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% | ||||
|
|||||
| 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
"Widespread testing is key to unlocking international borders and safely reopening global travel. This is particularly important for our customers in Houston, who rely on United to keep them connected with their family and friends in Latin America and the Caribbean," said Toby Enqvist, chief customer officer for United. "We'll continue to lead the way on testing – United was the first to announce a customer COVID-19 testing program and the first to offer free tests on flights across the Atlantic – and we'll look at new, innovative ways to make the travel experience even safer."
The self-collected, mail-in COVID-19 test is $119. The test will be administered by Advanced Diagnostic Laboratory (ADL) and processed at their COVID-19 testing laboratory in San Antonio, Texas. United will reach out to customers 14 days ahead of their flights to provide instructions on ordering a test and the testing process. United encourages customers to research the local requirements for further questions specific to their destination. Customers are advised to take the tests 72 hours before departure and should expect to receive results via email within 24-48 hours of mailing in their test.
"As the energy capital of the world and most diverse city in the United States, Houston plays an influential role in linking global economies," said Sylvester Turner, City of Houston mayor. "As we fight against a second wave of the coronavirus, the private and public sectors, with guidance from public health experts, must work collaboratively and judiciously to reopen the global economy. Although a vaccine would be the ultimate solution, United's expansion of its customer testing program is a step in the right direction. I commend United for their leadership and forward-thinking."
ADL's self-collection kit includes a plastic tube, a nasal swab and instructions on how to properly collect a specimen. ADL's telehealth system will be available to support customers traveling to countries that require a health care professional to supervise the COVID-19 test. United has worked closely with officials in each country to ensure that any customer – both visitors and nationals returning home – who tests negative will be able to enter the country.
"Accurate and reliable testing is not only critical to reducing the spread of COVID-19, but essential in helping get this virus under control," said Stan Crawford, chief operations officer for ADL. "We are invested in United's commitment to ensuring customers not only meet their destination's entry requirements but that, when they do travel, they do so in a way that is safer."
Click here for b-roll and visual assets of ADL's self-collection kit and testing
In addition to adding another key element to its layered approach to safety, United has also seen a positive impact on travel demand and significant increases in customer load factors and revenue when testing options are available. For example, after United announced its COVID-19 test for customers traveling from San Francisco to Hawaii and allowing them to avoid a 14-day quarantine, the airline saw a nearly 95% increase in passengers compared to the prior two-week period. Last week, United launched the world's first free transatlantic COVID-19 testing pilot between Newark Liberty International Airport and London Heathrow Airport. Through this pilot program, all crew members and customers over the age of two on select flights will be required to take a rapid COVID-19 test and provide a negative result in order to take the flight, ensuring that everyone on board over the age of two has tested negative before departure.
A safer travel experience: United CleanPlusSM
Since the start of the pandemic, United has been a leader in enacting new policies and innovations designed to keep employees and passengers safer when traveling. It was the first U.S. airline to mandate masks for flight attendants, quickly following with all customers and employees. United was also among the first U.S. carriers to announce it wouldn't permit customers who refused to comply with the airline's mandatory mask policy to fly with them while the face mask policy is in place. United was also the first U.S. airline to roll out touchless check-in for customers with bags, and the first to require passengers take an online health assessment before traveling. United is applying Zoono Microbe Shield, an EPA-registered antimicrobial coating that forms a long-lasting bond with surfaces and inhibits the growth of microbes, to its entire mainline and express fleet before the end of the year.
The latest research, including a recent study conducted by the U.S. Department of Defense, shows COVID-19 exposure risk on board United aircraft is almost zero due to the airline's advanced air filtration systems, mandated mask policy and diligent cleaning protocols.
For more details on all the ways United is helping keep customers safe during their journey, please visit united.com/cleanplus.
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".
About Advanced Diagnostic Laboratory
Advanced Diagnostic Laboratory (ADL) is a leader in scientific testing standards for the COVID-19 virus, both in the U.S. and internationally. Located in San Antonio, Texas, ADL has over 80 years of combined experience in clinical diagnostic testing procedures and works globally with local communities to provide safe and healthy lifestyles. For more information, call ADL at 1.800.834.3522 or visit our website at ADLHealth.com.
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
CHICAGO, Nov. 23, 2020 /PRNewswire/ -- United announced today it is expanding its customer COVID-19 testing efforts to include flights out of Houston to select destinations in Latin America and the Caribbean. Starting for flights departing on December 7, customers originating from George Bush Intercontinental Airport (IAH) will have the option to take a self-collected, mail-in test that meets local entry requirements for the following destinations, allowing them to reunite with family or start their vacation immediately:
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"Widespread testing is key to unlocking international borders and safely reopening global travel. This is particularly important for our customers in Houston, who rely on United to keep them connected with their family and friends in Latin America and the Caribbean," said Toby Enqvist, chief customer officer for United. "We'll continue to lead the way on testing – United was the first to announce a customer COVID-19 testing program and the first to offer free tests on flights across the Atlantic – and we'll look at new, innovative ways to make the travel experience even safer."
