United Announces Full-Year and Fourth-Quarter 2014 Profit
CHICAGO, Jan. 22, 2015 /PRNewswire/ -- United Airlines (UAL) today reported full-year 2014 net income of $1.97 billion, an increase of 89 percent year-over-year, or $5.06 per diluted share, excluding $834 million of special items. Including special items, UAL reported full-year net income of $1.13 billion, or $2.93 per diluted share. UAL reported fourth-quarter 2014 net income of $461 million, an increase of 86 percent year-over-year, or $1.20 per diluted share, excluding $433 million of special items. Including special items, UAL reported fourth-quarter 2014 net income of $28 million, or $0.07 per diluted share.
- 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. |
|||||
Integration-related costs: Integration-related costs include compensation costs related to systems integration, training, severance and relocation for employees.
|
|||||
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. |
|||||
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. |
|||||
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. |
|||||
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. |
|||||
2013 - Special items |
|||||
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. |
|||||
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. |
|||||
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. |
|||||
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. |
|||||
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. |
|||||
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. |
|||||
© |
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. |
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 |
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
- 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. |
|||||
Integration-related costs: Integration-related costs include compensation costs related to systems integration, training, severance and relocation for employees.
|
|||||
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. |
|||||
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. |
|||||
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. |
|||||
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. |
|||||
2013 - Special items |
|||||
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. |
|||||
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. |
|||||
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. |
|||||
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. |
|||||
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. |
|||||
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. |
|||||
© |
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. |
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 |
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
CHICAGO, Feb. 24, 2021 /PRNewswire/ -- United Airlines Holdings, Inc. (UAL) announced today that Laysha Ward is joining its Board of Directors. Ward, currently Executive Vice President and Chief External Engagement Officer of Target Corporation, brings an impressive resume with more than three decades of corporate leadership experience to the UAL Board.
"Laysha and her credentials are the right addition to our already strong board of directors at a pivotal moment for our company," said United CEO Scott Kirby. "United will benefit from Laysha's insight on a wide range of topics that will be essential to our success as we recover from the impact of COVID-19, including her expertise in the areas of community and stakeholder engagement, corporate responsibility and diversity, equity and inclusion."
"When we began the search for a new board member, we were focused on finding a leader with both strong business acumen and a unique perspective that will help United capitalize on our strengths as we emerge from the COVID-19 crisis," said Oscar Munoz, Executive Chairman of United Airlines. "I'm eager for Laysha to get started because I know she will add value right away as we evaluate the strategic opportunities for United Airlines and its incredibly bright future."
"At a pivotal time for the airline industry, I look forward to joining the UAL board and helping the company fulfill its purpose of connecting people and uniting the world," said Ward.
In addition to her executive role at Target Corporation, Ward serves on the Aspen Institute Latinos and Society Advisory Board, the Stanford Center for Longevity Advisory Council, and is a member of the Executive Leadership Council, the Economic Clubs of New York and Chicago, Alpha Kappa Alpha Sorority, and The Links. Ward also serves on the board of directors of Denny's Corporation, as well as the boards of Greater MSP, the Minnesota Orchestra, and the Northside Achievement Zone.
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
CHICAGO, Feb. 19, 2021 /PRNewswire/ -- United Airlines today announced plans to expand its global route network with new, nonstop service between Boston Logan International Airport and London Heathrow. This new service builds upon United's growing presence in London and provides customers on the East Coast with another convenient option to get to London. United plans to operate its premium Boeing 767-300ER aircraft on the route, with 46 United Polaris Business Class and 22 United Premium Plus seats. The aircraft features the highest proportion of premium seats on any widebody aircraft operated by a U.S. carrier between London and the United States.
"We are thrilled to offer travelers a convenient, non-stop option between Boston and London with this addition to our global network," said Patrick Quayle, United's vice president of International Network and Alliances. "We will continue to monitor the demand recovery and travel restrictions as we finalize a start date for this service later in 2021."
Tickets will be available for purchase on united.com and the United app in the coming weeks.
United has provided service to London Heathrow for nearly 30 years and over the course of the pandemic has maintained continuous service between the U.S. and London. Looking ahead, Boston will be United's 19th daily flight between the United States and London Heathrow.
Boston – London Schedule | ||||||
From | To | Depart | Arrive | Frequency | Aircraft | |
Boston | London | 10:00 p.m. | 9:35 a.m.+1 | Daily | 767-300ER | |
London | Boston | 5:00 p.m. | 7:30 p.m. | Daily | 767-300ER | |
Schedule subject to change |
United's Polaris product is a premium travel experience that prioritizes relaxation and comfort with features that include everything from custom, luxury bedding from Saks Fifth Avenue and restaurant-quality, multi-course inflight dining to premium amenity kits and full flat-bed seats with direct aisle access. Along with its 46 Polaris Business Class seats, the aircraft also features 22 United Premium Plus seats, 43 United Economy Plus seats and 56 United Economy seats.
Committed to Ensuring a Safe Journey
United is committed to putting health and safety at the forefront of every customer's journey, with the goal of delivering an industry-leading standard of cleanliness through its United CleanPlus program. United has teamed up with Clorox and Cleveland Clinic to redefine cleaning and health safety procedures from check-in to landing and has implemented more than a dozen new policies, protocols and innovations designed with the safety of customers and employees in mind.
