United Announces Full-Year and Fourth-Quarter 2014 Profit
- UAL earned a 12.9 percent return on invested capital in 2014.
- United's consolidated passenger revenue per available seat mile (PRASM) increased 1.6 percent for full-year 2014 compared to full-year 2013.
- Full-year 2014 consolidated unit costs (CASM), excluding special charges, third-party business expenses, fuel and profit sharing, increased 1.3 percent year-over-year on a consolidated capacity increase of 0.3 percent. Full-year 2014 CASM, including those items, decreased 1.6 percent year-over-year.
- In 2014, United returned approximately $320 million to shareholders as part of its previously announced $1 billion share buyback program. In addition, throughout the year, United spent $310 million to retire convertible debt that was convertible into approximately 5.8 million shares of UAL common stock.
- Employees earned $235 million in profit sharing for full-year 2014, which will be distributed on Feb. 13.
- UAL ended the year with $5.7 billion in unrestricted liquidity.
"Thanks to the good work of the United team, we reported a $2 billion profit for 2014, excluding special items," said Jeff Smisek, UAL's chairman, president and chief executive officer. "We're starting 2015 as a better airline, and we expect to generate far better results. I'm excited about what we will do this year to improve our operations, our product, and our customer service, focusing on growing our core earnings and margins. For the first quarter, we expect our pre-tax margin to be between 5 and 7 percent, excluding special items."
Fourth-Quarter Revenue and Capacity
For the fourth quarter of 2014, total revenue was $9.3 billion, a decrease of 0.2 percent year-over-year. Fourth-quarter consolidated passenger revenue increased 1.3 percent to $8.1 billion, compared to the same period in 2013. Ancillary revenue per passenger in the fourth quarter increased 9.7 percent year-over-year to more than $22 per passenger. Fourth-quarter cargo revenue grew 18.2 percent to $260 million driven by higher volumes year-over-year, as cargo traffic recovered from the prior year's lower bookings. Other revenue in the fourth quarter decreased 14.3 percent year-over-year to $970 million mostly due to the company choosing to discontinue an agreement to sell fuel to a third party. The corresponding expense decline appears in third-party business expense.
Consolidated revenue passenger miles increased 0.1 percent and consolidated available seat miles increased 0.9 percent year-over-year for the fourth quarter, resulting in a fourth-quarter consolidated load factor of 81.7 percent.
Fourth-quarter 2014 consolidated PRASM increased 0.4 percent and consolidated yield increased 1.3 percent compared to the fourth quarter of 2013.
Passenger revenue for the fourth quarter of 2014 and period-to-period comparisons of related statistics for UAL's mainline and regional operations are as follows:
|
4Q 2014 Passenger Revenue (millions) |
Passenger Revenue vs. 4Q 2013 |
PRASM vs. 4Q 2013 |
Yield vs. 4Q 2013 |
Available Seat Miles vs. 4Q 2013 |
|
|---|---|---|---|---|---|
| Domestic | $3,219 | 1.9% | 3.5% | 4.4% | (1.6%) |
| Atlantic | 1,357 | 4.5% | 6.9% | 6.1% | (2.2%) |
| Pacific | 1,107 | (1.5%) | (5.9%) | (3.8%) | 4.7% |
| Latin America | 692 | 11.3% | (4.4%) | (3.7%) | 16.4% |
| International | 3,156 | 3.6% | (0.2%) | 0.5% | 3.8% |
| Mainline | 6,375 | 2.7% | 1.7% | 2.5% | 1.0% |
| Regional | 1,708 | (3.6%) | (3.5%) | (2.9%) | (0.1%) |
| Consolidated | $8,083 | 1.3% | 0.4% | 1.3% | 0.9% |
Fourth-Quarter Costs
Fourth-quarter consolidated CASM, excluding special charges, third-party business expense, fuel and profit sharing, increased 1.2 percent compared to the fourth quarter of 2013. Fourth-quarter consolidated CASM including those items decreased 5.3 percent.
Fourth-quarter total operating expenses, excluding special charges, decreased $420 million, or 4.7 percent, year-over-year. Including special charges, total operating expenses decreased $406 million, or 4.5 percent, in the fourth quarter versus the same period in 2013.
Fourth-Quarter Liquidity and Cash Flow
UAL ended the fourth quarter with $5.7 billion in unrestricted liquidity, including $1.35 billion of undrawn commitments under its revolving credit facility. During the fourth quarter, the company had gross capital expenditures of $1 billion, excluding fully reimbursable projects. The company made debt and capital lease principal payments of $534 million in the fourth quarter, including prepayment of $248 million of convertible debt that was convertible into approximately 4.3 million shares of United common stock.
As part of United's $1 billion share buyback program, the company spent approximately $100 million in share repurchases in the fourth quarter. For the year, United returned a total of approximately $320 million to shareholders through share repurchases and open market transactions. In addition, for the year the company spent $310 million to retire convertible debt that was convertible into approximately 5.8 million shares.
For the 12 months ended Dec. 31, 2014, the company's return on invested capital was 12.9 percent.
"In 2014 we made significant progress towards creating long-term value for our investors while providing a better experience for our customers," said John Rainey, UAL's executive vice president and chief financial officer. "Our solid cost performance in 2014 was driven by executing on our Project Quality efficiency initiatives. As our cost initiatives mature throughout 2015, we anticipate that 2015 consolidated CASM, excluding fuel and third-party business expense, will be approximately flat."
For more information on United's first-quarter 2015 guidance, please visit ir.united.com for the company's investor update.
About United
United Airlines and United Express operate an average of 5,055 flights a day to 373 airports across six continents. In 2014, United and United Express operated nearly two million flights carrying 138 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 nearly 700 mainline aircraft, and this year, the airline anticipates taking delivery of 34 new Boeing aircraft, including the 787-9 and the 737-900ER. United is also welcoming 49 new Embraer 175 aircraft to United Express. The airline is a founding member of Star Alliance, which provides service to 193 countries via 27 member airlines. More than 84,000 United employees reside in every U.S. state and in countries around the world. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the NYSE under the symbol UAL.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements included in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and financial performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as "expects," "will," "plans," "anticipates," "indicates," "believes," "forecast," "guidance," "outlook" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this report are based upon information available to us on the date of this report. 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, including optimizing our revenue; our ability to control our costs, including realizing benefits from our resource optimization efforts, cost reduction initiatives and fleet replacement programs; our ability to utilize our net operating losses; our ability to attract and retain customers; demand for transportation in the markets in which we operate; an outbreak of a disease that affects travel demand or travel behavior; demand for travel and the impact that global economic conditions have on customer travel patterns; excessive taxation and the inability to offset future taxable income; general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aircraft fuel and energy refining capacity in relevant markets); our ability to cost-effectively hedge against increases in the price of aircraft fuel; any potential realized or unrealized gains or losses related to fuel or currency hedging programs; the effects of any hostilities, act of war or terrorist attack; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; 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); labor costs; our ability to maintain satisfactory labor relations and the results of the collective bargaining agreement process with our union groups; any disruptions to operations due to any potential actions by our labor groups; weather conditions; the possibility that expected merger synergies will not be realized or will not be realized within the expected time period; and other risks and uncertainties set forth under Item 1A., Risk Factors, of UAL's Annual Report on Form 10-K, as well as other risks and uncertainties set forth from time to time in the reports we file with the SEC.
-tables attached-
| Three Months Ended December 31, 2014(In millions, except per share data) |
Three Months Ended December 31, 2013(In millions, except per share data) |
% Increase/ (Decrease) |
Year Ended December 31, 2014(In millions, except per share data) |
Year Ended December 31, 2013(In millions, except per share data) |
% Increase/ (Decrease) |
|
|---|---|---|---|---|---|---|
| Operating revenue: Passenger: Mainline |
$6,375 | $6,205 | 2.7 | $26,785 | $25,997 | 3.0 |
| Operating revenue: Passenger: Regional | 1,708 | 1,772 | (3.6) | 6,977 | 7,125 | (2.1) |
| Operating revenue: Passenger: Total passenger revenue | 8,083 | 7,977 | 1.3 | 33,762 | 33,122 | 1.9 |
| Operating revenue: Cargo | 260 | 220 | 18.2 | 938 | 882 | 6.3 |
| Operating revenue: Other operating revenue | 970 | 1,132 | (14.3) | 4,201 | 4,275 | (1.7) |
| Operating revenue:Total operating revenue | 9,313 | 9,329 | (0.2) | 38,901 | 38,279 | 1.6 |
| Operating expense: Aircraft fuel(A) |
2,530 | 2,965 | (14.7) | 11,675 | 12,345 | (5.4) |
| Operating expense: Salaries and related costs | 2,251 | 2,114 | 6.5 | 8,935 | 8,625 | 3.6 |
| Operating expense: Regional capacity purchase | 597 | 582 | 2.6 | 2,344 | 2,419 | (3.1) |
| Operating expense: Landing fees and other rent | 568 | 546 | 4.0 | 2,274 | 2,090 | 8.8 |
| Operating expense: Aircraft maintenance materials and outside repairs | 415 | 431 | (3.7) | 1,779 | 1,821 | (2.3) |
| Operating expense: Depreciation and amortization | 431 | 421 | 2.4 | 1,679 | 1,689 | (0.6) |
| Operating expense: Distribution expenses | 334 | 338 | (1.2) | 1,373 | 1,390 | (1.2) |
| Operating expense: Aircraft rent | 215 | 230 | (6.5) | 883 | 936 | (5.7) |
| Operating expense: Special charges (B) | 179 | 165 | NM1 | 443 | 520 | NM1 |
| Operating expense: Other operating expenses | 1,168 | 1,302 | (10.3) | 5,143 | 5,195 | (1.0) |
| Operating expense: Other Operating Expenses: Total operating expenses | 8,688 | 9,094 | (4.5) | 36,528 | 37,030 | (1.4) |
| Operating income | 625 | 235 | 166.0 | 2,373 | 1,249 | 90.0 |
| Nonoperating income (expense): Interest expense |
(176) | (193) | (8.8) | (735) | (783) | (6.1) |
| Nonoperating income (expense): Interest capitalized | 12 | 14 | (14.3) | 52 | 49 | 6.1 |
| Nonoperating income (expense): Interest income | 5 | 5 | - | 22 | 21 | 4.8 |
| Nonoperating income (expense): Miscellaneous, net (B) | (443) | 51 | NM1 | (584) | 3 | NM1 |
| Nonoperating income (expense): Miscellaneous, net (B): Total nonoperating expense | (602) | (123) | 389.4 | (1,245) | (710) | 75.4 |
| Income before income taxes: Income before income taxes | 23 | 112 | (79.5) | 1,128 | 539 | 109.3 |
| Income tax expense: Income tax expense (benefit) (C) | (5) | (28) | (82.1) | (4) | (32) | (87.5) |
| Net income: Net income | $28 | $140 | (80.0) | $1,132 | $571 | 98.2 |
| Earnings per share: Earnings per share, basic | $0.08 | $0.39 | (79.5) | $3.05 | $1.64 | 86.0 |
| Earnings per share: Earnings per share, diluted | $0.07 | $0.37 | (81.1) | $2.93 | $1.53 | 91.5 |
| Weighted average shares: Weighted average shares, basic | 372 | 361 | 3.0 | 371 | 348 | 6.6 |
| Weighted average shares: Weighted average shares, diluted | 376 | 391 | (3.8) | 390 | 391 | (0.3) |
|
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| Three Months Ended December 31, 2014 (In millions, except per gallon) |
Three Months Ended December 31, 2013 (In millions, except per gallon) |
% Increase/ (Decrease) |
Year Ended December 31, 2014 (In millions, except per gallon) |
Year Ended December 31, 2013 (In millions, except per gallon) |
% Increase/ (Decrease) |
|
|---|---|---|---|---|---|---|
| Mainline fuel expense excluding hedge impacts Mainline fuel expense excluding hedge impacts | $1,982 | $2,404 | (17.6) | $9,408 | $10,008 | (6.0) |
| Hedge losses reported in fuel expense 2 | (85) | 22 | NM1 | (89) | 18 | NM1 |
| Total mainline fuel expenseTotal mainline fuel expense | 2,067 | 2,382 | (13.2) | 9,497 | 9,990 | (4.9) |
