United 2016 full year and fourth quarter performance

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

United Airlines Announces $1 Million Grant To Help California Foster Youth Succeed

July 13, 2018

LOS ANGELES, July 13, 2018 /PRNewswire/ -- Today, United Airlines announced a $1 million grant to First Place for Youth in support of their My First Place program. The four-year investment will enable First Place to expand wraparound support services to 50 percent more foster youth in the region. First Place will strengthen career-focused programming and provide the tools to help secure meaningful employment and increase lifetime earning potential for Angeleno foster youth.

With this grant, First Place for Youth will dramatically expand its reach, moving more high-risk foster youth 16 to 24 years old from homelessness into safe, affordable apartments and giving them the skills they need to compete in the job market and to realize long-term self-sufficiency. The Los Angeles nonprofit will be able to enroll more young people in academically rigorous linked learning programs that result in industry-recognized certificates that can lead to a living-wage career.

"As California's global airline, United cares deeply about investing in the state's future," said United's President of California Janet Lamkin. "Los Angeles County is home to one-third of California's foster youth and we are proud to help First Place target growth in high-needs areas of the community, like South Los Angeles, and help ensure California's youth have increased access to high-quality programs that lead to employment in a wide variety of fields, including aviation."

"Everyone deserves access to the opportunity to earn a paycheck and succeed, especially our most vulnerable young people," said Los Angeles Mayor Eric Garcetti. "Through our HIRE LA's Youth program, partners like United Airlines and First Place For Youth are helping our young people find jobs, start careers, and realize their dreams."

Over the next four years, United's investment in the My First Place program will help First Place for Youth provide Los Angeles' foster youth with safe, stable housing, individualized education and employment counseling and healthy living support services. United will work hand-in-hand with the local organization and engage with city and community leadership to create profound, sustainable advancements for the city's foster youth population.

"We are so grateful for the incredible generosity of United Airlines as they expand their impact in Los Angeles. With this investment, First Place will support more than 650 young people who grew up in foster care, helping them move into their first apartment, make progress in school, and secure jobs that lead to living-wage careers. We believe that all young people deserve the opportunity to achieve their full potential in life," said Hellen Hong, Interim CEO and Chief Regional Office at First Place for Youth.

Today's announcement is the fifth in a series of announcements United is making in all of its domestic hub markets over the coming weeks. Each grant is a part of a total of $8 million in grants to help address critical needs identified by local leadership in each of its hub market communities – Chicago, Denver, Houston, Los Angeles, San Francisco, Newark/New York and Washington, D.C. The announcement represents United's commitment to invest in and lift up the communities where many of its customers and employees live and work.

About United

United Airlines and United Express operate approximately 4,600 flights a day to 357 airports across five continents. In 2017, United and United Express operated more than 1.6 million flights carrying more than 148 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 757 mainline aircraft and the airline's United Express carriers operate 551 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the NYSE under the symbol "UAL".

About First Place For Youth

First Place for Youth serves nearly 2,000 foster youth, ages 16-24, across California each year and is the state's largest provider of housing and support services for this vulnerable population. Program participants receive safe, stable housing, individualized education and employment counseling, and healthy living support services so that they can build the skills necessary to make a successful transition to adulthood. Headquartered in Oakland, CA, First Place operates its Southern California regional office in Los Angeles, and county offices in Contra Costa, San Francisco, Santa Clara, and Solano, as well as through affiliate partnerships in Boston, MA and the state of Mississippi. Since 1998, First Place has supported more than 10,000 foster kids in beating the odds and proving that more is possible. For more information, visit firstplaceforyouth.com, follow @FPFY on Twitter, or connect on Facebook.

SOURCE United Airlines

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

United Airlines' Redesigned Homepage Takes Off

July 12, 2018

CHICAGO, July 12, 2018 /PRNewswire/ -- Today, United Airlines (UAL) announced the redesigned united.com homepage, featuring a more personalized digital experience for each customer and an updated, more modern, user-friendly design. The new homepage was created to better tailor the experience for customers, while also improving functionality and ease of use.

For additional images visit United's media library


Some of the key highlights of the new homepage include:

  • A more contemporary, user-friendly design
  • Content personalized based on customer's MileagePlus status as well as upcoming, current and previous trips
  • A new display that is fully responsive for optimal viewing on desktop and mobile devices
  • A travel inspiration integration section that allows customers to explore curated content from different destinations United serves will be available later this year
Each one of our customers is unique and has different needs for his or her travel, and our goal with this new homepage is to provide customers with a more seamless experience, said Praveen Sharma, vice president of digital products and analytics. "Personalizing our digital offerings is just another step towards giving our customers the experience and the products that they ask for."

