United 2016 full year and fourth quarter performance - United Hub

United Airlines Reports Full-Year and Fourth-Quarter 2016 Performance

January 17, 2017

  

CHICAGO, Jan. 17, 2017 /PRNewswire/ -- United Airlines (UAL) today announced its fourth-quarter and full-year 2016 financial results. 

  • Achieved best full-year on-time performance while reporting the lowest number of cancellations, delay minutes and mishandled bags in company history.
  • UAL reported full-year net income of $2.3 billion, diluted earnings per share of $6.85, pre-tax earnings of $3.8 billion and pre-tax margin of 10.4 percent. Excluding special items, UAL reported full-year net income of $2.9 billion, diluted earnings per share of $8.65, pre-tax earnings of $4.5 billion and pre-tax margin of 12.2 percent.
  • UAL reported fourth-quarter net income of $397 million, diluted earnings per share of $1.26, pre-tax earnings of $884 million and pre-tax margin of 9.8 percent. Excluding special items, UAL reported fourth-quarter net income of $562 million, diluted earnings per share of $1.78, pre-tax earnings of $857 million and pre-tax margin of 9.5 percent.
  • Technicians and related employees ratified a joint contract in the fourth quarter. UAL has completed new agreements with every domestic unionized work group in 2016.
  • Employees earned $628 million in profit sharing for 2016.

"Our fourth quarter financial and operating performance capped an outstanding year for United Airlines," said Oscar Munoz, chief executive officer of United Airlines. "In 2016, we put into action our plan to become the best airline in the world, and last year's results demonstrate we are on our way to achieving that ambition. We will continue delivering on this commitment by investing in our employees, elevating our customer experience and driving strong and consistent returns for our shareholders." 

Full-Year and Fourth-Quarter Revenue

For the fourth quarter of 2016, total revenue was $9.1 billion, an increase of 0.2 percent year-over-year. Fourth-quarter 2016 consolidated passenger revenue per available seat mile (PRASM) decreased 1.6 percent and consolidated yield decreased 1.2 percent compared to the fourth quarter of 2015. This outperformance versus the company's initial guidance was due to stronger close-in bookings and yields in November and December. For the full-year 2016, consolidated PRASM declined 5.4 percent compared to the prior year driven by factors including a strong U.S. dollar, lower surcharges, reductions from energy-related corporate travel, and declining yields.

"We saw meaningful improvement in the pricing and demand environment in the quarter," said Scott Kirby, president of United Airlines. "Looking forward, we anticipate first-quarter consolidated unit revenues to be approximately flat, marking the fourth straight quarter of sequential quarter-over-quarter improvement."

Full-Year and Fourth-Quarter Costs

Total operating expense was $8.0 billion in the fourth quarter, up 1.2 percent year-over-year. Excluding special charges, total operating expense was $8.1 billion, a 3.2 percent increase year-over-year. Consolidated unit cost (CASM) decreased 0.8 percent compared to the fourth quarter of 2015 due mainly to lower fuel expense. Fourth-quarter consolidated CASM, excluding special charges, third-party business expenses, fuel and profit sharing, increased 4.1 percent year-over-year driven largely by the impact of labor agreements ratified in 2016. For the full year, consolidated CASM decreased 2.9 percent compared to full-year 2015 due to lower fuel expense. Excluding special charges, third-party business expenses, fuel and profit sharing, consolidated CASM increased 2.8 percent compared to the prior year due primarily to new labor agreements.

"I am very pleased with core cost performance achieved in the fourth quarter and full-year 2016 where we kept non-fuel cost growth excluding new labor deals nearly constant," said Andrew Levy, executive vice president and chief financial officer of United Airlines. "I have great confidence we will achieve our cost efficiency targets outlined at our investor day as we look to offset rising fuel and labor costs."

Liquidity and Capital Allocation

In the fourth quarter, UAL generated $658 million in operating cash flow and ended the quarter with $5.8 billion in unrestricted liquidity, including $1.35 billion of undrawn commitments under its revolving credit facility. UAL generated $5.5 billion in operating cash flow for the full year. The company continued to invest in its business through capital expenditures of $880 million in the fourth quarter and a total of $3.2 billion for the full year. Including assets acquired through the issuance of debt and airport construction financing and excluding fully reimbursable projects, the company invested $1.1 billion during the fourth quarter and $3.3 billion for the full year in adjusted capital expenditures. Free cash flow, measured as operating cash flow less adjusted capital expenditures, was $2.2 billion for the full year.

For the 12 months ended Dec. 31, 2016, the company's return on invested capital was 19.3 percent. In the quarter, UAL purchased $156 million of its common shares. For full-year 2016, the company purchased $2.6 billion of its common shares, representing approximately 14 percent of shares outstanding, at an average price of $51.80 per share. As of Dec. 31, 2016, the company had $1.8 billion remaining to purchase shares under its existing share repurchase authority.

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

Full-Year and Fourth-Quarter Highlights
Operations and Employees

  • In the fourth quarter, United technicians and related employees voted to ratify a new joint collective bargaining agreement. During 2016, the company reached new agreements with every domestic unionized work group.
  • Achieved best full-year on-time performance while reporting the lowest number of cancellations, delay minutes and mishandled bags in company history.
  • In December, United earned its sixth consecutive perfect 100 percent score on the Human Rights Campaign's Corporate Equality Index and a spot on the organization's list of "Best Places to Work for LGBT Equality."
  • Employees earned cash-incentive payments of approximately $30 million for achieving operational performance goals in the quarter, marking a full year of bonus payouts for a total of approximately $120 million.
  • Further enabled employees to provide a better experience to customers by equipping them with the technology and information they need, including more than 50,000 mobile devices in the operation.

