent from first-quarter 2017. This represents over 2,500 fewer flight cancellations compared to the first quarter of 2017.
  • Achieved best-ever consolidated on-time departure rate for both February and March and lowest-ever first-quarter mishandled bag rate in company history.
  • Employees earned cash-incentive payments of approximately $18 million for achieving operational performance goals in the quarter.

About United

United Airlines and United Express operate approximately 4,500 flights a day to 337 airports across five continents. In 2016, United and United Express operated more than 1.6 million flights carrying more than 143 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 743 mainline aircraft and the airline's United Express partners operate 478 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 190 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the NYSE under the symbol "UAL".

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: 

Certain statements included in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and 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; costs associated with any modification or termination of our aircraft orders; our ability to utilize our net operating losses; our ability to attract and retain customers; potential reputational or other impact from adverse events in our operations; 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 and political conditions have on customer travel patterns; excessive taxation and the inability to offset future taxable income; general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aircraft fuel and energy refining capacity in relevant markets); our ability to cost-effectively hedge against increases in the price of aircraft fuel if we decide to do so; any potential realized or unrealized gains or losses related to fuel or currency hedging programs; economic and political instability and other risks of doing business globally; the effects of any hostilities, act of war or terrorist attack; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; the effects of any technology failures or cybersecurity breaches; disruptions to our regional network; the costs and availability of aviation and other insurance; industry consolidation or changes in airline alliances; the success of our investments in airlines in other parts of the world; 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 any 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 our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, 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)
(In millions, except per share data)

(In millions, except per share data) Three Months Ended
March 31, 2017
Three Months Ended
March 31, 2016
%
Increase/
(Decrease)
Operating revenue:
Passenger:
Mainline
$5,831 $5,577 4.6
Operating revenue: Passenger: Regional 1,343 1,413 (5.0)
Operating revenue: Passenger: Total passenger revenue (B) 7,174 6,990 2.6
Operating revenue: Cargo 220 194 13.4
Operating revenue: Other operating revenue 1,026 1,011 1.5
Operating revenue: Total operating revenue 8,420 8,195 2.7
Operating expense:
Salaries and related costs
2,661 2,490 6.9
Operating expense: Aircraft fuel (C) 1,560 1,218 28.1
Operating expense: Landing fees and other rent 544 525 3.6
Operating expense: Regional capacity purchase 536 522 2.7
Operating expense: Depreciation and amortization 518 479 8.1
Operating expense: Aircraft maintenance materials and outside repairs 454 402 12.9
Operating expense: Distribution expenses 307 303 1.3
Operating expense: Aircraft rent 179 178 0.6
Operating expense: Special charges (D) 51 190 NM1
Operating expense: Other operating expenses 1,332 1,239 7.5
Operating expense: Other Operating Expenses: Total operating expenses 8,142 7,546 7.9
Operating income: Operating income 278 649 (57.2)
Operating margin 3.3% 7.9% (4.6) pts.
Operating margin, excluding special charges (A) (Non-GAAP) 3.9% 10.2% (6.3) pts.
Nonoperating income (expense):
Interest expense
(150) (159) (5.7)
Nonoperating income (expense): Interest capitalized 23 14 64.3
Nonoperating income (expense): Interest income 11 8 37.5
Nonoperating income (expense): Miscellaneous, net (D) (17) (18) (5.6)
Nonoperating income (expense): Miscellaneous, net (D): Total nonoperating expense (133) (155) (14.2)
Income before income taxes: Income before income taxes 145 494 (70.6)
Pre-tax margin 1.7% 6.0% (4.3) pts.
Pre-tax margin, excluding special items (A) (Non-GAAP) 2.3% 8.4% (6.1) pts.
Income tax expense (benefit) (E) 49 181 (72.9)
Net income $96 $313 (69.3)
Earnings per share, diluted $0.31 $0.88 (64.8)
Weighted average shares, diluted 315 355 (11.3)
  1. NM means Not Meaningful

 

UNITED CONTINENTAL HOLDINGS, INC.
STATISTICS
Statistics: Three Months Ended
March 31, 2017
Three Months Ended
March 31, 2016
%
Increase/
(Decrease)
Mainline:
Passengers (thousands)
23,825 22,277 6.9
Mainline:Revenue passenger miles (millions) 42,183 40,856 3.2
Mainline:Available seat miles (millions) 53,054 51,165 3.7
Mainline:Cargo ton miles (millions) 748 622 20.3
Mainline:Passenger revenue per available seat mile (cents) 10.99 10.90 0.8
Mainline:Average yield per revenue passenger mile (cents) 13.82 13.65 (1.2
Mainline:Aircraft in fleet at end of period 743 719 3.3
Mainline:Average stage length (miles) 1,802 1,859 (3.1)
Mainline:Average daily utilization of each aircraft (hours) 9:45 9:36 1.6
Regional:
Passengers (thousands)
9,280 9,810 (5.4)
Regional:Revenue passenger miles (millions) 5,428 5,726 (5.2)
Regional:Available seat miles (millions) 6,754 7,108 (5.0)
Regional:Passenger revenue per available seat mile (cents) 19.88 19.88
Regional:Average yield per revenue passenger mile (cents) 24.74 24.68 0.2
Regional:Aircraft in fleet at end of period 478 503 (5.0)
Regional:Average stage length (miles) 573 575 (0.3)
Consolidated (Mainline and Regional):
Passengers (thousands)
33,105 32,087 3.2
Consolidated (Mainline and Regional):Revenue passenger miles (millions) 47,611 46,582 2.2
Consolidated (Mainline and Regional):Available seat miles (millions) 59,808 58,273 2.6
Consolidated (Mainline and Regional):Passenger load factor:
Consolidated
79.6% 79.9% (0.3) pts.
Consolidated (Mainline and Regional):Domestic 83.3% 82.9% 0.4 pts.
Consolidated (Mainline and Regional):International 75.2% 76.4% (1.2) pts.
Consolidated (Mainline and Regional):Passenger revenue per available seat mile (cents) 12.00 12.00
Consolidated (Mainline and Regional):Total revenue per available seat mile (cents) 14.08 14.06 0.1
Consolidated (Mainline and Regional):Average yield per revenue passenger mile (cents) 15.07 15.01 0.4
Consolidated (Mainline and Regional):Aircraft in fleet at end of period 1,221 1,222 (0.1)
Consolidated (Mainline and Regional):Average stage length (miles) 1,451 1,461 (0.7)
Consolidated (Mainline and Regional):Average full-time equivalent employees (thousands) 85.2 82.5 3.3
  • 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, 2016 for the definition of these statistics.