The self-collected, mail-in COVID-19 test is $119. The test will be administered by Advanced Diagnostic Laboratory (ADL) and processed at their COVID-19 testing laboratory in San Antonio, Texas. United will reach out to customers 14 days ahead of their flights to provide instructions on ordering a test and the testing process. United encourages customers to research the local requirements for further questions specific to their destination. Customers are advised to take the tests 72 hours before departure and should expect to receive results via email within 24-48 hours of mailing in their test.
"As the energy capital of the world and most diverse city in the United States, Houston plays an influential role in linking global economies," said Sylvester Turner, City of Houston mayor. "As we fight against a second wave of the coronavirus, the private and public sectors, with guidance from public health experts, must work collaboratively and judiciously to reopen the global economy. Although a vaccine would be the ultimate solution, United's expansion of its customer testing program is a step in the right direction. I commend United for their leadership and forward-thinking."
ADL's self-collection kit includes a plastic tube, a nasal swab and instructions on how to properly collect a specimen. ADL's telehealth system will be available to support customers traveling to countries that require a health care professional to supervise the COVID-19 test. United has worked closely with officials in each country to ensure that any customer – both visitors and nationals returning home – who tests negative will be able to enter the country.
"Accurate and reliable testing is not only critical to reducing the spread of COVID-19, but essential in helping get this virus under control," said Stan Crawford, chief operations officer for ADL. "We are invested in United's commitment to ensuring customers not only meet their destination's entry requirements but that, when they do travel, they do so in a way that is safer."
Click here for b-roll and visual assets of ADL's self-collection kit and testing
In addition to adding another key element to its layered approach to safety, United has also seen a positive impact on travel demand and significant increases in customer load factors and revenue when testing options are available. For example, after United announced its COVID-19 test for customers traveling from San Francisco to Hawaii and allowing them to avoid a 14-day quarantine, the airline saw a nearly 95% increase in passengers compared to the prior two-week period. Last week, United launched the world's first free transatlantic COVID-19 testing pilot between Newark Liberty International Airport and London Heathrow Airport. Through this pilot program, all crew members and customers over the age of two on select flights will be required to take a rapid COVID-19 test and provide a negative result in order to take the flight, ensuring that everyone on board over the age of two has tested negative before departure.
A safer travel experience: United CleanPlusSM
Since the start of the pandemic, United has been a leader in enacting new policies and innovations designed to keep employees and passengers safer when traveling. It was the first U.S. airline to mandate masks for flight attendants, quickly following with all customers and employees. United was also among the first U.S. carriers to announce it wouldn't permit customers who refused to comply with the airline's mandatory mask policy to fly with them while the face mask policy is in place. United was also the first U.S. airline to roll out touchless check-in for customers with bags, and the first to require passengers take an online health assessment before traveling. United is applying Zoono Microbe Shield, an EPA-registered antimicrobial coating that forms a long-lasting bond with surfaces and inhibits the growth of microbes, to its entire mainline and express fleet before the end of the year.
The latest research, including a recent study conducted by the U.S. Department of Defense, shows COVID-19 exposure risk on board United aircraft is almost zero due to the airline's advanced air filtration systems, mandated mask policy and diligent cleaning protocols.
For more details on all the ways United is helping keep customers safe during their journey, please visit united.com/cleanplus.
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".
About Advanced Diagnostic Laboratory
Advanced Diagnostic Laboratory (ADL) is a leader in scientific testing standards for the COVID-19 virus, both in the U.S. and internationally. Located in San Antonio, Texas, ADL has over 80 years of combined experience in clinical diagnostic testing procedures and works globally with local communities to provide safe and healthy lifestyles. For more information, call ADL at 1.800.834.3522 or visit our website at ADLHealth.com.
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
"These flights are a good proof-of-concept for governments around the world that are considering making testing part of the travel experience," said Toby Enqvist, chief customer officer for United. "Expanding our testing efforts with pilot programs like this one not only helps guarantee passengers* onboard test negative for COVID-19, it also adds another element to our layered approach to safety and demonstrates a way to work within quarantines to key international destinations."
The rapid Abbott ID Now COVID-19 test – administered by Premise Health – was offered onsite at a testing facility, located at the Newark United Club near Gate C93. The test will continue to be used with passengers traveling on United Flight 14, departing at 7:15 p.m., Mondays, Wednesdays and Fridays for the next four weeks. Customers booking these flights will have the option to confirm their willingness to participate in the trial or be accommodated on another flight. Customers who opt-in will receive information prior to travel in order to schedule a testing appointment at least three hours before their flight departs. All customers are still subject to current U.K. entry requirements, including the 14-day quarantine rule. For more information on the testing program, please visit united.com/covid-testing.