Network and Fleet

  • In the fourth quarter, launched service to Havana, Cuba from its Newark and Houston hubs. During 2016, the company also introduced new routes between San Francisco and five international destinations including Tel Aviv; Xi'an, China; Singapore; Auckland, New Zealand; and Hangzhou, China.
  • In the fourth quarter, took delivery of the first Boeing 777-300ER in the company's fleet, named the "New Spirit of United," featuring the all-new United Polaris business class seat.
  • During the quarter, announced a modification to its narrowbody order book by converting its original order for 65 Boeing 737-700 aircraft into four 737-800 aircraft to be delivered in 2017 and 61 737 MAX aircraft with delivery dates to be determined.
  • During the year, took delivery of 22 new Boeing aircraft, including 737NGs, 787s and 777s, as well as six used Airbus A319 aircraft.

Customer Experience

  • Launched a reimagined international travel experience, United Polaris service, in December and opened the first premier United Polaris lounge in Chicago.
  • Opened automated screening lanes to increase efficiency and improve the screening experience for its customers at hubs in Chicago, Los Angeles and Newark during the fourth quarter.
  • During the year, redesigned and upgraded seven United Clubs across the system.
  • In 2016, re-introduced free snacks and began offering illy® premium coffee on board and in United Clubs.
  • For 2016, MileagePlus® loyalty program named best overall frequent flyer program in the world for thirteenth consecutive year by Global Traveler.
  • Flew 1,500 athletes, coaches and Team USA staff to the 2016 Rio Olympic and Paralympic Games over the summer as the company celebrated more than 35 years partnering with Team USA.
  • Expanded capabilities of United's award-winning mobile app, used on more than 28 million devices – enhancing the customer experience with new re-booking options and features to improve management of international travel documents.

About United

United Airlines and United Express operate more than 4,500 flights a day to 339 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 737 mainline aircraft and the airline's United Express partners operate 483 regional 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 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" 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, revenue-generating initiatives, 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; 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 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 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)
(In millions, except per share data)

(In millions, except per share data) Three Months Ended
December 31, 2016
Three Months Ended
December 31, 2015
%
Increase/
(Decrease)
Year Ended
December 31, 2016
Year Ended
December 31, 2015
%
Increase/
(Decrease)
Operating revenue:
Passenger:
Mainline
$6,295 $6,180 1.9 $25,414 $26,333 (3.5)
Operating revenue: Passenger: Regional 1,466 1,549 (5.4) 6,043 6,452 (6.3)
Operating revenue: Passenger: Total passenger revenue (B) 7,761 7,729 0.4 31,457 32,785 (4.1)
Operating revenue: Cargo 250 231 8.2 876 937 (6.5)
Operating revenue: Other operating revenue 1,041 1,076 (3.3) 4,223 4,142 2.0
Operating revenue: Total operating revenue 9,052 9,036 0.2 36,556 37,864 (3.5)
Operating expense:
Salaries and related costs
2,568 2,424 5.9 10,275 9,713 5.8
Operating expense: Aircraft fuel (C) 1,555 1,618 (3.9) 5,813 7,522 (22.7)
Operating expense: Landing fees and other rent 553 556 (0.5) 2,165 2,203 (1.7)
Operating expense: Regional capacity purchase 552 565 (2.3) 2,197 2,290 (4.1)
Operating expense: Depreciation and amortization 504 476 5.9 1,977 1,819 8.7
Operating expense: Aircraft maintenance materials and outside repairs 448 399 12.3 1,749 1,651 5.9
Operating expense: Distribution expenses 316 316 1,303 1,342 (2.9)
Operating expense: Aircraft rent 159 174 (8.6) 680 754 (9.8)
Operating expense: Special charges (D) (31) 131 NM1 638 326 NM1
Operating expense: Other operating expenses 1,423 1,296 9.8 5,421 5,078 6.8
Operating expense: Other Operating Expenses: Total operating expenses 8,047 7,955 1.2 32,218 32,698 (1.5)
Operating income: Operating income 1,005 1,081 (7.0) 4,338 5,166 (16.0)
Operating margin 11.1% 12.0% (0.9) pts. 11.9% 13.6% (1.7) pts.
Operating margin, excluding special charges (A) (Non-GAAP) 10.8% 13.4% (2.6) pts. 13.6% 14.5% (0.9) pts.
Nonoperating income (expense):
Interest expense
(148) (165) (10.3) (614) (669) (8.2)
Nonoperating income (expense): Interest capitalized 24 11 118.2 72 49 46.9
Nonoperating income (expense): Interest income 11 9 22.2 42 25 68.0
Nonoperating income (expense): Miscellaneous, net (D) (8) (31) (74.2) (19) (352) (94.6)
Nonoperating income (expense): Miscellaneous, net (D): Total nonoperating expense (121) (176) (31.3) (519) (947) (45.2)
Income before income taxes: Income before income taxes 884 905 (2.3) 3,819 4,219 (9.5)
Pre-tax margin 9.8% 10.0% (0.2) pts. 10.4% 11.1% (0.7) pts.
Pre-tax margin, excluding special items (A) (Non-GAAP) 9.5% 10.4% (0.9) pts. 12.2% 11.9% 0.3 pts.
Income tax expense (benefit) (E) 487 82 493.9 1,556 (3,121) NM1
Net income $397 $823 (51.8) $2,263 $7,340 (69.2)
Earnings per share, diluted $1.26 $2.24 (43.8) $6.85 $19.47 (64.8)
Weighted average shares, diluted 316 367 (13.9) 330 377 (12.5)
  1. NM means Not Meaningful