 

UNITED CONTINENTAL HOLDINGS, INC.
SUMMARY FINANCIAL METRICS

Note (A) provides a reconciliation of non-GAAP financial metrics to the comparable GAAP financial metrics and provides the reasons UAL management believes these financial metrics are useful.
(In millions, except per share data)

Summary Financial Metrics: Three Months Ended
March 31, 2017
Three Months Ended
March 31, 2016
%
Increase/
(Decrease)
Operating income (GAAP) $278 $649 (57.2)
Operating margin (GAAP) 3.3% 7.9% (4.6) pts.
Operating income, excluding Special charges (Non-GAAP) 329 839 (60.8)
Operating margin, excluding Special charges (Non-GAAP) 3.9% 10.2% (6.3) pts.
Adjusted EBITDA, excluding special items (Non-GAAP) $830 $1,304 (36.3)
Adjusted EBITDA margin, excluding special items (Non-GAAP) 9.9% 15.9% (6.0) pts.
Adjusted EBITDAR, excluding special items (Non-GAAP) 1,009 1,482 (31.9)
Adjusted EBITDAR margin, excluding special items (Non-GAAP) 12.0% 18.1% (6.1) pts.
Pre-tax income (GAAP) $145 $494 (70.6)
Pre-tax margin (GAAP) 1.7% 6.0% (4.3) pts.
Pre-tax income, excluding special items (Non-GAAP) 196 688 (71.5)
Pre-tax margin, excluding special items (Non-GAAP) 2.3% 8.4% (6.1) pts.
Net income (GAAP) $96 $313 (69.3)
Net income, excluding special items (Non-GAAP) 129 435 (70.3)
Diluted earnings per share (GAAP) $0.31 $0.88 (64.8)
Diluted earnings per share, excluding special items (Non-GAAP) 0.41 1.23 (66.7)
Net cash provided by operating activities $547 $1,199 (54.4)
Capital expenditures $691 $816 (15.3)
Adjusted capital expenditures 1,354 823 64.5
Free cash flow, net of financings (Non-GAAP) $(144) $383 NM
Free cash flow (Non-GAAP) (807) 376 NM

 

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.
Return on invested captial: Twelve Months Ended
March 31, 2017
Net Operating Profit After Tax (NOPAT)
Pre-tax income excluding special items 2
$3,970
Pre-tax income excluding special items: NOPAT adjustments 3 975
NOPAT $4,945
Effective cash tax rate 4 0.5%
Invested Capital (five-quarter average)
Total assets
$40,552
Total assets: Invested capital adjustments 5 12,271
Average Invested Capital $28,281
Return on Invested Capital 17.5%
  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, 2017
Pre-tax income $3,470
Pre-tax income: Add: Special items 500
Pre-tax income excluding special items $3,970

 

UNITED CONTINENTAL HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION (Continued)

(A) Pursuant to SEC Regulation G, UAL has included the following reconciliations of reported Non-GAAP financial measures to comparable financial measures reported on a GAAP basis.

CASM is a common metric used in the airline industry to measure an airline's cost structure and efficiency. UAL reports CASM excluding special charges, third-party business expenses, fuel and profit sharing. UAL believes that adjusting for special charges is useful to investors because special charges are non-recurring charges not indicative of UAL's ongoing performance. UAL also believes that excluding third-party business expenses, such as maintenance, ground handling and catering services for third parties, 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. 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.
Non-GAAP Financial Reconciliation: Three Months Ended
March 31, 2017 in cents
Three Months Ended
March 31, 2016 in cents
%
Increase/
(Decrease)
CASM Mainline Operations (cents)
Cost per available seat mile (CASM)
13.22 12.47 6.0
CASM Mainline Operations (cents): Cost per available seat mile (CASM):Less: Special charges (D) 0.09 0.37 NM1
CASM Mainline Operations (cents): Cost per available seat mile (CASM): Less: Third-party business expenses 0.13 0.13
CASM Mainline Operations (cents): Cost per available seat mile (CASM): Less: Fuel expense 2.44 2.00 22.0
CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses and fuel 10.56 9.97 5.9
CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses and fuel: Less: Profit sharing per available seat mile 0.03 0.18 (83.3)
CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses, fuel, and profit sharing 10.53 9.79 7.6
CASM Consolidated Operations (cents)
Cost per available seat mile (CASM)
13.61 12.95 5.1
CASM Consolidated Operations (cents): Cost per available seat mile (CASM):Less: Special charges (D) 0.08 0.33 NM1
CASM Consolidated Operations (cents): Cost per available seat mile (CASM): Less: Third-party business expenses 0.12 0.11 9.1
CASM Consolidated Operations (cents): Cost per available seat mile (CASM): Less: Fuel expense 2.60 2.09 24.4
CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses and fuel 10.81 10.42 3.7
CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses and fuel: Less: Profit sharing per available seat mile 0.04 0.16 (75.0)
CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses, fuel, and profit sharing 10.77 10.26 5.0

 

UNITED CONTINENTAL HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION (Continued)

UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and Non-GAAP financial measures, including operating income (loss) excluding special charges, income (loss) before income taxes excluding special items, net income (loss) excluding special items, and net earnings (loss) per share excluding special items, among others. UAL also presented diluted earnings per share excluding special items for the periods presented in 2016 adjusted for the impact of tax expense using the effective tax rate from the respective period in 2017 in order to make the financial measures more comparable. UAL had minimal income tax expense in the second half of 2016 that was offset by the release of its deferred tax asset valuation allowance resulting in a net income tax benefit.
Non-GAAP Financial Reconciliation continued: Three Months Ended
March 31, 2017 (In millions)
Three Months Ended
March 31, 2016 (In millions)
$
Increase/
(Decrease)
%
Increase/
(Decrease)
Operating expenses $8,142 $7,546 $596 7.9
Operating expenses: Less: Special charges (D) 51 190 (139) NM1
Operating expenses, excluding special charges 8,091 7,356 735 10.0
Operating expenses, excluding special charges: Less: Third-party business expenses 68 67 1 1.5
Operating expenses, excluding special charges: Less: Fuel expense 1,560 1,218 342 28.1
Operating expenses, excluding special charges: Less: Profit sharing, including taxes 20 93 (73) (78.5)
Operating expenses, excluding fuel, profit sharing, special charges and third-party business expenses $6,443 $5,978 $465 7.8
Operating income $278 $649 $(371) (57.2)
Operating income: Less: Special charges (D) 51 190 (139) NM1
Operating income, excluding special charges $329 $839 $(510) (60.8)
Income before income taxes $145 $494 $(349) (70.6)
Income before income taxes: Less: special items before income taxes (D) 51 194 (143) NM1
Income before income taxes and excluding special items $196 $688 $(492) (71.5)
Net income $96 $313 $(217) (69.3)
Net income: Less: special items, net of tax (D) 33 122 (89) NM1
Net income, excluding special items 129 435 (306) (70.3)
Diluted earnings per share $0.31 $0.88 $(0.57) (64.8)
Diluted earnings per share: Less: special items 0.16 0.55 (0.39) NM1
Diluted earnings per share: Less: tax effect related to special items (0.06) (0.20) 0.14 NM1
Diluted earnings per share, excluding special items $0.41 $1.23 $(0.82) (66.7)