| Regional fuel expense Regional fuel expense | 463 | 583 | (20.6) | 2,178 | 2,355 | (7.5) |
| Consolidated fuel expenseConsolidated fuel expense | 2,530 | 2,965 | (14.7) | 11,675 | 12,345 | (5.4) |
| Cash paid on settled hedges that did not qualify for hedge accounting 3 | (151) | 4 | NM1 | (138) | 39 | NM1 |
| Fuel expense including all losses from settled hedges | $2,681 | $2,961 | (9.5) | $11,813 | $12,306 | (4.0) |
| Mainline fuel consumption (gallons) | 769 | 777 | (1.0) | 3,183 | 3,204 | (0.7) |
| Mainline average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense | $2.58 | $3.09 | (16.5) | $2.96 | $3.12 | (5.1) |
| Mainline average aircraft fuel price per gallon | $2.69 | $3.07 | (12.4) | $2.98 | $3.12 | (4.5) |
| Mainline average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accounting | $2.88 | $3.06 | (5.9) | $3.03 | $3.11 | (2.6) |
| Regional fuel consumption (gallons) | 179 | 184 | (2.7) | 722 | 743 | (2.8) |
| Regional average aircraft fuel price per gallon | $2.59 | $3.17 | (18.3) | $3.02 | $3.17 | (4.7) |
| Consolidated fuel consumption (gallons) | 948 | 961 | (1.4) | 3,905 | 3,947 | (1.1) |
| Consolidated average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense | $2.58 | $3.11 | (17.0) | $2.97 | $3.13 | (5.1) |
| Consolidated average aircraft fuel price per gallon | $2.67 | $3.09 | (13.6) | $2.99 | $3.13 | (4.5) |
| Consolidated average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accounting | $2.83 | $3.08 | (8.1) | $3.03 | $3.12 | (2.9) |
|
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| Three Months Ended December 31, 2014 (In millions) |
Three Months Ended December 31, 2013 (In millions) |
Year Ended December 31, 2014 (In millions) |
Year Ended December 31, 2013 (In millions) |
|
|---|---|---|---|---|
| Operating: Severance and benefit costs |
$141 | $91 | $199 | $105 |
| Operating:Integration-related costs | 17 | 40 | 96 | 205 |
| Operating:Impairment of assets | 16 | 33 | 49 | 33 |
| Operating:Costs associated with permanently grounding Embraer ERJ 135 aircraft | - | - | 66 | - |
| Operating:Labor agreement costs | - | - | - | 127 |
| Operating:Losses on sale of assets and other special (gains) losses, net | 5 | 1 | 33 | 50 |
| Operating:Special charges | $179 | $165 | $443 | $520 |
| Nonoperating: Loss on extinguishment of debt and other, net |
$53 | $- | $74 | $- |
| Nonoperating: Income tax benefit | (6) | (7) | (10) | (7) |
| Nonoperating:Total operating and nonoperating special charges, net of income taxes | $226 | $158 | $507 | $513 |
| Nonoperating:Mark-to-market (MTM) losses from fuel derivative contracts settling in future periods | $225 | $(59) | $244 | $(84) |
| Nonoperating:Prior period gains (losses) on fuel derivative contracts settled in the current period | (18) | 9 | 83 | 39 |
| Nonoperating:Total special items, net of income taxes | $433 | $108 | $834 | $468 |
|
2014 - Special items |
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Severance and benefit costs: During the fourth quarter of 2014, the company recorded $141 million of costs related primarily to a voluntary early-out program for its flight attendants. More than 2,500 participants elected a one-time opportunity to voluntarily separate from the company and will receive a severance payment, with a maximum value of $100,000 per participant, based on years of service, with retirement dates from November 30, 2014 through the end of 2015. The company will record additional expense associated with this program through 2015 over the remaining required service periods. In addition to the fourth quarter item, during the year ended December 31, 2014, the company recorded $58 million of severance and benefits primarily related to reductions of management and front-line employees, including from Cleveland airport, as part of its cost savings initiatives. The company is currently evaluating its options regarding its long-term contractual commitments at Cleveland. The capacity reductions at Cleveland may result in further special charges, which could be significant, related to our contractual commitments. |
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Integration-related costs: Integration-related costs include compensation costs related to systems integration, training, severance and relocation for employees.
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Impairment of assets: During the fourth quarter of 2014, the company recorded a charge of $16 million ($10 million net of related income tax benefits) related to its annual assessment of impairment of its indefinite-lived intangible assets (primarily international Pacific routes). In addition to the fourth quarter item, during the year ended December 31, 2014, the company recorded $33 million for charges related primarily to impairment of its flight equipment held for disposal associated with its Boeing 737-300 and 737-500 fleets. |
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Costs associated with permanently grounding Embraer ERJ 135 aircraft: During the year ended December 31, 2014, the company recorded $66 million for the permanent grounding of 21 of the company's Embraer ERJ 135 regional aircraft under lease through 2018, which includes an accrual for remaining lease payments and an amount for maintenance return conditions. As a result of the current fuel prices, new Embraer 175 regional jet deliveries and impact of pilot shortages at regional carriers, the company decided to permanently ground these 21 Embraer ERJ 135 aircraft. The company continues to operate nine Embraer ERJ 135 aircraft and will assess the possibility of grounding those aircraft when the term of the current capacity purchase contract ends. |
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Loss on extinguishment of debt and other special charges, net: On October 10, 2014, United used cash to retire, at par, the entire $248 million principal balance of the 6% Convertible Junior Subordinated Debentures and the 6% Convertible Preferred Securities, Term Income Deferrable Equity Securities (TIDES). The $53 million expense is primarily associated with the write-off of non-cash debt discounts recorded on the TIDES due to purchase accounting during the merger with Continental Airlines in 2010. |
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MTM losses from fuel hedges settling in future periods and prior period gains (losses) on fuel contracts settled in the current period: The company utilizes certain derivative instruments that are economic hedges but do not qualify for hedge accounting under U.S. generally accepted accounting principles. The company records changes in the fair value of these economic hedges to Nonoperating income (expense): Miscellaneous, net in the statements of consolidated operations. During the three and twelve months ended December 31, 2014, the company recorded $225 million and $244 million, respectively, in MTM losses on economic hedges that will settle in future periods. For economic hedges that settled in the three and twelve months ended December 31, 2014, the company recorded MTM gains (losses) of ($18) million and $83 million, respectively, in prior periods. The figures above also include an insignificant amount of ineffectiveness on hedges that are designated for hedge accounting. |
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2013 - Special items |
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Severance and benefit costs: During the fourth quarter of 2013, the company recorded a $91 million severance and benefit special charge. The company offered a voluntary retirement program for its fleet service, passenger service, storekeeper and pilot workgroups. Approximately 1,200 employees volunteered during the fourth quarter and United recorded approximately $64 million of costs for the programs. The company also offered a voluntary leave of absence program that approximately 1,100 flight attendants accepted, which allowed for continued medical coverage during the leave of absence period, resulting in a charge of approximately $12 million. The remaining $15 million of severance and benefit costs is related to involuntary severance programs associated with other workgroups. During the year ended December 31, 2013, the company recorded a $14 million charge associated with a voluntary program offered by United in which flight attendants took an unpaid 13-month leave of absence. The flight attendants received medical benefits and other company benefits while on leave under this program. Approximately 1,300 flight attendants opted to participate in the program. |
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Integration-related costs: Integration-related costs included compensation costs related to systems integration and training, branding activities, new uniforms, write-off or acceleration of depreciation on systems and facilities that were no longer used or planned to be used for significantly shorter periods, relocation for employees and severance primarily associated with administrative headcount reductions. |
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Impairment of assets: During the year ended December 31, 2013, the company recorded $32 million of charges related primarily to impairment of its flight equipment held for disposal associated with its 737-300 and 737-500 fleets and a $1 million charge associated with a route to Manila to reflect the estimated fair value of this asset as part of its annual impairment test of indefinite-lived intangible assets. |
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Labor agreements costs: On September 26, 2013, the company announced that it had reached tentative agreements with respect to joint collective bargaining agreements with the International Association of Machinists for the fleet service, passenger service and storekeeper workgroups. The company recorded a $127 million special charge associated with lump sum cash payments that would be made in conjunction with the ratification of the agreements. The agreements were ratified and the payments were made in the fourth quarter of 2013. |
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Losses on sale of assets and other special (gains) losses, net: During the year ended December 31, 2013, the company recorded $18 million associated with the temporary grounding of its Boeing 787 aircraft. The charges were comprised of aircraft depreciation expense and dedicated personnel costs that the company incurred while the aircraft were grounded. The aircraft returned to service in May 2013. During the fourth quarter of 2013, the company recorded approximately $11 million in accruals for future rent associated with the early retirement of four leased 757-200 aircraft, offset by $5 million in gains on the sale of aircraft and a $5 million adjustment in legal reserves. In addition to the fourth quarter items, during the year ended December 31, 2013, the company adjusted its reserves for certain legal matters by $34 million, recorded a $5 million gain related to a contract termination and recorded $2 million in losses on the sale of assets. |
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MTM gains from fuel hedges settling in future periods and prior period gains on fuel contracts settled in the current period: During the three and twelve months ended December 31, 2013, the company recorded $59 million and $84 million, respectively, in MTM gains on economic hedges that settled in later periods. For economic hedges that settled in the three and twelve months ended December 31, 2013, the company recorded MTM gains of $9 million and $39 million, respectively, in prior periods. The figures above also include an insignificant amount of ineffectiveness on hedges that are designated for hedge accounting. |
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© |
No federal income tax expense was recognized related to the company's pretax income for the three months ended December 31, 2014, and 2013 and the year ended December 31, 2014, and 2013 due to the utilization of book net operating loss carry forwards for which no benefit has previously been recognized. The company is required to provide a valuation allowance for its deferred tax assets in excess of deferred tax liabilities because UAL concluded that it is more likely than not that such deferred tax assets will ultimately not be realized. |
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| Three Months Ended December 31, 2014 |
Three Months Ended December 31, 2013 |
% Increase/ (Decrease) |
Year Ended December 31, 2014 |
Year Ended December 31, 2013 |
% Increase/ (Decrease) |
|
|---|---|---|---|---|---|---|