United has invited governments on both sides of the Atlantic to observe this pilot program and to assess its effectiveness as an alternative to mandatory quarantines and travel restrictions. United has seen a positive impact on travel demand and significant increases in customer load factors as well as revenue when testing options are available.
Before the pandemic, United operated six daily flights between New York/Newark and London Heathrow on a 767-300ER (76L), offering not only the most frequency among U.S. carriers, but also the most business class and Premium Economy seats. Click here for b-roll and still images of United Airlines' COVID-19 testing programs.
Since the start of the pandemic, United has been a leader among U.S. airlines in enacting new policies and innovations designed to keep employees and passengers safe when traveling. It was the first U.S. airline to mandate masks for flight attendants, quickly followed by all customers and employees. United was also among the first U.S. carriers to announce it would not permit customers who refused to comply with the airline's mandatory mask policy to fly with them, while the face mask policy is in place. United was also the first U.S. airline to roll out touchless check-in for customers with bags and the first to require passengers to take an online health self-assessment before traveling. Additionally, last month, the airline announced it will apply Zoono Microbe Shield, an EPA registered antimicrobial coating that forms a long-lasting bond with surfaces and inhibits the growth of microbes, to its entire mainline and express fleet before the end of the year.
For more details on all the ways United is helping to keep customers safe during their journey, please visit united.com/cleanplus.
* Indicates all customers over 2 years of age
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
CHICAGO, Nov. 13, 2020 /PRNewswire/ -- United Airlines' Mike Leskinen, Vice President of Corporate Development and Investor Relations will present at the Bernstein Operational Decisions Conference on Tuesday, November 17th. The presentation will begin at 12:30 p.m. CT / 1:30 p.m. ET.
The live webcast will be available on the investor relations section of United's website at ir.united.com. The company will archive the video webcast on the website within 24 hours of the presentation, and the webcast will be available for a limited time.
About United
United's shared purpose is "Connecting People. Uniting the World." 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
"Throughout this year, United has taken a leadership approach in enacting customer-friendly changes, and today's announcement of making it easier to qualify for status is just another step we are taking to make United a better airline for our customers," said Luc Bondar, vice president of loyalty and marketing and President of MileagePlus at United. "From announcing state-of-the-art cleaning and safety policies, to debuting innovative new technologies and now adjusting our loyalty program to reflect this new environment, United customers can feel confident that we are making progressive changes that reflect their needs both next year and, in the years to come."
Reducing Thresholds
To make earning status easier, United is reducing PQP and PQF requirements at each Premier level. New requirements in 2021 will be:
Level | Standard Requirements | Requirements Adjusted for 2021 |
Premier Silver | 4,000 PQP + 12 PQF or 5,000 PQP | 3,000 PQP + 8 PQF or 3,500 PQP |
Premier Gold | 8,000 PQP + 24 PQF or 10,000 PQP | 6,000 PQP + 16 PQF or 7,000 PQP |
Premier Platinum | 12,000 PQP + 36 PQF or 15,000 PQP | 9,000 PQP + 24 PQF or 10,000 PQP |
Premier 1K | 18,000 PQP + 54 PQF or 24,000 PQP | 13,500 PQP + 36 PQF or 15,000 PQP |
Automatically Depositing PQP
To make maintaining status even easier for Premier members, United will automatically deposit PQP into their accounts by Feb. 1, 2021. Members will receive 25% of the PQP-only requirement for 2021 based on their Premier status for 2021. Each level will earn the following PQP deposits to help get them on track to re-qualify for status through 2022:
Status level for 2021 | PQP deposit |
Premier Silver | 875 |
Premier Gold | 1,750 |
Premier Platinum | 2,500 |
Premier 1K | 3,750 |
Bonus PQP
United is also offering its most rewarding Premier qualification bonus offer ever with the first ever bonus PQP promotion. On the first three PQP-earning trips next year taken between Jan. 1 through Mar. 31, members without Premier status will earn 50 percent bonus PQP and Premier members will earn 100 percent bonus PQP.
In addition to earning bonus PQP on flights, PQP earned from eligible MileagePlus credit cards – including the MileagePlus Explorer card – will now count toward Premier 1K® status if the PQF requirement is met. Previously, PQP earned from card spend were only eligible for up to Premier Platinum status. Eligible MileagePlus credits cards also continue to lead the market with one of the fastest ways toward earning Premier status credit, starting with spend at $12,000 each year.
