United Announces Full-Year and Fourth-Quarter 2014 Profit
- UAL earned a 12.9 percent return on invested capital in 2014.
- United's consolidated passenger revenue per available seat mile (PRASM) increased 1.6 percent for full-year 2014 compared to full-year 2013.
- Full-year 2014 consolidated unit costs (CASM), excluding special charges, third-party business expenses, fuel and profit sharing, increased 1.3 percent year-over-year on a consolidated capacity increase of 0.3 percent. Full-year 2014 CASM, including those items, decreased 1.6 percent year-over-year.
- In 2014, United returned approximately $320 million to shareholders as part of its previously announced $1 billion share buyback program. In addition, throughout the year, United spent $310 million to retire convertible debt that was convertible into approximately 5.8 million shares of UAL common stock.
- Employees earned $235 million in profit sharing for full-year 2014, which will be distributed on Feb. 13.
- UAL ended the year with $5.7 billion in unrestricted liquidity.
"Thanks to the good work of the United team, we reported a $2 billion profit for 2014, excluding special items," said Jeff Smisek, UAL's chairman, president and chief executive officer. "We're starting 2015 as a better airline, and we expect to generate far better results. I'm excited about what we will do this year to improve our operations, our product, and our customer service, focusing on growing our core earnings and margins. For the first quarter, we expect our pre-tax margin to be between 5 and 7 percent, excluding special items."
Fourth-Quarter Revenue and Capacity
For the fourth quarter of 2014, total revenue was $9.3 billion, a decrease of 0.2 percent year-over-year. Fourth-quarter consolidated passenger revenue increased 1.3 percent to $8.1 billion, compared to the same period in 2013. Ancillary revenue per passenger in the fourth quarter increased 9.7 percent year-over-year to more than $22 per passenger. Fourth-quarter cargo revenue grew 18.2 percent to $260 million driven by higher volumes year-over-year, as cargo traffic recovered from the prior year's lower bookings. Other revenue in the fourth quarter decreased 14.3 percent year-over-year to $970 million mostly due to the company choosing to discontinue an agreement to sell fuel to a third party. The corresponding expense decline appears in third-party business expense.
Consolidated revenue passenger miles increased 0.1 percent and consolidated available seat miles increased 0.9 percent year-over-year for the fourth quarter, resulting in a fourth-quarter consolidated load factor of 81.7 percent.
Fourth-quarter 2014 consolidated PRASM increased 0.4 percent and consolidated yield increased 1.3 percent compared to the fourth quarter of 2013.
Passenger revenue for the fourth quarter of 2014 and period-to-period comparisons of related statistics for UAL's mainline and regional operations are as follows:
|
4Q 2014 Passenger Revenue (millions) |
Passenger Revenue vs. 4Q 2013 |
PRASM vs. 4Q 2013 |
Yield vs. 4Q 2013 |
Available Seat Miles vs. 4Q 2013 |
|
|---|---|---|---|---|---|
| Domestic | $3,219 | 1.9% | 3.5% | 4.4% | (1.6%) |
| Atlantic | 1,357 | 4.5% | 6.9% | 6.1% | (2.2%) |
| Pacific | 1,107 | (1.5%) | (5.9%) | (3.8%) | 4.7% |
| Latin America | 692 | 11.3% | (4.4%) | (3.7%) | 16.4% |
| International | 3,156 | 3.6% | (0.2%) | 0.5% | 3.8% |
| Mainline | 6,375 | 2.7% | 1.7% | 2.5% | 1.0% |
| Regional | 1,708 | (3.6%) | (3.5%) | (2.9%) | (0.1%) |
| Consolidated | $8,083 | 1.3% | 0.4% | 1.3% | 0.9% |
Fourth-Quarter Costs
Fourth-quarter consolidated CASM, excluding special charges, third-party business expense, fuel and profit sharing, increased 1.2 percent compared to the fourth quarter of 2013. Fourth-quarter consolidated CASM including those items decreased 5.3 percent.
Fourth-quarter total operating expenses, excluding special charges, decreased $420 million, or 4.7 percent, year-over-year. Including special charges, total operating expenses decreased $406 million, or 4.5 percent, in the fourth quarter versus the same period in 2013.
Fourth-Quarter Liquidity and Cash Flow
UAL ended the fourth quarter with $5.7 billion in unrestricted liquidity, including $1.35 billion of undrawn commitments under its revolving credit facility. During the fourth quarter, the company had gross capital expenditures of $1 billion, excluding fully reimbursable projects. The company made debt and capital lease principal payments of $534 million in the fourth quarter, including prepayment of $248 million of convertible debt that was convertible into approximately 4.3 million shares of United common stock.
As part of United's $1 billion share buyback program, the company spent approximately $100 million in share repurchases in the fourth quarter. For the year, United returned a total of approximately $320 million to shareholders through share repurchases and open market transactions. In addition, for the year the company spent $310 million to retire convertible debt that was convertible into approximately 5.8 million shares.
For the 12 months ended Dec. 31, 2014, the company's return on invested capital was 12.9 percent.
"In 2014 we made significant progress towards creating long-term value for our investors while providing a better experience for our customers," said John Rainey, UAL's executive vice president and chief financial officer. "Our solid cost performance in 2014 was driven by executing on our Project Quality efficiency initiatives. As our cost initiatives mature throughout 2015, we anticipate that 2015 consolidated CASM, excluding fuel and third-party business expense, will be approximately flat."
For more information on United's first-quarter 2015 guidance, please visit ir.united.com for the company's investor update.