| Mainline: Passengers (thousands) |
22,087 | 22,155 | (0.3) | 91,475 | 91,329 | 0.2 |
| Mainline:Revenue passenger miles (millions) | 42,609 | 42,531 | 0.2 | 179,015 | 178,578 | 0.2 |
| Mainline:Available seat miles (millions) | 52,197 | 51,670 | 1.0 | 214,105 | 213,007 | 0.5 |
| Mainline:Cargo ton miles (millions) | 674 | 599 | 12.5 | 2,487 | 2,213 | 12.4 |
| Mainline:Passenger load factor: Mainline |
81.6% | 82.3% | (0.7) pts. | 83.6% | 83.8% | (0.2) pts. |
| Mainline:Domestic | 84.1% | 84.8% | (0.7) pts. | 86.0% | 85.7% | 0.3 pts. |
| Mainline:International | 79.2% | 79.7% | (0.5) pts. | 81.3% | 81.9% | (0.6) pts. |
| Mainline:Passenger revenue per available seat mile (cents) | 12.21 | 12.01 | 1.7 | 12.51 | 12.20 | 2.5 |
| Mainline:Average yield per revenue passenger mile (cents) | 14.96 | 14.59 | 2.5 | 14.96 | 14.56 | 2.7 |
| Mainline:Average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense | $2.58 | $3.09 | (16.5) | $2.96 | $3.12 | (5.1) |
| Mainline:Average aircraft fuel price per gallon | $2.69 | $3.07 | (12.4) | $2.98 | $3.12 | (4.5) |
| Mainline:Average aircraft fuel price per gallon including cash received (paid) on settled hedges that did not qualify for hedge accounting | $2.88 | $3.06 | (5.9) | $3.03 | $3.11 | (2.6) |
| Mainline:Fuel gallons consumed (millions) | 769 | 777 | (1.0) | 3,183 | 3,204 | (0.7) |
| Mainline:Aircraft in fleet at end of period | 691 | 693 | (0.3) | 691 | 693 | (0.3) |
| Mainline:Average stage length (miles) | 1,936 | 1,916 | 1.0 | 1,958 | 1,934 | 1.2 |
| Mainline:Average daily utilization of each aircraft (hours) | 10:11 | 10:07 | 0.7 | 10:26 | 10:28 | (0.3) |
| Regional: Passengers (thousands) |
11,470 | 11,952 | (4.0) | 46,554 | 47,880 | (2.8) |
| Regional:Revenue passenger miles (millions) | 6,602 | 6,648 | (0.7) | 26,544 | 26,589 | (0.2) |
| Regional:Available seat miles (millions) | 8,016 | 8,021 | (0.1) | 31,916 | 32,347 | (1.3) |
| Regional:Passenger load factor | 82.4% | 82.9% | (0.5) pts. | 83.2% | 82.2% | 1.0 pts. |
| Regional:Passenger revenue per available seat mile (cents) | 21.31 | 22.09 | (3.5) | 21.86 | 22.03 | (0.8) |
| Regional:Average yield per revenue passenger mile (cents) | 25.87 | 26.65 | (2.9) | 26.28 | 26.80 | (1.9) |
| Regional:Aircraft in fleet at end of period | 566 | 572 | (1.0) | 566 | 572 | (1.0) |
| Regional:Average stage length (miles) | 570 | 544 | 4.8 | 561 | 542 | 3.5 |
| Consolidated (Mainline and Regional): Passengers (thousands) |
33,557 | 34,107 | (1.6) | 138,029 | 139,209 | (0.8) |
| Consolidated (Mainline and Regional)Revenue passenger miles (millions) | 49,211 | 49,179 | 0.1 | 205,559 | 205,167 | 0.2 |
| Consolidated (Mainline and Regional)Available seat miles (millions) | 60,213 | 59,691 | 0.9 | 246,021 | 245,354 | 0.3 |
| Consolidated (Mainline and Regional)Passenger load factor | 81.7% | 82.4% | (0.7) pts. | 83.6% | 83.6% | - pts. |
| Consolidated (Mainline and Regional)Passenger revenue per available seat mile (cents) | 13.42 | 13.36 | 0.4 | 13.72 | 13.50 | 1.6 |
| Consolidated (Mainline and Regional)Total revenue per available seat mile (cents) | 15.47 | 15.63 | (1.0) | 15.81 | 15.60 | 1.3 |
| Consolidated (Mainline and Regional)Average yield per revenue passenger mile (cents) | 16.43 | 16.22 | 1.3 | 16.42 | 16.14 | 1.7 |
| Consolidated (Mainline and Regional)Average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense 4 | $2.58 | $3.11 | (17.0) | $2.97 | $3.13 | (5.1) |
| Consolidated (Mainline and Regional)Average aircraft fuel price per gallon 4 | $2.67 | $3.09 | (13.6) | $2.99 | $3.13 | (4.5) |
| Consolidated (Mainline and Regional)Average aircraft fuel price per gallon including cash received (paid) on settled hedges that did not qualify for hedge accounting 4 | $2.83 | $3.08 | (8.1) | $3.03 | $3.12 | (2.9) |
| Consolidated (Mainline and Regional)Fuel gallons consumed (millions) | 948 | 961 | (1.4) | 3,905 | 3,947 | (1.1) |
| Consolidated (Mainline and Regional)Average full-time equivalent employees (thousands) | 80.5 | 82.2 | (2.1) | 82.0 | 84.2 | (2.6) |
|
||||||
|
UNITED CONTINENTAL HOLDINGS, INC. |
|
UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and Non-GAAP financial measures, including income before income taxes excluding special items, net earnings/loss per share excluding special items, and CASM, among others. CASM is a common metric used in the airline industry to measure an airline's cost structure and efficiency. Pursuant to SEC Regulation G, UAL has included the following reconciliation of reported Non-GAAP financial measures to comparable financial measures reported on a GAAP basis. UAL believes that adjusting for special items is useful to investors because special charges are non-recurring charges not indicative of UAL's ongoing performance. In addition, the company believes that adjusting for MTM gains and losses from fuel hedges settling in future periods and prior period gains and losses on fuel contracts settled in the current period is useful because the adjustments allow investors to better understand the cash impact of settled hedges in a given period. UAL also believes that excluding third-party business expenses, such as maintenance, ground handling and catering services for third parties, fuel sales and non-air mileage redemptions, provides more meaningful disclosure because these expenses are not directly related to UAL's core business. UAL also believes that excluding fuel costs from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence. UAL excludes profit sharing because this exclusion allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry. |
| Three Months Ended December 31, 2014 (In millions) |
Three Months Ended December 31, 2013 (In millions) |
$ Increase/ (Decrease) |
% Increase/ (Decrease) |
Year Ended December 31, 2014 (In millions) |
Year Ended December 31, 2013 (In millions) |
$ Increase/ (Decrease) |
% Increase/ (Decrease) |
|
|---|---|---|---|---|---|---|---|---|
| Operating expenses | $8,688 | $9,094 | $(406) | (4.5) | $36,528 | $37,030 | $(502) | (1.4) |
| Operating expensesLess: Special charges (B) | 179 | 165 | 14 | NM1 | 443 | 520 | (77) | NM1 |
| Operating expenses, excluding special charges | 8,509 | 8,929 | (420) | (4.7) | 36,085 | 36,510 | (425) | (1.2) |
| Operating expenses, excluding special chargesLess: Third-party business expenses | 65 | 198 | (133) | (67.2) | 534 | 694 | (160) | (23.1) |
| Operating expenses, excluding special chargesLess: Fuel expense | 2,530 | 2,965 | (435) | (14.7) | 11,675 | 12,345 | (670) | (5.4) |
| Operating expenses, excluding special chargesLess: Profit sharing, including taxes | 53 | 28 | 25 | 89.3 | 235 | 190 | 45 | 23.7 |
| Operating expenses, excluding fuel, profit sharing, special charges and third-party business expenses | $5,861 | $5,738 | $123 | 2.1 | $23,641 | $23,281 | $360 | 1.5 |
| Income before income taxes | $23 | $112 | $(89) | (79.5) | $1,128 | $539 | $589 | 109.3 |
| Income before income taxesLess: Special items before income tax benefit | 439 | 115 | 324 | 281.7 | 844 | 475 | 369 | 77.7 |
| Income before income taxes and excluding special items | $462 | $227 | $235 | 103.5 | $1,972 | $1,014 | $958 | 94.5 |
| Net income | $28 | $140 | $(112) | (80.0) | $1,132 | $571 | $561 | 98.2 |
| Net incomeLess: special items, net of tax (B) | 433 | 108 | 325 | NM1 | 834 | 468 | 366 | NM1 |
| Net income, excluding special items | $461 | $248 | $213 | 85.9 | $1,966 | $1,039 | $927 | 89.2 |
| Diluted earnings per shareDiluted earnings per share | $0.07 | $0.37 | $(0.30) | (81.1) | $2.93 | $1.53 | $1.40 | 91.5 |
| Diluted earnings per shareAdd back: Special items, net of tax | 1.12 | 0.28 | 0.84 | NM1 | 2.12 | 1.20 | 0.92 | NM1 |
| Diluted earnings per shareAdd back: Impact of dilution, net | 0.01 | - | 0.01 | NM1 | 0.01 | - | 0.01 | NM1 |
| Diluted earnings per share, excluding special items | $1.20 | $0.65 | $0.55 | 84.6 | $5.06 | $2.73 | $2.33 | 85.3 |
| Weighted average shares, diluted |
| Three Months Ended December 31, 2014 in cents |
Three Months Ended December 31, 2013 in cents |
% Increase/ (Decrease) |
Year Ended December 31, 2014 in cents |
Year Ended December 31, 2013 in cents |
% Increase/ (Decrease) |
|
|---|---|---|---|---|---|---|
| CASM Mainline Operations (cents) Cost per available seat mile (CASM) |
13.68 | 14.41 | (5.1) | 14.03 | 14.31 | (2.0) |
| CASM Mainline Operations (cents): Cost per available seat mile (CASM)Less: Special charges (B) | 0.34 | 0.31 | NM1 | 0.21 | 0.24 | NM1 |
| CASM Mainline Operations (cents): Cost per available seat mile (CASM)CASM, excluding special charges | 13.34 | 14.10 | (5.4) | 13.82 | 14.07 | (1.8) |
| CASM Mainline Operations (cents): CASM, excluding special chargesLess: Third-party business expenses | 0.12 | 0.39 | (69.2) | 0.25 | 0.33 | (24.2) |
| CASM Mainline Operations (cents):CASM, excluding special charges and third-party business expenses | 13.22 | 13.71 | (3.6) | 13.57 | 13.74 | (1.2) |
| CASM Mainline Operations (cents): CASM, excluding special charges and third-party business expensesLess: Fuel expense | 3.96 | 4.61 | (14.1) | 4.44 | 4.69 | (5.3) |
| CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses and fuel | 9.26 | 9.10 | 1.8 | 9.13 | 9.05 | 0.9 |
| CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses and fuelLess: Profit sharing per available seat mile | 0.10 | 0.05 | 100.0 | 0.11 | 0.09 | 22.2 |
| CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses, fuel, and profit sharing | 9.16 | 9.05 | 1.2 | 9.02 | 8.96 | 0.7 |
| CASM Consolidated Operations (cents) Cost per available seat mile (CASM) |
14.43 | 15.24 | (5.3) | 14.85 | 15.09 | (1.6) |
| CASM Consolidated Operations (cents): Cost per available seat mile (CASM):Less: Special charges (B) | 0.30 | 0.28 | NM1 | 0.18 | 0.21 | NM1 |
| CASM Consolidated Operations (cents): CASM, excluding special charges | 14.13 | 14.96 | (5.5) | 14.67 | 14.88 | (1.4) |
| CASM Consolidated Operations (cents): CASM, excluding special charges: Less: Third-party business expenses | 0.11 | 0.33 | (66.7) | 0.22 | 0.28 | (21.4) |
| CASM Consolidated Operations (cents): CASM, excluding special charges and third-party business expenses | 14.02 | 14.63 | (4.2) | 14.45 | 14.60 | (1.0) |
| CASM Consolidated Operations (cents): CASM, excluding special charges and third-party business expenses:Less: Fuel expense | 4.20 | 4.97 | (15.5) | 4.75 | 5.03 | (5.6) |
| CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses and fuel | 9.82 | 9.66 | 1.7 | 9.70 | 9.57 | 1.4 |
| CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses and fuel: Less: Profit sharing per available seat mile | 0.09 | 0.05 | 80.0 | 0.09 | 0.08 | 12.5 |
| CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses, fuel, and profit sharing | 9.73 | 9.61 | 1.2 | 9.61 | 9.49 | 1.3 |
| Twelve Months Ended December 31, 2014 (in millions) |
|||||
|---|---|---|---|---|---|
| Net Operating Profit After Tax (NOPAT) Pre-tax income excluding special items 5 |
$1,972 | ||||
| Net Operating Profit After Tax (NOPAT): Add: Interest expense 6 | 733 | ||||
| Net Operating Profit After Tax (NOPAT): Add: Interest component of capitalized aircraft rent 6 | 431 | ||||
| Net Operating Profit After Tax (NOPAT): Add: Net interest on pension 6 | 107 | ||||
| Net Operating Profit After Tax (NOPAT): Less: Income tax expense | (6) | ||||
| Net Operating Profit After Tax (NOPAT): NOPAT | $3,237 | ||||
| Net Operating Profit After Tax (NOPAT): Effective tax rate 7 | 0.3% | ||||
| Invested Capital (five-quarter average) Total assets |
$37,560 | ||||
| Invested Capital (five-quarter average): Total assetsAdd: Capitalized aircraft rent (@7.0x) | 6,362 | ||||
| Invested Capital (five-quarter average): Total assetsLess: Advance ticket sales |
(4,290) | ||||
| Invested Capital (five-quarter average): Total assets: Less:Frequent flyer deferred revenue | (6,345) | ||||
| Invested Capital (five-quarter average): Total assets: Less:Deferred incomes taxes | 2,477 | ||||
| Invested Capital (five-quarter average): Total assets: Less:Tax valuation allowance | (4,076) | ||||
| Invested Capital (five-quarter average): Total assets: Less:Other non-interest bearing liabilities | (6,615) | ||||
| Invested Capital (five-quarter average): Average Invested Capital | $25,073 | ||||
| Invested Capital (five-quarter average): Return on Invested Capital | 12.9% | ||||
|
|||||
| Notes: | Twelve Months Ended December 31, 2014 |
||||
| Pre-tax income | $1,128 | ||||
| Return On Invested CapitalAdd: Special items | 844 | ||||
| Return On Invested CapitalPre-tax income excluding special items | $1,972 | ||||
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SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
- UAL earned a 12.9 percent return on invested capital in 2014.