More Opportunity for More Members
To give Premier members more flexibility to use their upgrades, United is extending all PlusPoints that are set to expire on or after Jan. 1, 2021 by an additional six months, which includes all PlusPoints earned from 2019 and 2020 activity. Additionally, as a promotion in 2021, United is giving Premier 1K members who meet the new requirements more opportunities to receive additional upgrades by reducing the milestone for earning extra PlusPoints. After earning Premier 1K status and 15,000 PQP, members will earn 20 PlusPoints for every additional 2,000 PQP in 2021 versus every 3,000 PQP in 2020 – United is the only global U.S. airline that allows members to earn unlimited upgrades after reaching its highest published status tier.
In 2021, all Premier members will also be able to confirm changes to their itineraries when making changes for travel on the same day when a new flight with the same fare class is open. United is the only U.S. airline to offer this benefit to all Premier members, in addition to allowing all customers to list for standby on a different flight to the same destination on the same day for free.
For more information on these changes, and to learn more about United's MileagePlus program, visit https://mileageplusupdates.com/.
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
"At the beginning of this pandemic, we laid out our United CleanPlus commitment of putting health and safety at the forefront of the travel experience," said Mike Hanna, senior vice president of airport operations at United. "In teaming up with Clorox, we've worked with their experts to enhance our cleaning procedures and roll out state-of-the-art products throughout the United journey to give our greater customers confidence when they travel. This is just one of many steps we are taking as part of our layered approach to safety."
"Throughout the pandemic, we've worked with United to help enhance the safety of their travelers with disinfecting protocols and products, as part of United's holistic approach to traveler safety," said Heath Rigsby, vice president of out of home for The Clorox Company. "We're proud to extend these efforts to help passengers even before boarding their planes by using our Total 360 System to disinfect surfaces within busy airport settings."
Click here for additional visual assets.
The Clorox® Total 360® System charges and atomizes the Clorox disinfecting solutions to deliver a powerful flow of charged particles that attract to surfaces with a force stronger than gravity. This allows the product to reach and uniformly coat germ-prone surfaces, including areas that conventional trigger sprays may easily miss. United expects all 35 airports will be using the systems every night beginning in early December and plans to expand to additional airports in early 2021.
Using Clorox products is only one of the ways United is working to enhance customer safety in its airports. The carrier is also providing antimicrobial gloves to Ramp and Baggage Service employees to offer an additional protection layer against SARS-CoV-2, the virus that causes COVID-19. Every ramp and baggage service employee will receive a pair of washable, reusable gloves that are effective for up to six months. Additional measures United has taken since the start of the pandemic to create a safer environment in its airports include:
- In April:
- United began installing hand sanitizer stations throughout terminals and plexiglass dividers at service areas. The airline also started placing signage around the airports to inform customers of safety measures that are in place.
- In May:
- United was the first U.S. carrier to introduce touchless check-in kiosks that allow customers to check-in, including if they are checking bags, without touching anything besides their own mobile device.
- In June:
- United became the first U.S. airline to require customers take a health self-assessment during the check-in process.
- In July:
- United expanded its policy requiring all customers wear masks onboard to in its terminals and stated that customers who refused to comply with this policy may be placed on an internal travel restriction list while the policy is in place.
- United began automated text notifications to customers waiting on seat assignments, reducing touchpoints between customers and employees.
- Most recently:
- United was the first U.S. airline to announce that it would offer COVID-19 tests for customers, starting with flights to Hawaii from San Francisco.
For more details on all the ways United is helping keep customers safe during their journey, please visit united.com/cleanplus.
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".
About The Clorox Company
The Clorox Company (NYSE: CLX) is a leading multinational manufacturer and marketer of consumer and professional products with about 8,800 employees worldwide and fiscal year 2020 sales of $6.7 billion. Clorox markets some of the most trusted and recognized consumer brand names, including its namesake bleach and cleaning products; Pine-Sol® cleaners; Liquid-Plumr® clog removers; Poett® home care products; Fresh Step® cat litter; Glad® bags and wraps; Kingsford® charcoal; Hidden Valley® dressings and sauces; Brita® water-filtration products; Burt's Bees® natural personal care products; and RenewLife®, Rainbow Light®, Natural Vitality Calm™, NeoCell® and Stop Aging Now® vitamins, minerals and supplements. The company also markets industry-leading products and technologies for professional customers, including those sold under the CloroxPro™ and Clorox Healthcare® brand names. More than 80% of the company's sales are generated from brands that hold the No. 1 or No. 2 market share positions in their categories.
Clorox is a signatory of the United Nations Global Compact and the Ellen MacArthur Foundation's New Plastics Economy Global Commitment. The company has been broadly recognized for its corporate responsibility efforts, listed No. 1 on the 2020 Axios Harris Poll 100 reputation rankings and included on the Barron's 2020 100 Most Sustainable Companies list and the Human Rights Campaign's 2020 Corporate Equality Index, among others. In support of its communities, The Clorox Company and its foundations contributed more than $25 million in combined cash grants, product donations and cause marketing in fiscal year 2020. For more information, visit TheCloroxCompany.com, including the Good Growth blog, and follow the company on Twitter at @CloroxCo.