United's homepage is the starting point where most of its customers begin their journey. These latest efforts reiterate the airline's dedication to improving the travel experience for its customers, beginning before they book a flight.

The airline first began rolling out the new homepage in April, and continued expanding to more and more users, while adding additional functionality throughout the phased roll out. The site will be live to all customers in early August.

Earlier this year, United updated its mobile website, adding a more optimized display, additional flexibility to adjust flights throughout the site, Japanese language and point of sale and more. The new design of United's homepage will also appear on the airline's mobile website, creating a more seamless experience when managing travel and bookings across a variety of different devices.

Today's announcement is just the latest in United's commitment to invest in all of its platforms to give customers the tools and information they desire to travel with ease.

About United

United Airlines and United Express operate approximately 4,600 flights a day to 357 airports across five continents. In 2017, United and United Express operated more than 1.6 million flights carrying more than 148 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 757 mainline aircraft and the airline's United Express carriers operate 551 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the NYSE under the symbol "UAL".

SOURCE United Airlines

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

United Airlines to Hold Live Webcast of Second-Quarter 2018 Financial Results

July 06, 2018

CHICAGO, July 6, 2018 /PRNewswire/ -- United Airlines will hold a conference call to discuss second-quarter 2018 financial results on Wednesday, July 18, 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 second-quarter financial results and third-quarter investor update after market close on Tuesday, July 17.

The webcast will be available for replay within 24 hours of the conference call and then archived on the website for three months.

Impairment of Brazil Routes

For second quarter 2018, the company expects to record a special charge of $105 million ($82 million net of taxes) related to an expected non-cash impairment associated with its Brazil routes. In May 2018, the Brazil–United States open skies agreement was ratified, which provides air carriers with unrestricted access between the United States and Brazil. The company determined that the approval of the open skies agreement impaired the entire value of its Brazil route authorities because the agreement removes all limitations or reciprocity requirements for flights between the United States and Brazil. Accordingly, the company expects to record this special charge to write off the entire value of the intangible asset associated with its Brazil routes. This asset is not part of any collateral pledged against any of the company's borrowings.

About United

United Airlines and United Express operate approximately 4,600 flights a day to 357 airports across five continents. In 2017, United and United Express operated more than 1.6 million flights carrying more than 148 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 757 mainline aircraft and the airline's United Express carriers operate 551 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the 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," "estimates," "forecast," "guidance," "outlook," "goals" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: 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, including 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; competitive pressures on pricing and on demand; demand for transportation in the markets in which we operate; our capacity decisions and the capacity decisions of our competitors; the effects of any hostilities, act of war or terrorist attack; the effects of any technology failures or cybersecurity breaches; the impact of regulatory, investigative and legal proceedings and legal compliance risks; disruptions to our regional network; 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; potential reputational or other impact from adverse events in our operations, the operations of our regional carriers or the operations of our code share partners; our ability to attract and retain customers; our ability to execute our operational plans and revenue-generating initiatives, including optimizing our revenue; our ability to control our costs, including realizing benefits from our resource optimization efforts, cost reduction initiatives and fleet replacement programs; the impact of any management changes; our ability to cost-effectively hedge against increases in the price of aircraft fuel if we decide to do so; any potential realized or unrealized gains or losses related to any fuel or currency hedging programs; 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; an outbreak of a disease that affects travel demand or travel behavior; U.S. or foreign governmental legislation, regulation and other actions (including Open Skies agreements and environmental regulations); industry consolidation or changes in airline alliances; our ability to comply with the terms of our various financing arrangements; the costs and availability of financing; our ability to maintain adequate liquidity; the costs and availability of aviation and other insurance; weather conditions; our ability to utilize our net operating losses to offset future taxable income; the impact of changes in tax laws; the success of our investments in airlines in other parts of the world; and other risks and uncertainties set forth under Part I, Item 1A., "Risk Factors," of our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission.

SOURCE United Airlines

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

United Reports June 2018 Operational Performance

July 10, 2018

CHICAGO, July 10, 2018 /PRNewswire/ -- United Airlines (UAL) today reported June 2018 operational results.

UAL's June 2018 consolidated traffic (revenue passenger miles) increased 7.2 percent and consolidated capacity (available seat miles) increased 4.2 percent versus June 2017. UAL's June 2018 consolidated load factor increased 2.5 points compared to June 2017.

June Highlights

  • As part of a previously announced $8 million commitment, announced a total of $3 million in grants to our hub communities in Houston; Washington, DC; and Denver - $1 million to the Houston Food Bank in support of its School Market program, $1 million to the Year Up National Capital Region, and $1 million to Warren Village, a Denver nonprofit organization.
  • Completed the best on-time departure rate of any summer month and the fewest controllable cancellations of any June in United history.
  • Introduced the new United Explorer Card which offers additional benefits, travel credits and discounts.
  • Became the first North American carrier to operate the fuel efficient Boeing 737 MAX 9 aircraft.
  • Opened the new United Polaris lounge at George Bush Intercontinental Airport in Houston, the third of four Polaris lounges expected to open this year.