- United's consolidated passenger revenue per available seat mile (PRASM) increased 1.6 percent for full-year 2014 compared to full-year 2013.
- Full-year 2014 consolidated unit costs (CASM), excluding special charges, third-party business expenses, fuel and profit sharing, increased 1.3 percent year-over-year on a consolidated capacity increase of 0.3 percent. Full-year 2014 CASM, including those items, decreased 1.6 percent year-over-year.
- In 2014, United returned approximately $320 million to shareholders as part of its previously announced $1 billion share buyback program. In addition, throughout the year, United spent $310 million to retire convertible debt that was convertible into approximately 5.8 million shares of UAL common stock.
- Employees earned $235 million in profit sharing for full-year 2014, which will be distributed on Feb. 13.
- UAL ended the year with $5.7 billion in unrestricted liquidity.
"Thanks to the good work of the United team, we reported a $2 billion profit for 2014, excluding special items," said Jeff Smisek, UAL's chairman, president and chief executive officer. "We're starting 2015 as a better airline, and we expect to generate far better results. I'm excited about what we will do this year to improve our operations, our product, and our customer service, focusing on growing our core earnings and margins. For the first quarter, we expect our pre-tax margin to be between 5 and 7 percent, excluding special items."
Fourth-Quarter Revenue and Capacity
For the fourth quarter of 2014, total revenue was $9.3 billion, a decrease of 0.2 percent year-over-year. Fourth-quarter consolidated passenger revenue increased 1.3 percent to $8.1 billion, compared to the same period in 2013. Ancillary revenue per passenger in the fourth quarter increased 9.7 percent year-over-year to more than $22 per passenger. Fourth-quarter cargo revenue grew 18.2 percent to $260 million driven by higher volumes year-over-year, as cargo traffic recovered from the prior year's lower bookings. Other revenue in the fourth quarter decreased 14.3 percent year-over-year to $970 million mostly due to the company choosing to discontinue an agreement to sell fuel to a third party. The corresponding expense decline appears in third-party business expense.
Consolidated revenue passenger miles increased 0.1 percent and consolidated available seat miles increased 0.9 percent year-over-year for the fourth quarter, resulting in a fourth-quarter consolidated load factor of 81.7 percent.
Fourth-quarter 2014 consolidated PRASM increased 0.4 percent and consolidated yield increased 1.3 percent compared to the fourth quarter of 2013.
Passenger revenue for the fourth quarter of 2014 and period-to-period comparisons of related statistics for UAL's mainline and regional operations are as follows:
|
4Q 2014 Passenger Revenue (millions) |
Passenger Revenue vs. 4Q 2013 |
PRASM vs. 4Q 2013 |
Yield vs. 4Q 2013 |
Available Seat Miles vs. 4Q 2013 |
|
|---|---|---|---|---|---|
| Domestic | $3,219 | 1.9% | 3.5% | 4.4% | (1.6%) |
| Atlantic | 1,357 | 4.5% | 6.9% | 6.1% | (2.2%) |
| Pacific | 1,107 | (1.5%) | (5.9%) | (3.8%) | 4.7% |
| Latin America | 692 | 11.3% | (4.4%) | (3.7%) | 16.4% |
| International | 3,156 | 3.6% | (0.2%) | 0.5% | 3.8% |
| Mainline | 6,375 | 2.7% | 1.7% | 2.5% | 1.0% |
| Regional | 1,708 | (3.6%) | (3.5%) | (2.9%) | (0.1%) |
| Consolidated | $8,083 | 1.3% | 0.4% | 1.3% | 0.9% |
Fourth-Quarter Costs
Fourth-quarter consolidated CASM, excluding special charges, third-party business expense, fuel and profit sharing, increased 1.2 percent compared to the fourth quarter of 2013. Fourth-quarter consolidated CASM including those items decreased 5.3 percent.
Fourth-quarter total operating expenses, excluding special charges, decreased $420 million, or 4.7 percent, year-over-year. Including special charges, total operating expenses decreased $406 million, or 4.5 percent, in the fourth quarter versus the same period in 2013.
Fourth-Quarter Liquidity and Cash Flow
UAL ended the fourth quarter with $5.7 billion in unrestricted liquidity, including $1.35 billion of undrawn commitments under its revolving credit facility. During the fourth quarter, the company had gross capital expenditures of $1 billion, excluding fully reimbursable projects. The company made debt and capital lease principal payments of $534 million in the fourth quarter, including prepayment of $248 million of convertible debt that was convertible into approximately 4.3 million shares of United common stock.
As part of United's $1 billion share buyback program, the company spent approximately $100 million in share repurchases in the fourth quarter. For the year, United returned a total of approximately $320 million to shareholders through share repurchases and open market transactions. In addition, for the year the company spent $310 million to retire convertible debt that was convertible into approximately 5.8 million shares.
For the 12 months ended Dec. 31, 2014, the company's return on invested capital was 12.9 percent.
"In 2014 we made significant progress towards creating long-term value for our investors while providing a better experience for our customers," said John Rainey, UAL's executive vice president and chief financial officer. "Our solid cost performance in 2014 was driven by executing on our Project Quality efficiency initiatives. As our cost initiatives mature throughout 2015, we anticipate that 2015 consolidated CASM, excluding fuel and third-party business expense, will be approximately flat."
For more information on United's first-quarter 2015 guidance, please visit ir.united.com for the company's investor update.
About United
United Airlines and United Express operate an average of 5,055 flights a day to 373 airports across six continents. In 2014, United and United Express operated nearly two million flights carrying 138 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 nearly 700 mainline aircraft, and this year, the airline anticipates taking delivery of 34 new Boeing aircraft, including the 787-9 and the 737-900ER. United is also welcoming 49 new Embraer 175 aircraft to United Express. The airline is a founding member of Star Alliance, which provides service to 193 countries via 27 member airlines. More than 84,000 United employees reside in every U.S. state and in countries around the world. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the NYSE under the symbol UAL.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements included in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and financial performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as "expects," "will," "plans," "anticipates," "indicates," "believes," "forecast," "guidance," "outlook" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this report are based upon information available to us on the date of this report. 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, including optimizing our revenue; our ability to control our costs, including realizing benefits from our resource optimization efforts, cost reduction initiatives and fleet replacement programs; our ability to utilize our net operating losses; our ability to attract and retain customers; demand for transportation in the markets in which we operate; an outbreak of a disease that affects travel demand or travel behavior; demand for travel and the impact that global economic conditions have on customer travel patterns; excessive taxation and the inability to offset future taxable income; general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aircraft fuel and energy refining capacity in relevant markets); our ability to cost-effectively hedge against increases in the price of aircraft fuel; any potential realized or unrealized gains or losses related to fuel or currency hedging programs; the effects of any hostilities, act of war or terrorist attack; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; 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); labor costs; our ability to maintain satisfactory labor relations and the results of the collective bargaining agreement process with our union groups; any disruptions to operations due to any potential actions by our labor groups; weather conditions; the possibility that expected merger synergies will not be realized or will not be realized within the expected time period; and other risks and uncertainties set forth under Item 1A., Risk Factors, of UAL's Annual Report on Form 10-K, as well as other risks and uncertainties set forth from time to time in the reports we file with the SEC.