About United
United Airlines and United Express operate an average of 5,055 flights a day to 373 airports across six continents. In 2014, United and United Express operated nearly two million flights carrying 138 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates nearly 700 mainline aircraft, and this year, the airline anticipates taking delivery of 34 new Boeing aircraft, including the 787-9 and the 737-900ER. United is also welcoming 49 new Embraer 175 aircraft to United Express. The airline is a founding member of Star Alliance, which provides service to 193 countries via 27 member airlines. More than 84,000 United employees reside in every U.S. state and in countries around the world. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the NYSE under the symbol UAL.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements included in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and financial performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as "expects," "will," "plans," "anticipates," "indicates," "believes," "forecast," "guidance," "outlook" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this report are based upon information available to us on the date of this report. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: our ability to comply with the terms of our various financing arrangements; the costs and availability of financing; our ability to maintain adequate liquidity; our ability to execute our operational plans, including optimizing our revenue; our ability to control our costs, including realizing benefits from our resource optimization efforts, cost reduction initiatives and fleet replacement programs; our ability to utilize our net operating losses; our ability to attract and retain customers; demand for transportation in the markets in which we operate; an outbreak of a disease that affects travel demand or travel behavior; demand for travel and the impact that global economic conditions have on customer travel patterns; excessive taxation and the inability to offset future taxable income; general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aircraft fuel and energy refining capacity in relevant markets); our ability to cost-effectively hedge against increases in the price of aircraft fuel; any potential realized or unrealized gains or losses related to fuel or currency hedging programs; the effects of any hostilities, act of war or terrorist attack; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; the costs and availability of aviation and other insurance; industry consolidation or changes in airline alliances; competitive pressures on pricing and on demand; our capacity decisions and the capacity decisions of our competitors; U.S. or foreign governmental legislation, regulation and other actions (including open skies agreements and environmental regulations); labor costs; our ability to maintain satisfactory labor relations and the results of the collective bargaining agreement process with our union groups; any disruptions to operations due to any potential actions by our labor groups; weather conditions; the possibility that expected merger synergies will not be realized or will not be realized within the expected time period; and other risks and uncertainties set forth under Item 1A., Risk Factors, of UAL's Annual Report on Form 10-K, as well as other risks and uncertainties set forth from time to time in the reports we file with the SEC.
-tables attached-
| Three Months Ended December 31, 2014(In millions, except per share data) |
Three Months Ended December 31, 2013(In millions, except per share data) |
% Increase/ (Decrease) |
Year Ended December 31, 2014(In millions, except per share data) |
Year Ended December 31, 2013(In millions, except per share data) |
% Increase/ (Decrease) |
|
|---|---|---|---|---|---|---|
| Operating revenue: Passenger: Mainline |
$6,375 | $6,205 | 2.7 | $26,785 | $25,997 | 3.0 |
| Operating revenue: Passenger: Regional | 1,708 | 1,772 | (3.6) | 6,977 | 7,125 | (2.1) |
| Operating revenue: Passenger: Total passenger revenue | 8,083 | 7,977 | 1.3 | 33,762 | 33,122 | 1.9 |
| Operating revenue: Cargo | 260 | 220 | 18.2 | 938 | 882 | 6.3 |
| Operating revenue: Other operating revenue | 970 | 1,132 | (14.3) | 4,201 | 4,275 | (1.7) |
| Operating revenue:Total operating revenue | 9,313 | 9,329 | (0.2) | 38,901 | 38,279 | 1.6 |
| Operating expense: Aircraft fuel(A) |
2,530 | 2,965 | (14.7) | 11,675 | 12,345 | (5.4) |
| Operating expense: Salaries and related costs | 2,251 | 2,114 | 6.5 | 8,935 | 8,625 | 3.6 |
| Operating expense: Regional capacity purchase | 597 | 582 | 2.6 | 2,344 | 2,419 | (3.1) |
| Operating expense: Landing fees and other rent | 568 | 546 | 4.0 | 2,274 | 2,090 | 8.8 |
| Operating expense: Aircraft maintenance materials and outside repairs | 415 | 431 | (3.7) | 1,779 | 1,821 | (2.3) |
| Operating expense: Depreciation and amortization | 431 | 421 | 2.4 | 1,679 | 1,689 | (0.6) |
| Operating expense: Distribution expenses | 334 | 338 | (1.2) | 1,373 | 1,390 | (1.2) |
| Operating expense: Aircraft rent | 215 | 230 | (6.5) | 883 | 936 | (5.7) |
| Operating expense: Special charges (B) | 179 | 165 | NM1 | 443 | 520 | NM1 |
| Operating expense: Other operating expenses | 1,168 | 1,302 | (10.3) | 5,143 | 5,195 | (1.0) |
| Operating expense: Other Operating Expenses: Total operating expenses | 8,688 | 9,094 | (4.5) | 36,528 | 37,030 | (1.4) |
| Operating income | 625 | 235 | 166.0 | 2,373 | 1,249 | 90.0 |
| Nonoperating income (expense): Interest expense |
(176) | (193) | (8.8) | (735) | (783) | (6.1) |
| Nonoperating income (expense): Interest capitalized | 12 | 14 | (14.3) | 52 | 49 | 6.1 |
| Nonoperating income (expense): Interest income | 5 | 5 | - | 22 | 21 | 4.8 |
| Nonoperating income (expense): Miscellaneous, net (B) | (443) | 51 | NM1 | (584) | 3 | NM1 |