 

UNITED CONTINENTAL HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION (Continued)

UAL provides financial metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA) as well as earnings before interest, taxes, depreciation and amortization, and aircraft rent (EBITDAR), that we believe provides useful supplemental information for management and investors by measuring profit and profit as a percentage of total operating revenues. These financial metrics are adjusted for special items that are non-recurring and that management believes are not indicative of UAL's ongoing performance.
EBITDA and EBITDAR (in millions) Three Months Ended
March 31, 2017
Three Months Ended
March 31, 2016
Net income $96 $313
Adjusted For:
Depreciation and amortization
518 479
Adjusted For: Interest expense 150 159
Adjusted For: Interest capitalized (23) (14)
Adjusted For: Interest income (11) (8)
Adjusted For: Income tax expense 49 181
Adjusted For: Special items before income taxes (D) 51 194
Adjusted EBITDA, excluding special items 830 1,304
Adjusted EBITDA, excluding special items: Aircraft rent 179 178
Adjusted EBITDAR, excluding special items $1,009 $1,482
UAL believes that adjusting capital expenditures for assets acquired through the issuance of debt, airport construction financing and excluding fully reimbursable projects is useful to investors in order to appropriately reflect the non-reimbursable funds spent on capital expenditures.

 

Capital Expenditures (in millions) Three Months Ended
March 31, 2017
Three Months Ended
March 31, 2016
Capital Expenditures: Capital expenditures – GAAP $691 $816
Capital Expenditures: Capital expenditures – GAAP:Property and equipment acquired through the issuance of debt 711 59
Capital Expenditures: Capital expenditures – GAAP:Airport construction financing 21 9
Capital Expenditures: Capital expenditures – GAAP:Fully reimbursable projects (69) (61)
Capital Expenditures:Adjusted capital expenditures – Non-GAAP $1,354 $823
Free Cash Flow (in millions) Three Months Ended
March 31, 2017
Three Months Ended
March 31, 2016
Free Cash Flow: Net cash provided by operating activities $547 $1,199
Free Cash Flow: Net cash provided by operating activities: Less capital expenditures – Non-GAAP 691 816
Free Cash Flow: Free cash flow, net of financings - Non-GAAP $(144) $383
Free Cash Flow: Net cash provided by operating activities $547 $1,199
Free Cash Flow: Net cash provided by operating activities: Less adjusted capital expenditures – Non-GAAP 1,354 823
Free Cash Flow: Free cash flow - Non-GAAP $(807) $376

 

UNITED CONTINENTAL HOLDINGS, INC.
NOTES (UNAUDITED)

(B) Select passenger revenue information is as follows (in millions):
Notes unaudited: 1Q 2017
Passenger
Revenue
(millions)
Passenger
Revenue
vs.
1Q 2016
PRASM
vs.
1Q 2016
Yield
vs.
1Q 2016
Available
Seat Miles
vs.
1Q 2016
Domestic $4,358 3.0% (0.1%) (0.6%) 3.1%
Atlantic 1,048 0.8% 2.1% 3.7% (1.3%)
Pacific 987 3.7% (3.5%) (0.1%) 7.4%
Latin America 781 2.0% 2.8% 2.3% (0.8%)
International 2,816 2.1% 0.0% 1.6% 2.1%
Consolidated $7,174 2.6% 0.0% 0.4% 2.6%
Mainline $5,831 4.6% 0.8% 1.2% 3.7%
Regional 1,343 (5.0%) 0.0% 0.2% (5.0%)
Consolidated $7,174

 

UNITED CONTINENTAL HOLDINGS, INC.
NOTES (UNAUDITED)

(C) UAL's results of operations include fuel expense for both mainline and regional operations. (In millions, except per gallon)
Notes unaudited: Three Months Ended
March 31, 2017
Three Months Ended
March 31, 2016
%
Increase/
(Decrease)
Mainline fuel expense excluding hedge impacts $1,290 $885 45.8
Hedge losses reported in fuel expense 6 (2) (138) NM1
Total mainline fuel expense 1,292 1,023 26.3
Regional fuel expense 268 195 37.4
Consolidated fuel expense 1,560 1,218 28.1
Mainline fuel consumption (gallons) 761 734 3.7
Mainline average aircraft fuel price per gallon $1.70 $1.39 22.3
Mainline average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense $1.70 $1.21 40.5
Regional fuel consumption (gallons) 149 156 (4.5)
Regional average aircraft fuel price per gallon $1.80 $1.25 44.0
Consolidated fuel consumption (gallons) 910 890 2.2
Consolidated average aircraft fuel price per gallon $1.71 $1.37 24.8
Consolidated average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense $1.71 $1.21 41.3
  1. Includes losses from settled hedges that were designated for hedge accounting. UAL allocates 100 percent of hedge accounting gains (losses) to mainline fuel expense.
  2. Includes ineffectiveness losses on settled hedges and losses on settled hedges that were not designated for hedge accounting. Ineffectiveness gains (losses) and gains (losses) on hedges that do not qualify for hedge accounting are recorded in Nonoperating income (expense): Miscellaneous, net.