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of UAL is traded on the Nasdaq under the symbol "UAL".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
New Orange County service begins May 6 and new, first-ever nonstop service between Chicago and Kona and between New York/Newark and Maui starts June 3
Customers departing Orange County and United's hub airports can save time by showing proof of negative tests to skip document screening process in Hawaii
February 12, 2021 – United Airlines today announced new convenient options for Hawaiian getaways this summer, offering the only nonstop flights between Orange County, California and Honolulu. The new route joins United's previously announced service between Chicago and Kona and New York/Newark and Maui. With the additional new flights, United will offer nonstop service on more than 20 routes between the mainland and Hawaii. United's Orange County – Honolulu service will be available for purchase on united.com beginning Saturday, February 13.
"We know customers are dreaming of summer getaways and we want United to be their top choice for travel to Hawaii," said Patrick Quayle, United's vice president of International Network and Alliances. "Our new Hawaii routes from Chicago, Newark and Orange County, in addition to the dozens of flights United already operates from the mainland to Hawaii, offer travelers even more options, greater convenience and shorter travel times to the fantastic outdoor offerings Hawaii has to offer."
United is committed to helping safely restore travel to Hawaii and has introduced a number of solutions to make it easier for customers to understand and follow safety requirements throughout the islands. Earlier this month, the airline announced that customers traveling to Hawaii who have a valid negative COVID-19 test can show their results before boarding to save time and skip document screening lines upon arrival. United is also making it easier to get the right tests to avoid Hawaii's 10-day quarantine by making approved COVID-19 tests available to all customers traveling to the islands no matter where in the U.S. their travel begins. Additionally, the airline recently introduced a new digital solution, "The Travel-Ready Center," where customers can review COVID-19 entry requirements, find local testing options and upload any required testing and vaccination records for travel, all in one place.
United has served Hawaii for more than 70 years and was the first airline to introduce service between the mainland and Kona and Maui in 1983. United remains a pioneer to the Hawaiian Islands with the launch of first-ever service between Chicago and Kona and between New York/Newark and Maui this summer. The new flights enable convenient travel times for customers connecting in Chicago and Newark from across the Midwest and East Coast. United's service between Orange County's John Wayne International Airport and Honolulu will be the only nonstop flight between Orange County and Hawaii and provides even more options for Southern Californians to get to Hawaii.
New Hawaii Summer Service
Schedule subject to change
2021 Hawaii Summer Service
Schedule subject to change
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of UAL is traded on the Nasdaq under the symbol "UAL".
CHICAGO, Feb. 10, 2021 /PRNewswire/ -- United Airlines today announced that it has completed an agreement to work with air mobility company Archer as part of the airline's broader effort to invest in emerging technologies that decarbonize air travel. Rather than relying on traditional combustion engines, Archer's electric vertical takeoff and landing (eVTOL) aircraft are designed to use electric motors and have the potential for future use as an 'air taxi' in urban markets.
Under the terms of the agreement, United will contribute its expertise in airspace management to assist Archer with the development of battery-powered, short-haul aircraft. Once the aircraft are in operation and have met United's operating and business requirements, United, together with Mesa Airlines, would acquire a fleet of up to 200 of these electric aircraft that would be operated by a partner and are expected to give customers a quick, economical and low-carbon way to get to United's hub airports and commute in dense urban environments within the next five years.
Working with Archer is another example of United's commitment to identifying and investing in innovative technology that can reduce carbon emissions while also improving the customer experience and earning a strong financial return. The airline was an early stage investor in Fulcrum BioEnergy and recently partnered with 1PointFive, a joint venture between Oxy Low Carbon Ventures and Rusheen Capital, to jumpstart the establishment of direct air capture and sequestration technology.
"Part of how United will combat global warming is by embracing emerging technologies that decarbonize air travel . By working with Archer, United is showing the aviation industry that now is the time to embrace cleaner, more efficient modes of transportation. With the right technology, we can curb the impact aircraft have on the planet, but we have to identify the next generation of companies who will make this a reality early and find ways to help them get off the ground," said United CEO Scott Kirby. "Archer's eVTOL design, manufacturing model and engineering expertise has the clear potential to change how people commute within major metropolitan cities all over the world."
With today's technology, Archer's aircraft are designed to travel distances of up to 60 miles at speeds of up to 150 miles per hour and future models will be designed to travel faster and further. Not only are Archer's aircraft capable of saving individuals time on their commute, United estimates that using Archer's eVTOL aircraft could reduce CO2 emissions by 47% per passenger on a trip between Hollywood and Los Angeles International Airport (LAX), one of the initial cities where Archer plans to launch its fleet.
Led by co-founders and co-CEOs Brett Adcock and Adam Goldstein, Archer's mission is to advance the benefits of sustainable air mobility at scale. Archer plans to unveil its full scale eVTOL aircraft in 2021, begin aircraft production in 2023, and launch consumer flights in 2024. To drive this fourth transportation revolution and transform how people approach everyday life, work and adventure, Archer has built a highly accomplished team of top engineering and design talent, with a collective 200+ years of eVTOL experience.
"We couldn't be happier to be working with an established global player like United," said Brett Adcock, co-CEO and co-Founder of Archer. "This deal represents so much more than just a commercial agreement for our aircraft, but rather the start of a relationship that we believe will accelerate our timeline to market as a result of United's strategic guidance around FAA certification, operations and maintenance."
Adam Goldstein, co-CEO and co-Founder of Archer added "the team at United share our vision of a more sustainable future. We're working closely with their test pilots and environmental teams to make sustainable urban air mobility a reality far sooner than people could ever imagine."