| Nonoperating income (expense): Miscellaneous, net (B): Total nonoperating expense | (602) | (123) | 389.4 | (1,245) | (710) | 75.4 |
| Income before income taxes: Income before income taxes | 23 | 112 | (79.5) | 1,128 | 539 | 109.3 |
| Income tax expense: Income tax expense (benefit) (C) | (5) | (28) | (82.1) | (4) | (32) | (87.5) |
| Net income: Net income | $28 | $140 | (80.0) | $1,132 | $571 | 98.2 |
| Earnings per share: Earnings per share, basic | $0.08 | $0.39 | (79.5) | $3.05 | $1.64 | 86.0 |
| Earnings per share: Earnings per share, diluted | $0.07 | $0.37 | (81.1) | $2.93 | $1.53 | 91.5 |
| Weighted average shares: Weighted average shares, basic | 372 | 361 | 3.0 | 371 | 348 | 6.6 |
| Weighted average shares: Weighted average shares, diluted | 376 | 391 | (3.8) | 390 | 391 | (0.3) |
|
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| Three Months Ended December 31, 2014 (In millions, except per gallon) |
Three Months Ended December 31, 2013 (In millions, except per gallon) |
% Increase/ (Decrease) |
Year Ended December 31, 2014 (In millions, except per gallon) |
Year Ended December 31, 2013 (In millions, except per gallon) |
% Increase/ (Decrease) |
|
|---|---|---|---|---|---|---|
| Mainline fuel expense excluding hedge impacts Mainline fuel expense excluding hedge impacts | $1,982 | $2,404 | (17.6) | $9,408 | $10,008 | (6.0) |
| Hedge losses reported in fuel expense 2 | (85) | 22 | NM1 | (89) | 18 | NM1 |
| Total mainline fuel expenseTotal mainline fuel expense | 2,067 | 2,382 | (13.2) | 9,497 | 9,990 | (4.9) |
| Regional fuel expense Regional fuel expense | 463 | 583 | (20.6) | 2,178 | 2,355 | (7.5) |
| Consolidated fuel expenseConsolidated fuel expense | 2,530 | 2,965 | (14.7) | 11,675 | 12,345 | (5.4) |
| Cash paid on settled hedges that did not qualify for hedge accounting 3 | (151) | 4 | NM1 | (138) | 39 | NM1 |
| Fuel expense including all losses from settled hedges | $2,681 | $2,961 | (9.5) | $11,813 | $12,306 | (4.0) |
| Mainline fuel consumption (gallons) | 769 | 777 | (1.0) | 3,183 | 3,204 | (0.7) |
| Mainline average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense | $2.58 | $3.09 | (16.5) | $2.96 | $3.12 | (5.1) |
| Mainline average aircraft fuel price per gallon | $2.69 | $3.07 | (12.4) | $2.98 | $3.12 | (4.5) |
| Mainline average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accounting | $2.88 | $3.06 | (5.9) | $3.03 | $3.11 | (2.6) |
| Regional fuel consumption (gallons) | 179 | 184 | (2.7) | 722 | 743 | (2.8) |
| Regional average aircraft fuel price per gallon | $2.59 | $3.17 | (18.3) | $3.02 | $3.17 | (4.7) |
| Consolidated fuel consumption (gallons) | 948 | 961 | (1.4) | 3,905 | 3,947 | (1.1) |
| Consolidated average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense | $2.58 | $3.11 | (17.0) | $2.97 | $3.13 | (5.1) |
| Consolidated average aircraft fuel price per gallon | $2.67 | $3.09 | (13.6) | $2.99 | $3.13 | (4.5) |
| Consolidated average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accounting | $2.83 | $3.08 | (8.1) | $3.03 | $3.12 | (2.9) |
|
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| Three Months Ended December 31, 2014 (In millions) |
Three Months Ended December 31, 2013 (In millions) |
Year Ended December 31, 2014 (In millions) |
Year Ended December 31, 2013 (In millions) |
|
|---|---|---|---|---|
| Operating: Severance and benefit costs |
$141 | $91 | $199 | $105 |
| Operating:Integration-related costs | 17 | 40 | 96 | 205 |
| Operating:Impairment of assets | 16 | 33 | 49 | 33 |
| Operating:Costs associated with permanently grounding Embraer ERJ 135 aircraft | - | - | 66 | - |
| Operating:Labor agreement costs | - | - | - | 127 |
| Operating:Losses on sale of assets and other special (gains) losses, net | 5 | 1 | 33 | 50 |
| Operating:Special charges | $179 | $165 | $443 | $520 |
| Nonoperating: Loss on extinguishment of debt and other, net |
$53 | $- | $74 | $- |
| Nonoperating: Income tax benefit | (6) | (7) | (10) | (7) |
| Nonoperating:Total operating and nonoperating special charges, net of income taxes | $226 | $158 | $507 | $513 |
| Nonoperating:Mark-to-market (MTM) losses from fuel derivative contracts settling in future periods | $225 | $(59) | $244 | $(84) |
| Nonoperating:Prior period gains (losses) on fuel derivative contracts settled in the current period | (18) | 9 | 83 | 39 |
| Nonoperating:Total special items, net of income taxes | $433 | $108 | $834 | $468 |
|
2014 - Special items |
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Severance and benefit costs: During the fourth quarter of 2014, the company recorded $141 million of costs related primarily to a voluntary early-out program for its flight attendants. More than 2,500 participants elected a one-time opportunity to voluntarily separate from the company and will receive a severance payment, with a maximum value of $100,000 per participant, based on years of service, with retirement dates from November 30, 2014 through the end of 2015. The company will record additional expense associated with this program through 2015 over the remaining required service periods. In addition to the fourth quarter item, during the year ended December 31, 2014, the company recorded $58 million of severance and benefits primarily related to reductions of management and front-line employees, including from Cleveland airport, as part of its cost savings initiatives. The company is currently evaluating its options regarding its long-term contractual commitments at Cleveland. The capacity reductions at Cleveland may result in further special charges, which could be significant, related to our contractual commitments. |
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Integration-related costs: Integration-related costs include compensation costs related to systems integration, training, severance and relocation for employees.
