United Third Quarter 2016 Earnings - United Hub

United Airlines Reports Third-Quarter 2016 Performance

Diluted EPS of $3.01; $3.11 excluding special items
October 17, 2016

CHICAGO, Oct. 17, 2016 /PRNewswire/ -- United Airlines (UAL) today announced its third-quarter 2016 financial results. 

  • UAL reported third-quarter net income of $965 million, diluted earnings per share of $3.01, pre-tax earnings of $1.5 billion and pre-tax margin of 15.2 percent.
  • Excluding special items, UAL reported third-quarter net income of $997 million, diluted earnings per share of $3.11, pre-tax earnings of $1.6 billion and pre-tax margin of 15.7 percent.
  • Flight attendants ratified a joint contract and the company reached a tentative agreement with technicians and related employees for a joint contract.

"We delivered another very good quarter, demonstrating the progress United continues to make at improving our customer experience, which included our best third quarter on-time performance in company history," said Oscar Munoz, chief executive officer of United Airlines. "As we execute our strategy to build the world's best airline, we will remain intensely focused on engaging our employees, running a great operation and improving our financial performance."

Third-Quarter Revenue

For the third quarter of 2016, total revenue was $9.9 billion, a decrease of 3.8 percent year-over-year. Third-quarter 2016 consolidated passenger revenue per available seat mile (PRASM) decreased 5.8 percent and consolidated yield decreased 5.7 percent compared to the third quarter of 2015. The decline in PRASM continues to be driven by factors including a strong U.S. dollar, lower surcharges, reductions from energy-related corporate travel, and declining yields.

Third-Quarter Costs

Total operating expense including special charges was $8.3 billion in the third quarter, down 1.4 percent year-over-year. Excluding special charges, total operating expense was $8.2 billion, a 1.0 percent improvement year-over-year. Consolidated unit cost (CASM) including special charges, third-party business expenses, fuel and profit sharing decreased 3.3 percent compared to the third quarter of 2015 due mainly to lower oil prices. Consolidated CASM, excluding special charges, third-party business expenses, fuel and profit sharing, increased 3.4 percent year-over-year driven largely by the impact of recently ratified labor agreements.

Liquidity and Capital Allocation

In the third quarter, UAL generated $1.1 billion in operating cash flow and ended the quarter with $6.2 billion in unrestricted liquidity, including $1.35 billion of undrawn commitments under its revolving credit facility. The company continued to invest in its business through capital expenditures of $689 million in the third quarter. Including assets acquired through the issuance of debt and airport construction financing and excluding fully reimbursable projects, the company invested $679 million in adjusted capital expenditures during the third quarter. Free cash flow, measured as operating cash flow less adjusted capital expenditures, was $459 million in the third quarter and $2.6 billion year-to-date.  

For the 12 months ended Sept. 30, 2016, the company's return on invested capital was 19.6 percent.

In the quarter, UAL purchased $255 million of its common shares, representing 1.5 percent of shares outstanding. Since the initial repurchase announcement in July 2014, the company has purchased $4.0 billion of its common shares, representing approximately 20 percent of shares outstanding. As of Sept. 30, 2016, the company had $2.0 billion remaining to purchase shares under its existing share repurchase authority.

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

Third-Quarter Highlights

Operations and Employees

  • Flight attendants ratified a joint contract covering 25,000 employees.
  • Reached a tentative agreement with technicians and related employees for a joint contract.
  • Achieved best September, third-quarter and year-to-date on-time performance in company history.
  • Employees earned cash-incentive payments of approximately $30 million for achieving operational performance goals in the quarter, marking ten straight months of bonus payouts.
  • Solidified the company's executive leadership, bringing significant experience and expertise to the team.

Network, Fleet and Customer Experience

  • Raised $920 million in financing through an enhanced equipment trust certificate transaction at a blended interest rate of 2.94 percent.
  • Launched new international routes between San Francisco and Auckland, New Zealand; and between San Francisco and Hangzhou, China.
  • Announced the launch of service to Havana, Cuba from the company's Newark and Houston hubs.
  • Flew approximately 1,500 athletes, coaches and Team USA staff to the 2016 Rio Olympic and Paralympic Games as the company celebrated more than 35 years partnering with Team USA.
  • Took delivery of four new Boeing 737NG aircraft and one used Airbus A319 aircraft.
  • In the third quarter, United's industry-leading mobile app surpassed more than 24 million downloads and 1 million visits per day.