 

UNITED CONTINENTAL HOLDINGS, INC.
STATISTICS
  Three Months Ended
December 31, 2016
Three Months Ended
December 31, 2015
%
Increase/
(Decrease)
Year Ended
December 31, 2016
Year Ended
December 31, 2015
%
Increase/
(Decrease)
Mainline:
Passengers (thousands)
25,590 24,169 5.9 101,007 96,327 4.9
Mainline:Revenue passenger miles (millions) 45,608 44,470 2.6 186,181 183,642 1.4
Mainline:Available seat miles (millions) 55,440 53,814 3.0 224,692 219,989 2.1
Mainline:Cargo ton miles (millions) 790 679 16.3 2,805 2,614 7.3
Mainline:Passenger revenue per available seat mile (cents) 11.35 11.48 (1.1) 11.31 11.97 (5.5)
Mainline:Average yield per revenue passenger mile (cents) 13.80 13.90 (0.7) 13.65 14.34 (4.8)
Mainline:Aircraft in fleet at end of period 737 715 3.1 737 715 3.1
Mainline:Average stage length (miles) 1,804 1,869 (3.5) 1,859 1,922 (3.3)
Mainline:Average daily utilization of each aircraft (hours) 9:54 9:59 (0.8) 10:06 10:24 (2.9)
Regional:
Passengers (thousands)
10,433 10,983 (5.0) 42,170 44,042 (4.3)
Regional:Revenue passenger miles (millions) 5,930 6,248 (5.1) 24,128 24,969 (3.4)
Regional:Available seat miles (millions) 7,078 7,490 (5.5) 28,898 30,014 (3.7)
Regional:Passenger revenue per available seat mile (cents) 20.71 20.68 0.1 20.91 21.50 (2.7)
Regional:Average yield per revenue passenger mile (cents) 24.72 24.79 (0.3) 25.05 25.84 (3.1)
Regional:Aircraft in fleet at end of period 494 521 (5.2) 494 521 (5.2)
Regional:Average stage length (miles) 560 562 (0.4) 564 559 0.9
Consolidated (Mainline and Regional):
Passengers (thousands)
36,023 35,152 2.5 143,177 140,369 2.0
Consolidated (Mainline and Regional):Revenue passenger miles (millions) 51,538 50,718 1.6 210,309 208,611 0.8
Consolidated (Mainline and Regional):Available seat miles (millions) 62,518 61,304 2.0 253,590 250,003 1.4
Consolidated (Mainline and Regional):Passenger load factor:
Consolidated
82.4% 82.7% (0.3) pts. 82.9% 83.4% (0.5) pts.
Consolidated (Mainline and Regional):Domestic 85.2% 85.7% (0.5) pts. 85.4% 85.7% (0.3) pts.
Consolidated (Mainline and Regional):International 78.9% 79.0% (0.1) pts. 80.0% 80.7% (0.7) pts.
Consolidated (Mainline and Regional):Passenger revenue per available seat mile (cents) 12.41 12.61 (1.6) 12.40 13.11 (5.4)
Consolidated (Mainline and Regional):Total revenue per available seat mile (cents) 14.48 14.74 (1.8) 14.42 15.15 (4.8)
Consolidated (Mainline and Regional):Average yield per revenue passenger mile (cents) 15.06 15.24 (1.2) 14.96 15.72 (4.8)
Consolidated (Mainline and Regional):Aircraft in fleet at end of period 1,231 1,236 (0.4) 1,231 1,236 (0.4)
Consolidated (Mainline and Regional):Average stage length (miles) 1,441 1,456 (1.0) 1,473 1,487 (0.9)
Consolidated (Mainline and Regional):Average full-time equivalent employees (thousands) 84.8 82.1 3.3 83.9 82.1 2.2
  • 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.
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)

  Three Months Ended
December 31, 2016
Three Months Ended
December 31, 2015
%
Increase/
(Decrease)
Year Ended
December 31, 2016
Year Ended
December 31, 2015
%
Increase/
(Decrease)
Operating income (GAAP) $1,005 $1,081 (7.0) $4,338 $5,166 (16.0)
Operating margin (GAAP) 11.1% 12.0% (0.9) pts. 11.9% 13.6% (1.7) pts.
Operating income, excluding Special charges (Non-GAAP) 974 1,212 (19.6) 4,976 5,492 (9.4)
Operating margin, excluding Special charges (Non-GAAP) 10.8% 13.4% (2.6) pts. 13.6% 14.5% (0.9) pts.
Adjusted EBITDA, excluding special items (Non-GAAP) $1,474 $1,560 (5.5) $6,939 $6,912 0.4
Adjusted EBITDA margin, excluding special items (Non-GAAP) 16.3% 17.3% (1.0) pts. 19.0% 18.3% 0.7 pts.
Adjusted EBITDAR, excluding special items (Non-GAAP) 1,633 1,734 (5.8) 7,619 7,666 (0.6)
Adjusted EBITDAR margin, excluding special items (Non-GAAP) 18.0% 19.2% (1.2) pts. 20.8% 20.2% 0.6 pts.
Pre-tax income (GAAP) $884 $905 (2.3) $3,819 $4,219 (9.5)
Pre-tax margin (GAAP) 9.8% 10.0% (0.2) pts. 10.4% 11.1% (0.7) pts.
Pre-tax income, excluding special items (Non-GAAP) 857 939 (8.7) 4,462 4,498 (0.8)
Pre-tax margin, excluding special items (Non-GAAP) 9.5% 10.4% (0.9) pts. 12.2% 11.9% 0.3 pts.
Net income (GAAP) $397 $823 (51.8) $2,263 $7,340 (69.2)
Net income, excluding special items (Non-GAAP) 562 934 (39.8) 2,857 4,478 (36.2)
Tax adjusted net income, excluding special items (Non-GAAP) 562 602 (6.6) 2,857 2,883 (0.9)
Diluted earnings per share (GAAP) $1.26 $2.24 (43.8) $6.85 $19.47 (64.8)
Diluted earnings per share, excluding special items (Non-GAAP) 1.78 2.54 (29.9) 8.65 11.88 (27.2)
Tax adjusted diluted earnings per share, excluding special items (Non-GAAP) 1.78 1.64 8.5 8.65 7.65 13.1
Net cash provided by operating activities $658 $1,115 (41.0) $5,542 $5,992 (7.5)
Capital expenditures $880 $763 15.3 $3,223 $2,747 17.3
Adjusted capital expenditures 1,078 791 36.3 3,347 3,506 (4.5)
Free cash flow, net of financings (Non-GAAP) $(222) $352 NM $2,319 $3,245 (28.5)
Free cash flow (Non-GAAP) (420) 324 NM 2,195 2,486 (11.7)