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Impairment of assets: During the fourth quarter of 2014, the company recorded a charge of $16 million ($10 million net of related income tax benefits) related to its annual assessment of impairment of its indefinite-lived intangible assets (primarily international Pacific routes). In addition to the fourth quarter item, during the year ended December 31, 2014, the company recorded $33 million for charges related primarily to impairment of its flight equipment held for disposal associated with its Boeing 737-300 and 737-500 fleets. |
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Costs associated with permanently grounding Embraer ERJ 135 aircraft: During the year ended December 31, 2014, the company recorded $66 million for the permanent grounding of 21 of the company's Embraer ERJ 135 regional aircraft under lease through 2018, which includes an accrual for remaining lease payments and an amount for maintenance return conditions. As a result of the current fuel prices, new Embraer 175 regional jet deliveries and impact of pilot shortages at regional carriers, the company decided to permanently ground these 21 Embraer ERJ 135 aircraft. The company continues to operate nine Embraer ERJ 135 aircraft and will assess the possibility of grounding those aircraft when the term of the current capacity purchase contract ends. |
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Loss on extinguishment of debt and other special charges, net: On October 10, 2014, United used cash to retire, at par, the entire $248 million principal balance of the 6% Convertible Junior Subordinated Debentures and the 6% Convertible Preferred Securities, Term Income Deferrable Equity Securities (TIDES). The $53 million expense is primarily associated with the write-off of non-cash debt discounts recorded on the TIDES due to purchase accounting during the merger with Continental Airlines in 2010. |
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MTM losses from fuel hedges settling in future periods and prior period gains (losses) on fuel contracts settled in the current period: The company utilizes certain derivative instruments that are economic hedges but do not qualify for hedge accounting under U.S. generally accepted accounting principles. The company records changes in the fair value of these economic hedges to Nonoperating income (expense): Miscellaneous, net in the statements of consolidated operations. During the three and twelve months ended December 31, 2014, the company recorded $225 million and $244 million, respectively, in MTM losses on economic hedges that will settle in future periods. For economic hedges that settled in the three and twelve months ended December 31, 2014, the company recorded MTM gains (losses) of ($18) million and $83 million, respectively, in prior periods. The figures above also include an insignificant amount of ineffectiveness on hedges that are designated for hedge accounting. |
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2013 - Special items |
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Severance and benefit costs: During the fourth quarter of 2013, the company recorded a $91 million severance and benefit special charge. The company offered a voluntary retirement program for its fleet service, passenger service, storekeeper and pilot workgroups. Approximately 1,200 employees volunteered during the fourth quarter and United recorded approximately $64 million of costs for the programs. The company also offered a voluntary leave of absence program that approximately 1,100 flight attendants accepted, which allowed for continued medical coverage during the leave of absence period, resulting in a charge of approximately $12 million. The remaining $15 million of severance and benefit costs is related to involuntary severance programs associated with other workgroups. During the year ended December 31, 2013, the company recorded a $14 million charge associated with a voluntary program offered by United in which flight attendants took an unpaid 13-month leave of absence. The flight attendants received medical benefits and other company benefits while on leave under this program. Approximately 1,300 flight attendants opted to participate in the program. |
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Integration-related costs: Integration-related costs included compensation costs related to systems integration and training, branding activities, new uniforms, write-off or acceleration of depreciation on systems and facilities that were no longer used or planned to be used for significantly shorter periods, relocation for employees and severance primarily associated with administrative headcount reductions. |
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Impairment of assets: During the year ended December 31, 2013, the company recorded $32 million of charges related primarily to impairment of its flight equipment held for disposal associated with its 737-300 and 737-500 fleets and a $1 million charge associated with a route to Manila to reflect the estimated fair value of this asset as part of its annual impairment test of indefinite-lived intangible assets. |
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Labor agreements costs: On September 26, 2013, the company announced that it had reached tentative agreements with respect to joint collective bargaining agreements with the International Association of Machinists for the fleet service, passenger service and storekeeper workgroups. The company recorded a $127 million special charge associated with lump sum cash payments that would be made in conjunction with the ratification of the agreements. The agreements were ratified and the payments were made in the fourth quarter of 2013. |