United's Commitment to the Environment
At United, we believe the airline industry needs to be bolder when it comes to making decisions that confront the climate crisis. That's why we are making aggressive and tangible commitments to help reduce our carbon emission footprint before our customers even take their seats. Here are some of the ways we're making a difference:
- In 2020, we pledged to become 100% green by reducing our greenhouse gas emissions by 100% by 2050—without relying on traditional carbon offsets—and became the first airline to announce a commitment to invest in Direct Air Capture technology by partnering with 1PointFive, a joint venture between Oxy Low Carbon Ventures and Rusheen Capital.
- In 2019, we committed $40 million toward an investment initiative focused on accelerating the development of sustainable aviation fuel (SAF) and other decarbonization technologies. That same year, we operated the Flight for the Planet, which represented the most-eco-friendly commercial flight of its kind in the history of commercial aviation.
- In 2018, we became the first U.S. airline to establish a climate goal, reducing our emissions 50% by 2050 versus our 2005 baseline.
- In 2016, we became the first airline globally to use sustainable aviation fuel (SAF) in regular operations on a continuous basis and has purchased and will use more SAF than any other U.S. airline.
- In 2015, we invested $30 million in Fulcrum BioEnergy, a SAF producer that converts trash to low-carbon jet fuel.
United's Award-Winning Eco-Skies Program
United's award-winning Eco-Skies program represents the company's commitment to the environment and the actions taken every day to create a more sustainable future. The Carbon Disclosure Project named United as the only airline globally to its 2020 'A List' for the airline's actions to cut emissions, mitigate climate risks and develop the low-carbon economy, marking the seventh consecutive year that United had the highest CDP score among U.S. airlines.
In 2017, Air Transport World magazine named United its Eco-Airline of the Year for the second time since the airline launched the Eco-Skies program. Additionally, United ranked No. 1 among global carriers in Newsweek's 2017 Global 500 Green Rankings, one of the most recognized environmental performance assessments of the world's largest publicly traded companies.
For more information on United's commitment to environmental sustainability, visit united.com/ecoskies.
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".
About Archer
Archer's mission is to advance the benefits of sustainable air mobility. Archer is creating the world's first electric airline that moves people throughout the world's cities in a quick, safe, sustainable, and cost-effective manner. As the world's only vertically integrated airline company, Archer's business includes the design, manufacture, and operation of a fully electric vertical takeoff and landing aircraft that can carry passengers for up to 60 miles at speeds of up to 150 miles per hour while producing minimal noise. Archer's team is based in Palo Alto, CA. To learn more, visit www.archer.com
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and anticipated operating performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as "expects," "will," "plans," "anticipates," "indicates," "remains," "believes," "estimates," "forecast," "guidance," "outlook," "goals," "targets" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the risks and uncertainties set forth under Part I, Item 1A., "Risk Factors," of our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as updated by our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission.
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
CHICAGO, Feb. 4, 2021 /PRNewswire/ -- In honor of Black History Month, United Airlines, Chase and Visa are encouraging and rewarding United Credit Cardmembers who make donations to non-profits focused on providing access to educational opportunities for Black students and supporting human and civil rights policies. Between February 1 and March 15, 2021, United Explorer and United Club Visa Cardmembers will receive five total miles for every dollar (up to $1,000) in donations made to the following organizations:
- The Thurgood Marshall College Fund – a non-profit organization established in 1987 as the nation's largest organization exclusively representing the Black College Community. TMCF's member-schools include 47 publicly supported Historically Black College and Universities that enroll nearly 300,000 students.
- The Leadership Conference Education Fund – an organization that builds public support for laws and policies that promote and protect civil and human rights.
- The NAACP Legal Defense and Educational Fund – a premier legal organization fighting for racial justice through litigation, advocacy, and public education.
- United Negro College Fund – a non-profit that supports under-represented students looking to continue their education.
"Black History Month is not only a time of celebration and reflection but also presents an opportunity to seize on that heightened awareness to take action," said Jessica Kimbrough, chief diversity, equity and inclusion officer at United. "By working closely with our partners at Chase and Visa, United Airlines is proud to offer cardmembers a unique opportunity to support groups that are focused on the advancement of civil rights and then reward them for their contribution."
"JPMorgan Chase is committed to driving real and sustainable change for Black communities and we're using this time to reflect both on the past and on our commitment to build a more equitable future," said Ed Olebe, president of co-brand cards at JPMorgan Chase. "This effort is an example of how to harness our collective expertise – along with our United and Visa partners – to build a program that gives back to organizations making a difference, while at the same time rewarding our joint customers."
"The black and African American community is being disproportionately impacted by the pandemic in the United States, which will require short and long-term solutions to help this community recover," said Suzan Kereere, global head, merchant sales and acquiring at Visa. "For Visa, partnerships are one way we will leverage our network to bridge gaps in funding and opportunity for Black communities. This campaign is one example of Visa's unwavering commitment to address social injustice and racial equality, which will continue to be a priority for our business."
To learn more or to donate to these organizations, customers can visit United.com/BlackHistoryMonth.
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".
About Chase
Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co., a leading global financial services firm with assets of $3.4 trillion and operations worldwide. Chase serves more than 60 million American households with a broad range of financial services, including personal banking, credit cards, mortgages, auto financing, investment advice, small business loans and payment processing. Customers can choose how and where they want to bank: More than 4,700 branches in 38 states and the District of Columbia, 16,000 ATMs, mobile, online and by phone. For more information, go to chase.com.