-tables attached-
| Three Months Ended December 31, 2014(In millions, except per share data) |
Three Months Ended December 31, 2013(In millions, except per share data) |
% Increase/ (Decrease) |
Year Ended December 31, 2014(In millions, except per share data) |
Year Ended December 31, 2013(In millions, except per share data) |
% Increase/ (Decrease) |
|
|---|---|---|---|---|---|---|
| Operating revenue: Passenger: Mainline |
$6,375 | $6,205 | 2.7 | $26,785 | $25,997 | 3.0 |
| Operating revenue: Passenger: Regional | 1,708 | 1,772 | (3.6) | 6,977 | 7,125 | (2.1) |
| Operating revenue: Passenger: Total passenger revenue | 8,083 | 7,977 | 1.3 | 33,762 | 33,122 | 1.9 |
| Operating revenue: Cargo | 260 | 220 | 18.2 | 938 | 882 | 6.3 |
| Operating revenue: Other operating revenue | 970 | 1,132 | (14.3) | 4,201 | 4,275 | (1.7) |
| Operating revenue:Total operating revenue | 9,313 | 9,329 | (0.2) | 38,901 | 38,279 | 1.6 |
| Operating expense: Aircraft fuel(A) |
2,530 | 2,965 | (14.7) | 11,675 | 12,345 | (5.4) |
| Operating expense: Salaries and related costs | 2,251 | 2,114 | 6.5 | 8,935 | 8,625 | 3.6 |
| Operating expense: Regional capacity purchase | 597 | 582 | 2.6 | 2,344 | 2,419 | (3.1) |
| Operating expense: Landing fees and other rent | 568 | 546 | 4.0 | 2,274 | 2,090 | 8.8 |
| Operating expense: Aircraft maintenance materials and outside repairs | 415 | 431 | (3.7) | 1,779 | 1,821 | (2.3) |
| Operating expense: Depreciation and amortization | 431 | 421 | 2.4 | 1,679 | 1,689 | (0.6) |
| Operating expense: Distribution expenses | 334 | 338 | (1.2) | 1,373 | 1,390 | (1.2) |
| Operating expense: Aircraft rent | 215 | 230 | (6.5) | 883 | 936 | (5.7) |
| Operating expense: Special charges (B) | 179 | 165 | NM1 | 443 | 520 | NM1 |
| Operating expense: Other operating expenses | 1,168 | 1,302 | (10.3) | 5,143 | 5,195 | (1.0) |
| Operating expense: Other Operating Expenses: Total operating expenses | 8,688 | 9,094 | (4.5) | 36,528 | 37,030 | (1.4) |
| Operating income | 625 | 235 | 166.0 | 2,373 | 1,249 | 90.0 |
| Nonoperating income (expense): Interest expense |
(176) | (193) | (8.8) | (735) | (783) | (6.1) |
| Nonoperating income (expense): Interest capitalized | 12 | 14 | (14.3) | 52 | 49 | 6.1 |
| Nonoperating income (expense): Interest income | 5 | 5 | - | 22 | 21 | 4.8 |
| Nonoperating income (expense): Miscellaneous, net (B) | (443) | 51 | NM1 | (584) | 3 | NM1 |
| Nonoperating income (expense): Miscellaneous, net (B): Total nonoperating expense | (602) | (123) | 389.4 | (1,245) | (710) | 75.4 |
| Income before income taxes: Income before income taxes | 23 | 112 | (79.5) | 1,128 | 539 | 109.3 |
| Income tax expense: Income tax expense (benefit) (C) | (5) | (28) | (82.1) | (4) | (32) | (87.5) |
| Net income: Net income | $28 | $140 | (80.0) | $1,132 | $571 | 98.2 |
| Earnings per share: Earnings per share, basic | $0.08 | $0.39 | (79.5) | $3.05 | $1.64 | 86.0 |
| Earnings per share: Earnings per share, diluted | $0.07 | $0.37 | (81.1) | $2.93 | $1.53 | 91.5 |
| Weighted average shares: Weighted average shares, basic | 372 | 361 | 3.0 | 371 | 348 | 6.6 |
| Weighted average shares: Weighted average shares, diluted | 376 | 391 | (3.8) | 390 | 391 | (0.3) |
|
||||||
| Three Months Ended December 31, 2014 (In millions, except per gallon) |
Three Months Ended December 31, 2013 (In millions, except per gallon) |
% Increase/ (Decrease) |
Year Ended December 31, 2014 (In millions, except per gallon) |
Year Ended December 31, 2013 (In millions, except per gallon) |
% Increase/ (Decrease) |
|
|---|---|---|---|---|---|---|
| Mainline fuel expense excluding hedge impacts Mainline fuel expense excluding hedge impacts | $1,982 | $2,404 | (17.6) | $9,408 | $10,008 | (6.0) |
| Hedge losses reported in fuel expense 2 | (85) | 22 | NM1 | (89) | 18 | NM1 |
| Total mainline fuel expenseTotal mainline fuel expense | 2,067 | 2,382 | (13.2) | 9,497 | 9,990 | (4.9) |
| Regional fuel expense Regional fuel expense | 463 | 583 | (20.6) | 2,178 | 2,355 | (7.5) |
| Consolidated fuel expenseConsolidated fuel expense | 2,530 | 2,965 | (14.7) | 11,675 | 12,345 | (5.4) |
| Cash paid on settled hedges that did not qualify for hedge accounting 3 | (151) | 4 | NM1 | (138) | 39 | NM1 |
| Fuel expense including all losses from settled hedges | $2,681 | $2,961 | (9.5) | $11,813 | $12,306 | (4.0) |
| Mainline fuel consumption (gallons) | 769 | 777 | (1.0) | 3,183 | 3,204 | (0.7) |
| Mainline average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense | $2.58 | $3.09 | (16.5) | $2.96 | $3.12 | (5.1) |
| Mainline average aircraft fuel price per gallon | $2.69 | $3.07 | (12.4) | $2.98 | $3.12 | (4.5) |
| Mainline average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accounting | $2.88 | $3.06 | (5.9) | $3.03 | $3.11 | (2.6) |
| Regional fuel consumption (gallons) | 179 | 184 | (2.7) | 722 | 743 | (2.8) |
| Regional average aircraft fuel price per gallon | $2.59 | $3.17 | (18.3) | $3.02 | $3.17 | (4.7) |
| Consolidated fuel consumption (gallons) | 948 | 961 | (1.4) | 3,905 | 3,947 | (1.1) |
| Consolidated average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense | $2.58 | $3.11 | (17.0) | $2.97 | $3.13 | (5.1) |
| Consolidated average aircraft fuel price per gallon | $2.67 | $3.09 | (13.6) | $2.99 | $3.13 | (4.5) |
| Consolidated average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accounting | $2.83 | $3.08 | (8.1) | $3.03 | $3.12 | (2.9) |
|
||||||
| Three Months Ended December 31, 2014 (In millions) |
Three Months Ended December 31, 2013 (In millions) |
Year Ended December 31, 2014 (In millions) |
Year Ended December 31, 2013 (In millions) |
|
|---|---|---|---|---|
| Operating: Severance and benefit costs |
$141 | $91 | $199 | $105 |
| Operating:Integration-related costs | 17 | 40 | 96 | 205 |
| Operating:Impairment of assets | 16 | 33 | 49 | 33 |
| Operating:Costs associated with permanently grounding Embraer ERJ 135 aircraft | - | - | 66 | - |
| Operating:Labor agreement costs | - | - | - | 127 |
| Operating:Losses on sale of assets and other special (gains) losses, net | 5 | 1 | 33 | 50 |
| Operating:Special charges | $179 | $165 | $443 | $520 |
| Nonoperating: Loss on extinguishment of debt and other, net |
$53 | $- | $74 | $- |
| Nonoperating: Income tax benefit | (6) | (7) | (10) | (7) |
| Nonoperating:Total operating and nonoperating special charges, net of income taxes | $226 | $158 | $507 | $513 |
| Nonoperating:Mark-to-market (MTM) losses from fuel derivative contracts settling in future periods | $225 | $(59) | $244 | $(84) |
| Nonoperating:Prior period gains (losses) on fuel derivative contracts settled in the current period | (18) | 9 | 83 | 39 |
| Nonoperating:Total special items, net of income taxes | $433 | $108 | $834 | $468 |
|
2014 - Special items |
|||||
|
Severance and benefit costs: During the fourth quarter of 2014, the company recorded $141 million of costs related primarily to a voluntary early-out program for its flight attendants. More than 2,500 participants elected a one-time opportunity to voluntarily separate from the company and will receive a severance payment, with a maximum value of $100,000 per participant, based on years of service, with retirement dates from November 30, 2014 through the end of 2015. The company will record additional expense associated with this program through 2015 over the remaining required service periods. In addition to the fourth quarter item, during the year ended December 31, 2014, the company recorded $58 million of severance and benefits primarily related to reductions of management and front-line employees, including from Cleveland airport, as part of its cost savings initiatives. The company is currently evaluating its options regarding its long-term contractual commitments at Cleveland. The capacity reductions at Cleveland may result in further special charges, which could be significant, related to our contractual commitments. |
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Integration-related costs: Integration-related costs include compensation costs related to systems integration, training, severance and relocation for employees.
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Impairment of assets: During the fourth quarter of 2014, the company recorded a charge of $16 million ($10 million net of related income tax benefits) related to its annual assessment of impairment of its indefinite-lived intangible assets (primarily international Pacific routes). In addition to the fourth quarter item, during the year ended December 31, 2014, the company recorded $33 million for charges related primarily to impairment of its flight equipment held for disposal associated with its Boeing 737-300 and 737-500 fleets. |
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Costs associated with permanently grounding Embraer ERJ 135 aircraft: During the year ended December 31, 2014, the company recorded $66 million for the permanent grounding of 21 of the company's Embraer ERJ 135 regional aircraft under lease through 2018, which includes an accrual for remaining lease payments and an amount for maintenance return conditions. As a result of the current fuel prices, new Embraer 175 regional jet deliveries and impact of pilot shortages at regional carriers, the company decided to permanently ground these 21 Embraer ERJ 135 aircraft. The company continues to operate nine Embraer ERJ 135 aircraft and will assess the possibility of grounding those aircraft when the term of the current capacity purchase contract ends. |
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Loss on extinguishment of debt and other special charges, net: On October 10, 2014, United used cash to retire, at par, the entire $248 million principal balance of the 6% Convertible Junior Subordinated Debentures and the 6% Convertible Preferred Securities, Term Income Deferrable Equity Securities (TIDES). The $53 million expense is primarily associated with the write-off of non-cash debt discounts recorded on the TIDES due to purchase accounting during the merger with Continental Airlines in 2010. |
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MTM losses from fuel hedges settling in future periods and prior period gains (losses) on fuel contracts settled in the current period: The company utilizes certain derivative instruments that are economic hedges but do not qualify for hedge accounting under U.S. generally accepted accounting principles. The company records changes in the fair value of these economic hedges to Nonoperating income (expense): Miscellaneous, net in the statements of consolidated operations. During the three and twelve months ended December 31, 2014, the company recorded $225 million and $244 million, respectively, in MTM losses on economic hedges that will settle in future periods. For economic hedges that settled in the three and twelve months ended December 31, 2014, the company recorded MTM gains (losses) of ($18) million and $83 million, respectively, in prior periods. The figures above also include an insignificant amount of ineffectiveness on hedges that are designated for hedge accounting. |
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2013 - Special items |
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Severance and benefit costs: During the fourth quarter of 2013, the company recorded a $91 million severance and benefit special charge. The company offered a voluntary retirement program for its fleet service, passenger service, storekeeper and pilot workgroups. Approximately 1,200 employees volunteered during the fourth quarter and United recorded approximately $64 million of costs for the programs. The company also offered a voluntary leave of absence program that approximately 1,100 flight attendants accepted, which allowed for continued medical coverage during the leave of absence period, resulting in a charge of approximately $12 million. The remaining $15 million of severance and benefit costs is related to involuntary severance programs associated with other workgroups. During the year ended December 31, 2013, the company recorded a $14 million charge associated with a voluntary program offered by United in which flight attendants took an unpaid 13-month leave of absence. The flight attendants received medical benefits and other company benefits while on leave under this program. Approximately 1,300 flight attendants opted to participate in the program. |
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Integration-related costs: Integration-related costs included compensation costs related to systems integration and training, branding activities, new uniforms, write-off or acceleration of depreciation on systems and facilities that were no longer used or planned to be used for significantly shorter periods, relocation for employees and severance primarily associated with administrative headcount reductions. |