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Losses on sale of assets and other special (gains) losses, net: During the year ended December 31, 2013, the company recorded $18 million associated with the temporary grounding of its Boeing 787 aircraft. The charges were comprised of aircraft depreciation expense and dedicated personnel costs that the company incurred while the aircraft were grounded. The aircraft returned to service in May 2013. During the fourth quarter of 2013, the company recorded approximately $11 million in accruals for future rent associated with the early retirement of four leased 757-200 aircraft, offset by $5 million in gains on the sale of aircraft and a $5 million adjustment in legal reserves. In addition to the fourth quarter items, during the year ended December 31, 2013, the company adjusted its reserves for certain legal matters by $34 million, recorded a $5 million gain related to a contract termination and recorded $2 million in losses on the sale of assets. |
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MTM gains from fuel hedges settling in future periods and prior period gains on fuel contracts settled in the current period: During the three and twelve months ended December 31, 2013, the company recorded $59 million and $84 million, respectively, in MTM gains on economic hedges that settled in later periods. For economic hedges that settled in the three and twelve months ended December 31, 2013, the company recorded MTM gains of $9 million and $39 million, respectively, in prior periods. The figures above also include an insignificant amount of ineffectiveness on hedges that are designated for hedge accounting. |
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© |
No federal income tax expense was recognized related to the company's pretax income for the three months ended December 31, 2014, and 2013 and the year ended December 31, 2014, and 2013 due to the utilization of book net operating loss carry forwards for which no benefit has previously been recognized. The company is required to provide a valuation allowance for its deferred tax assets in excess of deferred tax liabilities because UAL concluded that it is more likely than not that such deferred tax assets will ultimately not be realized. |
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| Three Months Ended December 31, 2014 |
Three Months Ended December 31, 2013 |
% Increase/ (Decrease) |
Year Ended December 31, 2014 |
Year Ended December 31, 2013 |
% Increase/ (Decrease) |
|
|---|---|---|---|---|---|---|
| Mainline: Passengers (thousands) |
22,087 | 22,155 | (0.3) | 91,475 | 91,329 | 0.2 |
| Mainline:Revenue passenger miles (millions) | 42,609 | 42,531 | 0.2 | 179,015 | 178,578 | 0.2 |
| Mainline:Available seat miles (millions) | 52,197 | 51,670 | 1.0 | 214,105 | 213,007 | 0.5 |
| Mainline:Cargo ton miles (millions) | 674 | 599 | 12.5 | 2,487 | 2,213 | 12.4 |
| Mainline:Passenger load factor: Mainline |
81.6% | 82.3% | (0.7) pts. | 83.6% | 83.8% | (0.2) pts. |
| Mainline:Domestic | 84.1% | 84.8% | (0.7) pts. | 86.0% | 85.7% | 0.3 pts. |
| Mainline:International | 79.2% | 79.7% | (0.5) pts. | 81.3% | 81.9% | (0.6) pts. |
| Mainline:Passenger revenue per available seat mile (cents) | 12.21 | 12.01 | 1.7 | 12.51 | 12.20 | 2.5 |
| Mainline:Average yield per revenue passenger mile (cents) | 14.96 | 14.59 | 2.5 | 14.96 | 14.56 | 2.7 |
| Mainline:Average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense | $2.58 | $3.09 | (16.5) | $2.96 | $3.12 | (5.1) |
| Mainline:Average aircraft fuel price per gallon | $2.69 | $3.07 | (12.4) | $2.98 | $3.12 | (4.5) |
| Mainline:Average aircraft fuel price per gallon including cash received (paid) on settled hedges that did not qualify for hedge accounting | $2.88 | $3.06 | (5.9) | $3.03 | $3.11 | (2.6) |
| Mainline:Fuel gallons consumed (millions) | 769 | 777 | (1.0) | 3,183 | 3,204 | (0.7) |
| Mainline:Aircraft in fleet at end of period | 691 | 693 | (0.3) | 691 | 693 | (0.3) |
| Mainline:Average stage length (miles) | 1,936 | 1,916 | 1.0 | 1,958 | 1,934 | 1.2 |
| Mainline:Average daily utilization of each aircraft (hours) | 10:11 | 10:07 | 0.7 | 10:26 | 10:28 | (0.3) |
| Regional: Passengers (thousands) |
11,470 | 11,952 | (4.0) | 46,554 | 47,880 | (2.8) |
| Regional:Revenue passenger miles (millions) | 6,602 | 6,648 | (0.7) | 26,544 | 26,589 | (0.2) |
| Regional:Available seat miles (millions) | 8,016 | 8,021 | (0.1) | 31,916 | 32,347 | (1.3) |
| Regional:Passenger load factor | 82.4% | 82.9% | (0.5) pts. | 83.2% | 82.2% | 1.0 pts. |
| Regional:Passenger revenue per available seat mile (cents) | 21.31 | 22.09 | (3.5) | 21.86 | 22.03 | (0.8) |
| Regional:Average yield per revenue passenger mile (cents) | 25.87 | 26.65 | (2.9) | 26.28 | 26.80 | (1.9) |
| Regional:Aircraft in fleet at end of period | 566 | 572 | (1.0) | 566 | 572 | (1.0) |
| Regional:Average stage length (miles) | 570 | 544 | 4.8 | 561 | 542 | 3.5 |
| Consolidated (Mainline and Regional): Passengers (thousands) |
33,557 | 34,107 | (1.6) | 138,029 | 139,209 | (0.8) |
| Consolidated (Mainline and Regional)Revenue passenger miles (millions) | 49,211 | 49,179 | 0.1 | 205,559 | 205,167 | 0.2 |
| Consolidated (Mainline and Regional)Available seat miles (millions) | 60,213 | 59,691 | 0.9 | 246,021 | 245,354 | 0.3 |
| Consolidated (Mainline and Regional)Passenger load factor | 81.7% | 82.4% | (0.7) pts. | 83.6% | 83.6% | - pts. |