About Visa
Visa Inc. is the world's leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company's relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device, for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit: About Visa, visa.com/blog and @VisaNews.
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, 872.825.8640, media.relations@united.com
CHICAGO, Feb. 3, 2021 /PRNewswire/ -- United Airlines today announced it has received its 10th consecutive perfect score of 100% on the Human Rights Campaign Foundation's 2021 Corporate Equality Index (CEI). The scorecard is a benchmarking report on corporate policies and practices related to LGBTQ workplace equality. The perfect score places United on the prestigious 2021 list of "Best Places to Work for LGBTQ Equality."
"Receiving this recognition for the 10th year in a row speaks to our continued commitment to establishing a workplace that truly supports and celebrates our LGBTQ+ employees and customers," said Jessica Kimbrough, United's Chief of Diversity, Equity and Inclusion. "We will continue working with organizations like the Human Rights Campaign as we work towards creating a more diverse, equitable and inclusive culture at United where all employees and customers feel safe to be their authentic selves."
"Many businesses across the nation, including United Airlines, stepped up and continued to prioritize and champion LGBTQ equality," said Alphonso David, President, Human Rights Campaign. "While the CEI cannot measure every facet of what makes a workspace inclusive, it does create a foundation upon which employees can feel more comfortable living and working as their true selves—an important step, but one which is only the starting point. Diversity and inclusion policies and practices advanced through tools like the CEI are critical, but meaningful change requires breathing life into these policies in real and tangible ways, so that LGBTQ employees are truly seen, valued and respected not only at work, but in every aspect of life."
United's commitment to LGBTQ+ equality includes being the first U.S. airline to fully recognize domestic partnerships in 1999 to becoming the first U.S. airline to offer non-binary gender options throughout all of its booking channels. United became the first public company to be inducted into Pride Live's Stonewall Ambassador program in recognition of the airline's commitment to LGBTQ+ equality in 2019Through EQUAL, the airline's LGBTQ+ Business Resource Group, more than 2,600 members work together to advocate on behalf of the LGBTQ+ community, working with members and leaders companywide to develop ways to deliver and support resources, education and advocacy.
United has partnered with the Human Rights Campaign on training initiatives including educating employees, through comprehensive training modules and exercises, about preferred pronouns and the persistence of gender norms and other steps to make United an inclusive space for both customers and employees.
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter, Instagram, TikTok or connect on Facebook. The common stock of UAL is traded on the Nasdaq under the symbol "UAL".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
CHICAGO, Jan. 27, 2021 /PRNewswire/ -- Beginning February 1, United customers traveling to Hawaii who have a valid negative COVID-19 test can show their results before boarding to save time and skip document screening lines upon arrival. The new pre-clearance process will be in place for customers traveling on 110 of United's weekly flights to Hawaii.
United is also making it easier to get the right tests to avoid Hawaii's 10-day quarantine by making approved COVID-19 tests available to all customers traveling to the islands no matter where in the U.S. their travel begins.
"We're making it easier for customers traveling to Hawaii to spend more time enjoying their trip and less time waiting in lines," said Toby Enqvist, chief customer officer at United. "Testing is the key to opening domestic and international travel so we'll continue to lead the way in rolling out solutions that are simple and safe so our customers have what they need when they take their next trip with us."
To begin the pre-clearance program, customers will enroll in Hawaii's Safe Travels program and complete Hawaii's COVID-19 questionnaire within 24 hours from departure. Next, customers will use the Safe Travels website to upload their negative test results from one of Hawaii's trusted testing partners which must be taken within 72 hours of their departure. At the airport, customers will see a United team member at the gate for their flight to Hawaii where they will receive a wristband if they qualify to bypass airport screening in Hawaii. Customers who have been pre-cleared will be able to skip test screenings in Hawaii and begin their trip as soon as they land.
For images of United's pre-clearance program click here.
United is also making it easier for customers to obtain approved COVID-19 test options with the expansion of mail-in tests to customers no matter where in the U.S. their travel originates. The airline will notify customers in advance of their Hawaii trip to let them know what testing options they have locally. Last year, United also teamed up with XpresCheck to open additional same-day testing facilities for United customers in select airports. XpresCheck currently has locations open in United's Denver terminal, and expects to open additional locations in United's terminals in Houston and Newark in the coming weeks. Customers who choose to take a test with XpresCheck can schedule an appointment online for a rapid molecular test on the same day as their travel. Walk up appointments are also available on a first come, first served basis.
Since the COVID-19 pandemic began, United made numerous enhancements to its business that improve the travel experience and make the airline a better company. Earlier this week, United announced a new Travel-Ready Center in the United app and online where customers can review COVID-19 travel requirements, find local testing options and upload any testing and vaccination records that their destinations requires. This year, United also began allowing all customers to fly standby on another flight to the same destination on the same day for free, and all MileagePlus® Premier® members now confirm a new flight on the same day to the same destinations at check-in when space is available in the same fare class. Last year, the carrier eliminated most change fees, pledged to reduce its greenhouse gases 100% by 2050, and as a part of its United CleanPlus℠ program, teamed up with Clorox and the Cleveland Clinic to guide its cleaning and safety protocols. Last spring, United extended MileagePlus Premier status to all customers through January 2022 and made earning status for the next two years easier for all MileagePlus members.
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of UAL is traded on the Nasdaq under the symbol "UAL".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
CHICAGO, Jan. 25, 2021 /PRNewswire/ -- United Airlines today launched the "Travel-Ready Center" - a new, digital solution where customers can review COVID-19 entry requirements, find local testing options and upload any required testing and vaccination records for domestic and international travel, all in one place. United is the first airline to integrate all these features into its mobile app and website.