CLX-B
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
Effective February of next year, United will serve both JFK to Los Angeles International Airport (LAX) and JFK to San Francisco International Airport (SFO) with two round-trips for each west coast city. The flights will utilize the reconfigured Boeing 767-300ER aircraft on the routes offering customers an extended premium cabin featuring 16 additional United Business class seats –providing all-aisle-access seating – bringing the total premium cabin seat count to 46. The aircraft will also feature 22 United Premium Plus® seats, 47 Economy Plus® seats and 52 Economy seats. United offers the most premium seats between the New York City area and Los Angeles and San Francisco markets. Tickets are now available for purchase on United.com.
"I have been waiting a long time to say this - United Airlines is back at JFK," said United's Chief Executive Officer Scott Kirby. "Come early next year, we will be serving all three major New York City area airports with a best-in-class product to provide our customers unmatched transcontinental service from New York City and the west coast."
United service from JFK* | |||||
Flight | Depart | Time | Arrive | Time | |
UA 521 UA 523 | JFK | 8:00 a.m. 5:10 p.m. | San Francisco | 11:37 a.m. 8:47 p.m. | |
UA 515 UA 517 | JFK | 9:00 a.m. | Los Angeles | 12:29 p.m. 10:29 p.m. | |
United service from West Coast* | ||||
Flight | Depart | Time | Arrive | Time |
UA 520 UA 522 | San Francisco | 9:10 a.m. 1:30 p.m. | JFK | 5:40 p.m. 10:00 p.m. |
UA 514 UA 516 | Los Angeles | 7:30 a.m. 2:30 p.m. | JFK | 3:50 p.m. 10:50 p.m. |
*Schedule times subject to change/government approval |
"The upcoming return of United to JFK while continuing service at Newark Liberty and LaGuardia Airports will offer more choices for transcontinental flights just as travelers return to the skies," said Kevin O'Toole, Chairman of the Port Authority of New York and New Jersey. "As the recovery begins, we're pleased to see these increased options for those who choose to fly in and out of the Port Authority's airports."
"United Airlines' return to JFK Airport is a clear sign that air travel is returning in New York and across the region," said Rick Cotton, Executive Director of the Port Authority of New York and New Jersey. "As numbers start to rise, the Port Authority is ready to welcome travelers back to JFK, Newark Liberty and LaGuardia Airports with increased cleaning and sanitizing in all terminals and touch-free options from curb to gate to ensure a world-class travel experience even in these unprecedented times."
United's premium cabin will feature flat-bed seats on all flights similar to the current Newark-Los Angeles and Newark-San Francisco offerings, providing a consistent and comprehensive NYC-west coast product. Additionally, United's wide-body service can participate in the robust cargo market between JFK and the west coast.
Today's announcement also follows the airline unveiling the addition of new nonstop flights to Florida from seven Midwest and northeast cities to offer customers the best and fastest options direct to top warm weather and leisure destinations.
Committed to Ensuring a Safe Journey
Since the start of the pandemic, United has been a leader in enacting new policies and innovations designed to keep employees and passengers safer when traveling. It was the first U.S. airline to mandate masks for flight attendants, quickly following with customers and employees. United was also among the first U.S. carriers to announce it will not permit customers who refuse to comply with the airline's mandatory mask policy to fly with them while the face mask policy is in place. United was also the first U.S. airline to roll out touchless check-in for customers with bags, and the first to require passengers take an online health assessment before traveling. The airline also recently announced it plans to apply Zoono Microbe Shield, an EPA-registered antimicrobial coating that forms a long-lasting bond with surfaces and inhibits the growth of microbes, to its entire mainline and express fleet before the end of the year.
For more details on all the ways United is helping keep customers safe during their journey, please visit united.com/cleanplus.
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".
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. 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" 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
"We know that for many customers, this holiday season may be their first time back on a plane since the start of the pandemic, and we're committed to helping provide flexibility and a safer, clean, travel experience," said Ankit Gupta, United's vice president of Network Planning and Scheduling. "While this holiday travel season looks quite different than recent years, we're continuing to follow the same playbook we have all year long – watching the data and adding more flights, adjusting schedules and leveraging larger aircraft to give customers more ways to reunite with family or reach their destinations."
In December, the airline expects to see a similar travel pattern with customers booking holiday vacations closer to departure opting for warmer weather and ski destinations in the United States, the Caribbean and Mexico. Popular destinations include cities in Florida, Hawaii, Colorado, Montana, Costa Rica, Mexico, Puerto Rico and the Dominican Republic. United expects to fly 48% of its overall schedule in December compared to 2019, adding more than 140 daily flights and increasing capacity on more than 350 routes.