About United

United Airlines and United Express operate more than 4,500 flights a day to 339 airports across five 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 720 mainline aircraft, and this year, the airline anticipates taking delivery of 21 new Boeing aircraft, including 737NGs, 787s and 777s, as well as six used Airbus A319 aircraft. The airline is a founding member of Star Alliance, which provides service to 192 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 financial performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as "expects," "will," "plans," "anticipates," "indicates," "believes," "forecast," "guidance," "outlook" 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 initiative, 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 1, Item 1A., Risk Factors, of UAL's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, 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
September 30, 2016
Three Months Ended
September 30, 2015
%
Increase/
(Decrease)
Nine Months Ended
September 30, 2016
Nine Months Ended
September 30, 2015
%
Increase/
(Decrease)
Operating revenue:
Passenger: (A)
Mainline
$7,017 $7,254 (3.3) $19,119 $20,153 (5.1)
Operating revenue: Passenger: (A) Regional 1,586 1,706 (7.0) 4,577 4,903 (6.6)
Operating revenue: Passenger: (A) Total passenger revenue 8,603 8,960 (4.0) 23,696 25,056 (5.4)
Operating revenue: Cargo 224 235 (4.7) 626 706 (11.3)
Operating revenue: Other operating revenue 1,086 1,111 (2.3) 3,182 3,066 3.8
Operating revenue:Other operating revenue: Total operating revenue 9,913 10,306 (3.8) 27,504 28,828 (4.6)
Operating expense:
Salaries and related costs
2,625 2,534 3.6 7,707 7,289 5.7
Operating expense: Aircraft fuel(B) 1,603 1,934 (17.1) 4,258 5,904 (27.9)
Operating expense: Regional capacity purchase 572 572 1,645 1,725 (4.6)
Operating expense: Landing fees and other rent 546 551 (0.9) 1,612 1,647 (2.1)
Operating expense: Depreciation and amortization 503 469 7.2 1,473 1,343 9.7
Operating expense: Aircraft maintenance materials and outside repairs 451 424 6.4 1,301 1,252 3.9
Operating expense: Distribution expenses 345 366 (5.7) 987 1,026 (3.8)
Operating expense: Aircraft rent 168 185 (9.2) 521 580 (10.2)
Operating expense: Special charges (C) 45 76 NM1 669 195 NM1
Operating expense: Other operating expenses 1,431 1,296 10.4 3,998 3,782 5.7
Operating expense: Total operating expenses 8,289 8,407 (1.4) 24,171 24,743 (2.3)
Operating income: Operating income 1,624 1,899 (14.5) 3,333 4,085 (18.4)
Nonoperating income (expense):
Interest expense
(150) (164) (8.5) (466) (504) (7.5)
Nonoperating income (expense): Interest capitalized 20 13 53.8 48 38 26.3
Nonoperating income (expense): Interest income 14 5 180.0 31 16 93.8
Nonoperating income (expense): Miscellaneous, net (C) 2 (147) NM1 (11) (321) (96.6)
Nonoperating income (expense): Total nonoperating expense (114) (293) (61.1) (398) (771) (48.4)
Income before income taxes: Income before income taxes 1,510 1,606 (6.0) 2,935 3,314 (11.4)
Income tax expense: Income tax expense (benefit) (D) 545 (3210) NM1 1,069 (3,203) NM1
Net income: Net income $965 $4,816 (80) $1,866 $6,517 (71.4)
Earnings per share: Earnings per share, diluted $3.01 $12.82 (76.5) $5.57 $17.15 (67.5)
Weighted average shares: Weighted average shares, diluted 321 376 (14.6) 335 380 (11.8)
Pre-tax margin: Pre-tax margin 15.2% 15.6% (0.4) pts. 10.7% 11.5% (0.8) pts.
Pre-tax margin: Pre-tax margin, excluding special items (C) 15.7% 16.6% (0.9) pts. 13.1% 12.3% 0.8pts.
  1. NM means Not Meaningful

 

UNITED CONTINENTAL HOLDINGS, INC.
NOTES (UNAUDITED)

(A) Select passenger revenue information is as follows (in millions):
  3Q 2016
Passenger
Revenue
(millions)
Passenger
Revenue
vs.
3Q 2015
PRASM
vs.
3Q 2015
Yield
vs.
3Q 2015
Available
Seat Miles
vs.
3Q 2015
Domestic $3,582 (0.9%) (4.9%) (3.9%) 4.2%
Atlantic 1,619 (9.7%) (10.7%) (7.6%) 1.2%
Pacific 1,168 (2.6%) (4.1%) (7.5%) 1.6%
Latin America 648 0.3% (1.3%) (4.4%) 1.6%
International 3,435 (5.6%) (6.9%) (7.2%) 1.4%
Mainline 7,017 (3.3%) (5.9%) (5.5%) 2.8%
Regional 1,586 (7.0%) (3.2%) (3.9%) (3.9%)
Consolidated $8,603 (4.0%) (5.8%) (5.7%) 2.0%

 

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
September 30, 2016
Three Months Ended
September 30, 2015
%
Increase/
(Decrease)
Nine Months Ended
September 30, 2016
Nine Months Ended
September 30, 2015
%
Increase/
(Decrease)
Mainline fuel expense excluding hedge impacts Mainline fuel expense excluding hedge impacts $1,319 $1,483 (11.1) $3,370 $4,527 (25.6)
Hedge losses reported in fuel expense 2 (24) (150) NM1 (197) (429) NM1
Total mainline fuel expenseTotal mainline fuel expense 1,343 1,633 (17.8) 3,567 4,918 (28.0)
Regional fuel expense Regional fuel expense 260 301 (13.6) 691 948 (27.1)
Consolidated fuel expenseConsolidated fuel expense 1,603 1,934 (17.1) 4,258 25,904 (27.9)
Cash paid on settled hedges that did not qualify for hedge accounting 3 (100) NM1 (5) (214) NM1
Fuel expense including all losses from settled hedgesFuel expense including all losses from settled hedges $1,603 $2,034 (21.2) $4,263 $6,118 (30.3)
Mainline fuel consumption (gallons)Mainline fuel consumption (gallons) 889 862 3.1 2,457 2,432 1.0
Mainline average aircraft fuel price per gallonMainline average aircraft fuel price per gallon $1.51 $1.89 (20.1) $1.45 $2.04 (28.9)
Mainline average aircraft fuel price per gallon excluding hedge losses recorded in fuel expenseMainline average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense $1.48 $1.72 (14.0) $1.37 $1.86 (26.3)
Mainline average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accountingMainline average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accounting $1.51 $2.01 (24.9) $1.45 $2.13 (31.9)
Regional fuel consumption (gallons)Regional fuel consumption (gallons) 168 173 (2.9) 485 503 (3.6)
Regional average aircraft fuel price per gallonRegional average aircraft fuel price per gallon $1.55 $1.74 (10.9) $1.42 $1.88 (24.5)
Consolidated fuel consumption (gallons)Consolidated fuel consumption (gallons) 1,057 1,035 2.1 2,942 2,935 0.2
Consolidated average aircraft fuel price per gallonConsolidated average aircraft fuel price per gallon $1.52 $1.87 (18.7) $2.01 $2.01 (27.9)
Consolidated average aircraft fuel price per gallon excluding hedge losses recorded in fuel expenseConsolidated average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense $1.49 $1.72 (13.4) $1.38 $1.87 (26.2)
Consolidated average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accountingConsolidated average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accounting $1.52 $1.97 (22.8) $1.45 $2.08 (30.3)
UNITED CONTINENTAL HOLDINGS, INC.
NOTES (UNAUDITED)