"While pre-travel testing and documentation are key to safely reopening global travel, we know it can be confusing for customers when they're preparing for a flight," said Linda Jojo, Executive Vice President for Technology and Chief Digital Officer, United. "Starting today, our 'Travel-Ready Center' gives customers a personalized, step-by-step guide of what is needed for their trip, a simple way to upload required documents and quickly get their boarding pass, fully integrated within our app and website."
In the weeks and months ahead, United will add more innovative, industry-first features to the Travel-Ready Center platform to make navigating evolving entry requirements even easier. United customers will soon be able to:
- Schedule a COVID-19 test at one of more than 15,000 testing sites around the world, right from the app or website.
- Access the recently launched "Agent on Demand", a United-exclusive feature that gives customers the ability to video chat live with a customer service agent to answer any questions about pre-travel requirements or documentation.
- View details about visa requirements for the countries they plan to visit.
Customers with an active reservation can access the Travel-Ready Center through the "My Trips" section of the United App and on united.com. The Travel-Ready Center will provide tailored details on requirements for all travelers 18 and older on a customer's itinerary, with status indicators noting if they are travel-ready based on specific requirements each individual needs to meet in order to board their flight, including any additional requirements for connecting flights. Documents uploaded by a passenger will be reviewed by designated personnel for verification. The individual status indicators for each passenger will then note whether they are "travel ready" and they will be allowed to complete the check-in process. Customers should still plan to bring the physical documents to the airport in case further inspection is needed along their journey.
The Travel-Ready Center is just one of many new technologies the airline has introduced to create a safer and more efficient experience for customers. United recently redesigned its mobile app with new enhancements intended to make travel easier for people with visual disabilities, introduced Destination Travel Guide, which allows customers to filter and view destinations' COVID-19 related travel restrictions, and debuted a new chat function to give customers a contactless option to receive immediate access to information about cleaning and safety procedures.
This year, United made numerous enhancements to its business that improve the travel experience for its customers. The carrier eliminated most change fees, pledged to reduce its greenhouse gases 100% by 2050, teamed up with Clorox and the Cleveland Clinic to guide its cleaning and safety protocols as a part of United CleanPlus℠, extended MileagePlus® Premier® status to all customers through January 2022 and made earning status for the next two years easier for all MileagePlus members. United also announced this year that beginning in January, all customers will be able to fly standby on another flight to the same destination on the same day for free, and all MileagePlus Premier members will be able to confirm a new flight on the same day to the same destinations at check-in when space is available in the same fare class.
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of UAL is traded on the Nasdaq under the symbol "UAL".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, 872.825.8640, media.relations@united.com
CHICAGO, Jan. 20, 2021 /PRNewswire/ -- United Airlines (UAL) today announced fourth-quarter and full-year 2020 financial results. The company continues its efforts to lead the industry as it manages the most disruptive crisis in aviation history.
Since the beginning of the COVID-19 crisis, United has raised over $26 billion in liquidity and made important progress in reducing core cash burn (see detailed chart below) to ensure the company's survival. Over the last three quarters, the company has identified $1.4 billion of annual cost savings and has a path to achieve at least $2.0 billion in structural reductions moving forward. United ended 2020 with $19.7 billion in available liquidity1, including an undrawn revolver capacity and funds available under the CARES Act loan program from the U.S. Treasury.
Having stabilized its financial foundation, the company expects 2021 to be a transition year that's focused on preparing for a recovery. United has resumed heavy maintenance and engine overhauls, investments that are essential to recovery when demand returns. The combination of structural cost reduction and timely investments will help set up United to exceed its 2019 adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) margin in 2023. The company expressed high confidence that it would achieve this target by 2023 – and said its ongoing recovery planning would help ensure the company was equipped to reach this level even sooner, if demand returns more quickly.
"Aggressively managing the challenges of 2020 depended on our innovation and fast-paced decision making. But, the truth is that COVID-19 has changed United Airlines forever," said United Airlines CEO Scott Kirby. "The passion, teamwork and perseverance that the United team showed in 2020 is exactly what will help us build a new United Airlines that's better, stronger and more profitable than ever. I could not be prouder of – and more grateful to – this team, which is going to lead us there."
_____________________________________________________________________ |
* Adjusted EBITDA margin is a non-GAAP financial measure calculated as Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), excluding special charges and unrealized (gains) losses on investments, divided by total operating revenue. We are not providing a target or a reconciliation to profit margin (net income/total operating revenue), the most directly comparable GAAP measure, because we are unable to predict certain items contained in the GAAP measure without unreasonable efforts. Adjusted EBITDA margin does not reflect certain items, including special charges and unrealized (gains) losses on investments, which may be significant. For a reconciliation of adjusted EBITDA to net income for the years ended December 31, 2020 and 2019, please see the accompanying tables to this release. |
Fourth-Quarter and Full-Year 2020 Financial Results
- Reported fourth-quarter net loss of $1.9 billion, $7.1 billion for the full-year 2020.
- Reported fourth-quarter adjusted net loss2 of $2.1 billion, $7.7 billion for the full-year 2020.
- Reported fourth-quarter total operating revenue of $3.4 billion, down 69% versus fourth-quarter 2019.
- Reported fourth-quarter operating expenses down 45% versus fourth-quarter 2019, down 42% excluding special charges3.