 

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

ROIC is a Non-GAAP financial measure that we believe provides useful supplemental information for management and investors by measuring the effectiveness of our operations' use of invested capital to generate profits.
  Twelve Months Ended
December 31, 2016
Net Operating Profit After Tax (NOPAT)
Pre-tax income excluding special items 2
$4,462
Pre-tax income excluding special items: NOPAT adjustments 3 998
NOPAT $5,460
Effective cash tax rate 4 0.3%
Invested Capital (five-quarter average)
Total assets
$40,435
Total assets: Invested capital adjustments 5 12,182
Average Invested Capital $28,253
Return on Invested Capital 19.3%
  1. Non-GAAP Financial Reconciliation
  2. NOPAT adjustments include: adding back (net of tax shield) interest expense, the interest component of capitalized aircraft rent and net interest on pension.
  3. Effective cash tax rate is calculated by dividing cash taxes paid by adjusted pre-tax income.
  4. Invested capital adjustments include: adding back capital aircraft rent (at 7.0X) and deferred income taxes, less advance ticket sales, frequent flyer deferred revenue, tax valuation allowance and other non-interest bearing liabilities.
Notes: Twelve Months Ended
December 31, 2016
Pre-tax income $3,819
Pre-tax income: Add: Special items 643
Pre-tax income excluding special items $4,462

 

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.
  Three Months Ended
December 31, 2016 in cents
Three Months Ended
December 31, 2015 in cents
%
Increase/
(Decrease)
Year Ended
December 31, 2016 in cents
Year Ended
December 31, 2015 in cents
%
Increase/
(Decrease)
CASM Mainline Operations (cents)
Cost per available seat mile (CASM)
12.43 12.37 0.5 12.22 12.42 (1.6)
CASM Mainline Operations (cents): Cost per available seat mile (CASM):Less: Special charges (D) (0.06) 0.24 NM1 0.29 0.15 NM1
CASM Mainline Operations (cents): Cost per available seat mile (CASM): Less: Third-party business expenses 0.13 0.16 (18.8) 0.11 0.13 (15.4)
CASM Mainline Operations (cents): Cost per available seat mile (CASM): Less: Fuel expense 2.33 2.53 (7.9) 2.16 2.87 (24.7)
CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses and fuel 10.03 9.44 6.3 9.66 9.27 4.2
CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses and fuel: Less: Profit sharing per available seat mile 0.22 0.28 (21.4) 0.28 0.32 (12.5)
CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses, fuel, and profit sharing 9.81 9.16 7.1 9.38 8.95 4.8
CASM Consolidated Operations (cents)
Cost per available seat mile (CASM)
12.87 12.98 (0.8) 12.70 13.08 (2.9)
CASM Consolidated Operations (cents): Cost per available seat mile (CASM):Less: Special charges (D) (0.05) 0.22 NM1 0.25 0.13 NM1
CASM Consolidated Operations (cents): Cost per available seat mile (CASM): Less: Third-party business expenses 0.11 0.14 (21.4) 0.10 0.12 (16.7)
CASM Consolidated Operations (cents): Cost per available seat mile (CASM): Less: Fuel expense 2.49 2.64 (5.7) 2.29 3.01 (23.9)
CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses and fuel 10.32 9.98 3.4 10.06 9.82 2.4
CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses and fuel: Less: Profit sharing per available seat mile 0.19 0.25 (24.0) 0.25 0.28 (10.7)
CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses, fuel, and profit sharing 10.13 9.73 4.1 9.81 9.54 2.8

 