About United

United Airlines and United Express operate approximately 4,600 flights a day to 357 airports across five continents. In 2017, United and United Express operated more than 1.6 million flights carrying more than 148 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 757 mainline aircraft and the airline's United Express carriers operate 551 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the NYSE under the symbol "UAL".

Preliminary Operational Results




June


Year-to-Date



2018

2017

Change


2018

2017

Change










REVENUE PASSENGER MILES (000)









Domestic

12,402,046

11,486,442

8.0%


63,090,862

59,337,722

6.3%


Mainline

10,252,388

9,606,457

6.7%


51,344,799

48,546,418

5.8%


Regional

2,149,658

1,879,985

14.3%


11,746,063

10,791,304

8.8%


International

9,339,438

8,802,176

6.1%


46,702,674

44,629,377

4.6%


Atlantic

4,337,220

3,840,347

12.9%


18,188,214

16,309,965

11.5%


Pacific

3,038,212

3,020,271

0.6%


16,987,537

16,763,543

1.3%


Latin

1,964,006

1,941,558

1.2%


11,526,923

11,555,869

(0.3%)


Mainline

1,886,125

1,871,725

0.8%


11,074,497

11,116,666

(0.4%)


Regional

77,881

69,833

11.5%


452,426

439,203

3.0%


Consolidated

21,741,484

20,288,618

7.2%


109,793,536

103,967,099

5.6%










AVAILABLE SEAT MILES (000)









Domestic

13,935,904

13,140,909

6.0%


74,100,164

69,663,220

6.4%


Mainline

11,444,210

10,900,210

5.0%


59,892,389

56,547,402

5.9%


Regional

2,491,694

2,240,699

11.2%


14,207,775

13,115,818

8.3%


International

10,720,097

10,523,689

1.9%


58,578,845

57,611,511

1.7%


Atlantic

4,893,280

4,691,113

4.3%


23,157,597

22,262,483

4.0%


Pacific

3,534,361

3,530,620

0.1%


21,625,592

21,279,851

1.6%


Latin

2,292,456

2,301,956

(0.4%)


13,795,656

14,069,177

(1.9%)


Mainline

2,191,939

2,209,517

(0.8%)


13,183,048

13,437,289

(1.9%)


Regional

100,517

92,439

8.7%


612,608

631,888

(3.1%)


Consolidated

24,656,001

23,664,598

4.2%


132,679,009

127,274,731

4.2%










PASSENGER LOAD FACTOR









Domestic

89.0%

87.4%

1.6 pts


85.1%

85.2%

(0.1) pts


Mainline

89.6%

88.1%

1.5 pts


85.7%

85.9%

(0.2) pts


Regional

86.3%

83.9%

2.4 pts


82.7%

82.3%

0.4 pts


International

87.1%

83.6%

3.5 pts


79.7%

77.5%

2.2 pts


Atlantic

88.6%

81.9%

6.7 pts


78.5%

73.3%

5.2 pts


Pacific

86.0%

85.5%

0.5 pts


78.6%

78.8%

(0.2) pts


Latin

85.7%

84.3%

1.4 pts


83.6%

82.1%

1.5 pts


Mainline

86.0%

84.7%

1.3 pts


84.0%

82.7%

1.3 pts


Regional

77.5%

75.5%

2.0 pts


73.9%

69.5%

4.4 pts


Consolidated

88.2%

85.7%

2.5 pts


82.8%

81.7%

1.1 pts










ONBOARD PASSENGERS (000)









Mainline

10,663

10,087

5.7%


54,191

51,909

4.4%


Regional

3,992

3,476

14.8%


21,362

19,443

9.9%


Consolidated

14,655

13,563

8.1%


75,553

71,352

5.9%










CARGO REVENUE TON MILES (000)









Total

287,874

279,974

2.8%


1,672,216

1,575,732

6.1%










OPERATIONAL PERFORMANCE









Mainline Departure Performance1

63.2

64.5

(1.3)






Mainline Completion Factor

99.5

99.5

0.0






1 Based on mainline scheduled flights departing by or before scheduled departure time

Note: See Part II, Item 6, Selected Financial Data, of the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017 for the definitions of these statistics