 

UNITED CONTINENTAL HOLDINGS, INC.
NOTES (UNAUDITED)

(D) Special items include the following:
(In millions) Three Months Ended
March 31, 2017 (In millions)
Three Months Ended
March 31, 2016 (In millions)
Operating:
Operating: Severance and benefit costs
$37 $8
Labor agreement costs 100
Operating: Cleveland airport lease restructuring 74
Operating: (Gains) losses on sale of assets and other special charges 14 8
Operating: (Gains) losses on sale of assets and other special charges: Special charges 51 190
Nonoperating and income taxes:
Foreign currency loss
8
Nonoperating and income taxes: Income tax benefit related to special charges (18) (72)
Nonoperating and income taxes: Income tax expense (benefit) related to special charges: Total operating and nonoperating special charges, net of income taxes 33 126
Nonoperating and income taxes: Prior period losses on fuel derivative contracts settled in the current period (4)
Nonoperating and income taxes: Prior period gains (losses) on fuel derivative contracts settled in the current period:Total special items, net of income taxes $33 $122

 

Special items

 

Severance and benefit costs: During the three months ended March 31, 2017, the company recorded $21 million ($14 million net of taxes) of severance and benefit costs primarily related to a voluntary early-out program for its technicians and related employees represented by the International Brotherhood of Teamsters. In the first quarter of 2017, approximately 1,000 technicians and related employees 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 early 2019. The company also recorded $16 million ($10 million net of taxes) of severance related to its management reorganization initiative.

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.

 

Labor agreement costs: In April 2016, the fleet service, passenger service, storekeeper and other employees represented by the International 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 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 recorded a net charge of $74 million ($47 million net of taxes) related to the amended lease.

 

Foreign currency loss: During the three months ended March 31, 2016, the company recorded $8 million of losses ($5 million net of taxes) due to exchange rate changes in Venezuela applicable to funds held in local currency.

 

Prior period losses on fuel derivative contracts settled in the current period: Prior to 2017, the company used certain combinations of derivative contracts that were economic hedges but did not qualify for hedge accounting under U.S. generally accepted accounting principles.  As with derivatives that qualified for hedge accounting, the economic hedges and individual contracts were part of the company's program to mitigate the adverse financial impact of potential increases in the price of fuel. The company recorded changes in the fair value of the various contracts that were not designated for hedge accounting to Nonoperating income (expense): Miscellaneous, net in the statements of consolidated operations. For fuel derivative contracts that settled in the three months ended March 31, 2016, the company recorded mark-to-market losses of $4 million in prior periods.

 

(E) Effective tax rate: The company's effective tax rate for the three months ended March 31, 2017 and 2016 was 33.8% and 36.6%, respectively, which represented a blend of federal, state and foreign taxes and included the impact of certain nondeductible items. The effective tax rate for the three months ended March 31, 2017 reflects the impact of discrete events including the recognition of excess tax benefits related to employee stock compensation as a result of the adoption of ASU 2016-09, as well as a change in the mix of domestic and foreign earnings.

 
 

 

 

 

SOURCE United Airlines

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

United Airlines Announces Headquarters to Remain at Iconic Willis Tower

March 13, 2019

CHICAGO, March 13, 2019 /PRNewswire/ -- United Airlines announced today it will keep its headquarters at the iconic Willis Tower in the airline's hometown of Chicago, while partnering with the building's owner, Blackstone, in making major investments to completely transform the current workspace and experience.

The new deal to remain at Willis Tower provides the airline with a tremendous opportunity to completely reimagine the workspace from the bottom up. Over the coming months and years, United will be embarking on a process to redesign workspaces to allow employees to better collaborate, use the latest technology and interact with each other with the end goal of providing unmatched service to front-line employees and customers. By making these investments, it also enables United to better recruit and retain top talent from the Chicagoland area and beyond who have come to expect modern and more efficient places of work.

"As one of the city's largest private employers and its hometown airline, we are excited to deepen our roots here in Chicago while making the investments needed to reimagine the headquarters for our employees," said Oscar Munoz, United's chief executive officer. "The investments we are making will help our employees provide unparalleled service to our front-line colleagues and to our customers as we continue to improve and realize our airline's full potential."

The new agreement extends United's existing lease to March 31, 2033. Additionally, Blackstone is already investing more than $500 million into Willis Tower for all tenants, which will transform the building from the inside out.

"We are thrilled with United's decision to remain at Willis Tower in a reimagined headquarters," said Jon Gray, Blackstone's president. "This is terrific news for Chicago and a testament to our exciting $500 million revitalization program underway at the property. We look forward to partnering with United in this effort. Willis Tower will continue its role as an iconic business, retail and tourist destination in the heart of the city."

As one of the most ideally situated buildings in the city, with easy access to all CTA train lines, Union and Ogilvie Stations, as well as nearby bus stops, Willis Tower already provides distinct advantages and will remain attractive to future job seekers throughout the metropolitan region. Commercial real estate services firm JLL represented United in the deal.

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, United recently released a re-imagined version of the most downloaded app in the airline industry and made DIRECTV free for every passenger on 211 aircraft, offering more than 100 channels on seat back monitors on more than 30,000 seats. The multimillion-dollar investment in improving inflight entertainment options will benefit the more than 29 million people expected to fly United's DIRECTV-enabled planes this year.

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 4,800 flights a day to 353 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 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. United is a founding member of Star Alliance, which provides service to 193 countries via 28 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 Continental 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

Meet United Airlines' New Meetings Portal, Available on United Jetstream

March 11, 2019

CHICAGO, March 11, 2019 /PRNewswire/ -- United Airlines is improving the way customers plan travel for meetings, conferences, conventions and more with the launch of its new state-of-the-art United Meetings product, available on the airline's business portal, United Jetstream. The new product makes managing travel and redeeming rewards for meetings and events quicker and more streamlined with enhancements that include discounts accessible in one business day, instant amenity redemption and personalized reports accessible at the click of a mouse.

"At United, our mission is to connect people and unite the world. This new Meetings portal on Jetstream allows us to do just that by making it easier and more rewarding to bring people together for meetings, events, conferences and more," said Jake Cefolia, senior vice president of worldwide sales at United. "We're listening to our customers and making changes that they ask for as we continue to make traveling and working with United better every day."

United Meetings handles the work of getting attendees to events around the world in comfort and with a discount. The new portal makes it easy for meeting planners to make a request and receive flexible discounts for participants within one business day, and quickly turn travel funds into rewards such as beverage coupons, travel certificates, United Club passes and memberships and more. The site also provides planners with a personalized dashboard to track the number of tickets booked, flights flown, amenities funds earned and the number of tickets needed for the next amenity award, helping users stay up-to-date on rewards and meetings attendance.