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Impairment of assets: During the year ended December 31, 2013, the company recorded $32 million of charges related primarily to impairment of its flight equipment held for disposal associated with its 737-300 and 737-500 fleets and a $1 million charge associated with a route to Manila to reflect the estimated fair value of this asset as part of its annual impairment test of indefinite-lived intangible assets. |
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Labor agreements costs: On September 26, 2013, the company announced that it had reached tentative agreements with respect to joint collective bargaining agreements with the International Association of Machinists for the fleet service, passenger service and storekeeper workgroups. The company recorded a $127 million special charge associated with lump sum cash payments that would be made in conjunction with the ratification of the agreements. The agreements were ratified and the payments were made in the fourth quarter of 2013. |
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Losses on sale of assets and other special (gains) losses, net: During the year ended December 31, 2013, the company recorded $18 million associated with the temporary grounding of its Boeing 787 aircraft. The charges were comprised of aircraft depreciation expense and dedicated personnel costs that the company incurred while the aircraft were grounded. The aircraft returned to service in May 2013. During the fourth quarter of 2013, the company recorded approximately $11 million in accruals for future rent associated with the early retirement of four leased 757-200 aircraft, offset by $5 million in gains on the sale of aircraft and a $5 million adjustment in legal reserves. In addition to the fourth quarter items, during the year ended December 31, 2013, the company adjusted its reserves for certain legal matters by $34 million, recorded a $5 million gain related to a contract termination and recorded $2 million in losses on the sale of assets. |
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MTM gains from fuel hedges settling in future periods and prior period gains on fuel contracts settled in the current period: During the three and twelve months ended December 31, 2013, the company recorded $59 million and $84 million, respectively, in MTM gains on economic hedges that settled in later periods. For economic hedges that settled in the three and twelve months ended December 31, 2013, the company recorded MTM gains of $9 million and $39 million, respectively, in prior periods. The figures above also include an insignificant amount of ineffectiveness on hedges that are designated for hedge accounting. |
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© |
No federal income tax expense was recognized related to the company's pretax income for the three months ended December 31, 2014, and 2013 and the year ended December 31, 2014, and 2013 due to the utilization of book net operating loss carry forwards for which no benefit has previously been recognized. The company is required to provide a valuation allowance for its deferred tax assets in excess of deferred tax liabilities because UAL concluded that it is more likely than not that such deferred tax assets will ultimately not be realized. |
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| Three Months Ended December 31, 2014 |
Three Months Ended December 31, 2013 |
% Increase/ (Decrease) |
Year Ended December 31, 2014 |
Year Ended December 31, 2013 |
% Increase/ (Decrease) |
|
|---|---|---|---|---|---|---|
| Mainline: Passengers (thousands) |
22,087 | 22,155 | (0.3) | 91,475 | 91,329 | 0.2 |
| Mainline:Revenue passenger miles (millions) | 42,609 | 42,531 | 0.2 | 179,015 | 178,578 | 0.2 |
| Mainline:Available seat miles (millions) | 52,197 | 51,670 | 1.0 | 214,105 | 213,007 | 0.5 |
| Mainline:Cargo ton miles (millions) | 674 | 599 | 12.5 | 2,487 | 2,213 | 12.4 |
| Mainline:Passenger load factor: Mainline |
81.6% | 82.3% | (0.7) pts. | 83.6% | 83.8% | (0.2) pts. |
| Mainline:Domestic | 84.1% | 84.8% | (0.7) pts. | 86.0% | 85.7% | 0.3 pts. |
| Mainline:International | 79.2% | 79.7% | (0.5) pts. | 81.3% | 81.9% | (0.6) pts. |
| Mainline:Passenger revenue per available seat mile (cents) | 12.21 | 12.01 | 1.7 | 12.51 | 12.20 | 2.5 |
| Mainline:Average yield per revenue passenger mile (cents) | 14.96 | 14.59 | 2.5 | 14.96 | 14.56 | 2.7 |
| Mainline:Average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense | $2.58 | $3.09 | (16.5) | $2.96 | $3.12 | (5.1) |
| Mainline:Average aircraft fuel price per gallon | $2.69 | $3.07 | (12.4) | $2.98 | $3.12 | (4.5) |
| Mainline:Average aircraft fuel price per gallon including cash received (paid) on settled hedges that did not qualify for hedge accounting | $2.88 | $3.06 | (5.9) | $3.03 | $3.11 | (2.6) |
| Mainline:Fuel gallons consumed (millions) | 769 | 777 | (1.0) | 3,183 | 3,204 | (0.7) |
| Mainline:Aircraft in fleet at end of period | 691 | 693 | (0.3) | 691 | 693 | (0.3) |
| Mainline:Average stage length (miles) | 1,936 | 1,916 | 1.0 | 1,958 | 1,934 | 1.2 |
| Mainline:Average daily utilization of each aircraft (hours) | 10:11 | 10:07 | 0.7 | 10:26 | 10:28 | (0.3) |
| Regional: Passengers (thousands) |
11,470 | 11,952 | (4.0) | 46,554 | 47,880 | (2.8) |
| Regional:Revenue passenger miles (millions) | 6,602 | 6,648 | (0.7) | 26,544 | 26,589 | (0.2) |
| Regional:Available seat miles (millions) | 8,016 | 8,021 | (0.1) | 31,916 | 32,347 | (1.3) |
| Regional:Passenger load factor | 82.4% | 82.9% | (0.5) pts. | 83.2% | 82.2% | 1.0 pts. |
| Regional:Passenger revenue per available seat mile (cents) | 21.31 | 22.09 | (3.5) | 21.86 | 22.03 | (0.8) |
| Regional:Average yield per revenue passenger mile (cents) | 25.87 | 26.65 | (2.9) | 26.28 | 26.80 | (1.9) |
| Regional:Aircraft in fleet at end of period | 566 | 572 | (1.0) | 566 | 572 | (1.0) |
| Regional:Average stage length (miles) | 570 | 544 | 4.8 | 561 | 542 | 3.5 |
| Consolidated (Mainline and Regional): Passengers (thousands) |
33,557 | 34,107 | (1.6) | 138,029 | 139,209 | (0.8) |
| Consolidated (Mainline and Regional)Revenue passenger miles (millions) | 49,211 | 49,179 | 0.1 | 205,559 | 205,167 | 0.2 |
| Consolidated (Mainline and Regional)Available seat miles (millions) | 60,213 | 59,691 | 0.9 | 246,021 | 245,354 | 0.3 |
| Consolidated (Mainline and Regional)Passenger load factor | 81.7% | 82.4% | (0.7) pts. | 83.6% | 83.6% | - pts. |
| Consolidated (Mainline and Regional)Passenger revenue per available seat mile (cents) | 13.42 | 13.36 | 0.4 | 13.72 | 13.50 | 1.6 |
| Consolidated (Mainline and Regional)Total revenue per available seat mile (cents) | 15.47 | 15.63 | (1.0) | 15.81 | 15.60 | 1.3 |
| Consolidated (Mainline and Regional)Average yield per revenue passenger mile (cents) | 16.43 | 16.22 | 1.3 | 16.42 | 16.14 | 1.7 |
| Consolidated (Mainline and Regional)Average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense 4 | $2.58 | $3.11 | (17.0) | $2.97 | $3.13 | (5.1) |
| Consolidated (Mainline and Regional)Average aircraft fuel price per gallon 4 | $2.67 | $3.09 | (13.6) | $2.99 | $3.13 | (4.5) |
| Consolidated (Mainline and Regional)Average aircraft fuel price per gallon including cash received (paid) on settled hedges that did not qualify for hedge accounting 4 | $2.83 | $3.08 | (8.1) | $3.03 | $3.12 | (2.9) |
| Consolidated (Mainline and Regional)Fuel gallons consumed (millions) | 948 | 961 | (1.4) | 3,905 | 3,947 | (1.1) |
| Consolidated (Mainline and Regional)Average full-time equivalent employees (thousands) | 80.5 | 82.2 | (2.1) | 82.0 | 84.2 | (2.6) |
|
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UNITED CONTINENTAL HOLDINGS, INC. |
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UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and Non-GAAP financial measures, including income before income taxes excluding special items, net earnings/loss per share excluding special items, and CASM, among others. CASM is a common metric used in the airline industry to measure an airline's cost structure and efficiency. Pursuant to SEC Regulation G, UAL has included the following reconciliation of reported Non-GAAP financial measures to comparable financial measures reported on a GAAP basis. UAL believes that adjusting for special items is useful to investors because special charges are non-recurring charges not indicative of UAL's ongoing performance. In addition, the company believes that adjusting for MTM gains and losses from fuel hedges settling in future periods and prior period gains and losses on fuel contracts settled in the current period is useful because the adjustments allow investors to better understand the cash impact of settled hedges in a given period. UAL also believes that excluding third-party business expenses, such as maintenance, ground handling and catering services for third parties, fuel sales and non-air mileage redemptions, provides more meaningful disclosure because these expenses are not directly related to UAL's core business. UAL also believes that excluding fuel costs from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence. UAL excludes profit sharing because this exclusion allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry. |
| Three Months Ended December 31, 2014 (In millions) |
Three Months Ended December 31, 2013 (In millions) |
$ Increase/ (Decrease) |
% Increase/ (Decrease) |
Year Ended December 31, 2014 (In millions) |
Year Ended December 31, 2013 (In millions) |
$ Increase/ (Decrease) |
% Increase/ (Decrease) |
|
|---|---|---|---|---|---|---|---|---|
| Operating expenses | $8,688 | $9,094 | $(406) | (4.5) | $36,528 | $37,030 | $(502) | (1.4) |
| Operating expensesLess: Special charges (B) | 179 | 165 | 14 | NM1 | 443 | 520 | (77) | NM1 |
| Operating expenses, excluding special charges | 8,509 | 8,929 | (420) | (4.7) | 36,085 | 36,510 | (425) | (1.2) |
| Operating expenses, excluding special chargesLess: Third-party business expenses | 65 | 198 | (133) | (67.2) | 534 | 694 | (160) | (23.1) |
| Operating expenses, excluding special chargesLess: Fuel expense | 2,530 | 2,965 | (435) | (14.7) | 11,675 | 12,345 | (670) | (5.4) |
| Operating expenses, excluding special chargesLess: Profit sharing, including taxes | 53 | 28 | 25 | 89.3 | 235 | 190 | 45 | 23.7 |
| Operating expenses, excluding fuel, profit sharing, special charges and third-party business expenses | $5,861 | $5,738 | $123 | 2.1 | $23,641 | $23,281 | $360 | 1.5 |
| Income before income taxes | $23 | $112 | $(89) | (79.5) | $1,128 | $539 | $589 | 109.3 |
| Income before income taxesLess: Special items before income tax benefit | 439 | 115 | 324 | 281.7 | 844 | 475 | 369 | 77.7 |
| Income before income taxes and excluding special items | $462 | $227 | $235 | 103.5 | $1,972 | $1,014 | $958 | 94.5 |
| Net income | $28 | $140 | $(112) | (80.0) | $1,132 | $571 | $561 | 98.2 |
| Net incomeLess: special items, net of tax (B) | 433 | 108 | 325 | NM1 | 834 | 468 | 366 | NM1 |
| Net income, excluding special items | $461 | $248 | $213 | 85.9 | $1,966 | $1,039 | $927 | 89.2 |
| Diluted earnings per shareDiluted earnings per share | $0.07 | $0.37 | $(0.30) | (81.1) | $2.93 | $1.53 | $1.40 | 91.5 |
| Diluted earnings per shareAdd back: Special items, net of tax | 1.12 | 0.28 | 0.84 | NM1 | 2.12 | 1.20 | 0.92 | NM1 |
| Diluted earnings per shareAdd back: Impact of dilution, net | 0.01 | - | 0.01 | NM1 | 0.01 | - | 0.01 | NM1 |
| Diluted earnings per share, excluding special items | $1.20 | $0.65 | $0.55 | 84.6 | $5.06 | $2.73 | $2.33 | 85.3 |
| Weighted average shares, diluted |
| Three Months Ended December 31, 2014 in cents |
Three Months Ended December 31, 2013 in cents |
% Increase/ (Decrease) |
Year Ended December 31, 2014 in cents |
Year Ended December 31, 2013 in cents |
% Increase/ (Decrease) |
|
|---|---|---|---|---|---|---|
| CASM Mainline Operations (cents) Cost per available seat mile (CASM) |
13.68 | 14.41 | (5.1) | 14.03 | 14.31 | (2.0) |
| CASM Mainline Operations (cents): Cost per available seat mile (CASM)Less: Special charges (B) | 0.34 | 0.31 | NM1 | 0.21 | 0.24 | NM1 |
| CASM Mainline Operations (cents): Cost per available seat mile (CASM)CASM, excluding special charges | 13.34 | 14.10 | (5.4) | 13.82 | 14.07 | (1.8) |
| CASM Mainline Operations (cents): CASM, excluding special chargesLess: Third-party business expenses | 0.12 | 0.39 | (69.2) | 0.25 | 0.33 | (24.2) |
| CASM Mainline Operations (cents):CASM, excluding special charges and third-party business expenses | 13.22 | 13.71 | (3.6) | 13.57 | 13.74 | (1.2) |
| CASM Mainline Operations (cents): CASM, excluding special charges and third-party business expensesLess: Fuel expense | 3.96 | 4.61 | (14.1) | 4.44 | 4.69 | (5.3) |
| CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses and fuel | 9.26 | 9.10 | 1.8 | 9.13 | 9.05 | 0.9 |
| CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses and fuelLess: Profit sharing per available seat mile | 0.10 | 0.05 | 100.0 | 0.11 | 0.09 | 22.2 |
| CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses, fuel, and profit sharing | 9.16 | 9.05 | 1.2 | 9.02 | 8.96 | 0.7 |
| CASM Consolidated Operations (cents) Cost per available seat mile (CASM) |