Safe Harbor Statement

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" 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: 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, including 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; competitive pressures on pricing and on demand; demand for transportation in the markets in which we operate; our capacity decisions and the capacity decisions of our competitors; the effects of any hostilities, act of war or terrorist attack; the effects of any technology failures or cybersecurity breaches; the impact of regulatory, investigative and legal proceedings and legal compliance risks; disruptions to our regional network; 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; potential reputational or other impact from adverse events in our operations, the operations of our regional carriers or the operations of our code share partners; our ability to attract and retain customers; our ability to execute our operational plans and revenue-generating initiatives, including optimizing our revenue; our ability to control our costs, including realizing benefits from our resource optimization efforts, cost reduction initiatives and fleet replacement programs; the impact of any management changes; our ability to cost-effectively hedge against increases in the price of aircraft fuel if we decide to do so; any potential realized or unrealized gains or losses related to any fuel or currency hedging programs; 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; an outbreak of a disease that affects travel demand or travel behavior; U.S. or foreign governmental legislation, regulation and other actions (including Open Skies agreements and environmental regulations); industry consolidation or changes in airline alliances; our ability to comply with the terms of our various financing arrangements; the costs and availability of financing; our ability to maintain adequate liquidity; the costs and availability of aviation and other insurance; weather conditions; our ability to utilize our net operating losses to offset future taxable income; the impact of changes in tax laws; the success of our investments in airlines in other parts of the world; and other risks and uncertainties set forth under Part I, Item 1A., "Risk Factors," of our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission.

SOURCE United Airlines

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

United Airlines Earns Top Marks on Disability Equality Index

July 09, 2018

CHICAGO, July 9, 2018 /PRNewswire/ -- Announced today, United Airlines (UAL) achieved the top score of 100 percent on the 2018 Disability Equality Index, a prominent benchmarking metric that rates U.S. companies on their disability inclusion policies and practices. This designation also earns United a place on DEI's 2018 "Best Places to Work" list.

The DEI is a dual initiative between the American Association of People with Disabilities and the US Business Leadership Network, jointly designed by disability advocates and business leaders as a highly trusted comprehensive benchmarking tool for disability inclusion. The Index measures key performance indicators across organizational culture, leadership, accessibility, employment, community engagement, support services and supplier diversity.

United hopes to build a more inclusive economy and world for all people through such actions as developing and employing anti-discrimination policies, implementing employee training focused on inclusion and creating and expanding Business Resource Groups across the U.S. and internationally for employees, which, beginning in the fall, will include a disability-focused Business Resource Group.

"United's leading diversity and inclusion initiatives represent the company's commitment to engaging with and advocating for people with disabilities," said Kate Gebo, Executive Vice President of Human Resources and Labor Relations at United Airlines. "Across our company, we continuously evaluate ways to build a more inclusive workforce so that all people feel included in the United family."

Earlier this year, United also announced its partnership with Special Olympics, which has a strong history of bringing people together around the world. Both organizations share a common vision to end discrimination against people with intellectual disabilities. Additionally, United works closely with airports across all its hubs to host initiatives such as Wings for All, a program that enables young travelers on the autism spectrum to visit the airport and practice going through the full travel experience without ever leaving the ground.

United is one of 126 Fortune 1000 companies that received 100 percent on the 2018 DEI. This perfect score is partly due to advancements in United's e-commerce and digital accessibility, giving employees the option to voluntarily disclose disabilities on an internal human resources portal, and a robust supplier diversity program. United also collaborates with different divisions to develop training programming that trains employees on how to effectively work with diverse colleagues.

About United

United Airlines and United Express operate approximately 4,600 flights a day to 357 airports across five continents. In 2017, United and United Express operated more than 1.6 million flights carrying more than 148 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 757 mainline aircraft and the airline's United Express carriers operate 551 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the NYSE under the symbol "UAL".

SOURCE United Airlines

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

United Airlines Announces $1 Million Grant To Denver Nonprofit Warren Village

June 29, 2018

DENVER, June 29, 2018 /PRNewswire/ -- United Airlines announced today a $1 million grant to Warren Village, a Denver nonprofit organization that has been helping low-income, single-parent families make the journey from poverty to self-sufficiency using a two-generational model since 1974.

"Warren Village is a wonderful organization that is helping address Denver's homelessness through a comprehensive program designed to help single parents achieve sustainable stability for not only themselves, but their families, too," United's Vice President of Denver Operations Steve Jaquith said. "We're looking forward to partnering with Warren Village to help them in their mission to provide education, skills, hope and a bright future for those who need it most."

United's investment will provide both program and growth support for Warren Village, including improvements to the program and a focus on increasing participation. Additionally, United will be engaging their Denver employees in a variety of volunteer activities with Warren Village.

"United's extraordinary generosity demonstrates their commitment to Denver and will enable us to enhance the strength and quality of our core programs and support our desire to expand our positive impact in the community," said Ethan Hemming, President and CEO of Warren Village.