United Meetings is available to organizations around the world who are interested in hosting a meeting of 10 or more participants. Discounts are extended to travel on United's Star Alliance and joint venture partners, making traveling and connecting on partner airlines seamless.

United is continuing to add value to its Meetings product to deliver an experience and tool that meets and exceeds the needs of its customers. To get started with hosting a meeting, or to become a United Meetings customer visit http://www.united.business/meetings.

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. United recently announced the addition of more than 1,600 new premium seats to international, domestic and regional aircraft, creating more comfort for more customers in the skies. Additionally, United recently released a re-imagined version of the most downloaded app in the airline industry and made DIRECTV free for every passenger on 211 aircraft, offering more than 100 channels on seat back monitors on more than 30,000 seats. The multimillion-dollar investment in improving inflight entertainment options will benefit the more than 29 million people expected to fly United's DIRECTV-enabled planes this year.

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 4,800 flights a day to 353 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 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. United is a founding member of Star Alliance, which provides service to 193 countries via 28 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 Continental 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 Springs Forward with New Routes Starting this Month

March 08, 2019

CHICAGO, March 8, 2019 /PRNewswire/ -- United Airlines is expanding its route network this month by launching service this weekend from Cleveland, Denver and Los Angeles to eight cities in California, Florida and Texas. The new service, announced last year, offers customers even more options when traveling over spring break and to warmer destinations this summer.

"These new routes demonstrate our continued commitment to offer our customers more choices than any other airline while making the travel experience more convenient," said Ankit Gupta, United's vice president of domestic network planning.

New routes starting this weekend:

Depart

Arrive

Start Day

Los Angeles (LAX)

Redding, CA (RDD)

March 8, 2019

Denver (DEN)

Santa Rosa, CA (STS)

March 8, 2019

Denver (DEN)

Brownsville, TX (BRO)

March 9, 2019

Denver (DEN)

West Palm Beach, FL (PBI)

March 9, 2019

Denver (DEN)

Pensacola, FL (PNS)

March 9, 2019

Denver (DEN)

Sarasota, FL (SRQ)

March 9, 2019

Denver (DEN)

Destin/Fl. Walton Beach, FL (VPS)

March 9, 2019

Cleveland (CLE)

Tampa, FL (TPA)

March 9, 2019

Later this month, United customers can look forward to 10 more cities from Denver, Los Angeles, New York/Newark, San Francisco and Washington, D.C., including inaugural service from Paine Field in Everett, Washington to Denver and San Francisco. Paine Field airport, is located north of Seattle and is among the fasting growing areas in the nation. By connecting Paine Field to two of the airline's largest hubs, United customers will now have more convenient access to United's worldwide network.

New domestic routes include:

Depart

Arrive

Start Day

Los Angeles (LAX)

Eugene, OR (EUG)

March 30, 2019

Denver (DEN)

Everett, WA (PAE)

March 31, 2019

Denver (DEN)

Flagstaff, AZ (FLG)

March 31, 2019

Newark (EWR)

Hilton Head Island, SC (HHH)

March 31, 2019

Dulles (IAD)

Elmira, NY (ELM)

March 31, 2019

Dulles (IAD)

Manchester, NH (MHT)

March 31, 2019

Dulles (IAD)

Hilton Head Island, SC (HHH)

March 31, 2019

Los Angeles (LAX)

Madison, WI (MSN)

March 31, 2019

Los Angeles (LAX)

Pasco, WA (PSC)

March 31, 2019

San Francisco (SFO)

Everett, WA (PAE)

March 31, 2019

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. United recently announced the addition of more than 1,600 new premium seats to international, domestic and regional aircraft, creating more comfort for more customers in the skies. Additionally, United recently released a re-imagined version of the most downloaded app in the airline industry and made DIRECTV free for every passenger on 211 aircraft, offering more than 100 channels on seat back monitors on more than 30,000 seats. The multimillion-dollar investment in improving inflight entertainment options will benefit the more than 29 million people expected to fly United's DIRECTV-enabled planes this year.

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 4,800 flights a day to 353 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 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. United is a founding member of Star Alliance, which provides service to 193 countries via 28 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 Continental 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

New Maintenance Complex Deepens United Airlines' Commitment to Los Angeles, with Nearly $1 Billion Recent Investment at LAX

February 28, 2019

LOS ANGELES, Feb. 28, 2019 /PRNewswire/ -- Today, United Airlines and Los Angeles World Airports (LAWA) broke ground on a state-of-the-art Technical Operations Center (TOC) at Los Angeles International Airport (LAX) that will enable the airline to provide exceptional service for all of its aircraft fleets. The new facility will include two connected buildings – a ground service equipment and facilities maintenance building and a line maintenance hangar, including an engine support shop that will focus on the aircraft's Dreamliner fleet. The commencement of this $352 million TOC pushes the airline's investments at its Los Angeles hub to nearly $1 billion in recent years.

The new TOC will consolidate two facilities that United currently operates at LAX that are located a mile and a half apart, improving efficiency with not only moving aircraft around the airport but with transporting employees, parts, tools and other supplies – ultimately leading to a more efficient operation for customers. The TOC will be located near the airline's terminal and stand at 407,408 square feet. The facility's hangar will be able to accommodate up to six narrow-body or two widebody aircraft at a time, supporting United's 150 flights that depart from LAX every day. The TOC will help United's growing operation in Los Angeles by continuing to deliver an on time, safe and reliable operation.

"Our continued investments emphasize our commitment to our customers in Los Angeles as California's global airline. This modern, world-class facility will create more than 800 jobs in L.A. during the construction process, and will be home to more than 500 United employees once it is completed," said Greg Hart, chief operations officer at United. "This builds on our recently completed nearly $600 million renovation to our terminal at LAX, including opening a brand-new United Polaris lounge earlier this year."

"Los Angeles World Airports and United Airlines have a shared vision for modern and efficient facilities," said Deborah Flint, CEO, LAWA. "United Airlines' new LAX Technical Operations Center integrates state-of-the-art technology and a modern design that complements the transformation that is taking place across LAX. This project will create hundreds of local jobs and bring us one step closer to the Gold-Standard airport that Los Angeles deserves."

United tapped AECOM Hunt to be the prime contractor for the project, and selected FSB as lead architect for the facility. The airline is also partnering with AvAirPros, which is providing project management services during construction of the TOC.