(C) Special items include the following:
(In millions) Three Months Ended
September 30, 2016
Three Months Ended
September 30, 2015
Nine Months Ended
September 30, 2016
Nine Months Ended
September 30, 2015
Operating:
Labor agreement costs
($14) $ — $124 $ —
Operating:Severance and benefit costs 13 28 27 103
Operating:Impairment of intangible asset related to Newark Liberty International Airport (Newark) slots 412
Operating:Cleveland airport lease restructuring 74
Operating:(Gains) losses on sale of assets and other special charges 18 48 32 92
Operating:Special charges 45 76 669 195
Nonoperating and income taxes:
Losses on extinguishment of debt and other
61 (1) 195
Nonoperating and income taxes:Income tax benefit related to special charges (16) (241)
Nonoperating and income taxes:Total operating and nonoperating special charges, net of income taxes 29 137 427 390
Nonoperating and income taxes:Income tax valuation allowance release (D) (3,218) (3,218)
Nonoperating and income taxes:Mark-to-market (MTM) losses from fuel derivative contracts settling in future periods 36 28
Nonoperating and income taxes:Prior period gains (losses) on fuel derivative contracts settled in the current period 3 (69) 2 (173)
Nonoperating and income taxes:Total special items, net of income taxes $32 $(3,114) $429 $(2,973)

 

 
   
 

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 (IAM) ratified seven new contracts with the company which extended the contracts through 2021. The company also reached a tentative agreement with the Int'l Brotherhood of Teamsters (IBT). During the three and nine months ended September 30, 2016, the company recorded $61 million ($39 million net of taxes) and $171 million ($109 million net of taxes), respectively, of special charges primarily for payments to be made in conjunction with the IAM and IBT agreements described above. Also, as part of the recently ratified contract with the Association of Flight Attendants, the company amended two of its flight attendant postretirement medical plans. The amendments triggered curtailment accounting, resulting in the recognition of a one-time $47 million gain ($30 million net of taxes) for accelerated recognition of a prior service credit.

   
 

Severance and benefit costs: During the three and nine months ended September 30, 2016, the company recorded $13 million ($8 million net of taxes) and $27 million ($17 million net of taxes), respectively, of severance and benefit costs related to a voluntary early-out program for the company's flight attendants and other severance agreements. In 2014, more than 2,500 flight attendants elected to voluntarily separate from the company for 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.

   
 

Impairment of intangible asset related to Newark slots: In April 2016, the Federal Aviation Administration (FAA) announced that it will designate Newark as a Level 2 schedule-facilitated airport under the International Air Transport Association Worldwide Slot Guidelines effective October 30, 2016. The designation was associated with an updated demand and capacity analysis of Newark by the FAA. In the second quarter of 2016, the company determined that the FAA's action impaired the entire value of its Newark slots because the slots will no longer be the mechanism that governs take-off and landing rights. Accordingly, the company recorded a $412 million special charge ($264 million net of taxes) to write off the intangible asset. The Newark slots served as part of the collateral for the term loans under the company's Credit Agreement and under the Second Amended and Restated Co-Branded Card Marketing Services Agreement with Chase Bank USA, N.A. (the Chase Agreement). The Credit Agreement and the Chase Agreement have been amended to remove the Newark slots as collateral with no replacement collateral required.

   
 

Cleveland airport lease restructuring: During the nine months ended September 30, 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. 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.

   
 

(Gains) losses on sale of assets and other special charges: During the three and nine months ended September 30, 2016, the company recorded gains and losses on sale of assets and other special charges of $18 million ($12 million net of taxes) and $32 million ($20 million net of taxes), respectively.

   
 

Nonoperating losses on extinguishment of debt and other: During the nine months ended September 30, 2016, the company recorded $8 million ($5 million net of taxes) of losses due to exchange rate changes in Venezuela applicable to funds held in local currency and recorded a $9 million ($6 million net of taxes) gain on the sale of an affiliate.

   
 

MTM losses from fuel derivative contracts settling in future periods and prior period gains 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 and nine months ended September 30, 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 and nine months ended September 30, 2016, the company recorded MTM gains of $3 million and $2 million, respectively, in prior periods.

   
 

2015 - Special items

   
 

Severance and benefit costs: During the three and nine months ended September 30, 2015, the company recorded $28 million and $103 million, respectively, 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 for 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 and nine months ended September 30, 2015, the company recorded $48 million and $92 million, respectively, for integration costs, impairment of assets and other special gains and losses.

   
 

Nonoperating loss on extinguishment of debt and other: During the third quarter of 2015, the company recorded $61 million of losses due to exchange rate changes in Venezuela applicable to funds held in local currency. During the nine months ended September 30, 2015, the company recorded a charge of $134 million due to the write-off of the unamortized non-cash debt discount related to the extinguishment of the 6% Notes due 2026 and 6% Notes due 2028. Both of the charges were recorded as part of Nonoperating income (expense): Miscellaneous, net.

   
 

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 and nine months ended September 30, 2015, the company recorded $36 million and $28 million, respectively, in MTM losses on fuel derivative contracts that will settle in future periods. For fuel derivative contracts that settled in the three and nine months ended September 30, 2015, the company recorded MTM losses of $69 million and $173 million, respectively, in prior periods.

   

(D)  

The company's effective tax rate for the three and nine months ended September 30, 2016 was 36% which represented a blend of federal, state and foreign taxes and the impact of certain nondeductible items. During 2015, after considering all positive and negative evidence, the company concluded that its deferred income taxes would more likely than not be realized. The company released substantially all of its valuation allowance in the third quarter of 2015, which resulted in a $3.2 billion benefit in its provision for income taxes.