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 2015 adjusted for the impact of tax expense using the effective tax rate from the respective period in 2016 in order to make the financial measures more comparable. UAL had minimal income tax expense in the second half of 2015 that was offset by the release of its deferred tax asset valuation allowance resulting in a net income tax benefit.
  Three Months Ended
December 31, 2016 (In millions)
Three Months Ended
December 31, 2015 (In millions)
$
Increase/
(Decrease)
%
Increase/
(Decrease)
Year Ended
December 31, 2016 (In millions)
Year Ended
December 31, 2015 (In millions)
$
Increase/
(Decrease)
%
Increase/
(Decrease)
Operating expenses $8,047 $7,955 $92 1.2 $32,218 $32,698 $(480) (1.5)
Operating expenses: Less: Special charges (D) (31) 131 (162) NM1 638 326 312 NM1
Operating expenses, excluding special charges 8,078 7,824 254 3.2 31,580 32,372 (792) (2.4)
Operating expenses, excluding special charges: Less: Third-party business expenses 69 86 (17) (19.8) 257 291 (34) (11.7)
Operating expenses, excluding special charges: Less: Fuel expense 1,555 1,618 (63) (3.9) 5,813 7,522 (1,709) (22.7)
Operating expenses, excluding special charges: Less: Profit sharing, including taxes 122 153 (31) (20.3) 628 698 (70) (10.0)
Operating expenses, excluding fuel, profit sharing, special charges and third-party business expenses $6,332 $5,967 $365 6.1 $24,882 $23,861 $1,021 4.3
Operating income $1,005 $1,081 $(76) (7.0) $4,338 $5,166 $(828) (16.0)
Operating income: Less: Special charges (D) (31) 131 (162) NM1 638 326 312 NM1
Operating income, excluding special charges $974 $1,212 $(238) (19.6) $4,976 $5,492 $(516) (9.4)
Income before income taxes $884 $905 $(21) (2.3) $3,819 $4,219 $(400) (9.5)
Income before income taxes: Less: special items before income taxes (D) (27) 34 (61) NM1 643 279 364 NM1
Income before income taxes and excluding special items $857 $939 $(82) (8.7) $4,462 $4,498 $(36) (0.8)
Net income $397 $823 $(426) (51.8) $2,263 $7,340 $(5,077) (69.2)
Net income: Less: special items, net of tax (D) 165 111 54 NM1 594 (2,862) 3,456 NM1
Net income, excluding special items 562 934 (372) (39.8) 2,857 4,478 (1,621) (36.2)
Net income, excluding special items: Less: Income tax adjustment using 2016 tax rate for 2015 (332) 332 NM1 (1,595) 1,595 NM1
Tax adjusted net income, excluding special items $562 $602 $(40) (6.6) $2,857 $2,883 $(26) (0.9)
Diluted earnings per share $1.26 $2.24 $(0.98) (43.8) $6.85 $19.47 $(12.62) (64.8)
Diluted earnings per share: Less: special items (0.09) 0.09 (0.18) NM1 1.95 0.74 1.21 NM1
Diluted earnings per share: Less: special income tax items 0.61 0.21 0.40 NM1 (0.15) (8.33) 8.18 NM1
Diluted earnings per share, excluding special items $1.78 $2.54 $(0.76) (29.9) $8.65 $11.88 $(3.23) (27.2)
Diluted earnings per share, excluding special items: Less: Income tax adjustment using 2016 tax rate for 2015 (0.90) 0.90 NM1 (4.23) 4.23 NM1
Tax adjusted diluted earnings per share, excluding special items $1.78 $1.64 $0.14 8.5 $8.65 $7.65 $1.00 13.1

 

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
December 31, 2016
Three Months Ended
December 31, 2015
Year Ended
December 31, 2016
Year Ended
December 31, 2015
Net income $397 $823 $2,263 $7,340
Adjusted For:
Depreciation and amortization
504 476 1,977 1,819
Adjusted For: Interest expense 148 165 614 669
Adjusted For: Interest capitalized (24) (11) (72) (49)
Adjusted For: Interest income (11) (9) (42) (25)
Adjusted For: Income tax expense (benefit) (E) 487 82 1,556 (3,121)
Adjusted For: Special items before income taxes (D) (27) 34 643 279
Adjusted EBITDA, excluding special items 1,474 1,560 6,939 6,912
Adjusted EBITDA, excluding special items: Aircraft rent 159 174 680 754
Adjusted EBITDAR, excluding special items $1,633 $1,734 $7,619 $7,666
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
December 31, 2016
Three Months Ended
December 31, 2015
Year Ended
December 31, 2016
Year Ended
December 31, 2015
Capital Expenditures: Capital expenditures – GAAP $880 $763 $3,223 $2,747
Capital Expenditures: Capital expenditures – GAAP:Property and equipment acquired through the issuance of debt 271 69 386 866
Capital Expenditures: Capital expenditures – GAAP:Airport construction financing 23 12 91 17
Capital Expenditures: Capital expenditures – GAAP:Fully reimbursable projects (96) (53) (353) (124)
Capital Expenditures:Adjusted capital expenditures – Non-GAAP $1,078 $791 $3,347 $3,506
Free Cash Flow (in millions) Three Months Ended
December 31, 2016
Three Months Ended
December 31, 2015
Year Ended
December 31, 2016
Year Ended
December 31, 2015
Free Cash Flow: Net cash provided by operating activities $658 $1,115 $5,542 $5,992
Free Cash Flow: Net cash provided by operating activities: Less capital expenditures – Non-GAAP 880 763 3,223 2,747
Free Cash Flow: Free cash flow, net of financings - Non-GAAP $(222) $352 $2,319 $3,245
Free Cash Flow: Net cash provided by operating activities $658 $1,115 $5,542 $5,992
Free Cash Flow: Net cash provided by operating activities: Less adjusted capital expenditures – Non-GAAP 1,078 791 3,347 3,506
Free Cash Flow: Free cash flow - Non-GAAP $(420) $324 $2,195 $2,486

 

UNITED CONTINENTAL HOLDINGS, INC.
NOTES (UNAUDITED)