Warren Village takes a holistic, multi-generational approach to supporting families as they work towards becoming self-sufficient by providing safe and affordable housing, comprehensive educational and career guidance for adults, and by providing nurturing and caring early education for children while parents are working hard to change their trajectory.

"United's investment is exactly the kind of private support our nonprofits need," said Governor John Hickenlooper. "Warren Village provides parents a 'hand-up' to build steady foundations for families. This donation will go a long way in their ability to advance this life-changing work."

Today's announcement is the fourth in a series of announcements United is making in all of its domestic hub markets over the coming weeks. Each grant is a part of a total of $8 million in grants to help address critical needs identified by local leadership in each of its hub market communities – Chicago, Denver, Houston, Los Angeles, San Francisco, Newark/New York and Washington, D.C. The announcement represents United's commitment to invest in and lift up the communities where many of its customers and employees live and work.

"The generous grant from United is a tremendous investment in Warren Village and the important work they are doing to help Denver's low-income families in a sustainable and transformational way," said Denver Mayor Michael B. Hancock. "We're proud to support Warren Village and United in their partnership to help Denver families thrive."

Throughout these four-year grants, United will work hand-in-hand with local organizations and engage with city and community leadership to create profound, sustainable advancements. Future announcements will include grant recipients in New York/New Jersey, Los Angeles and San Francisco.

"Our shared purpose is connecting people and uniting the world, and we're thrilled to support that purpose by using our people, planes and network to do good," said Sharon Grant, United's Vice President of Community Affairs. "Supporting organizations like Warren Village in Denver helps the community thrive, and United is proud to be a partner in making that happen."

About United

United Airlines and United Express operate approximately 4,600 flights a day to 354 airports across five continents. In 2017, United and United Express operated more than 1.6 million flights carrying more than 148 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 750 mainline aircraft and the airline's United Express carriers operate 545 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 191 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".

About Warren Village

Warren Village has been a trusted partner in the Denver community since 1974 and exists so that low-income, single-parent families can achieve sustainable personal and economic self-sufficiency. Warren Village offers a safe place to call home; wrap-around family support services including workforce training, educational advancement, and life-skills classes; and a nationally accredited early learning center for children six weeks to 10 years of age. www.warrenvillage.org

SOURCE United Airlines

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

United Airlines Announces $1 Million Grant in National Capital Region

June 27, 2018

WASHINGTON, June 27, 2018 /PRNewswire/ -- United Airlines announced today a $1 million grant to the Year Up National Capital Region to provide professional skills and transportation resources to the students in the program. The announcement represents United's commitment to invest in and lift up the communities where many of its customers and employees live and work.

At its Washington Dulles hub, United shared that it will work with the nonprofit organization Year Up to help close the "Opportunity Divide," specifically addressing the main barriers to the organization's program participants in the capital region: transportation and examination fees. By providing needed stipends and shuttle transportation from Year Up locations to internships and training opportunities in the region that would be difficult to reach without a personal vehicle, this grant will enable Year Up to provide motivated and talented young adults with technical and professional skills training to achieve upward economic mobility and access to meaningful careers within one year.

"Lifting up communities to provide a better life for our fellow citizens and brighter future for all people is at the heart of what we do at United to give back, which is why this partnership is fitting," said Sharon Grant, United Vice President of Community Affairs. "We are proud to provide the resources Year Up needs in securing a brighter future for youth in the National Capital Region."

"More than 40 percent of our young adults face transportation challenges, and this grant will allow us to provide more transportation resources at all stages of the program, as well as deepen other student services support," said Guylaine Saint Juste, Executive Director of Year Up National Capital Region. "The generous grant from United Airlines will be able provide our students with more resources and remove barriers to their success."

Nearly 100 United Airlines employees based at Washington Dulles and Year Up students from around the region attended today's $1 million event. Following the announcement, Year Up students paired up with United employees for one-on-one mentoring, career coaching and a tour of the airfield and a 767 aircraft.

"The United Dulles hub has a long history of helping the communities we serve. Today's announcement underscores the importance of taking the lead to partner with local organizations like Year Up to make a meaningful impact in the region," said Omar Idris, Managing Director, United's Washington Dulles hub. "We hope that our efforts to immerse students into the airline industry will encourage and motivate them to dream big."

Today's event is the third in a series of announcements United is making in all of its domestic hub markets over the coming weeks. Each grant is part of a total of $8 million in grants to help address pressing issues identified by local leadership in each of its domestic hub market communities – Washington, D.C., Chicago, Denver, Houston, Los Angeles, San Francisco and Newark/New York. The announcement represents United's commitment to invest in and lift up the communities where many of its customers and employees live and work.