 

UNITED CONTINENTAL HOLDINGS, INC.
STATISTICS
  Three Months Ended
September 30, 2016
Three Months Ended
September 30, 2015
%
Increase/
(Decrease)
Nine Months Ended
September 30, 2016
Nine Months Ended
September 30, 2015
%
Increase/
(Decrease)
Mainline:
Passengers (thousands)
27,501 25,922 6.1 75,417 72,158 4.5
Mainline:Revenue passenger miles (millions) 51,875 50,653 2.4 140,573 139,172 1.0
Mainline:Available seat miles (millions) 60,635 59,002 2.8 169,252 166,175 1.9
Mainline:Cargo ton miles (millions) 714 640 11.6 2,015 1,935 4.1
Mainline:Passenger load factor:
Mainline
85.6% 85.8% (0.2) pts. 83.1% 83.8% (0.7) pts.
Mainline:Domestic 86.8% 87.7% (0.9) pts. 85.8% 86.3% (0.5) pts.
Mainline:International 84.3% 84.1% 0.2 pts. 80.4% 81.3% (0.9) pts.
Mainline:Passenger revenue per available seat mile (cents) 11.57 12.29 (5.9) 11.30 12.13 (6.8)
Mainline:Average yield per revenue passenger mile (cents) 13.53 14.32 (5.5) 13.60 14.48 (6.1)
Mainline:Aircraft in fleet at end of period 724 717 1.0 724 717 1.0
Mainline:Average stage length (miles) 1,882 1,960 (4.0) 1,878 1,939 (3.1)
Mainline:Average daily utilization of each aircraft (hours) 10:59 10:47 1.9 10:25 10:32 (1.1)
Regional:
Passengers (thousands)
11,150 11,542 (3.4) 31,737 33,059 (4.0)
Regional:Revenue passenger miles (millions) 6,297 6,507 (3.2) 18,198 18,721 (2.8)
Regional:Available seat miles (millions) 7,439 7,743 (3.9) 21,820 22,524 (3.1)
Regional:Passenger load factor 84.6% 84.0% 0.6 pts. 83.4% 83.1% 0.3 pts.
Regional:Passenger revenue per available seat mile (cents) 21.32 22.03 (3.2) 20.98 21.77 (3.6)
Regional:Average yield per revenue passenger mile (cents) 25.19 26.22 (3.9) 25.15 26.19 (4.0)
Regional:Aircraft in fleet at end of period 490 527 (7.0) 490 527 (7.0)
Regional:Average stage length (miles) 556 555 0.2 565 558 1.3
Consolidated (Mainline and Regional):
Passengers (thousands)
38,651 37,464 3.2 107,154 105,217 1.8
Consolidated (Mainline and Regional)Revenue passenger miles (millions) 58,172 57,160 1.8 158,771 157,893 0.6
Consolidated (Mainline and Regional)Available seat miles (millions) 68,074 66,745 2.0 191,072 188,699 1.3
Consolidated (Mainline and Regional)Passenger load factor 85.5% 85.6% (0.1) pts. 83.1% 83.7% (0.6) pts.
Consolidated (Mainline and Regional)Passenger revenue per available seat mile (cents) 12.64 13.42 (5.8) 12.40 13.28 (6.6)
Consolidated (Mainline and Regional)Total revenue per available seat mile (cents) 14.56 15.44 (5.7) 14.39 15.28 (5.8)
Consolidated (Mainline and Regional)Average yield per revenue passenger mile (cents) 14.79 15.68 (5.7) 14.92 15.87 (6.0)
Consolidated (Mainline and Regional)Aircraft in fleet at end of period 1,214 1,244 (2.4) 1,214 1,244 (2.4)
Consolidated (Mainline and Regional)Average stage length (miles) 1,493 1,515 (1.5) 1,484 1,497 (0.9)
Consolidated (Mainline and Regional)Average full-time equivalent employees (thousands) 85.1 82.4 3.3 83.6 82.1 1.8
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 operating income (loss) excluding special items, income (loss) before income taxes excluding special items, net income (loss) excluding special items, net earnings (loss) per share excluding special items, and CASM, as adjusted, among others. CASM is a common metric used in the airline industry to measure an airline's cost structure and efficiency. UAL reports CASM excluding profit sharing, third-party business expenses, fuel, and special charges. 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 charges 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 presented diluted earnings per share excluding special items for the third quarter of 2015 adjusted for the impact of tax expense using the effective tax rate from the third quarter of 2016 in order to make the financial measures more comparable. UAL had minimal income tax expense in the third quarter of 2015 that was offset by the release of its deferred tax asset valuation allowance in that period resulting in a net income tax benefit.

 

UNITED CONTINENTAL HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION (Continued)
(In millions) Three Months Ended
September 30, 2016
Three Months Ended
September 30, 2015
$
Increase/
(Decrease)
%
Increase/
(Decrease)
Nine Months Ended
September 30, 2016
Nine Months Ended
September 30, 2015
$
Increase/
(Decrease)
%
Increase/
(Decrease)
Operating expenses $8,289 $8,407 $(118) (1.4) $24,171 $24,743 $(572) (2.3)
Operating expensesLess: Special charges (C) 45 76 (31) NM1 669 195 474 NM1
Operating expenses, excluding special chargesOperating expenses, excluding special charges 8,244 8,331 (87) (1.0) 23,502 24,548 (1,046) (4.3)
Operating expenses, excluding special chargesLess: Third-party business expenses 61 70 (9) (12.9) 188 205 (17) (8.3)
Operating expenses, excluding special chargesLess: Fuel expense 1,603 1,934 (331) (17.1) 4,258 5,904 (1,646) (27.9)
Operating expensesLess: Profit sharing, including taxes 204 277 (73) (26.4) 506 545 (39) (7.2)
Operating expensesOperating expenses, excluding fuel, profit sharing, special charges and third-party business expenses $6,376 $6,050 $326 5.4 $18,550 $17,894 $656 3.7
Operating income $1,624 $1,899 $(275) (14.5) $3,333 $4,085 $(752) (18.4)
Operating incomeLess: Special charges (C) 45 76 (31) NM1 669 195 474 NM1
Operating incomeOperating income, excluding special charges $1,669 $1,975 $(306) (15.5) $4,002 $4,280 $(278) (6.5)
Operating incomeIncome before income taxes $1,510 $1,606 $(96) (6.0) $2,935 $3,314 $(379) (11.4)
Operating incomeLess: special items before income taxes (C) 48 104 (56) NM1 670 245 425 NM1
Operating incomeIncome before income taxes and excluding special items $1,558 $1,710 $(152) (8.9) $3,605 $3,559 $46 1.3
Operating incomeNet income $965 $4,816 $(3,851) (80.0) $1,866 $6,517 $(4,651) (71.4)
Operating incomeLess: special items, net of tax (C) 32 (3,114) 3,146 NM1 429 (2,973) 3,402 NM1
Operating incomeNet income, excluding special items $997 $1,702 $(705) (41.4) $2,295 $3,544 $(1,249) (35.2)
Operating incomeLess: Income tax adjustment using 3Q 2016 tax rate for 3Q 2015 (608) 608 NM1        
Operating incomeTax adjusted net income, excluding special items $997 $1,094 $(97) (8.9)        
Diluted earnings per shareDiluted earnings per share $3.01 $12.82 $(9.81) (76.5) $5.57 $17.15 $(11.58) (67.5)
Diluted earnings per shareAdd back: special items 0.15 (8.29) 8.44 NM1 2.00 (7.83) 9.83 NM1
Diluted earnings per shareTax effect related to special items (0.05) (0.05) NM1 (0.72) (0.72) NM1
Diluted earnings per shareDiluted earnings per share, excluding special items $3.11 $4.53 $(1.42) (31.3) $6.85 $9.32 $(2.47) (26.5)
Diluted earnings per shareLess: Income tax adjustment using 3Q 2016 tax rate for 3Q 2015 (1.62) 1.62 NM1        
Diluted earnings per shareTax adjusted diluted earnings per share, excluding special items $3.11 $2.91 $0.20 6.9        