| Consolidated (Mainline and Regional)Passenger revenue per available seat mile (cents) | 13.42 | 13.36 | 0.4 | 13.72 | 13.50 | 1.6 |
| Consolidated (Mainline and Regional)Total revenue per available seat mile (cents) | 15.47 | 15.63 | (1.0) | 15.81 | 15.60 | 1.3 |
| Consolidated (Mainline and Regional)Average yield per revenue passenger mile (cents) | 16.43 | 16.22 | 1.3 | 16.42 | 16.14 | 1.7 |
| Consolidated (Mainline and Regional)Average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense 4 | $2.58 | $3.11 | (17.0) | $2.97 | $3.13 | (5.1) |
| Consolidated (Mainline and Regional)Average aircraft fuel price per gallon 4 | $2.67 | $3.09 | (13.6) | $2.99 | $3.13 | (4.5) |
| Consolidated (Mainline and Regional)Average aircraft fuel price per gallon including cash received (paid) on settled hedges that did not qualify for hedge accounting 4 | $2.83 | $3.08 | (8.1) | $3.03 | $3.12 | (2.9) |
| Consolidated (Mainline and Regional)Fuel gallons consumed (millions) | 948 | 961 | (1.4) | 3,905 | 3,947 | (1.1) |
| Consolidated (Mainline and Regional)Average full-time equivalent employees (thousands) | 80.5 | 82.2 | (2.1) | 82.0 | 84.2 | (2.6) |
|
||||||
|
UNITED CONTINENTAL HOLDINGS, INC. |
|
UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and Non-GAAP financial measures, including income before income taxes excluding special items, net earnings/loss per share excluding special items, and CASM, among others. CASM is a common metric used in the airline industry to measure an airline's cost structure and efficiency. Pursuant to SEC Regulation G, UAL has included the following reconciliation of reported Non-GAAP financial measures to comparable financial measures reported on a GAAP basis. UAL believes that adjusting for special items is useful to investors because special charges are non-recurring charges not indicative of UAL's ongoing performance. In addition, the company believes that adjusting for MTM gains and losses from fuel hedges settling in future periods and prior period gains and losses on fuel contracts settled in the current period is useful because the adjustments allow investors to better understand the cash impact of settled hedges in a given period. UAL also believes that excluding third-party business expenses, such as maintenance, ground handling and catering services for third parties, fuel sales and non-air mileage redemptions, provides more meaningful disclosure because these expenses are not directly related to UAL's core business. UAL also believes that excluding fuel costs from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence. UAL excludes profit sharing because this exclusion allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry. |
| Three Months Ended December 31, 2014 (In millions) |
Three Months Ended December 31, 2013 (In millions) |
$ Increase/ (Decrease) |
% Increase/ (Decrease) |
Year Ended December 31, 2014 (In millions) |
Year Ended December 31, 2013 (In millions) |
$ Increase/ (Decrease) |
% Increase/ (Decrease) |
|
|---|---|---|---|---|---|---|---|---|
| Operating expenses | $8,688 | $9,094 | $(406) | (4.5) | $36,528 | $37,030 | $(502) | (1.4) |
| Operating expensesLess: Special charges (B) | 179 | 165 | 14 | NM1 | 443 | 520 | (77) | NM1 |
| Operating expenses, excluding special charges | 8,509 | 8,929 | (420) | (4.7) | 36,085 | 36,510 | (425) | (1.2) |
| Operating expenses, excluding special chargesLess: Third-party business expenses | 65 | 198 | (133) | (67.2) | 534 | 694 | (160) | (23.1) |
| Operating expenses, excluding special chargesLess: Fuel expense | 2,530 | 2,965 | (435) | (14.7) | 11,675 | 12,345 | (670) | (5.4) |
| Operating expenses, excluding special chargesLess: Profit sharing, including taxes | 53 | 28 | 25 | 89.3 | 235 | 190 | 45 | 23.7 |
| Operating expenses, excluding fuel, profit sharing, special charges and third-party business expenses | $5,861 | $5,738 | $123 | 2.1 | $23,641 | $23,281 | $360 | 1.5 |
| Income before income taxes | $23 | $112 | $(89) | (79.5) | $1,128 | $539 | $589 | 109.3 |
| Income before income taxesLess: Special items before income tax benefit | 439 | 115 | 324 | 281.7 | 844 | 475 | 369 | 77.7 |
| Income before income taxes and excluding special items | $462 | $227 | $235 | 103.5 | $1,972 | $1,014 | $958 | 94.5 |
| Net income | $28 | $140 | $(112) | (80.0) | $1,132 | $571 | $561 | 98.2 |
| Net incomeLess: special items, net of tax (B) | 433 | 108 | 325 | NM1 | 834 | 468 | 366 | NM1 |
| Net income, excluding special items | $461 | $248 | $213 | 85.9 | $1,966 | $1,039 | $927 | 89.2 |
| Diluted earnings per shareDiluted earnings per share | $0.07 | $0.37 | $(0.30) | (81.1) | $2.93 | $1.53 | $1.40 | 91.5 |
| Diluted earnings per shareAdd back: Special items, net of tax | 1.12 | 0.28 | 0.84 | NM1 | 2.12 | 1.20 | 0.92 | NM1 |
| Diluted earnings per shareAdd back: Impact of dilution, net | 0.01 | - | 0.01 | NM1 | 0.01 | - | 0.01 | NM1 |
| Diluted earnings per share, excluding special items | $1.20 | $0.65 | $0.55 | 84.6 | $5.06 | $2.73 | $2.33 | 85.3 |
| Weighted average shares, diluted |
| Three Months Ended December 31, 2014 in cents |
Three Months Ended December 31, 2013 in cents |
% Increase/ (Decrease) |
Year Ended December 31, 2014 in cents |
Year Ended December 31, 2013 in cents |
% Increase/ (Decrease) |
|
|---|---|---|---|---|---|---|
| CASM Mainline Operations (cents) Cost per available seat mile (CASM) |
13.68 | 14.41 | (5.1) | 14.03 | 14.31 | (2.0) |
| CASM Mainline Operations (cents): Cost per available seat mile (CASM)Less: Special charges (B) | 0.34 | 0.31 | NM1 | 0.21 | 0.24 | NM1 |
| CASM Mainline Operations (cents): Cost per available seat mile (CASM)CASM, excluding special charges | 13.34 | 14.10 | (5.4) | 13.82 | 14.07 | (1.8) |