Throughout these four-year grants, United will work hand-in-hand with local organizations and engage with city and community leadership to create profound, sustainable advancements. Future announcements will include grant recipients in New York/New Jersey; Denver; Los Angeles and San Francisco.

About United

United Airlines and United Express operate approximately 4,600 flights a day to 354 airports across five continents. In 2017, United and United Express operated more than 1.6 million flights carrying more than 148 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 750 mainline aircraft and the airline's United Express carriers operate 545 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 191 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".

About Year Up

Year Up is an award-winning, national 501(c)3 organization that provides talented and motivated young adults ages 18-24 with the skills, experience, and support that will empower them to reach their potential through professional careers and higher education. Through a one-year, intensive training program, Year Up utilizes a high support, high expectations model that combines marketable job skills, stipends, coursework eligible for college credit, and corporate internships at more than 250 top companies. Its holistic approach focuses on students' professional and personal development to enable young adults with a viable path to economic self-sufficiency and meaningful careers. Year Up has served more than 19,500 young adults since its founding in 2000, and will serve more than 4,000 young adults in 2018 across 21 U.S. cities in Arizona, Baltimore, Bay Area, Chicago, Dallas/Fort Worth, Greater Atlanta, Greater Boston, Greater Philadelphia, Jacksonville, Los Angeles, National Capital Region, New York City, Providence, Puget Sound, South Florida and Wilmington. Year Up has been voted one of the "Best Non-Profits to Work For" by The NonProfit Times for eight consecutive years, and rated a 4-star charity by Charity Navigator for twelve consecutive years, placing them in the top 1% of tracked organizations.

SOURCE United Airlines

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

Polaris Star Shines Bright in Texas: United's Newest Business Class Lounge Opens in Houston

June 26, 2018

HOUSTON, June 26, 2018 /PRNewswire/ -- Beginning this Friday, customers traveling in United Polaris® business class, the airline's international premium cabin travel experience, will be able to relax before their travels and enjoy locally-inspired food and beverage offerings with the opening of the new United Polaris lounge at George Bush Intercontinental Airport in Houston.

"As we continue to increase momentum of the roll-out of United Polaris, we're thrilled to bring this industry-leading lounge concept to Houston, where the lounge décor, food and drink are all a reflection of the city," said Mark Krolick, United's Vice President of Marketing. "We specifically designed this United Polaris lounge location to feel like a boutique hotel, with dedicated spaces for relaxation, refreshing and dining and we're confident that our Houston customers and those connecting through this award-winning airport will enjoy a best-in-class lounge experience."

United's latest Polaris lounge exhibits distinct flair from Houston, the culinary and cultural capital of the South. Unique artwork is featured throughout the lounge by two Houstonian artists – Shane Tolbert and Terrell James. Food highlights include a Texas breakfast skillet, Cajun andouille sausage and chicken étouffée, Argentinean roasted chimichurri chicken, tres leches bites and the United Polaris Burger, which will be on the menu at all United Polaris lounges. The cocktail menu includes the Caliente on the Rocks, which combines Casamigos® Tequila, orange juice and a homemade sour mix, garnished with a jalapeño for an extra kick and caipirinhas, the traditional Brazilian cocktail made from muddled lime, sugar and cachaça. The lounge also serves house-made star anise-infused vodka and oolong tea-steeped bourbon.

United Polaris Lounge at George Bush Intercontinental Airport Facts & Highlights

  • 191 seats
  • 324 power outlets and 264 USB ports
  • 2 private daybeds outfitted with Saks Fifth Avenue bedding
  • 6 luxurious shower suites, featuring rainfall showers and Soho House & Co's Cowshed Spa products
  • Personal valet services, including steaming garments
  • A private dining area with table service for up to 28 guests
  • 11 pieces of contemporary art

The opening of the United Polaris lounge in Houston closely follows the debut of United Polaris lounges at San Francisco International Airport in April and at Newark Liberty International Airport earlier this month. The United Polaris lounge at Los Angeles International Airport is expected to open later this year.

On average, United plans to add one aircraft with the new United Polaris business class seat every 10 days from now through 2020. Beginning July 1, every seat in the United Polaris cabin will be provisioned with a cooling gel pillow. The gel pillow, previously available by request, has proven to be one of the most popular items of United Polaris bedding.

United's Polaris Lounge in Houston is conveniently located in Terminal E, next to Gate E12. This is the most recent of several investments United has made in Houston, including the carrier's announcement of a $1M grant to the Houston Food Bank as well as its long-term lease commitment at 609 Main in downtown Houston.

For photos of the Polaris lounge in Houston, visit the United newsroom.

About United

United Airlines and United Express operate approximately 4,600 flights a day to 354 airports across five continents. In 2017, United and United Express operated more than 1.6 million flights carrying more than 148 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 750 mainline aircraft and the airline's United Express carriers operate 545 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 191 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".