Core Cash Burn
- Reported fourth-quarter daily cash burn4 of $23 million, plus $10 million of average debt principal payments and severance payments per day.
- Reported fourth-quarter core cash burn4 of $19 million per day, an improvement of an average of $5 million per day versus the third-quarter 2020.
- Core cash burn captures underlying operational performance of the company throughout the pandemic; a reconciliation with cash burn4 is provided below.
$M/day | 2Q20 | 3Q20 | 4Q20 | |||
Cash burn4 | $(40) | $(25) | $(33) | |||
Debt principal and severance payments | (3) | (4) | (10) | |||
Timing of certain payments5 | 2 | 1 | (2) | |||
Investments in the recovery6 | — | (1) | (2) | |||
Capital expenditures, net of flight equipment purchase deposit returns | — | 4 | (1) | |||
Core cash burn4 | $(38) | $(24) | $(19) |
First Quarter 2021 Outlook
- Based on current trends, the company expects first quarter 2021 total operating revenue to be down 65 percent to 70 percent versus the first quarter 2019. Accelerated distribution of the COVID-19 vaccine may lead to faster improvement, however, the company is not including this potential improvement in its first quarter 2021 revenue outlook.
- Expects first quarter 2021 capacity to be down at least 51 percent versus the first quarter of 2019.
- Expects first quarter 2021 ending available liquidity to be similar to year-end 2020 available liquidity of around $19.7 billion1.
Fourth-Quarter and Full-Year Highlights
- Completed $3 billion Enhanced Equipment Trust Certificate (EETC) transaction; the largest deal of this type in aviation history.
- First U.S. airline to leverage its loyalty program, MileagePlus®, as collateral for a $6.8B loan.
- Received $968 million in net proceeds from the sale of 20.8 million shares in the ATM program in the fourth quarter 2020. For the full year 2020, total net proceeds were $989 million from the sale of 21.4 million shares through the ATM program.
- Only airline to partner with the Defense Advanced Research Projects Agency (DARPA), U.S. Transportation Command (USTRANSCOM) and Air Mobility Command (AMC) to study how effectively the unique airflow configuration on board an aircraft can prevent the spread of aerosolized particles among passengers and crew.
- First airline to safely transport the first delivery of Pfizer and BioNTech's COVID-19 vaccine into the U.S.
- First among U.S. global airlines to permanently eliminate change fees on all standard economy and premium cabin tickets for travel within the U.S., and starting January 1, 2021, any United customer can fly standby for free on a flight departing the day of their travel regardless of the type of ticket or class of service.
- Announced bold environmental commitment unmatched by any airline; pledging 100% green by reducing greenhouse gas emissions 100% by 2050.
- First U.S. airline to implement schedule reductions due to sharp travel demand drop.
- Increased cargo revenue by an industry-leading 77 percent in the fourth quarter by leveraging international flying and deploying strategic international cargo-only missions.
- Launched the world's first free transatlantic COVID-19 testing pilot for customers.
- First U.S. airline to launch a COVID-19 testing program for customers traveling on United from San Francisco International Airport to Hawaii.
- Since COVID-19 began, first major U.S. airline to require masks onboard. In the third quarter, extended mask requirements to airport terminals.
- One of the first U.S. airlines to enforce policy banning customers for refusing to follow mask requirements.
- First major U.S. airline to ask all passengers to complete a health self-assessment during their check-in process based on recommendations from the Cleveland Clinic.
- First airline to contact customers when flights are more than 70% full to give them the opportunity to change their plans for free.
- First U.S. airline to introduce a tool like the Destination Travel Guide, a new interactive map tool on united.com and the United mobile app that allows customers to filter and view destinations' COVID-19 related travel restrictions.
- First U.S. airline to introduce an interactive map feature for customers on united.com, powered by Google Flight Search Enterprise Technology, to easily compare and shop for flights based on departure city, budget, and location type. Customers can simultaneously compare travel to various destinations in a single search.
- First U.S. airline whose CEO took a 100% salary cut.
Taking Care of Our Customers
- Launched United CleanPlusSM to reinforce the company's commitment to putting health and safety at the forefront of the entire customer experience, with the goal of delivering an industry-leading standard of cleanliness, including partnerships with Clorox and experts from the Cleveland Clinic.
- First and only airline to maximize ventilation systems by running the auxiliary power on mainline aircraft during the entire boarding and deplaning process, so customers and crew get the important safety benefits provided by high-efficiency particulate air (HEPA) filtration systems.
- Electrostatic spraying aircraft interiors on all U.S. flights.
- Began using new Clorox® Electrostatic Sprayers to disinfect airport terminals.
- Introduced customer COVID-19 testing from Houston to Latin American and Caribbean destinations.
- Began working with the Centers for Disease Control (CDC) on the first contact tracing initiative for all international and domestic flights.
- Added Zoono Microbe Shield, an EPA-registered antimicrobial coating that forms a long-lasting bond with surfaces and inhibits the growth of microbes, to the airline's already rigorous safety and cleaning procedures.
- Launched an automated assistant chat function that gives customers a contactless option to receive immediate access to information about cleaning and safety procedures put in place due to COVID-19.
- Began cleaning pilot flight decks with Ultraviolet C (UVC) lighting technology on most aircraft at hub airports to disinfect the flight deck interior and continue providing pilots with a sanitary work environment.
- Expanded touchless check-in capabilities to kiosks at more than 215 airports.
- Launched free COVID-19 testing to all employees and checks their temperatures before they begin work at all U.S. airports.