(B) Select passenger revenue information is as follows (in millions):
  4Q 2016
Passenger
Revenue
(millions)
Passenger
Revenue
vs.
4Q 2015
PRASM
vs.
4Q 2015
Yield
vs.
4Q 2015
Available
Seat Miles
vs.
4Q 2015
Domestic $3,378 4.0% (0.3%) 0.6% 4.3%
Atlantic 1,246 (5.2%) (2.8%) (0.2%) (2.4%)
Pacific 1,030 1.8% (6.0%) (6.2%) 8.1%
Latin America 641 6.0% 7.7% 4.2% (1.6%)
International 2,917 (0.5%) (2.2%) (2.0%) 1.8%
Mainline 6,295 1.9% (1.1%) (0.7%) 3.0%
Regional 1,466 (5.4%) 0.1% (0.3%) (5.5%)
Consolidated $7,761 0.4% (1.6%) (1.2%) 2.0%

 

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)
  Three Months Ended
December 31, 2016
Three Months Ended
December 31, 2015
%
Increase/
(Decrease)
Year Ended
December 31, 2016
Year Ended
December 31, 2015
%
Increase/
(Decrease)
Mainline fuel expense excluding hedge impacts $1,270 $1,184 7.3 $4,640 $5,711 (18.8)
Hedge losses reported in fuel expense 6 (20) (175) NM1 (217) (604) NM1
Total mainline fuel expense 1,290 1,359 (5.1) 4,857 6,315 (23.1)
Regional fuel expense 265 259 2.3 956 1,207 (20.8)
Consolidated fuel expense 1,555 1,618 (3.9) 5,813 7,522 (22.7)
Cash paid on settled hedges that did not qualify for hedge accounting 7 (115) NM1 (5) (329) NM1
Fuel expense including all losses from settled hedges $1,555 $1,733 (10.3) $5,818 $7,851 (25.9)
Mainline fuel consumption (gallons) 804 784 2.6 3,261 3,216 1.4
Mainline average aircraft fuel price per gallon $1.60 $1.73 (7.5) $1.49 $1.96 (24.0)
Mainline average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense $1.58 $1.51 4.6 $1.42 $1.78 (20.2)
Mainline average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accounting $1.60 $1.88 (14.9) $1.49 $2.07 (28.0)
Regional fuel consumption (gallons) 158 167 (5.4) 643 670 (4.0)
Regional average aircraft fuel price per gallon $1.68 $1.55 8.4 $1.49 $1.80 (17.2)
Consolidated fuel consumption (gallons) 962 951 1.2 3,904 3,886 0.5
Consolidated average aircraft fuel price per gallon $1.62 $1.70 (4.7) $1.49 $1.94 (23.2)
Consolidated average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense $1.60 $1.52 5.3 $1.43 $1.78 (19.7)
Consolidated average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accounting $1.62 $1.82 (11.0) $1.49 $2.02 (26.2)
  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
December 31, 2016 (In millions)
Three Months Ended
December 31, 2015 (In millions)
Year Ended
December 31, 2016 (In millions)
Year Ended
December 31, 2015 (In millions)
Operating:
Labor agreement costs and related items
$(60) $18 $64 $18
Operating: Severance and benefit costs 10 4 37 107
Operating: Impairment of assets 48 412 79
Operating: Cleveland airport lease restructuring 74
Operating: (Gains) losses on sale of assets and other special charges 19 61 51 122
Operating: (Gains) losses on sale of assets and other special charges: Special charges (31) 131 638 326
Nonoperating and income taxes:
Losses (gain) on extinguishment of debt and other
7 (1) 202
Nonoperating and income taxes: Income tax expense (benefit) related to special charges 12 (11) (229) (11)
Nonoperating and income taxes: Income tax expense (benefit) related to special charges: Total operating and nonoperating special charges, net of income taxes (19) 127 408 517
Nonoperating and income taxes: Income tax adjustments (E) 180 88 180 (3,130)
Nonoperating and income taxes: Mark-to-market (MTM) losses from fuel derivative contracts settling in future periods 1 (8)
Nonoperating and income taxes:Prior period gains (losses) on fuel derivative contracts settled in the current period 4 (105) 6 (241)
Nonoperating and income taxes: Prior period gains (losses) on fuel derivative contracts settled in the current period:Total special items, net of income taxes $165 $111 $594 $(2,862)

 

Special items

 

Labor agreement costs and related items: The fleet service, passenger service, storekeeper and other employees represented by the International Association of Machinists and Aerospace Workers (IAM) ratified seven new contracts with the company which extended the contracts through 2021. The technicians and related employees represented by the International Brotherhood of Teamsters (IBT) ratified a six-year joint collective bargaining agreement which extended the contract through 2022. During 2016, the company recorded $171 million ($110 million net of taxes) of special charges primarily for payments in conjunction with the IAM and IBT agreements described above. As part of the ratified contract with the IBT, the company amended some of its technicians and related employees' postretirement medical plans. The amendments triggered curtailment accounting, resulting in the recognition of a one-time $60 million gain ($38 million net of taxes) for accelerated recognition of a prior service credit in one of the plans. Also, as part of the 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 months and year ended December 31, 2016, the company recorded $10 million ($6 million net of taxes) and $37 million ($24 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 2015, the company recorded $107 million of severance and benefit costs primarily related to a voluntary early-out program for its flight attendants. In 2014, more than 2,500 flight attendants elected to voluntarily separate from the company 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 assets: In April 2016, the Federal Aviation Administration (FAA) announced that it will designate Newark Liberty International Airport (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 2016, the company determined that the FAA's action impaired the entire value of its Newark slots because the slots are no longer 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. During its annual assessment in the fourth quarter of 2015, the company recorded $33 million ($22 million net of related income tax benefit) related to impairment of its indefinite-lived intangible assets (certain domestic slots and international Pacific routes), $8 million for the write-off of unexercised aircraft purchase options and $7 million for inventory held for sale. For the full-year 2015, the company also recorded other impairments, including $10 million for discontinued internal software projects and $10 million for the impairment of several engines held for sale.