 

UNITED CONTINENTAL HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION (Continued)
  Three Months Ended
September 30, 2016
Three Months Ended
September 30, 2015
%
Increase/
(Decrease)
Nine Months Ended
September 30, 2016
Nine Months Ended
September 30, 2015
%
Increase/
(Decrease)
CASM Mainline Operations (cents)
Cost per available seat mile (CASM)
11.65 11.97 (2.7) 12.15 12.43 (2.3)
Cost per available seat mile (CASM)Less: Special charges (C) 0.08 0.13 NM1 0.40 0.12 NM1
CASM Mainline OperationsCASM, excluding special charges 11.57 11.84 (2.3) 11.75 12.31 (4.5)
CASM, excluding special chargesLess: Third-party business expenses 0.10 0.12 (16.7) 0.11 0.12 (8.3)
CASM Mainline OperationsCASM, excluding special charges and third-party business expenses 11.47 11.72 (2.1) 11.64 12.19 (4.5)
CASM, excluding special charges and third-party business expensesLess: Fuel expense 2.21 2.77 (20.2) 2.11 2.98 (29.2)
CASM Mainline OperationsCASM, excluding special charges, third-party business expenses and fuel 9.26 8.95 3.5 9.53 9.21 3.5
CASM, excluding special charges, third-party business expenses and fuelLess: Profit sharing per available seat mile 0.34 0.47 (27.7) 0.30 0.33 (9.1)
CASM Mainline OperationsCASM, excluding special charges, third-party business expenses, fuel, and profit sharing 8.92 8.48 5.2 9.23 8.88 3.9
CASM Consolidated Operations (cents)
Cost per available seat mile (CASM)
12.18 12.60 (3.3) 12.65 13.11 (3.5)
Cost per available seat mile (CASM)Less: Special charges (C) 0.07 0.12 NM1 0.35 0.10 NM1
CASM Mainline OperationsCASM, excluding special charges 12.11 12.48 (3.0) 12.30 13.01 (5.5)
CASM, excluding special chargesLess: Third-party business expenses 0.09 0.10 (10.0) 0.10 0.11 (9.1)
CASM Mainline OperationsCASM, excluding special charges and third-party business expenses 12.02 12.38 (2.9) 12.20 12.90 (5.4)
CASM, excluding special charges and third-party business expensesLess: Fuel expense 2.35 2.90 (19.0) 2.23 3.13 (28.8)
CASM Mainline OperationsCASM, excluding special charges, third-party business expenses and fuel 9.67 9.48 2.0 9.97 9.77 2.0
CASM, excluding special charges, third-party business expenses and fuelLess: Profit sharing per available seat mile 0.30 0.42 (28.6) 0.26 0.29 (10.3)
CASM Mainline OperationsCASM, excluding special charges, third-party business expenses, fuel, and profit sharing 9.37 9.06 3.4 9.71 9.48 2.4

 

UNITED CONTINENTAL HOLDINGS, INC.
FINANCIAL METRICS

UAL provides financial metrics, including operating margin, pre-tax margin, 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 charges/items that are non-recurring and that management believes are not indicative of UAL's ongoing performance.
  Three Months Ended
September 30, 2016
Three Months Ended
September 30, 2015
%
Increase/
(Decrease)
Nine Months Ended
September 30, 2016
Nine Months Ended
September 30, 2015
%
Increase/
(Decrease)
Financial MetricsOperating margin 16.4% 18.4% (2.0) pts. 12.1% 14.2% (2.1) pts.
Financial MetricsOperating margin, excluding Special charges (C) 16.8% 19.2% (2.4) pts. 14.6% 14.8% (0.2) pts.
Financial MetricsNet income $965 $4,816 (80.0) $1,866 $6,517 (71.4)
Financial MetricsAdjusted for:
Depreciation and amortization
503 469 7.2 1,473 1,343 9.7
Financial MetricsInterest expense 150 164 (8.5) 466 504 (7.5)
Financial MetricsInterest capitalized (20) (13) 53.8 (48) (38) 26.3
Financial MetricsInterest income (14) (5) 180.0 (31) (16) 93.8
Financial MetricsIncome tax expense (benefit) (D) 545 (3,210) NM1 1,069 (3,203) NM1
Financial MetricsSpecial items before income taxes (C) 48 104 NM1 670 245 NM1
Financial MetricsAdjusted EBITDA, excluding special items $2,177 $2,325 (6.4) $5,465 $5,352 2.1
Financial MetricsAircraft rent 168 185 (9.2) 521 580 (10.2)
Financial MetricsAdjusted EBITDAR, excluding special items $2,345 $2,510 (6.6) $5,986 $5,932 0.9

 

UNITED CONTINENTAL HOLDINGS, INC.
CAPITAL EXPENDITURES AND FREE CASH FLOW

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
September 30, 2016
Nine Months Ended
September 30, 2016
Capital ExpendituresCapital expenditures – GAAP $689 $2,343
Capital ExpendituresProperty and equipment acquired through the issuance of debt 56 115
Capital ExpendituresAirport construction financing 33 68
Capital ExpendituresFully reimbursable projects (99) (257)
Capital ExpendituresAdjusted capital expenditures – Non-GAAP $679 $2,269
Free Cash Flow (in millions) Three Months Ended
September 30, 2016
Nine Months Ended
September 30, 2016
Free Cash FlowNet cash provided by operating activities $1,138 $4,884
Free Cash FlowLess adjusted capital expenditures – Non-GAAP 679 2,269
Free Cash FlowFree cash flow - Non-GAAP $459 $2,615