- In May, started providing individually wrapped hand wipes and snack bag with pretzels, Stroopwafel and water to reduce touchpoints.
- Redesigned United's Mobile App to be more accessible for people with visual disabilities.
- Announced changes to the MileagePlus Premier® program that will make it easier to earn status in 2021 for the 2022 program year.
- Launched virtual, on-demand customer service at the airport.
- Announced plan to continue installing United Polaris® Business Class on Boeing 787 fleet.
Reimagining the Route Network
- In 2020, started 43 domestic routes and 10 international routes, with 15 more international routes planned to launch in 2021.
- In 4Q, responded to Thanksgiving travel demand by adding over 1,400 domestic flights to the November schedule.
- In 4Q, expanded service to India with 4 daily flights including the addition of O'Hare to Delhi; United remains the only U.S. carrier to serve India.
- Compared to September, United had nonstop service in 23 more domestic and 8 more international routes in October, 37 more domestic and 32 more international routes in November, and 95 more domestic and 53 more international routes in December.
- Announced plans to return service to New York/JFK after a five-year absence, with two daily round-trips to both San Francisco and Los Angeles starting in February 2021.
Assisting the Communities We Serve
- Through a combination of cargo-only flights and passenger flights, United has transported more than 401 million pounds of freight, which includes 87 million pounds of vital shipments, such as COVID-19 vaccines, medical kits, PPE, pharmaceuticals, and medical equipment, and more than 3.4 million pounds of military mail and packages.
- Booked over 2,900 free flights for medical professionals to support COVID-19 response in New Jersey/New York and California.
- Using crowdsourcing platform - Miles on a Mission - donated more than 11 million miles for charities like the Thurgood Marshall College Fund, College to Congress, and Compass to Care.
- More than 19.2 million miles were donated by MileagePlus members and 7.6 million miles were matched by United to help organizations providing relief during COVID-19.
- Donated nearly 1.2 million pounds of food from United Polaris lounges, United Club locations, and catering kitchens to local food banks and charities.
- Over 7,500 face masks were made from upcycled unused employee uniforms.
- More than 800 gallons of hand sanitizer produced by United employees in San Francisco for use by United employees.
- Donated 15,000 pillows, 2,800 amenity kits, and 5,000 self-care products to charities and homeless shelters.
- More than 2.2 million pounds of food and household goods were processed by United employees at the Houston Food Bank.
- More than 2,500 United employees worldwide have volunteered, with over 36,800 hours served.
Additional Noteworthy Accomplishments
- For the ninth consecutive year received a perfect score of 100% on the Corporate Equality Index (CEI), a premier benchmarking survey and report on corporate policies and practices related to LGBTQ+ workplace equality, administered by the Human Rights Campaign (HRC) Foundation.
- Honored by DiversityInc with their "DiversityInc Top 50" designation, lauding the airline's leadership in promoting diversity through a diversity-focused talent pipeline and talent development, leadership accountability and a top supplier diversity program.
- Recognized for the fifth consecutive year as a top-scoring company and best place to work for disability inclusion with a perfect score of 100 on the 2020 Disability Equality Index (DEI).
- Teamed up with Peerspace to bundle flights with work and meeting spaces for remotely distanced companies.
- Named best overall airline in the world by Global Traveler Readers.
- Selected by the Commission on Presidential Debates as the official airline for the 2020 Presidential and Vice Presidential Debates.
- Announced signing of The Board Challenge and committed to adding a second Black board member to the Board of Directors.
_________________________________________________________________________ |
1 Total available liquidity includes cash and cash equivalents, short-term investments and $1 billion available under our undrawn revolving credit facility, as well as $7 billion available under the CARES Act loan program. |
2 Excludes operating and non-operating special charges, and unrealized gains and losses on investments. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in the tables accompanying this release. |
3 Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in the tables accompanying this release. |
4 Cash burn, as previously guided, is defined as: Net cash from operations, less investing and financing activities. Proceeds from the issuance of new debt (excluding expected aircraft financing), government grants associated with the Payroll Support Program of the CARES Act, issuance of new stock, net proceeds from the sale of short-term and other investments and changes in certain restricted cash balances are not included in this figure. Core cash burn is defined as: Cash burn, as further adjusted to exclude: debt principal payments, timing of certain payments, capital expenditures (net of flight equipment purchase deposit returns), investments in the recovery and severance payments. Amounts may not add due to rounding. See the tables accompanying this release for further information. |
5 Timing of certain payments refers to exclusion of payments in the quarter that had been deferred from prior periods or additions of payments that were deferred to a future period to maximize cash preservation. |
6 Investments in the recovery primarily include, but are not limited to, spending on engine and airframe maintenance to prepare for the efficient operations ramp up as air travel demand returns. |
Earnings Call
UAL will hold a conference call to discuss fourth-quarter and full-year 2020 financial results as well as its financial and operational outlook for the first quarter 2021, on Thursday, January 21, at 9:30 a.m. CT/10:30 a.m. ET. A live, listen-only webcast of the conference call will be available at ir.united.com.
The webcast will be available for replay within 24 hours of the conference call and then archived on the website for three months.