December Domestic Schedule Highlights
In December, United intends to fly 52% of its domestic schedule compared to December 2019, which is a 3-point increase compared to November 2020.
One of the biggest changes holiday travelers may notice this year are additional flights on peak travel days from United's Chicago, Denver, Houston and Washington Dulles gateways. The airline is adding more departures to provide customers with more options to get to their destination this holiday season. With these changes, United expects to operate more than 200 additional departures on peak days during the holiday period. Highlights of United's December schedule include:
- Additional service to popular warm-weather destinations in Florida and Hawaii, including: Fort Lauderdale, Fort Meyers, Tampa, Miami and Palm Beach in Florida and Honolulu, Maui, Kona and Lihue in Hawaii.
- In Hawaii, United will reintroduce service between Los Angeles and Hilo, Chicago and Maui, as well as between New York/Newark and Honolulu for the holiday period. United will also increase service on 13 Hawaii routes beginning December 17.
- United will also begin six new routes between Fort Myers, Florida and Columbus, Indianapolis, Milwaukee and Pittsburgh, between New York/LaGuardia and Palm Beach, and between Milwaukee and Tampa beginning December 17.
- United will increase service to popular ski destinations, including Aspen, Jackson Hole, Steamboat Springs and Vail, with over 580 weekly roundtrips beginning December 17.
December International Schedule Highlights
In December, United intends to fly 43% of its international schedule compared to December 2019, which is a 4-point increase compared to November 2020. The airline is seeing an increase in demand to beach destinations internationally as well, specifically to Central America, Mexico and the Caribbean. December international schedule highlights include:
- Operating 40 additional daily international roundtrips compared to November.
- Launching 36 new and returning routes including eight new destinations in Latin America.
- Increasing service on 84 additional routes to 33 destinations in Latin America including Liberia, Cancun, Aruba, Nassau and Punta Cana.
- Growing service to India, with new nonstop service between Chicago and New Delhi starting December 10 and increasing service between San Francisco and New Delhi to daily.
- Increasing service between San Francisco and Taipei; Los Angeles and Sydney; and New York/Newark and Brussels, Belgium.
Studies show COVID-19 exposure risk is minimal when air filtration systems and masks are in use. The latest research demonstrates that United's aircraft are among the safest of public indoor environments. A recent study conducted by the U.S. Department of Defense (DOD) revealed the risk of COVID-19 exposure on board aircraft is almost zero due to United's advanced air filtration systems, required mask-wearing and the airline's diligent cleaning protocols.
Since the start of the pandemic, United has been a leader in enacting new policies and innovations designed to keep employees and passengers safer when traveling. It was the first U.S. airline to mandate masks for flight attendants, quickly following with customers and employees. United was also among the first U.S. carriers to announce it will not permit customers who refuse to comply with the airline's mandatory mask policy to fly with them while the face mask policy is in place. United was also the first U.S. airline to roll out touchless check-in for customers with bags, and the first to require passengers take an online health assessment before traveling. The airline also recently announced it plans to apply Zoono Microbe Shield, an EPA-registered antimicrobial coating that forms a long-lasting bond with surfaces and inhibits the growth of microbes, to its entire mainline and express fleet before the end of the year. For more details on all the ways United is helping keep customers safe during their journey, please visit united.com/cleanplus.
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, 872-825-8640, media.relations@united.com
"We believe the ability to provide fast, same-day COVID-19 testing will play a vital role in safely reopening travel around the world and navigating quarantines and travel restrictions, particularly to key international destinations like London," said Toby Enqvist, chief customer officer for United. "Through this pilot program, we'll guarantee that everyone* on board has tested negative for COVID-19, adding another element to our layered approach to safety. United will continue to lead on testing, while at the same time exploring new solutions that contribute to the safest travel experience possible."
United will share customer feedback of this pilot with governments on both sides of the Atlantic to further demonstrate the effectiveness of these programs as an alternative to mandatory quarantines or duplicative travel restrictions. United has seen a positive impact on travel demand and significant increases in customer load factors and revenue when testing options are available.
United will collaborate with Premise Health, who will administer the rapid testing pilot program for the EWR-LHR flight. The test will be given to passengers traveling on United Flight 14, departing at 7:15 p.m., Mondays, Wednesdays and Fridays. Appointments for the test are required, and customers are advised to schedule their tests at least three hours before their flight. An on-site testing facility will be located at the Newark United Club near Gate C93. For more information on the testing program, please visit united.com/covid-testing.