 

Cleveland airport lease restructuring: During 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 months and year ended December 31, 2016, the company recorded gains and losses on sale of assets and other special charges of $19 million ($12 million net of taxes) and $51 million ($33 million net of taxes), respectively. During 2015, the company recorded $122 million, which includes $60 million of integration-related costs primarily related to systems integration and training for employees, $32 million related to charges for legal matters, $16 million for the cease use of an aircraft under lease and $14 million for losses on the sale of aircraft and other miscellaneous gains and losses.

 

Losses (gain) on extinguishment of debt and other: During the year ended December 31, 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. During 2015, the company recorded $202 million of losses as part of Nonoperating income (expense): Miscellaneous, net due primarily to the write-off of $134 million related to the unamortized non-cash debt discount from the extinguishment of the 6% Notes due 2026 and 6% Notes due 2028, and $61 million of foreign exchange losses on its holdings of Venezuela currency.

 

MTM (gains)/losses from fuel derivative contracts settling in future periods and prior period gains/(losses) on fuel derivative contracts settled in the current period: The company uses certain combinations of derivative contracts that are economic hedges but do not qualify for hedge accounting under U.S. generally accepted accounting principles. Additionally, the company may enter into contracts at different times and later combine those contracts into structures designated for hedge accounting. As with derivatives that qualify for hedge accounting, the economic hedges and individual contracts are part of the company's program to mitigate the adverse financial impact of potential increases in the price of fuel. The company records changes in the fair value of these various contracts that are not designated for hedge accounting to Nonoperating income (expense): Miscellaneous, net in the statements of consolidated operations. During the three months and year ended December 31, 2016, the company did not record any MTM gains or losses on fuel derivative contracts that will settle in future periods. For fuel derivative contracts that settled in the three months and year ended December 31, 2016, the company recorded MTM gains of $4 million and $6 million, respectively, in prior periods. During the three months and year ended December 31, 2015, the company recorded $1 million in MTM losses and $8 million in MTM gains, respectively, on fuel derivative contracts that will settle in future periods. For fuel derivative contracts that settled in the three months and year ended December 31, 2015, the company recorded MTM losses of $105 million and $241 million, respectively, in prior periods.

 

(E)     The company's effective tax rate for the three months and year ended December 31, 2016 was 55% and 41%, respectively. The rate for both periods was impacted by a special tax expense of $180 million. The company recorded approximately $180 million of deferred income tax expense adjustments in AOCI, which related to losses on fuel hedges designated for hedge accounting. Accounting rules required the adjustments to remain in AOCI as long as the company had fuel derivatives designated for cash flow hedge accounting. In 2016, we settled all of our fuel hedges and have not entered into any new fuel derivative contracts for hedge accounting. Accordingly, the company reclassified the $180 million to income tax expense in 2016. The effective tax rate for 2016 also represented a blend of federal, state and foreign taxes and the impact of certain nondeductible items.

 

The company's effective tax rate for the three months and year ended December 31, 2015 was impacted by the valuation allowance release. 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.

 

 

 

SOURCE United Airlines

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

United Airlines Earns 100% Score on Human Rights Campaign Foundation's Annual Scorecard on LGBTQ+ Workplace Equality

January 27, 2020

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

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

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

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

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

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

Every customer. Every flight. Every day.

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

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

About United

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

SOURCE United Airlines

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

United is Onboard as the Official Airline of the 92nd Street Y’s Acclaimed Talks Series

January 24, 2020

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

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

Jamie McCarthy/Getty Images

🙂

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

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

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

Every customer. Every flight. Every day.

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

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

About United

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

About 92Y

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

United Adds 29 New Flights to Miami for the Big Game

January 23, 2020

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

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

United's Big Game Service to Miami


Day

From

To

Frequency

Friday

San Francisco

Miami

3 Flights

Friday

Kansas City

Miami

2 Flights

Friday

Chicago

Miami

5 Flights

Friday

Denver

Miami

1 Flight

Friday

Houston

Miami

5 Flights

Friday

Los Angeles

Miami

1 Flight

Friday

New York/Newark

Miami

8 Flights

Friday

Washington Dulles

Miami

2 Flights





Saturday

San Francisco

Miami

3 Flights

Saturday

Kansas City

Miami

2 Flights

Saturday

Chicago

Miami

5 Flights

Saturday

Denver

Miami

1 Flight

Saturday

Houston

Miami

6 Flights

Saturday

New York/Newark

Miami

6 Flights

Saturday

Washington Dulles

Miami

2 Flights





Monday

Miami

San Francisco

5 Flights

Monday

Miami

Kansas City

3 Flights

Monday

Miami

Chicago

4 Flights

Monday

Miami

Denver

1 Flight

Monday

Miami

Houston

5 Flights

Monday

Miami

Los Angeles

2 Flights

Monday

Miami

New York/Newark

9 Flights

Monday

Miami

Washington Dulles

3 Flights

Every customer. Every flight. Every day.