| CASM Mainline Operations (cents): CASM, excluding special chargesLess: Third-party business expenses | 0.12 | 0.39 | (69.2) | 0.25 | 0.33 | (24.2) |
| CASM Mainline Operations (cents):CASM, excluding special charges and third-party business expenses | 13.22 | 13.71 | (3.6) | 13.57 | 13.74 | (1.2) |
| CASM Mainline Operations (cents): CASM, excluding special charges and third-party business expensesLess: Fuel expense | 3.96 | 4.61 | (14.1) | 4.44 | 4.69 | (5.3) |
| CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses and fuel | 9.26 | 9.10 | 1.8 | 9.13 | 9.05 | 0.9 |
| CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses and fuelLess: Profit sharing per available seat mile | 0.10 | 0.05 | 100.0 | 0.11 | 0.09 | 22.2 |
| CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses, fuel, and profit sharing | 9.16 | 9.05 | 1.2 | 9.02 | 8.96 | 0.7 |
| CASM Consolidated Operations (cents) Cost per available seat mile (CASM) |
14.43 | 15.24 | (5.3) | 14.85 | 15.09 | (1.6) |
| CASM Consolidated Operations (cents): Cost per available seat mile (CASM):Less: Special charges (B) | 0.30 | 0.28 | NM1 | 0.18 | 0.21 | NM1 |
| CASM Consolidated Operations (cents): CASM, excluding special charges | 14.13 | 14.96 | (5.5) | 14.67 | 14.88 | (1.4) |
| CASM Consolidated Operations (cents): CASM, excluding special charges: Less: Third-party business expenses | 0.11 | 0.33 | (66.7) | 0.22 | 0.28 | (21.4) |
| CASM Consolidated Operations (cents): CASM, excluding special charges and third-party business expenses | 14.02 | 14.63 | (4.2) | 14.45 | 14.60 | (1.0) |
| CASM Consolidated Operations (cents): CASM, excluding special charges and third-party business expenses:Less: Fuel expense | 4.20 | 4.97 | (15.5) | 4.75 | 5.03 | (5.6) |
| CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses and fuel | 9.82 | 9.66 | 1.7 | 9.70 | 9.57 | 1.4 |
| CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses and fuel: Less: Profit sharing per available seat mile | 0.09 | 0.05 | 80.0 | 0.09 | 0.08 | 12.5 |
| CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses, fuel, and profit sharing | 9.73 | 9.61 | 1.2 | 9.61 | 9.49 | 1.3 |
| Twelve Months Ended December 31, 2014 (in millions) |
|||||
|---|---|---|---|---|---|
| Net Operating Profit After Tax (NOPAT) Pre-tax income excluding special items 5 |
$1,972 | ||||
| Net Operating Profit After Tax (NOPAT): Add: Interest expense 6 | 733 | ||||
| Net Operating Profit After Tax (NOPAT): Add: Interest component of capitalized aircraft rent 6 | 431 | ||||
| Net Operating Profit After Tax (NOPAT): Add: Net interest on pension 6 | 107 | ||||
| Net Operating Profit After Tax (NOPAT): Less: Income tax expense | (6) | ||||
| Net Operating Profit After Tax (NOPAT): NOPAT | $3,237 | ||||
| Net Operating Profit After Tax (NOPAT): Effective tax rate 7 | 0.3% | ||||
| Invested Capital (five-quarter average) Total assets |
$37,560 | ||||
| Invested Capital (five-quarter average): Total assetsAdd: Capitalized aircraft rent (@7.0x) | 6,362 | ||||
| Invested Capital (five-quarter average): Total assetsLess: Advance ticket sales |
(4,290) | ||||
| Invested Capital (five-quarter average): Total assets: Less:Frequent flyer deferred revenue | (6,345) | ||||
| Invested Capital (five-quarter average): Total assets: Less:Deferred incomes taxes | 2,477 | ||||
| Invested Capital (five-quarter average): Total assets: Less:Tax valuation allowance | (4,076) | ||||
| Invested Capital (five-quarter average): Total assets: Less:Other non-interest bearing liabilities | (6,615) | ||||
| Invested Capital (five-quarter average): Average Invested Capital | $25,073 | ||||
| Invested Capital (five-quarter average): Return on Invested Capital | 12.9% | ||||
|
|||||
| Notes: | Twelve Months Ended December 31, 2014 |
||||
| Pre-tax income | $1,128 | ||||
| Return On Invested CapitalAdd: Special items | 844 | ||||
| Return On Invested CapitalPre-tax income excluding special items | $1,972 | ||||
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SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
- UAL earned a 12.9 percent return on invested capital in 2014.
- United's consolidated passenger revenue per available seat mile (PRASM) increased 1.6 percent for full-year 2014 compared to full-year 2013.
- Full-year 2014 consolidated unit costs (CASM), excluding special charges, third-party business expenses, fuel and profit sharing, increased 1.3 percent year-over-year on a consolidated capacity increase of 0.3 percent. Full-year 2014 CASM, including those items, decreased 1.6 percent year-over-year.
- In 2014, United returned approximately $320 million to shareholders as part of its previously announced $1 billion share buyback program. In addition, throughout the year, United spent $310 million to retire convertible debt that was convertible into approximately 5.8 million shares of UAL common stock.
- Employees earned $235 million in profit sharing for full-year 2014, which will be distributed on Feb. 13.
- UAL ended the year with $5.7 billion in unrestricted liquidity.
"Thanks to the good work of the United team, we reported a $2 billion profit for 2014, excluding special items," said Jeff Smisek, UAL's chairman, president and chief executive officer. "We're starting 2015 as a better airline, and we expect to generate far better results. I'm excited about what we will do this year to improve our operations, our product, and our customer service, focusing on growing our core earnings and margins. For the first quarter, we expect our pre-tax margin to be between 5 and 7 percent, excluding special items."