14.43 | 15.24 | (5.3) | 14.85 | 15.09 | (1.6) |
| CASM Consolidated Operations (cents): Cost per available seat mile (CASM):Less: Special charges (B) | 0.30 | 0.28 | NM1 | 0.18 | 0.21 | NM1 |
| CASM Consolidated Operations (cents): CASM, excluding special charges | 14.13 | 14.96 | (5.5) | 14.67 | 14.88 | (1.4) |
| CASM Consolidated Operations (cents): CASM, excluding special charges: Less: Third-party business expenses | 0.11 | 0.33 | (66.7) | 0.22 | 0.28 | (21.4) |
| CASM Consolidated Operations (cents): CASM, excluding special charges and third-party business expenses | 14.02 | 14.63 | (4.2) | 14.45 | 14.60 | (1.0) |
| CASM Consolidated Operations (cents): CASM, excluding special charges and third-party business expenses:Less: Fuel expense | 4.20 | 4.97 | (15.5) | 4.75 | 5.03 | (5.6) |
| CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses and fuel | 9.82 | 9.66 | 1.7 | 9.70 | 9.57 | 1.4 |
| CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses and fuel: Less: Profit sharing per available seat mile | 0.09 | 0.05 | 80.0 | 0.09 | 0.08 | 12.5 |
| CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses, fuel, and profit sharing | 9.73 | 9.61 | 1.2 | 9.61 | 9.49 | 1.3 |
| Twelve Months Ended December 31, 2014 (in millions) |
|||||
|---|---|---|---|---|---|
| Net Operating Profit After Tax (NOPAT) Pre-tax income excluding special items 5 |
$1,972 | ||||
| Net Operating Profit After Tax (NOPAT): Add: Interest expense 6 | 733 | ||||
| Net Operating Profit After Tax (NOPAT): Add: Interest component of capitalized aircraft rent 6 | 431 | ||||
| Net Operating Profit After Tax (NOPAT): Add: Net interest on pension 6 | 107 | ||||
| Net Operating Profit After Tax (NOPAT): Less: Income tax expense | (6) | ||||
| Net Operating Profit After Tax (NOPAT): NOPAT | $3,237 | ||||
| Net Operating Profit After Tax (NOPAT): Effective tax rate 7 | 0.3% | ||||
| Invested Capital (five-quarter average) Total assets |
$37,560 | ||||
| Invested Capital (five-quarter average): Total assetsAdd: Capitalized aircraft rent (@7.0x) | 6,362 | ||||
| Invested Capital (five-quarter average): Total assetsLess: Advance ticket sales |
(4,290) | ||||
| Invested Capital (five-quarter average): Total assets: Less:Frequent flyer deferred revenue | (6,345) | ||||
| Invested Capital (five-quarter average): Total assets: Less:Deferred incomes taxes | 2,477 | ||||
| Invested Capital (five-quarter average): Total assets: Less:Tax valuation allowance | (4,076) | ||||
| Invested Capital (five-quarter average): Total assets: Less:Other non-interest bearing liabilities | (6,615) | ||||
| Invested Capital (five-quarter average): Average Invested Capital | $25,073 | ||||
| Invested Capital (five-quarter average): Return on Invested Capital | 12.9% | ||||
|
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| Notes: | Twelve Months Ended December 31, 2014 |
||||
| Pre-tax income | $1,128 | ||||
| Return On Invested CapitalAdd: Special items | 844 | ||||
| Return On Invested CapitalPre-tax income excluding special items | $1,972 | ||||
Photo - http://photos.prnewswire.com/prnh/20141016/429327-INFO
Logo - http://photos.prnewswire.com/prnh/20130404/MM89155LOGO
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
"Laysha and her credentials are the right addition to our already strong board of directors at a pivotal moment for our company," said United CEO Scott Kirby. "United will benefit from Laysha's insight on a wide range of topics that will be essential to our success as we recover from the impact of COVID-19, including her expertise in the areas of community and stakeholder engagement, corporate responsibility and diversity, equity and inclusion."
"When we began the search for a new board member, we were focused on finding a leader with both strong business acumen and a unique perspective that will help United capitalize on our strengths as we emerge from the COVID-19 crisis," said Oscar Munoz, Executive Chairman of United Airlines. "I'm eager for Laysha to get started because I know she will add value right away as we evaluate the strategic opportunities for United Airlines and its incredibly bright future."
"At a pivotal time for the airline industry, I look forward to joining the UAL board and helping the company fulfill its purpose of connecting people and uniting the world," said Ward.
In addition to her executive role at Target Corporation, Ward serves on the Aspen Institute Latinos and Society Advisory Board, the Stanford Center for Longevity Advisory Council, and is a member of the Executive Leadership Council, the Economic Clubs of New York and Chicago, Alpha Kappa Alpha Sorority, and The Links. Ward also serves on the board of directors of Denny's Corporation, as well as the boards of Greater MSP, the Minnesota Orchestra, and the Northside Achievement Zone.
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
"We are thrilled to offer travelers a convenient, non-stop option between Boston and London with this addition to our global network," said Patrick Quayle, United's vice president of International Network and Alliances. "We will continue to monitor the demand recovery and travel restrictions as we finalize a start date for this service later in 2021."
Tickets will be available for purchase on united.com and the United app in the coming weeks.
United has provided service to London Heathrow for nearly 30 years and over the course of the pandemic has maintained continuous service between the U.S. and London. Looking ahead, Boston will be United's 19th daily flight between the United States and London Heathrow.
Boston – London Schedule | ||||||
From | To | Depart | Arrive | Frequency | Aircraft | |
Boston | London | 10:00 p.m. | 9:35 a.m.+1 | Daily | 767-300ER | |
London | Boston | 5:00 p.m. | 7:30 p.m. | Daily | 767-300ER | |
Schedule subject to change | ||||||
United's Polaris product is a premium travel experience that prioritizes relaxation and comfort with features that include everything from custom, luxury bedding from Saks Fifth Avenue and restaurant-quality, multi-course inflight dining to premium amenity kits and full flat-bed seats with direct aisle access. Along with its 46 Polaris Business Class seats, the aircraft also features 22 United Premium Plus seats, 43 United Economy Plus seats and 56 United Economy seats.
Committed to Ensuring a Safe Journey
United is committed to putting health and safety at the forefront of every customer's journey, with the goal of delivering an industry-leading standard of cleanliness through its United CleanPlus program. United has teamed up with Clorox and Cleveland Clinic to redefine cleaning and health safety procedures from check-in to landing and has implemented more than a dozen new policies, protocols and innovations designed with the safety of customers and employees in mind.
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of UAL is traded on the Nasdaq under the symbol "UAL".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
New Orange County service begins May 6 and new, first-ever nonstop service between Chicago and Kona and between New York/Newark and Maui starts June 3
Customers departing Orange County and United's hub airports can save time by showing proof of negative tests to skip document screening process in Hawaii
"We know customers are dreaming of summer getaways and we want United to be their top choice for travel to Hawaii," said Patrick Quayle, United's vice president of International Network and Alliances. "Our new Hawaii routes from Chicago, Newark and Orange County, in addition to the dozens of flights United already operates from the mainland to Hawaii, offer travelers even more options, greater convenience and shorter travel times to the fantastic outdoor offerings Hawaii has to offer."
United is committed to helping safely restore travel to Hawaii and has introduced a number of solutions to make it easier for customers to understand and follow safety requirements throughout the islands. Earlier this month, the airline announced that customers traveling to Hawaii who have a valid negative COVID-19 test can show their results before boarding to save time and skip document screening lines upon arrival. United is also making it easier to get the right tests to avoid Hawaii's 10-day quarantine by making approved COVID-19 tests available to all customers traveling to the islands no matter where in the U.S. their travel begins. Additionally, the airline recently introduced a new digital solution, "The Travel-Ready Center," where customers can review COVID-19 entry requirements, find local testing options and upload any required testing and vaccination records for travel, all in one place.
United has served Hawaii for more than 70 years and was the first airline to introduce service between the mainland and Kona and Maui in 1983. United remains a pioneer to the Hawaiian Islands with the launch of first-ever service between Chicago and Kona and between New York/Newark and Maui this summer. The new flights enable convenient travel times for customers connecting in Chicago and Newark from across the Midwest and East Coast. United's service between Orange County's John Wayne International Airport and Honolulu will be the only nonstop flight between Orange County and Hawaii and provides even more options for Southern Californians to get to Hawaii.
New Hawaii Summer Service
Schedule subject to change
2021 Hawaii Summer Service
Schedule subject to change
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of UAL is traded on the Nasdaq under the symbol "UAL".
Under the terms of the agreement, United will contribute its expertise in airspace management to assist Archer with the development of battery-powered, short-haul aircraft. Once the aircraft are in operation and have met United's operating and business requirements, United, together with Mesa Airlines, would acquire a fleet of up to 200 of these electric aircraft that would be operated by a partner and are expected to give customers a quick, economical and low-carbon way to get to United's hub airports and commute in dense urban environments within the next five years.
Working with Archer is another example of United's commitment to identifying and investing in innovative technology that can reduce carbon emissions while also improving the customer experience and earning a strong financial return. The airline was an early stage investor in Fulcrum BioEnergy and recently partnered with 1PointFive, a joint venture between Oxy Low Carbon Ventures and Rusheen Capital, to jumpstart the establishment of direct air capture and sequestration technology.
"Part of how United will combat global warming is by embracing emerging technologies that decarbonize air travel . By working with Archer, United is showing the aviation industry that now is the time to embrace cleaner, more efficient modes of transportation. With the right technology, we can curb the impact aircraft have on the planet, but we have to identify the next generation of companies who will make this a reality early and find ways to help them get off the ground," said United CEO Scott Kirby. "Archer's eVTOL design, manufacturing model and engineering expertise has the clear potential to change how people commute within major metropolitan cities all over the world."
With today's technology, Archer's aircraft are designed to travel distances of up to 60 miles at speeds of up to 150 miles per hour and future models will be designed to travel faster and further. Not only are Archer's aircraft capable of saving individuals time on their commute, United estimates that using Archer's eVTOL aircraft could reduce CO2 emissions by 47% per passenger on a trip between Hollywood and Los Angeles International Airport (LAX), one of the initial cities where Archer plans to launch its fleet.
Led by co-founders and co-CEOs Brett Adcock and Adam Goldstein, Archer's mission is to advance the benefits of sustainable air mobility at scale. Archer plans to unveil its full scale eVTOL aircraft in 2021, begin aircraft production in 2023, and launch consumer flights in 2024. To drive this fourth transportation revolution and transform how people approach everyday life, work and adventure, Archer has built a highly accomplished team of top engineering and design talent, with a collective 200+ years of eVTOL experience.
"We couldn't be happier to be working with an established global player like United," said Brett Adcock, co-CEO and co-Founder of Archer. "This deal represents so much more than just a commercial agreement for our aircraft, but rather the start of a relationship that we believe will accelerate our timeline to market as a result of United's strategic guidance around FAA certification, operations and maintenance."
Adam Goldstein, co-CEO and co-Founder of Archer added "the team at United share our vision of a more sustainable future. We're working closely with their test pilots and environmental teams to make sustainable urban air mobility a reality far sooner than people could ever imagine."