Before the pandemic, United operated six daily flights between New York/Newark and London on a 767-300ER (76L), offering not only the most frequency among U.S. carriers but also the most business class and Premium Economy seats. Click here for b-roll and still images of United Airlines' COVID-19 testing programs.
United was the first airline to announce optional pre-flight COVID-19 testing for customers. Earlier this month, the airline started offering customers traveling from San Francisco International Airport to Hawaii the option to take a same-day, pre-flight rapid test at the airport or a conveniently located drive-through test, for a fee. The program allows customers with a negative result to bypass Hawaii's mandatory quarantine requirements and enjoy their time on the islands sooner. In the first 10 days, October 15 – 25, the San Francisco to Hawaii flights have seen a nearly 95% increase in passengers compared to the prior two-week period. United believes these positive trends illustrate a strong and pent-up demand for travel, customers' willingness to use pre-flight COVID-19 testing and the importance of these programs as a means of opening borders.
And just last week, United participated in a successful test program between New York/Newark and London of CommonPass, a digital health pass, aimed at enabling safer travel and the reopening of international borders. Customers who chose to participate in the program were able to seamlessly provide their COVID-19 test results to relevant governments.
Since the start of the pandemic, United has been a leader among U.S. airlines in enacting new policies and innovations designed to keep employees and passengers safer when traveling. It was the first U.S. airline to mandate masks for flight attendants, quickly following with all customers and employees. United was also among the first U.S. carriers to announce it would not permit customers who refused to comply with the airline's mandatory mask policy to fly with them while the face mask policy is in place. United was also the first U.S. airline to roll out touchless check-in for customers with bags and the first to require passengers to take an online health assessment before traveling. And last month, the airline announced it will apply Zoono Microbe Shield, an EPA registered antimicrobial coating that forms a long-lasting bond with surfaces and inhibits the growth of microbes, to its entire mainline and express fleet before the end of the year.
For more details on all the ways United is helping keep customers safe during their journey, please visit united.com/cleanplus.
* Indicates all customers over 2 years of age
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
"The parts of the travel experience that we all take for granted like checking luggage, getting your flight status and accessing a boarding pass can still be a challenge for someone with a visual disability," said Linda Jojo, Executive Vice President for Technology and Chief Digital Officer, United. "These new accessibility enhancements are part of our continuing commitment to level the playing field, unlock all the customer benefits of our app and give people with disabilities more independence while traveling."
Visually impaired customers will notice that these changes make it easier to manage all aspects of day-of travel, including check in, viewing reservation details and flight status, bag tracking and more. Ray Campbell, a member of United's digital team who's visually impaired and sits on the board of the American Council of the Blind, played a key role in helping redesign the app, and walks through how these changes make flying easier for him in this video.
"Optimizing mobile apps for tools such as VoiceOver and TalkBack has been a game changer, allowing people with visual disabilities to fully utilize smartphone technology in their daily lives," said Campbell. "It's just as important for someone with a visual disability to easily access day-of-travel information and features as for any other customer. By improving the accessibility of the United app, we are truly living out United's mission of caring for all customers."
Beyond the accessibility changes, the United digital team enhanced the current offering while keeping the features that helped the app win a Webby People's Voice award in 2019.
- For our MileagePlus® program members, the app now features a refreshed account experience for members to easily check balances, track Premier® progress, explore MileagePlus benefits, access past activity and more, all in one place.
- The airline is also expanding a popular feature previously only accessible to MileagePlus members. Now, all 37 million customers who have the United app will see a contextualized home screen starting 48 hours before their flight which provides dynamic updates based on where a customer is in their travel journey. For example, customers can see the boarding status of their flight on their homescreen, access personal device entertainment onboard with one click, find a link to a map with gate-to-gate directions for connecting flights and click a quick access button to track any checked bags upon arrival.
- United made slight tweaks to navigation based on customer feedback to make the app more intuitive, including making the bottom navigation persistent throughout the app. Another example is the "More" menu, which was reorganized and now contains the "Inbox" feature, which includes timely messages about boarding announcements, gate changes and other travel updates.
- Customers will notice a new color palette that's consistent with the refreshed branding the airline debuted in 2019. United's digital team also made subtle design adjustments to make things more consistent and easier to find, like always using a purple bar to highlight the main call-to-action on a page and ensuring alerts and flight status icons appear the same way in every page on the app.
- All of these changes are underpinned by a new back-end platform, which will ultimately make the app faster and more responsive.
The redesigned app is available for download today for iPhone®, iPad® and iPod touch® devices (as an iPhone app) and for Android devices.