SOURCE United Airlines

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

United Airlines Partners with Global Glimpse to Fly More Than 1,000 Students and Teachers

June 25, 2018

CHICAGO, June 25, 2018 /PRNewswire/ -- In the peak of summer travel, United Airlines (UAL) is flying 1,000 high school students from diverse backgrounds from across the U.S. for an immersive travel experience in a developing country as the exclusive airline partner of Global Glimpse. By providing access to travel, the airline will help students gain perspective, and build authentic connections across cultural, racial, economic, and social divides as a part of United's continued efforts to break down barriers and promote inclusion and inspire future generations of aviation leaders.

Together, United and Global Glimpse will reach 70 high schools across the San Francisco Bay Area, New York, Chicago, Western Massachusetts and six college preparatory organizations to serve 1,000 majority low-income students by the end of this summer travel season. While abroad, students will have a powerful international experience where they will immerse themselves in a new culture, live and work alongside locals and volunteer in the community. Through the Global Glimpse program, students will engage in cultural seminars, meet with local business and community leaders, tutor local youth in English and develop community action projects in partnership with local organizations.

"We are in a unique position at United to connect these students to the world," said Sharon Grant, Vice President of Community Affairs at United Airlines. "It is exciting to share in this journey, one that we hope will provide a new perspective on their lives and dramatically expand their views of the world."

"Our partnership with United Airlines affirms and expands our commitment to connect young Americans from disparate backgrounds to one another and to the world," said Eliza Pesuit, Executive Director at Global Glimpse. "With United by our side, more students will return home with the skills, confidence, and perspective to tackle complex issues in their local and global community."

Prior to this summer's trips, United employees shared best travel tips and helped prepare students and their teachers for their journeys. Many of the students will have their first experiences on board an aircraft when they fly to and from Dominican Republic and Ecuador through June, July and August.

United in the Community

Community Affairs is the charitable heart of United, using people, planes and network to do good. Driven by the idea that every action counts, United chooses to invest in its communities through four main pillars: break down barriers and promote inclusion, inspire future generations of aviation leaders, lift up communities impacted by disaster and connect people and planet.

About United

United Airlines and United Express operate approximately 4,600 flights a day to 354 airports across five continents. In 2017, United and United Express operated more than 1.6 million flights carrying more than 148 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 750 mainline aircraft and the airline's United Express carriers operate 545 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 191 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".

About Global Glimpse

Global Glimpse is an innovative education non-profit that works to inspire America's next generation to become responsible global citizens through an immersive travel experience in a developing country. Our program builds strong foundational leadership, critical thinking, and teamwork skills grounded in a global perspective. We work in partnership with 70 high schools across the San Francisco Bay Area, New York, Chicago, Western Massachusetts and six college preparatory organizations to serve 1,000 majority low-income students annually. Through the Global Glimpse program, students develop a deep sense of personal and social responsibility and the skills, confidence, and perspective to succeed in college and drive change in their local and global communities. For more information, visit www.globalglimpse.org.

SOURCE United Airlines

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

A Sweet Start to the Morning: United Adds Maple-Flavored Cookie to its Complimentary Snack Rotation

June 20, 2018

CHICAGO, June 20, 2018 /PRNewswire/ -- Building on one of the hottest flavor trends, United Airlines (UAL) is introducing a new item into its complimentary snack rotation on domestic flights departing before 9:45 a.m. This new snack, created especially for the airline by Byrd Cookie Company, is a maple wafer cookie that combines a crunchy texture with a sweet maple flavor. The new snack will begin to roll out on flights as early as this weekend.

Byrd Cookie Company created the Maple Wafer recipe especially for United Airlines.

While maple syrup is most often associated with pancakes and waffles, the flavor is becoming more popular in a variety of foods and beverages, with Google Trends data showing an increase in searches related to maple and many heralding it as the "next pumpkin spice."

"We know that maple is an increasingly appealing flavor, and we are always looking for ways to capitalize on trends in taste buds," Vice President of Catering Operations Charlean Gmunder said. "We are excited to offer our customers a light, crisp snack that is created by a woman-owned bakery."

The cookie combines a rich buttery flavor with a hint of maple and just the right pinch of salt to create a delightfully addictive snack. It is a play on the benne wafer and a modern twist on a cookie that Byrd Cookie Company has been baking for almost 70 years. The maple wafers are baked in Savannah, Ga., and pair nicely with United's signature illy coffee, making them perfect for the early morning traveler.

"We created this cookie using only the finest ingredients, and we continue to bake in small batches so that we can consistently deliver high-quality confections," Byrd Cookie Company CEO Stephanie Lindley said.