United's Commitment to the Environment
At United, we believe the airline industry needs to be bolder when it comes to making decisions that confront the climate crisis. That's why we are making aggressive and tangible commitments to help reduce our carbon emission footprint before our customers even take their seats. Here are some of the ways we're making a difference:
- In 2020, we pledged to become 100% green by reducing our greenhouse gas emissions by 100% by 2050—without relying on traditional carbon offsets—and became the first airline to announce a commitment to invest in Direct Air Capture technology by partnering with 1PointFive, a joint venture between Oxy Low Carbon Ventures and Rusheen Capital.
- In 2019, we committed $40 million toward an investment initiative focused on accelerating the development of sustainable aviation fuel (SAF) and other decarbonization technologies. That same year, we operated the Flight for the Planet, which represented the most-eco-friendly commercial flight of its kind in the history of commercial aviation.
- In 2018, we became the first U.S. airline to establish a climate goal, reducing our emissions 50% by 2050 versus our 2005 baseline.
- In 2016, we became the first airline globally to use sustainable aviation fuel (SAF) in regular operations on a continuous basis and has purchased and will use more SAF than any other U.S. airline.
- In 2015, we invested $30 million in Fulcrum BioEnergy, a SAF producer that converts trash to low-carbon jet fuel.
United's Award-Winning Eco-Skies Program
United's award-winning Eco-Skies program represents the company's commitment to the environment and the actions taken every day to create a more sustainable future. The Carbon Disclosure Project named United as the only airline globally to its 2020 'A List' for the airline's actions to cut emissions, mitigate climate risks and develop the low-carbon economy, marking the seventh consecutive year that United had the highest CDP score among U.S. airlines.
In 2017, Air Transport World magazine named United its Eco-Airline of the Year for the second time since the airline launched the Eco-Skies program. Additionally, United ranked No. 1 among global carriers in Newsweek's 2017 Global 500 Green Rankings, one of the most recognized environmental performance assessments of the world's largest publicly traded companies.
For more information on United's commitment to environmental sustainability, visit united.com/ecoskies.
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".
About Archer
Archer's mission is to advance the benefits of sustainable air mobility. Archer is creating the world's first electric airline that moves people throughout the world's cities in a quick, safe, sustainable, and cost-effective manner. As the world's only vertically integrated airline company, Archer's business includes the design, manufacture, and operation of a fully electric vertical takeoff and landing aircraft that can carry passengers for up to 60 miles at speeds of up to 150 miles per hour while producing minimal noise. Archer's team is based in Palo Alto, CA. To learn more, visit www.archer.com
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and anticipated 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," "remains," "believes," "estimates," "forecast," "guidance," "outlook," "goals," "targets" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the 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, 2019, as updated by our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, 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 further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
"Black History Month is not only a time of celebration and reflection but also presents an opportunity to seize on that heightened awareness to take action," said Jessica Kimbrough, chief diversity, equity and inclusion officer at United. "By working closely with our partners at Chase and Visa, United Airlines is proud to offer cardmembers a unique opportunity to support groups that are focused on the advancement of civil rights and then reward them for their contribution."
"JPMorgan Chase is committed to driving real and sustainable change for Black communities and we're using this time to reflect both on the past and on our commitment to build a more equitable future," said Ed Olebe, president of co-brand cards at JPMorgan Chase. "This effort is an example of how to harness our collective expertise – along with our United and Visa partners – to build a program that gives back to organizations making a difference, while at the same time rewarding our joint customers."
"The black and African American community is being disproportionately impacted by the pandemic in the United States, which will require short and long-term solutions to help this community recover," said Suzan Kereere, global head, merchant sales and acquiring at Visa. "For Visa, partnerships are one way we will leverage our network to bridge gaps in funding and opportunity for Black communities. This campaign is one example of Visa's unwavering commitment to address social injustice and racial equality, which will continue to be a priority for our business."
To learn more or to donate to these organizations, customers can visit United.com/BlackHistoryMonth.
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".
About Chase
Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co., a leading global financial services firm with assets of $3.4 trillion and operations worldwide. Chase serves more than 60 million American households with a broad range of financial services, including personal banking, credit cards, mortgages, auto financing, investment advice, small business loans and payment processing. Customers can choose how and where they want to bank: More than 4,700 branches in 38 states and the District of Columbia, 16,000 ATMs, mobile, online and by phone. For more information, go to chase.com.
About Visa
Visa Inc. is the world's leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company's relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device, for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit: About Visa, visa.com/blog and @VisaNews.
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, 872.825.8640, media.relations@united.com
"Receiving this recognition for the 10th year in a row speaks to our continued commitment to establishing a workplace that truly supports and celebrates our LGBTQ+ employees and customers," said Jessica Kimbrough, United's Chief of Diversity, Equity and Inclusion. "We will continue working with organizations like the Human Rights Campaign as we work towards creating a more diverse, equitable and inclusive culture at United where all employees and customers feel safe to be their authentic selves."
"Many businesses across the nation, including United Airlines, stepped up and continued to prioritize and champion LGBTQ equality," said Alphonso David, President, Human Rights Campaign. "While the CEI cannot measure every facet of what makes a workspace inclusive, it does create a foundation upon which employees can feel more comfortable living and working as their true selves—an important step, but one which is only the starting point. Diversity and inclusion policies and practices advanced through tools like the CEI are critical, but meaningful change requires breathing life into these policies in real and tangible ways, so that LGBTQ employees are truly seen, valued and respected not only at work, but in every aspect of life."
United's commitment to LGBTQ+ equality includes being the first U.S. airline to fully recognize domestic partnerships in 1999 to becoming the first U.S. airline to offer non-binary gender options throughout all of its booking channels. United became the first public company to be inducted into Pride Live's Stonewall Ambassador program in recognition of the airline's commitment to LGBTQ+ equality in 2019Through EQUAL, the airline's LGBTQ+ Business Resource Group, more than 2,600 members work together to advocate on behalf of the LGBTQ+ community, working with members and leaders companywide to develop ways to deliver and support resources, education and advocacy.
United has partnered with the Human Rights Campaign on training initiatives including educating employees, through comprehensive training modules and exercises, about preferred pronouns and the persistence of gender norms and other steps to make United an inclusive space for both customers and employees.
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter, Instagram, TikTok or connect on Facebook. The common stock of UAL is traded on the Nasdaq under the symbol "UAL".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
United is also making it easier to get the right tests to avoid Hawaii's 10-day quarantine by making approved COVID-19 tests available to all customers traveling to the islands no matter where in the U.S. their travel begins.
"We're making it easier for customers traveling to Hawaii to spend more time enjoying their trip and less time waiting in lines," said Toby Enqvist, chief customer officer at United. "Testing is the key to opening domestic and international travel so we'll continue to lead the way in rolling out solutions that are simple and safe so our customers have what they need when they take their next trip with us."
To begin the pre-clearance program, customers will enroll in Hawaii's Safe Travels program and complete Hawaii's COVID-19 questionnaire within 24 hours from departure. Next, customers will use the Safe Travels website to upload their negative test results from one of Hawaii's trusted testing partners which must be taken within 72 hours of their departure. At the airport, customers will see a United team member at the gate for their flight to Hawaii where they will receive a wristband if they qualify to bypass airport screening in Hawaii. Customers who have been pre-cleared will be able to skip test screenings in Hawaii and begin their trip as soon as they land.
For images of United's pre-clearance program click here.
United is also making it easier for customers to obtain approved COVID-19 test options with the expansion of mail-in tests to customers no matter where in the U.S. their travel originates. The airline will notify customers in advance of their Hawaii trip to let them know what testing options they have locally. Last year, United also teamed up with XpresCheck to open additional same-day testing facilities for United customers in select airports. XpresCheck currently has locations open in United's Denver terminal, and expects to open additional locations in United's terminals in Houston and Newark in the coming weeks. Customers who choose to take a test with XpresCheck can schedule an appointment online for a rapid molecular test on the same day as their travel. Walk up appointments are also available on a first come, first served basis.
Since the COVID-19 pandemic began, United made numerous enhancements to its business that improve the travel experience and make the airline a better company. Earlier this week, United announced a new Travel-Ready Center in the United app and online where customers can review COVID-19 travel requirements, find local testing options and upload any testing and vaccination records that their destinations requires. This year, United also began allowing all customers to fly standby on another flight to the same destination on the same day for free, and all MileagePlus® Premier® members now confirm a new flight on the same day to the same destinations at check-in when space is available in the same fare class. Last year, the carrier eliminated most change fees, pledged to reduce its greenhouse gases 100% by 2050, and as a part of its United CleanPlus℠ program, teamed up with Clorox and the Cleveland Clinic to guide its cleaning and safety protocols. Last spring, United extended MileagePlus Premier status to all customers through January 2022 and made earning status for the next two years easier for all MileagePlus members.
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of UAL is traded on the Nasdaq under the symbol "UAL".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
CHICAGO, Jan. 25, 2021 /PRNewswire/ -- United Airlines today launched the "Travel-Ready Center" - a new, digital solution where customers can review COVID-19 entry requirements, find local testing options and upload any required testing and vaccination records for domestic and international travel, all in one place. United is the first airline to integrate all these features into its mobile app and website.
"While pre-travel testing and documentation are key to safely reopening global travel, we know it can be confusing for customers when they're preparing for a flight," said Linda Jojo, Executive Vice President for Technology and Chief Digital Officer, United. "Starting today, our 'Travel-Ready Center' gives customers a personalized, step-by-step guide of what is needed for their trip, a simple way to upload required documents and quickly get their boarding pass, fully integrated within our app and website."
In the weeks and months ahead, United will add more innovative, industry-first features to the Travel-Ready Center platform to make navigating evolving entry requirements even easier. United customers will soon be able to:
- Schedule a COVID-19 test at one of more than 15,000 testing sites around the world, right from the app or website.
- Access the recently launched "Agent on Demand", a United-exclusive feature that gives customers the ability to video chat live with a customer service agent to answer any questions about pre-travel requirements or documentation.
- View details about visa requirements for the countries they plan to visit.
Customers with an active reservation can access the Travel-Ready Center through the "My Trips" section of the United App and on united.com. The Travel-Ready Center will provide tailored details on requirements for all travelers 18 and older on a customer's itinerary, with status indicators noting if they are travel-ready based on specific requirements each individual needs to meet in order to board their flight, including any additional requirements for connecting flights. Documents uploaded by a passenger will be reviewed by designated personnel for verification. The individual status indicators for each passenger will then note whether they are "travel ready" and they will be allowed to complete the check-in process. Customers should still plan to bring the physical documents to the airport in case further inspection is needed along their journey.
The Travel-Ready Center is just one of many new technologies the airline has introduced to create a safer and more efficient experience for customers. United recently redesigned its mobile app with new enhancements intended to make travel easier for people with visual disabilities, introduced Destination Travel Guide, which allows customers to filter and view destinations' COVID-19 related travel restrictions, and debuted a new chat function to give customers a contactless option to receive immediate access to information about cleaning and safety procedures.
This year, United made numerous enhancements to its business that improve the travel experience for its customers. The carrier eliminated most change fees, pledged to reduce its greenhouse gases 100% by 2050, teamed up with Clorox and the Cleveland Clinic to guide its cleaning and safety protocols as a part of United CleanPlus℠, extended MileagePlus® Premier® status to all customers through January 2022 and made earning status for the next two years easier for all MileagePlus members. United also announced this year that beginning in January, all customers will be able to fly standby on another flight to the same destination on the same day for free, and all MileagePlus Premier members will be able to confirm a new flight on the same day to the same destinations at check-in when space is available in the same fare class.
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of UAL is traded on the Nasdaq under the symbol "UAL".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, 872.825.8640, media.relations@united.com