United is also investing in additional maintenance facilities at key airports around the country. Tampa airport authorities recently approved a ground lease for a new hangar that will have room for two Boeing 737MAX aircraft. The airline is also continuing construction on an expansive new technical operations center at Houston's George Bush Intercontinental Airport, which consolidates the airline's maintenance operations in a complex that provides greater efficiency and flexibility. United is also moving into a new hangar in Portland, Oregon and working with the City of Chicago to create a new hangar as part of the O'Hare Modernization Program.

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. United recently announced the addition of more than 1,600 new premium seats to international, domestic and regional aircraft, creating more comfort for more customers in the skies. Additionally, United recently released a re-imagined version of the most downloaded app in the airline industry and made DIRECTV free for every passenger on 211 aircraft, offering more than 100 channels on seat back monitors on more than 30,000 seats. The multimillion-dollar investment in improving inflight entertainment options will benefit the more than 29 million people expected to fly United's DIRECTV-enabled planes this year.

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 4,800 flights a day to 353 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 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. United is a founding member of Star Alliance, which provides service to 193 countries via 28 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 Continental 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 Giving Women Artists A Larger Than Life Canvas: An Aircraft

February 28, 2019

CHICAGO, Feb. 28, 2019 /PRNewswire/ -- In advance of Women's History Month beginning on Friday, United Airlines is launching a first-of-its-kind contest designed to find and uplift underrepresented women artists by providing a chance to paint a canvas like no other — a United Airlines aircraft. While 51% of today's artists are women, less than 13% of art on display in museums is by women artists according to The National Museum of Women in the Arts. Painting a Boeing 757 provides artists with a traveling canvas that flies on average 1.6 million miles a year and 476 cross-country trips. The aircraft is roughly 3,666 times larger than the typical 18" x 24" canvas.

"As a company, we believe in the importance of equality of women in what has historically been a male dominated field," said Jill Kaplan, United's president for New York and New Jersey. "When we heard the statistics about how underrepresented women are when it comes to displaying their art, we thought what better way to contribute to changing this narrative than by offering the biggest canvas we have access to – an aircraft."

United has long been committed to being a leader in advancing women in the aviation industry. Today the carrier has more women who are pilots than any other airline in the world, including Bebe O'Neil, United's System Chief Pilot, who manages the carrier's 12,600 pilots. The airline has worked with Women in Aviation, a nonprofit organization which provides networking, education, mentoring, and scholarship opportunities, for more than 25 years and Girls in Aviation Day to ensure a growing number of female pilots.

"As a global company with inclusion at our core, we constantly seek unique opportunities to celebrate and showcase diverse talents," United's California President Janet Lamkin commented. "We are thrilled to have the opportunity through this unique contest to bring visibility to the work of these exceptional female artists. We take pride in leveraging our global presence to showcase their great work to millions of people who see our planes on the ground and in the sky."

To enter, individuals must identify as a woman, including cisgender, transgender, woman-aligned or non-binary, and reside in the United States, who can visually represent either New York/New Jersey or California, two key markets for the airline, in their own style, while combining the company's mission and what the communities in each region mean to the artist. Two winners, one representing each region, will be chosen and given a chance to work alongside renowned artist Shantell Martin to finalize a design for their respective region's plane. Shantell brings to the contest her talents and work, from the New York City Ballet to a collaboration with Pulitzer Prize-winning artist Kendrick Lamar, which are full of whimsical drawings and storytelling, that are dedicated to making sure other women artists are seen.

To enter, individuals are encouraged to visit united.com/HerArtHere and submit a design idea, examples of their work portfolio along with a short video by March 24, 2019. Submissions will be judged and narrowed down to three finalists by a panel of judges from each region, led by each region's president, Janet Lamkin in California and Jill Kaplan in New York/New Jersey from March 25 – April 9, 2019, followed by a public vote from April 10 – April 19, 2019 to determine the winning artists from each region. Finalists and winners will also receive their own open gallery show, have their art work on display inside United Airlines terminals through 2019 with their works available to purchase and they will also be awarded 100,000 MileagePlus award miles. The final designs will take flight this fall.

Customers in Los Angeles and New York have an opportunity to visit murals by Shantell Martin as part of this contest. Each mural showcases interactive airplane windows that lead to videos with more information. The murals will be on display from now until March 18 at 799 West 8th Street, Los Angeles, CA and at 38 Norman Ave, Brooklyn, NY.

For additional information and complete rules visit: united.com/HerArtHere

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, United recently released a re-imagined version of the most downloaded app in the airline industry and made DIRECTV free for every passenger on 211 aircraft, offering more than 100 channels on seat back monitors on more than 30,000 seats. The multimillion-dollar investment in improving inflight entertainment options will benefit the more than 29 million people expected to fly United's DIRECTV-enabled planes this year.

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 4,800 flights a day to 353 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 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. United is a founding member of Star Alliance, which provides service to 193 countries via 28 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 Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

SOURCE United Airlines

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

United Airlines to Present at 2019 J.P. Morgan Aviation, Transportation and Industrials Conference

February 27, 2019

CHICAGO, Feb. 27, 2019 /PRNewswire/ -- United Airlines (UAL) will present at the 2019 J.P. Morgan Aviation, Transportation and Industrials Conference on Tuesday, March 5. Scott Kirby, president of United Airlines, will present at the conference beginning at 9:30 a.m. ET / 8:30 a.m. CT.

The live webcast and accompanying presentation will be available on the investor relations section of United's website at ir.united.com. The company will archive the audio webcast on the website within 24 hours of the presentation and the webcast will be available for a limited time.

Every customer. Every flight. Every day.

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, United recently released a re-imagined version of the most downloaded app in the airline industry and made DIRECTV free for every passenger on 211 aircraft, offering more than 100 channels on seat back monitors on more than 30,000 seats. The multimillion-dollar investment in improving inflight entertainment options will benefit the more than 29 million people expected to fly United's DIRECTV-enabled planes this year.

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 4,800 flights a day to 353 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 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. United is a founding member of Star Alliance, which provides service to 193 countries via 28 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 Continental 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 Taps Industry Veteran for Senior Role; Robert Rivkin Named SVP and General Counsel

February 22, 2019

CHICAGO, Feb. 22, 2019 /PRNewswire/ -- United Airlines today named transportation industry veteran Robert S. Rivkin senior vice president and general counsel. For the last three decades, Rivkin has drawn on his exceptional legal skills while serving in leadership positions in the airline industry, the U.S. Department of Transportation (DOT) and local government. Rivkin brings this unique background and extraordinary skill set to a top role at one of the world's leading airlines. At United, he will be responsible for all legal matters, as well as ethics, compliance, government contracting and security. Rivkin will report to Executive Vice President and Chief Administrative Officer Brett Hart.