 

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.
(in millions) Twelve Months Ended
September 30, 2016
Return On Invested CapitalNet Operating Profit After Tax (NOPAT)
Pre-tax income excluding special items 4
$3,840
Return On Invested CapitalNOPAT adjustments 5 703
Return On Invested CapitalNOPAT $4,543
Return On Invested CapitalEffective cash tax rate 6 0.2%
Return On Invested CapitalInvested Capital (five-quarter average)
Total assets
$40,746
Return On Invested CapitalInvested capital adjustments 7 12,314
Return On Invested CapitalAverage Invested Capital $28,432
Return On Invested CapitalReturn on Invested Capital 19.6%
  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
September 30, 2016
Pre-tax income excluding special items $4,543
Return On Invested CapitalAdd: Special items 1,037
Return On Invested CapitalPre-tax income excluding special items $5,580

 

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, 872.825.8640, media.relations@united.com

United Airlines to Lead Industry Switch to Sustainable Aviation Fuel with Global Corporations, Customers

New United Eco-Skies Alliance Program includes global corporate leaders who, with United, will pay towards more sustainable aviation fuel, all companies invited to participate
April 13, 2021

CHICAGO, April 13, 2021 /PRNewswire/ -- United Airlines continues to lead the industry towards a more sustainable future with the launch of the first-of-its-kind Eco-Skies Alliance SM  program. Working with the airline, more than a dozen leading global corporations will collectively contribute towards the purchase of approximately 3.4 million gallons of sustainable aviation fuel (SAF) this year. With its nearly 80% emissions reductions on a lifecycle basis compared to conventional jet fuel, this is enough SAF to eliminate approximately 31,000 metric tons of greenhouse gas emissions, or enough to fly passengers over 220 million miles.

As inaugural participants, the following companies are taking a lead within their respective industries, reducing their aviation-related impact on the environment at the source, and creating demand for more SAF production.

  • Autodesk
  • Boston Consulting Group
  • CEVA Logistics
  • Deloitte
  • DHL Global Forwarding
  • DSV Panalpina
  • HP Inc.
  • Nike
  • Palantir
  • Siemens
  • Takeda Pharmaceuticals

"While we've partnered with companies for years to help them offset their flight emissions, we applaud those participating in the Eco-Skies Alliance for recognizing the need to go beyond carbon offsets and support SAF-powered flying, which will lead to more affordable supply and ultimately, lower emissions," said United CEO Scott Kirby. "This is just the beginning. Our goal is to add more companies to the Eco-Skies Alliance program, purchase more SAF and work across industries to find other innovative paths towards decarbonization."

United has made the airline industry's single largest investment in SAF and has purchased more SAF than any other airline in the world. World Energy, a long-term partner of United, will supply the SAF to Los Angeles International Airport (LAX), which makes it conveniently accessible to United's operations.

Customers traveling with United can now purchase SAF

In addition to the Eco-Skies Alliance program, United is giving customers the ability to contribute funds for additional SAF purchase or for use on initiatives United believes will help decarbonize aviation – the first of any U.S. airline to do so. Understanding there is a growing interest among customers for real, lasting solutions, this new capability will be available starting immediately via portal on united.com/ecoskiesalliance.

Advocating for sustainable travel, together with United

Strong federal and state policy leadership will be essential to reducing the climate impacts of air travel, so starting immediately United will help individuals connect with elected representatives to advocate for policies that would make air travel more sustainable for the long term. United will be the first airline in the world to connect customers directly with policy makers to voice the support that is needed to advance and accelerate permanent, scalable solutions that hold the potential to decarbonize the air transportation industry – and not just offset emissions.

 "We know there is a growing demand from a wide range of our customers including corporations, cargo shippers and individuals who share the same concern we do – that climate change is the most pressing issue of our generation," Kirby said.

United's 100% Green Commitment

At United, we believe the airline industry needs to be bolder when it comes to making decisions that confront the climate crisis. That's why we've committed to become 100% green and reduce our greenhouse gas emissions 100% by 2050 by taking the harder, better path of reducing emissions from flying, rather than relying on traditional carbon offsets.

Here are some of the ways we're making sustainability the new standard in flight:

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. The Carbon Disclosure Project (CDP) named United as the only airline globally to its 2020 Climate 'A List' for the airline's actions to cut emissions, mitigate climate risks and develop the low-carbon economy, marking the seventh consecutive year that United had the highest CDP score among U.S. airlines.

In 2017, Air Transport World magazine named United its Eco-Airline of the Year for the second time since the airline launched the Eco-Skies program. Additionally, United ranked No. 1 among global carriers inNewsweek's2017 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/sustainability.

About United

United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of UAL is traded on the Nasdaq under the symbol "UAL."

 

SOURCE United Airlines

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

United Sets New Diversity Goal: 50% of Students at New Pilot Training Academy To Be Women and People of Color

United Airlines is only major U.S. airline to own flight school: United Aviate Academy
April 06, 2021

CHICAGO, April 6, 2021 /PRNewswire/ -- United Airlines, the only major U.S. airline to own a flight school, will begin accepting applications today as it embarks on an ambitious plan to train 5,000 new pilots by 2030, at least half of them women and people of color. Backed by scholarship commitments from United Airlines and JPMorgan Chase, United Aviate Academy will create opportunities for thousands of students, including women and people of color to pursue a career as a commercial airline pilot, one of the most lucrative careers in the industry.

United Returns to JFK With Coast-to-Coast Flights and the Most Premium Seats From the NYC Area

Flights feature a reconfigured Boeing 767-300ER airplane with 46 business class seats and 22 United Premium Plus® seats
March 29, 2021

NEW YORK, March 29, 2021 /PRNewswire/ -- United is back at John F. Kennedy Airport (JFK), now operating direct service to the airline's West Coast hubs – Los Angeles International Airport (LAX) and San Francisco International Airport (SFO) from New York City. The airline will use its Boeing 767-300ER aircraft which features 46 business class all-aisle-access seating, and 22 United Premium Plus® seats. The airline operates the most premium seats between the New York City area and Los Angeles and San Francisco combined.