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

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

About United

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

 

SOURCE United Airlines

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

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

January 21, 2020

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

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

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

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

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

2019 Highlights

Operations and Employees

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

Customer Experience

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

Network

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

Fleet

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

Community and Environment

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

Earnings Call

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

About United

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

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

-tables attached-

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

UNITED AIRLINES HOLDINGS, INC,

STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)




Three Months Ended
December 31,


%
Increase/
(Decrease)



Year Ended
December 31,


%
Increase/
(Decrease)


(In millions, except per share data)


2019


2018




2019


2018



Operating revenue:















Passenger


$

9,933



$

9,556



3.9




$

39,625



$

37,706



5.1



Cargo


316



334



(5.4)




1,179



1,237



(4.7)



Other operating revenue


639



601



6.3




2,455



2,360



4.0



Total operating revenue


10,888



10,491



3.8




43,259



41,303



4.7


















Operating expense:















Salaries and related costs


3,078



2,924



5.3




12,071



11,458



5.3



Aircraft fuel


2,249



2,380



(5.5)




8,953



9,307



(3.8)



Regional capacity purchase


725



650



11.5




2,849



2,649



7.6



Landing fees and other rent


650



627



3.7




2,543



2,449



3.8



Depreciation and amortization


606



558



8.6




2,288



2,165



5.7



Aircraft maintenance materials and outside repairs


475



434



9.4




1,794



1,767



1.5



Distribution expenses


417



396



5.3




1,651



1,558



6.0



Aircraft rent


67



78



(14.1)




288



433



(33.5)



Special charges (B)


130



301



NM




246



487



NM



Other operating expenses


1,630



1,508



8.1




6,275



5,801



8.2



Total operating expense


10,027



9,856



1.7




38,958



38,074



2.3


















Operating income


861



635



35.6




4,301



3,229



33.2


















Operating margin


7.9

%


6.1

%


1.8

pts.



9.9

%


7.8

%


2.1

pts.

















Nonoperating income (expense):















Interest expense


(161)



(173)



(6.9)




(731)



(670)



9.1



Interest capitalized


20



19



5.3




85



65



30.8



Interest income


30



31



(3.2)




133



101



31.7



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


81



56



44.6




153



(5)



NM


Miscellaneous, net


13



(15)



NM




(27)



(72)



(62.5)



Total nonoperating expense


(17)



(82)



(79.3)




(387)



(581)



(33.4)


















Income before income taxes


844



553



52.6




3,914



2,648



47.8


















Pre-tax margin


7.8

%


5.3

%


2.5

pts.



9.0

%


6.4

%


2.6

pts.

















Income tax expense (D)


203



92



120.7




905



526



72.1



Net income


$

641



$

461



39.0




$

3,009



$

2,122



41.8


















Diluted earnings per share


$

2.53



$

1.69



49.7




$

11.58



$

7.67



51.0



Diluted weighted average shares


253.4



272.7



(7.1)




259.9



276.7



(6.1)


















NM Not meaningful
















 

UNITED AIRLINES HOLDINGS, INC.

PASSENGER REVENUE INFORMATION AND STATISTICS


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



4Q 2019

Passenger

Revenue


4Q 2018

Passenger

Revenue (a)


Reporting Adjustments (b)


4Q 2018

Passenger

Revenue (b)


Passenger

Revenue

vs.

4Q 2018 (b)


PRASM vs. 4Q 2018 (b)


Yield vs. 4Q 2018 (b)


Available

Seat Miles

vs.

4Q 2018


4Q 2019 Available Seat Miles


4Q 2019 Revenue Passenger Miles

Domestic

$

6,338



$

6,088



$

52



$

6,140



3.2%


0.6%


1.5%


2.6%


40,612


34,051





















Atlantic

1,616



1,535



(30)



1,505



7.4%


(0.2%)


(1.3%)


7.6%


12,649


10,373

Pacific

1,088



1,139



(31)



1,108



(1.8)%


(1.2)%


(1.9)%


(0.7%)


11,098


8,653

Latin America

891



794



9



803



11.0%


6.3%


5.8%


4.4%


6,679


5,556

International

3,595



3,468



(52)



3,416



5.2%


1.5%


0.5%


3.8%


30,426


24,582





















Consolidated

$

9,933



$

9,556



$



$

9,556



3.9%


0.8%


1.0%


3.1%


71,038


58,633






















(a) As previously reported.

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

 

Select operating statistics are as follows:




Three Months Ended
December 31,


%

Increase/

(Decrease)



Year Ended
December 31,


%

Increase/

(Decrease)




2019


2018




2019


2018



Passengers (thousands)


40,306



39,891



1.0




162,443



158,330



2.6



Revenue passenger miles (millions)


58,633



56,968



2.9




239,360



230,155



4.0



Available seat miles (millions)


71,038



68,902



3.1




284,999



275,262



3.5



Passenger load factor:















    Consolidated


82.5

%


82.7

%


(0.2)

pts.



84.0

%


83.6

%


0.4

pts.


    Domestic


83.8

%


84.6

%


(0.8)

pts.



85.2

%


85.4

%


(0.2)

pts.


    International


80.8

%


80.1

%


0.7

pts.



82.4

%


81.3

%


1.1

pts.


Passenger revenue per available seat mile (cents)


13.98



13.87



0.8




13.90



13.70



1.5



Total revenue per available seat mile (cents)


15.33



15.23



0.7




15.18



15.00



1.2



Average yield per revenue passenger mile (cents)


16.94



16.77



1.0




16.55



16.38



1.0



Cargo ton miles


889



902



(1.4)




3,329



3,425



(2.8)



Aircraft in fleet at end of period


1,372



1,329



3.2




1,372



1,329



3.2



Average stage length (miles)


1,446



1,426



1.4