"Bob's distinguished career in public service, the legal community and the airline industry make him an ideal fit for this critical role on our United team. He's a proven leader who will make an immediate impact as we work to fulfill United's incredible potential," said United Airlines Chief Executive Officer Oscar Munoz.

Rivkin is no stranger to the commercial aviation industry, having served as deputy general counsel for Delta Air Lines from 2013 to 2016. Prior to joining Delta, he served as general counsel for the DOT from 2009 to 2013, where he was sworn in following a unanimous confirmation by the U.S. Senate. Currently, Rivkin serves as the deputy mayor of the City of Chicago. He has also worked in private law practice and as a federal prosecutor.

Rivkin graduated magna cum laude from Harvard College, and received a juris doctorate degree from Stanford Law School, where he was an associate editor of the Stanford Law Review. Rivkin and his wife of more than 30 years have three children. Rivkin's last day as Chicago's deputy mayor will be February 28, and he will start his new role at United the week of March 18.

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, United recently released a re-imagined version of the most downloaded app in the airline industry and made DIRECTV free for every passenger on 211 aircraft, offering more than 100 channels on seat back monitors on more than 30,000 seats. The multimillion-dollar investment in improving inflight entertainment options will benefit the more than 29 million people expected to fly United's DIRECTV-enabled planes this year.

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 4,800 flights a day to 353 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 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. United is a founding member of Star Alliance, which provides service to 193 countries via 28 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 Continental 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 Applies to Serve Tokyo Haneda from Six Leading U.S. Hubs

February 21, 2019

CHICAGO, Feb. 21, 2019 /PRNewswire/ -- United Airlines announced today it has filed an application with the U.S. Department of Transportation (DOT) for a total of six daily nonstop flights to Tokyo Haneda Airport (HND) from Newark Liberty International Airport (EWR), Chicago O'Hare International Airport (ORD), Washington Dulles International Airport (IAD), Los Angeles International Airport (LAX), Houston George Bush Intercontinental Airport (IAH) and Guam's A.B. Won Pat International Airport (GUM). Pending completion of an aviation agreement between the U.S. and Japanese governments later this year, and slots awarded by DOT, the flights are expected to begin service by the summer of 2020.

United has presented a proposal maximized to meet consumer demand and benefit U.S. travelers. Together, the flights from five U.S. mainland hub cities and Guam will connect Tokyo Haneda with 112 U.S. airports, representing approximately two thirds of U.S.-Tokyo demand, or more than three million annual Tokyo bookings. With United's proposed routes representing five of the six largest metropolitan areas in the U.S. mainland and a combined population of nearly 56 million, the new flights requested in this proceeding will provide consumers with more choices and more convenient options when selecting Tokyo Haneda for their travel plans.

"If awarded by the DOT, these new nonstop flights would expand United's best-in-class Japan route network to better meet demand from U.S. consumers and businesses," said United Airlines President Scott Kirby. "Tokyo is a hub of 21st century global commerce and innovation and one of the world's most popular tourist destinations. Today's filing demonstrates United's unparalleled commitment to helping more Americans travel between our nation and Japan's capital city. Our proposed flights to Tokyo Haneda will offer an unrivaled experience and maximize choice and convenience for our customers traveling between the United States and Tokyo for the Olympic Games Tokyo 2020 and beyond."

United's proposed daily flights from Newark/New York, Los Angeles and Guam would supplement the airline's existing daily flights between those hubs and Tokyo's Narita International Airport (NRT), while United would shift existing daily nonstop Chicago, Washington D.C. and Houston flights from Tokyo Narita to Tokyo Haneda.

United's application will also support American businesses and help grow the U.S. economy by offering direct flights from key business, government and cultural hubs where demand for flights to Haneda, the closest airport to central Tokyo, is the highest. With these new flights in place, United would provide Haneda service from:

  • The largest market for travel demand between the U.S. mainland and Tokyo (Los Angeles);
  • The two largest markets for travel demand between the East Coast and Tokyo (Newark/New York and Washington, D.C.);
  • The two largest markets for travel demand between the central U.S. and Tokyo (Chicago and Houston); and
  • Guam, a market with significant travel demand from a Japanese tourist base that is critical to the island's tourism industry, economy and job market.

United's proposal would help realize the full potential of these new routes for U.S. consumers and businesses by expanding United's broad-based and end-to-end network between the United States and Japan. United's proposed flights to Haneda would allow U.S. consumers to make connections to 37 points in Japan via United's joint venture partner All Nippon Airways (ANA), strengthening United's existing comprehensive network when combined with nonstop or single-connection service from 112 U.S. airports.

United has proven its long-term commitment to Tokyo as a key gateway in Asia, serving Tokyo from 100 percent of its U.S. hubs. United also serves 31 markets in the Asia/Pacific region, more than any other U.S. carrier, and has successfully launched 11 new nonstop flights from the U.S. mainland to destinations throughout the Asia/Pacific region since 2014.

United's application is in response to the U.S. DOT instituting a competitive route proceeding to allocate slot pairs, with today's application filed under DOT proceeding # DOT-OST-2019-0014. For more information about United's bid, please visit UnitedToHaneda.com.

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, United recently released a re-imagined version of the most downloaded app in the airline industry and made DIRECTV free for every passenger on 211 aircraft, offering more than 100 channels on seat back monitors on more than 30,000 seats. The multimillion-dollar investment in improving inflight entertainment options will benefit the more than 29 million people expected to fly United's DIRECTV-enabled planes this year.

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 4,800 flights a day to 353 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 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. United is a founding member of Star Alliance, which provides service to 193 countries via 28 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 Continental Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

SOURCE United Airlines

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

United Airlines to Present at Barclays Industrial Select Conference 2019

February 18, 2019

CHICAGO, Feb. 18, 2019 /PRNewswire/ -- United Airlines will present at Barclays Industrial Select Conference on Wednesday, February 20. United Airlines' Vice President of Pricing and Revenue Management Dave Bartels and Vice President of Finance and CFO of Commercial Jonathan Ireland will present at the conference beginning at 1:15 p.m. ET / 12:15 p.m. CT.

The live webcast will be available on the investor relations section of United's website at ir.united.com. The company will archive the audio webcast on the website within 24 hours of the presentation, and the webcast will be available for a limited time.