United is currently flying one round-trip flight, five days a week to each West Coast airport, with plans to double the number of flights as demand grows. The carrier is back at JFK following a five-year hiatus and now offers service from all three major airports in the New York City area.

"United's return to JFK reflects not only our strong commitment to the New York City area, but also to increasing service to and from the places our customers want to fly," said Ankit Gupta, Vice President of Domestic Network Planning and Scheduling. "With the addition of JFK, United now offers unmatched service, greater convenience, more choice and a best-in-class product for travelers throughout the New York City region as they return to the skies."

"We're happy to welcome United Airlines back to Kennedy Airport," said Charles Everett, General Manager of John F. Kennedy International Airport. "We remain committed to providing the highest level of safety, accessibility and ease of travel for all of the passengers who use the Port Authority's airport facilities, and United's decision is a great step in that direction."

United's premium cabin features flat-bed seats on all flights similar to the current Newark-Los Angeles and Newark-San Francisco offerings, providing a consistent and comprehensive NYC-West Coast product. This includes the signature cooling gel pillow along with the Saks Fifth Avenue day blanket and pillow. The routes offer seasonal menus crafted by renowned chefs and distinctive amenities. This includes both travelers in United Business and United Premium Plus sections who enjoy a complimentary hot entrée, mixed nuts, salad and dessert, as well as complimentary alcoholic beverages. The Economy Plus® and Economy sections feature the United all-in-one snack bag as well as the airline's buy on board program, which returns on April 12. Eligible customers will have access to the United ClubSM location at either LAX or SFO.

United's operations at JFK's Terminal 7 will provide seamless access for customers. The lobby area offers self-service kiosks, along with eight podiums which are conveniently located steps away from the TSA check point. Just a short walk from security screening, travelers will find the United-operated gates. Customers will also benefit from easy connections to more than a dozen Star Alliance partners at JFK, including access to 15 destinations in 14 countries as of March 2021.

For images and video footage please click here. Tickets are now available for purchase on United.com.

Committed to Ensuring a Safe Journey

United is committed to putting health and safety at the forefront of every customer's journey, with the goal of delivering an industry-leading standard of cleanliness through its United CleanPlusSM program. United has teamed up with Clorox and Cleveland Clinic to redefine cleaning and health safety procedures from check-in to landing and has implemented more than a dozen new policies, protocols and innovations designed with the safety of customers and employees in mind. For more details on all the ways United is helping keep customers safe during their journey, please visit united.com/cleanplus.

About United

United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".

 

SOURCE United Airlines

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

United to Hold Webcast of First-Quarter 2021 Financial Results

March 26, 2021

CHICAGO, March 26, 2021 /PRNewswire/ -- United Airlines will hold a conference call to discuss first-quarter 2021 financial results on Tuesday, April 20 at 9:30 a.m. CT/10:30 a.m. ET. A live, listen-only webcast of the conference call will be available at ir.united.com. The company will issue its first-quarter financial results after market close on Monday, April 19.

United Airlines Adds New Direct Flights to Coastal Vacation Destinations Starting Memorial Day Weekend

Airline adds 26 new routes between Midwest cities and popular summer getaway destinations in the South and New England
March 25, 2021

CHICAGO, March 25, 2021 /PRNewswire/ -- As more travelers begin to plan long-awaited getaways with family and friends, United Airlines is kicking off summer vacation season with a robust May schedule that includes the addition of 26 new nonstop routes between Midwest cities such as Cleveland, Cincinnati and Milwaukee and popular vacation destinations such as Hilton Head, S.C.; Pensacola, Fla.; and Portland, Maine. The airline also plans to resume more than 20 domestic routes and will start new service between Orange County, Calif., and Honolulu.

Internationally, in May United will fly more than 100% of its pre-pandemic schedule to Latin America compared to what it operated in 2019, including more flights to Mexico, the Caribbean, Central America and South America. The airline also plans to resume flights between Chicago and Tokyo Haneda, resume passenger flights between New York/Newark and Milan and Rome, and restart service between Chicago and Amsterdam. In total, United plans to operate 52% of its overall schedule compared to May 2019, whereas in May 2020 United operated 14% of its overall schedule compared to May 2019.

"In the past few weeks, we have seen the strongest flight bookings since the start of the pandemic," said Ankit Gupta, vice president of United's domestic network planning and scheduling. "As we rebuild our schedule to meet that demand, adding in seasonal point-to-point flying is just one of the ways we are finding opportunities to add new and exciting service. And as we have done throughout the entire pandemic, we will continue being nimble and strategic with our network to add the right service to the destinations our customers want to visit."

Domestic May Schedule

Starting May 27, United will begin point-to-point service to Charleston, S.C.; Hilton Head, S.C.; Myrtle Beach, S.C.; Pensacola, Fla. and Portland, Maine from seven cities including Cleveland, Cincinnati and Columbus, Ohio; St. Louis, Mo.; Pittsburgh, Pa.; Milwaukee, Wis. and Indianapolis, Ind. United plans to operate these point-to-point routes through Labor Day weekend. Most customers on these flights will experience United's new Bombardier CRJ-550 – the world's first 50-seater aircraft with two cabins. The spacious CRJ-550 is equipped with 10 first class seats, 20 Economy Plus seats, 20 standard economy seats, Wi-Fi, more legroom and enough overhead bin space for every customer to bring a roller bag on board.

For video and photos of the CRJ-550 click here.

United also continues to be a leading airline to Hawaii, offering more than 200 weekly flights, including new service between Orange County and Honolulu. In May, United will begin offering United Premium Plus® service on select Hawaii routes, which includes a bigger, more comfortable seat and a complimentary meal. United Premium Plus will be available for customers traveling to Honolulu and Maui from Chicago and Denver and will be expanded in June to flights between Chicago and Kona, Houston and Honolulu, and New York/Newark and Maui. United allows customers with valid negative COVID-19 tests to pre-clear before departing to Hawaii so they can save time and skip document screening lines upon arrival in the islands.