Byrd Cookie Company is certified by the Women's Business Enterprise National Council as a woman-owned business.

To celebrate the new partnership, MileagePlus Exclusives is hosting a live auction where customers can bid miles to travel to Savannah, Georgia and enjoy a tour of the Byrd's bakery and take in Savannah's local sites. The auction is available on the MileagePlus Exclusives website for members to start bidding today at exclusives.mileageplus.com/Byrds.

This new snack replaces the Stroopwafel, the current morning snack. United is expanding its complimentary snack offerings in order to continue to appeal to a broad palate. The Stroopwafel will be available again in the future as the airline rotates between morning snack options. The Stroopwafel will remain on flights departing Europe prior to 9:30 a.m.

About United

United Airlines and United Express operate approximately 4,600 flights a day to 354 airports across five continents. In 2017, United and United Express operated more than 1.6 million flights carrying more than 148 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 750 mainline aircraft and the airline's United Express carriers operate 545 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 191 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".

About Byrd Cookie Company

Originally founded in 1924, Byrd Cookie Company is an award-winning, family-owned company providing fresh-baked products to a wide range of major retailers, from LL Bean to Bergdorf Goodman. The company, which is headquartered in Savannah, Ga., also creates private label items for companies including Neiman-Marcus, Ritz-Carlton and Cumberland Farms and operates successful retail stores in Georgia and South Carolina. For more information, visit ByrdCookieCompany.com.

SOURCE United Airlines

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

United Airlines Announces $1 Million Grant To Nation's Largest Food Bank

June 13, 2018

HOUSTON, June 13, 2018 /PRNewswire/ -- United Airlines announced today a $1 million grant to the Houston Food Bank in support of their School Market program. The School Market program was specifically expanded to assist children attending Harvey-affected schools, which were among the hardest hit after Hurricane Harvey.

United's investment in the Food Bank's School Market program will provide nutritious food to students at 25 schools, each serving an average of 200 households a year. Among the 25 schools, 10 schools will receive new United-branded brick and mortar pantries onsite and 15 will receive mobile pantries. All pantries will be open this fall for the new school year and provide families the opportunity to shop for food throughout the academic year. By improving the quality of food and providing more access to fruits and vegetables, the Houston Food Bank expects to help increase students' fruit and vegetable intake, improve their academic performance and school attendance.

"The Houston Food Bank made a tremendous impact on our community after the storm and United is proud to partner with them in providing additional support to Houston schools," United's Vice President of Houston Operations Rodney Cox said. "We understand that the Houston Food Bank is a life line for so many Houstonians and are confident that the School Market programs will create a positive and lasting effect on the community."

"United Airlines has a special connection to Houston and they continue to be a wonderful partner with the Houston Food Bank," says Brian Greene, president/CEO of the non-profit organization, the largest food bank in the nation. "Their latest grant will make it possible for us to provide food and nutrition educations to families, including many of whom were impacted by Hurricane Harvey. We thank United for making this important, substantial investment into one of its largest hub cities."

Today's announcement is the second in a series of announcements United is making in all of its domestic hub markets over the coming weeks. Each grant is a part of a total of $8 million in grants to help address critical needs identified by local leadership in each of its hub market communities – Chicago, Denver, Houston, Los Angeles, San Francisco, Newark/New York and Washington, D.C. The announcement represents United's commitment to invest in and lift up the communities where many of its customers and employees live and work.

Throughout these four-year grants, United will work hand-in-hand with local organizations and engage with city and community leadership to create profound, sustainable advancements. Future announcements will include grant recipients in Washington, D.C., Denver, New York/New Jersey; Los Angeles and San Francisco.

About United

United Airlines and United Express operate approximately 4,600 flights a day to 354 airports across five continents. In 2017, United and United Express operated more than 1.6 million flights carrying more than 148 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 750 mainline aircraft and the airline's United Express carriers operate 545 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 191 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".

About Houston Food Bank

The Houston Food Bank is a solution to both hunger and food waste. Nationally recognized by Feeding America as Food Bank of the Year in 2015, the Houston Food Bank is the largest source of food for hunger relief charities in 18 southeast Texas counties. Each year, the Food Bank feeds 800,000 individuals through a network of 600 food pantries, soup kitchens, senior centers and other charities. We distribute fresh produce, meat and nonperishables from our warehouse at 535 Portwall, where we also prepare nutritious hot meals for kids in our new state-of-the-art Keegan Kitchen. We rescue food before it reaches the landfill through our Retail Pickup program with area grocery stores. Additional community services include nutrition education, school-based programs and SNAP (formerly food stamps) application assistance. Founded in 1982, the Houston Food Bank is a certified member of Feeding America, the nation's food bank network, with a four-star rating from Charity Navigator.

SOURCE United Airlines

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

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