Since the start of the pandemic, United has been a leader among U.S. airlines in enacting new policies and innovations designed to keep employees and passengers safer when traveling. It was the first U.S. airline to mandate masks for flight attendants, quickly following with all customers and employees. United was also among the first U.S. carriers to announce it wouldn't permit customers who refused to comply with the airline's mandatory mask policy to fly with them while the face mask policy is in place. United was also the first U.S. airline to roll out touchless check-in for customers with bags, and the first to require passengers take an online health assessment before traveling. The airline also recently announced it will apply Zoono Microbe Shield, an EPA registered antimicrobial coating that forms a long-lasting bond with surfaces and inhibits the growth of microbes, to its entire mainline and express fleet before the end of the year.
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
Tickets will be available for purchase on Saturday, October 17 on United.com. Tickets for Los Angeles and San Francisco service to Costa Rica will be available for purchase on Wednesday, October 21 on United.com.
"These eight new routes highlight the continued expansion of our network and build upon our strong presence in Latin America," said Patrick Quayle, United's vice president of International Network and Alliances. "Our new and increased service offers travelers more opportunities to find warm-weather getaways and visit friends and family over the winter season."
Adding service to seven beach destinations in Mexico
This winter, United is also adding more flights to some of Mexico's most popular beach destinations including Cancun, San Jose del Cabo and Puerto Vallarta and is adding more weekend service to Cozumel from Chicago, Denver and Houston.
- Restarting nonstop year-round service between Cleveland and Cancun on December 19.
- Restarting service between Houston and Mazatlán on December 19.
- Increasing service between Chicago and Cozumel, San Jose del Cabo and Puerto Vallarta.
- Increasing service between Denver and Cancun, Cozumel, San Jose del Cabo and Puerto Vallarta.
- Increasing service between Houston and Acapulco, Cancun, Cozumel, San Jose del Cabo, Puerto Vallarta and Zihuatanejo
- Increasing service between Los Angeles and Cancun, San Jose del Cabo and Puerto Vallarta.
- Increasing service between New York/Newark and Cancun, San Jose del Cabo and Puerto Vallarta.
- Increasing service between San Francisco and Cancun.
- Increasing service between Washington Dulles and Cancun.
Increasing service between Washington and the Caribbean
Beginning, December 17, United will start daily, year-round service between Washington-Dulles and Santo Domingo, Dominican Republic. From Washington, United offers nonstop service to 10 Caribbean destinations for the winter season including daily service to Punta Cana, Grand Cayman, Nassau, Montego Bay, Aruba, Turks and Caicos and San Juan, as well as weekend service to St. Thomas and St. Maarten. In addition to its extensive Caribbean network from Washington, United also serves Cancun, Mexico and San Jose, Costa Rica.
Connecting Denver to more Latin American destinations
Denver-area travelers now have more nonstop opportunities to get to Latin America than ever before. With its new service to Belize and San Jose, United now offers nonstop service to eight destinations in Latin America from Denver.
- Starting new nonstop service between Denver and Belize City, Belize.
- Starting new nonstop service between Denver and San Jose, Costa Rica.
- Continuing nonstop service between Denver and Cancun, Cozumel, Puerto Vallarta, San Jose del Cabo, Nassau and Liberia.
More options for West Coast customers to Central America
This winter, United will start brand-new nonstop flights connecting the Western U.S. with two popular leisure destinations in Costa Rica, enabling the airline to offer new options for customers planning travel to Central America. Tickets for United's new Costa Rica service from Los Angeles and San Francisco will be available for purchase on Wednesday, October 21 on United.com.
- Starting new Saturday service between Los Angeles and San Jose, Costa Rica on December 19, which expands to daily service on January 5, 2021.
- Starting new three-times weekly service between Los Angeles and San Pedro Sula, Honduras on December 17, 2020.
- Starting new Saturday service between San Francisco and Liberia, Costa Rica on January 9, 2021.
- Starting new three-times weekly service between Los Angeles and Liberia, Costa Rica on January 8, 2021.
- Increasing to ten-times weekly service between Los Angeles and Guatemala City, Guatemala.
- Increasing to eleven-times weekly service between Los Angeles and San Salvador, El Salvador.
- Increasing to twice daily service between Washington and San Salvador.
Since the start of the pandemic, United has been a leader in enacting new policies and innovations designed to keep employees and passengers safer when traveling. It was the first U.S. airline to mandate masks for flight attendants, quickly following with customers and employees. United was also among the first U.S. carriers to announce it will not permit customers who refuse to comply with the airline's mandatory mask policy to fly with them while the face mask policy is in place. United was also the first U.S. airline to roll out touchless check-in for customers with bags, and the first to require passengers take an online health assessment before traveling. The airline also recently announced it plans to apply Zoono Microbe Shield, an EPA-registered antimicrobial coating that forms a long-lasting bond with surfaces and inhibits the growth of microbes, to its entire mainline and express fleet before the end of the year.
For more details on all the ways United is helping keep customers safe during their journey, please visit united.com/cleanplus.
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