About United

United's shared purpose is "Connecting People. Uniting the World." 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 4,800 flights a day to 353 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 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. United is a founding member of Star Alliance, which provides service to 193 countries via 28 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 Continental 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 Adds More Than 1,600 New Premium Seats to International, Domestic and Regional Aircraft; More Comfort for More Customers in the Skies

February 06, 2019

CHICAGO, Feb. 6, 2019 /PRNewswire/ -- United Airlines today announced the next step in its commitment to making more customers more comfortable by adding more than 1,600 United Polaris® business class and United First seats to nearly 250 international and domestic aircraft. Additionally, United will revolutionize the regional flying experience by introducing the two-cabin, 50-seat Bombardier CRJ 550 aircraft to its fleet, offering customers on key regional routes more legroom, storage and amenities than any other 50-seat regional aircraft operating today.

Click here to view an infographic on United's newly reconfigured aircraft

"In an era where many airlines are adding seats to their aircraft to crowd more passengers onto the plane, we're re-configuring more than 100 of our aircraft and doing exactly the opposite – for the benefit of our customers," said Andrew Nocella, United's executive vice president and chief commercial officer. "From adding more premium seats on aircraft that serve some of our most traveled routes, introducing a revolutionary, best-in-class 50-seat experience or simply offering free DIRECTV on more than 200 aircraft, we are committed to making United the airline that our customers choose to fly."

More United Polaris business seats on Boeing 767-300ER aircraft

In the next several weeks, United will introduce to its fleet the first of 21 reconfigured Boeing 767-300ER aircraft featuring 16 additional United Polaris business seats in the premium cabin – a more than 50 percent increase in all-aisle-access seating – bringing the total premium cabin seat count to 46. The newly reconfigured aircraft will also feature 22 United® Premium Plus seats (becoming the first 767-300ER to offer this seat type); 47 Economy Plus® seats and 52 Economy seats. United will first operate the reconfigured 767 – which will feature the highest proportion of premium seats on any widebody operated by any U.S. carrier – between Newark/New York and London, offering 50 percent more premium seats in the largest premium route in the world. The airline expects to introduce all the reconfigured aircraft to its fleet by the end of next year.

More United First seats on Airbus A319 and A320 aircraft

United is also adding more United First® seats to its fleet of Airbus aircraft, offering customers greater opportunities to upgrade and enjoy a premium flying experience. Beginning this fall, the carrier will add four United First seats on its fleet of Airbus A319s, increasing the total count from eight to 12. The reconfigured aircraft will also feature 36 Economy Plus and 78 Economy seats.

Beginning early next year, United will add four United First seats on its fleet of nearly 100 Airbus A320 aircraft, increasing the total count from 12 to 16. The reconfigured aircraft will also feature 39 Economy Plus seats and 95 Economy seats. United expects to complete the reconfiguration of the Airbus A320 and A319s by the middle of next year.

Introducing the first-of-its-kind Bombardier CRJ 550

By the end of this year, United will revolutionize the regional flying experience with the planned introduction of 50 spacious, 50-seat Bombardier CRJ 550 aircraft to its regional fleet, subject to government certification. In addition to becoming the only 50-seat aircraft in the world to offer true first-class seating, the innovative new aircraft will provide customers with a truly exceptional flying experience, including a state-of-the-art interior featuring LED lighting, a self-serve beverage and snack station for customers seated in the premium cabin, Wi-Fi and more overall legroom per seat than any other 50-seat aircraft flown by any U.S. carrier. Additionally, the CRJ 550 will feature four storage closets, providing customers ample room to store their carryon bags and making the CRJ 550 the only regional jet in the skies where customers will not need to routinely gate check their bags.

The two-cabin CRJ 550 will feature 10 United First seats; 20 Economy Plus seats and 20 Economy seats. The CRJ 550 aircraft will eventually replace existing single-cabin 50-seat aircraft and will bring a higher percentage of two-cabin departures to smaller cities across the carrier's network. Additionally, the innovative aircraft will enable United to offer premium seats on more connecting flights from smaller cities to the airline's overall global network, further strengthening its competitive position and emphasizing its role as an industry innovator.

United expects that its regional partner GoJet will begin operating the CRJ 550 in the second half of this year – subject to agreement on final terms and conditions – on select routes from Chicago, O'Hare followed by Newark/New York, offering customers connecting through the hub the opportunity to enjoy a premium cabin experience at every step of their journey.

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, United recently released a re-imagined version of the most downloaded app in the airline industry and made DIRECTV free for every passenger on 211 aircraft, offering more than 100 channels on seat back monitors on more than 30,000 seats. The multimillion-dollar investment in improving inflight entertainment options will benefit the more than 29 million people expected to fly United's DIRECTV-enabled planes this year.

About United

United Airlines and United Express operate approximately 4,800 flights a day to 353 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, Newark/New York, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. 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 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 Announces Four New Domestic United Club Locations for 2019

February 04, 2019

CHICAGO, Feb. 4, 2019 /PRNewswire/ -- United Airlines today welcomed the newest addition to its network of more than 50 United Club locations around the world with the opening of a brand-new 5,000 square foot United Club at Fort Lauderdale-Hollywood International Airport. Located near Gate C1, this new United Club is the first of four new United Club locations set to open in 2019.

"United Clubs are the perfect spot for our customers to relax and recharge and we are excited to open the first of four new United Clubs this year," said United's Chief Customer Officer Toby Enqvist. "Our multimillion-dollar investment in the United Clubs is one of many ways we are working to improve every aspect of our customers' experience."

In addition to the Fort Lauderdale renovation, the airline is expanding its United Club network by introducing new locations in popular destinations. This summer, United plans to open a new United Club in New Orleans in conjunction with the opening of the new terminal at Louis Armstrong New Orleans International Airport. United will also open a brand-new United Club location in New York's La Guardia Airport to coincide with the relocation of its operations to the airport's Terminal B. Additionally, United will introduce its first-ever United Club location in Raleigh-Durham International Airport.

Designed with today's customers in mind, each United Club location is created to serve the distinct needs of customers traveling to and from that destination and feature complimentary high-speed Wi-Fi, wellness rooms and specially curated local food and beverage offerings. United Club members enjoy access to more than 50 United Club locations and participating Star Alliance partner lounges around the world.

About United

United Airlines and United Express operate approximately 4,800 flights a day to 353 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, Newark/New York, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline's United Express carriers operate 559 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. 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 Nasdaq under the symbol "UAL".

SOURCE United Airlines

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

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