About United
United's shared purpose is "Connecting People. Uniting the World." 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, including statements regarding our outlook for the first quarter 2021, our 2023 adjusted EBITDA margin target and our cost savings plans related to preparing for a recovery, are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as "expects," "will," "plans," "anticipates," "indicates," "remains," "believes," "estimates," "forecast," "guidance," "outlook," "goals," "targets" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: the duration and spread of the ongoing global COVID-19 pandemic and the outbreak of any other disease or similar public health threat and the impact on our business, results of operations and financial condition; the lenders' ability to accelerate the MileagePlus indebtedness, foreclose upon the collateral securing the MileagePlus indebtedness or exercise other remedies if we are not able to comply with the covenants in the MileagePlus financing agreements; the effects of borrowing pursuant to the Loan Program under the CARES Act and the effects of the grant and promissory note through the Payroll Support Program under the CARES Act; the costs and availability of financing; our significant amount of financial leverage from fixed obligations and ability to seek additional liquidity and maintain adequate liquidity; our ability to comply with the terms of our various financing arrangements; our ability to utilize our net operating losses to offset future taxable income; the material disruption of our strategic operating plan as a result of the COVID-19 pandemic and our ability to execute our strategic operating plans in the long term; general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aircraft fuel and energy refining capacity in relevant markets); risks of doing business globally, including instability and political developments that may impact our operations in certain countries; demand for travel and the impact that global economic and political conditions have on customer travel patterns; our capacity decisions and the capacity decisions of our competitors; competitive pressures on pricing and on demand; changes in aircraft fuel prices; disruptions in our supply of aircraft fuel; our ability to cost-effectively hedge against increases in the price of aircraft fuel, if we decide to do so; the effects of any technology failures or cybersecurity or significant data breaches; disruptions to services provided by third-party service providers; potential reputational or other impact from adverse events involving our aircraft or operations, the aircraft or operations of our regional carriers or our code share partners or the aircraft or operations of another airline; our ability to attract and retain customers; the effects of any terrorist attacks, international hostilities or other security events, or the fear of such events; the mandatory grounding of aircraft in our fleet; disruptions to our regional network, as a result of the COVID-19 pandemic or otherwise; the impact of regulatory, investigative and legal proceedings and legal compliance risks; the success of our investments in other airlines, including in other parts of the world, which involve significant challenges and risks, particularly given the impact of the COVID-19 pandemic; industry consolidation or changes in airline alliances; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; costs associated with any modification or termination of our aircraft orders; disruptions in the availability of aircraft, parts or support from our suppliers; our ability to maintain satisfactory labor relations and the results of any collective bargaining agreement process with our union groups; any disruptions to operations due to any potential actions by our labor groups; labor costs; the impact of any management changes; extended interruptions or disruptions in service at major airports where we operate; U.S. or foreign governmental legislation, regulation and other actions (including Open Skies agreements, environmental regulations and the United Kingdom's withdrawal from the European Union); the seasonality of the airline industry; weather conditions; the costs and availability of aviation and other insurance; our ability to realize the full value of our intangible assets and long-lived assets; any impact to our reputation or brand image; and other risks and uncertainties set forth under Part I, Item 1A., "Risk Factors," of our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as updated by our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 and our Current Report on Form 8-K filed on the date hereof, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission.
-tables attached-
UNITED AIRLINES HOLDINGS, INC. | ||||||||||||||||||||||
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED) | ||||||||||||||||||||||
Three Months Ended December 31, | % Increase/ | Year Ended December 31, | % Increase/ | |||||||||||||||||||
(In millions, except per share data) | 2020 | 2019 | (Decrease) | 2020 | 2019 | (Decrease) | ||||||||||||||||
Operating revenue: | ||||||||||||||||||||||
Passenger | $ | 2,410 | $ | 9,933 | (75.7) | $ | 11,805 | $ | 39,625 | (70.2) | ||||||||||||
Cargo | 560 | 316 | 77.2 | 1,648 | 1,179 | 39.8 | ||||||||||||||||
Other operating revenue | 442 | 639 | (30.8) | 1,902 | 2,455 | (22.5) | ||||||||||||||||
Total operating revenue | 3,412 | 10,888 | (68.7) | 15,355 | 43,259 | (64.5) | ||||||||||||||||
Operating expense: | ||||||||||||||||||||||
Salaries and related costs | 2,168 | 3,078 | (29.6) | 9,522 | 12,071 | (21.1) | ||||||||||||||||
Aircraft fuel | 679 | 2,249 | (69.8) | 3,153 | 8,953 | (64.8) | ||||||||||||||||
Regional capacity purchase | 489 | 725 | (32.6) | 2,039 | 2,849 | (28.4) | ||||||||||||||||
Landing fees and other rent | 575 | 650 | (11.5) | 2,127 | 2,543 | (16.4) | ||||||||||||||||
Depreciation and amortization | 629 | 606 | 3.8 | 2,488 | 2,288 | 8.7 | ||||||||||||||||
Aircraft maintenance materials and outside repairs | 199 | 475 | (58.1) | 858 | 1,794 | (52.2) | ||||||||||||||||
Distribution expenses | 80 | 417 | (80.8) | 459 | 1,651 | (72.2) | ||||||||||||||||
Aircraft rent | 51 | 67 | (23.9) | 198 | 288 | (31.3) | ||||||||||||||||
Special charges (credits) | (149) | 130 | NM | (2,616) | 246 | NM | ||||||||||||||||
Other operating expenses | 826 | 1,630 | (49.3) | 3,486 | 6,275 | (44.4) | ||||||||||||||||
Total operating expense | 5,547 | 10,027 | (44.7) | 21,714 | 38,958 | (44.3) | ||||||||||||||||
Operating income (loss) | (2,135) | 861 | NM | (6,359) | 4,301 | NM | <