In addition to the new point-to-point service, United will resume 20 domestic flights to popular destinations and introduce three new domestic routes. This new nonstop service includes flights between Houston and Kalispell, Mont.; Washington, D.C. and Bozeman, Mont.; and between Chicago and Nantucket, Mass. Overall, United plans to operate 58% of its domestic schedule compared to May 2019.

International May Schedule

United will fly 46% of its international schedule compared to its May 2019 schedule. As customers continue to travel to warm beach destinations, United will operate more flights to Mexico, the Caribbean, Central America and South America than the carrier flew in 2019, providing more options to travel to Central America than any other U.S. carrier. Across the Pacific, United will resume flights between Chicago and Tokyo's Haneda airport and increase service from Los Angeles to Sydney and Tokyo Narita. Across the Atlantic, United will resume service between Newark and Milan and Rome as well as between Chicago and Amsterdam, Munich and Tel Aviv.

New Summer Point-to-Point Frequencies


Service from Cleveland to:

Destination

Frequency

Charleston, S.C.

3x weekly

Hilton Head, S.C.

3x weekly

Myrtle Beach, S.C.

3x weekly

Pensacola, Fla.

3x weekly

Portland, Maine

3x weekly


Service from Cincinnati to:

Charleston, S.C.

3x weekly

Hilton Head, S.C.

3x weekly

Pensacola, Fla.

3x weekly

Portland, Maine

3x weekly


Service from Columbus to:

Charleston, S.C.

3x weekly

Hilton Head, S.C.

4x weekly

Portland, Maine

4x weekly


Service from Indianapolis to:

Charleston, S.C.

4x weekly

Hilton Head, S.C.

3x weekly

Portland, Maine

4x weekly


Service from Milwaukee to:

Charleston, S.C.

2x weekly

Myrtle Beach, S.C.

2x weekly

Pensacola, Fla.

2x weekly

Portland, Maine

2x weekly

Savannah, Ga.

2x weekly


Service from St. Louis to:

Hilton Head, S.C.

3x weekly

Myrtle Beach, S.C.

3x weekly


Service from Pittsburgh to:

Charleston, S.C.

3x weekly

Hilton Head, S.C.

3x weekly

Pensacola, Fla.

3x weekly

Portland, Maine

3x weekly

Committed to Ensuring a Safe Journey

United is committed to putting health and safety at the forefront of every customer's journey, with the goal of delivering an industry-leading standard of cleanliness through its United CleanPlus program. United has teamed up with Clorox and Cleveland Clinic to redefine cleaning and health safety procedures from check-in to landing and has implemented more than a dozen new policies, protocols and innovations designed with the safety of customers and employees in mind.

About United

United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of UAL is traded on the Nasdaq under the symbol "UAL".

SOURCE United Airlines

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

United Airlines to Present at the 2021 J.P. Morgan Industrials Conference

March 09, 2021

CHICAGO, March 9, 2021 /PRNewswire/ -- United Airlines will present at the J.P. Morgan Industrials Conference on Monday, March 15. United Airlines' Chief Executive Officer Scott Kirby will present at the conference beginning at 8:40 a.m. CT / 9:40 a.m. ET.

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

From Airline to Landline: United Offers Seamless Travel from Denver International Airport to Breckenridge and Fort Collins

New luxury bus collaboration allows customers to fly into DEN, have their bags and ski equipment automatically transferred and be driven to Breckenridge and Fort Collins
February 26, 2021

DENVER, Feb. 26, 2021 /PRNewswire/ -- United announced today that it is making it easier for customers to travel to Breckenridge and Fort Collins, Colorado with convenient year-round ground transportation service connecting through its Denver hub. This is the first time Breckenridge has ever been served by an airline and will be Fort Collins' first global network carrier service in 25 years.

United Airlines Names Laysha Ward to Board of Directors

February 24, 2021

CHICAGO, Feb. 24, 2021 /PRNewswire/ -- United Airlines Holdings, Inc. (UAL) announced today that Laysha Ward is joining its Board of Directors. Ward, currently Executive Vice President and Chief External Engagement Officer of Target Corporation, brings an impressive resume with more than three decades of corporate leadership experience to the UAL Board.

United Announces Plans to Begin New Daily Nonstop Service Between Boston Logan and London Heathrow

United will be the only U.S. carrier to offer nonstop service between the nation's top seven business markets and London Heathrow
February 19, 2021

CHICAGO, Feb. 19, 2021 /PRNewswire/ -- United Airlines today announced plans to expand its global route network with new, nonstop service between Boston Logan International Airport and London Heathrow. This new service builds upon United's growing presence in London and provides customers on the East Coast with another convenient option to get to London. United plans to operate its premium Boeing 767-300ER aircraft on the route, with 46 United Polaris Business Class and 22 United Premium Plus seats. The aircraft features the highest proportion of premium seats on any widebody aircraft operated by a U.S. carrier between London and the United States.

Aloha, Summer! United to Offer the Only Nonstop Flights Between Orange County, California and Honolulu

New Orange County service begins May 6 and new, first-ever nonstop service between Chicago and Kona and between New York/Newark and Maui starts June 3

Customers departing Orange County and United's hub airports can save time by showing proof of negative tests to skip document screening process in Hawaii

February 12, 2021

February 12, 2021 – United Airlines today announced new convenient options for Hawaiian getaways this summer, offering the only nonstop flights between Orange County, California and Honolulu. The new route joins United's previously announced service between Chicago and Kona and New York/Newark and Maui. With the additional new flights, United will offer nonstop service on more than 20 routes between the mainland and Hawaii. United's Orange County – Honolulu service will be available for purchase on united.com beginning Saturday, February 13.

United to Work with Archer Aviation to Accelerate Production of Advanced, Short-Haul Electric Aircraft

Arrangement adds to United's commitment to invest in emerging technologies that combat climate change
February 10, 2021

CHICAGO, Feb. 10, 2021 /PRNewswire/ -- United Airlines today announced that it has completed an agreement to work with air mobility company Archer as part of the airline's broader effort to invest in emerging technologies that decarbonize air travel. Rather than relying on traditional combustion engines, Archer's electric vertical takeoff and landing (eVTOL) aircraft are designed to use electric motors and have the potential for future use as an 'air taxi' in urban markets.