Fourth-Quarter Revenue and Capacity
For the fourth quarter of 2014, total revenue was $9.3 billion, a decrease of 0.2 percent year-over-year. Fourth-quarter consolidated passenger revenue increased 1.3 percent to $8.1 billion, compared to the same period in 2013. Ancillary revenue per passenger in the fourth quarter increased 9.7 percent year-over-year to more than $22 per passenger. Fourth-quarter cargo revenue grew 18.2 percent to $260 million driven by higher volumes year-over-year, as cargo traffic recovered from the prior year's lower bookings. Other revenue in the fourth quarter decreased 14.3 percent year-over-year to $970 million mostly due to the company choosing to discontinue an agreement to sell fuel to a third party. The corresponding expense decline appears in third-party business expense.
Consolidated revenue passenger miles increased 0.1 percent and consolidated available seat miles increased 0.9 percent year-over-year for the fourth quarter, resulting in a fourth-quarter consolidated load factor of 81.7 percent.
Fourth-quarter 2014 consolidated PRASM increased 0.4 percent and consolidated yield increased 1.3 percent compared to the fourth quarter of 2013.
Passenger revenue for the fourth quarter of 2014 and period-to-period comparisons of related statistics for UAL's mainline and regional operations are as follows:
|
4Q 2014 Passenger Revenue (millions) |
Passenger Revenue vs. 4Q 2013 |
PRASM vs. 4Q 2013 |
Yield vs. 4Q 2013 |
Available Seat Miles vs. 4Q 2013 |
|
|---|---|---|---|---|---|
| Domestic | $3,219 | 1.9% | 3.5% | 4.4% | (1.6%) |
| Atlantic | 1,357 | 4.5% | 6.9% | 6.1% | (2.2%) |
| Pacific | 1,107 | (1.5%) | (5.9%) | (3.8%) | 4.7% |
| Latin America | 692 | 11.3% | (4.4%) | (3.7%) | 16.4% |
| International | 3,156 | 3.6% | (0.2%) | 0.5% | 3.8% |
| Mainline | 6,375 | 2.7% | 1.7% | 2.5% | 1.0% |
| Regional | 1,708 | (3.6%) | (3.5%) | (2.9%) | (0.1%) |
| Consolidated | $8,083 | 1.3% | 0.4% | 1.3% | 0.9% |
Fourth-Quarter Costs
Fourth-quarter consolidated CASM, excluding special charges, third-party business expense, fuel and profit sharing, increased 1.2 percent compared to the fourth quarter of 2013. Fourth-quarter consolidated CASM including those items decreased 5.3 percent.
Fourth-quarter total operating expenses, excluding special charges, decreased $420 million, or 4.7 percent, year-over-year. Including special charges, total operating expenses decreased $406 million, or 4.5 percent, in the fourth quarter versus the same period in 2013.
Fourth-Quarter Liquidity and Cash Flow
UAL ended the fourth quarter with $5.7 billion in unrestricted liquidity, including $1.35 billion of undrawn commitments under its revolving credit facility. During the fourth quarter, the company had gross capital expenditures of $1 billion, excluding fully reimbursable projects. The company made debt and capital lease principal payments of $534 million in the fourth quarter, including prepayment of $248 million of convertible debt that was convertible into approximately 4.3 million shares of United common stock.
As part of United's $1 billion share buyback program, the company spent approximately $100 million in share repurchases in the fourth quarter. For the year, United returned a total of approximately $320 million to shareholders through share repurchases and open market transactions. In addition, for the year the company spent $310 million to retire convertible debt that was convertible into approximately 5.8 million shares.
For the 12 months ended Dec. 31, 2014, the company's return on invested capital was 12.9 percent.
"In 2014 we made significant progress towards creating long-term value for our investors while providing a better experience for our customers," said John Rainey, UAL's executive vice president and chief financial officer. "Our solid cost performance in 2014 was driven by executing on our Project Quality efficiency initiatives. As our cost initiatives mature throughout 2015, we anticipate that 2015 consolidated CASM, excluding fuel and third-party business expense, will be approximately flat."
For more information on United's first-quarter 2015 guidance, please visit ir.united.com for the company's investor update.
About United
United Airlines and United Express operate an average of 5,055 flights a day to 373 airports across six continents. In 2014, United and United Express operated nearly two million flights carrying 138 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates nearly 700 mainline aircraft, and this year, the airline anticipates taking delivery of 34 new Boeing aircraft, including the 787-9 and the 737-900ER. United is also welcoming 49 new Embraer 175 aircraft to United Express. The airline is a founding member of Star Alliance, which provides service to 193 countries via 27 member airlines. More than 84,000 United employees reside in every U.S. state and in countries around the world. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the NYSE under the symbol UAL.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements included in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and financial performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as "expects," "will," "plans," "anticipates," "indicates," "believes," "forecast," "guidance," "outlook" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this report are based upon information available to us on the date of this report. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: our ability to comply with the terms of our various financing arrangements; the costs and availability of financing; our ability to maintain adequate liquidity; our ability to execute our operational plans, including optimizing our revenue; our ability to control our costs, including realizing benefits from our resource optimization efforts, cost reduction initiatives and fleet replacement programs; our ability to utilize our net operating losses; our ability to attract and retain customers; demand for transportation in the markets in which we operate; an outbreak of a disease that affects travel demand or travel behavior; demand for travel and the impact that global economic conditions have on customer travel patterns; excessive taxation and the inability to offset future taxable income; general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aircraft fuel and energy refining capacity in relevant markets); our ability to cost-effectively hedge against increases in the price of aircraft fuel; any potential realized or unrealized gains or losses related to fuel or currency hedging programs; the effects of any hostilities, act of war or terrorist attack; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; the costs and availability of aviation and other insurance; industry consolidation or changes in airline alliances; competitive pressures on pricing and on demand; our capacity decisions and the capacity decisions of our competitors; U.S. or foreign governmental legislation, regulation and other actions (including open skies agreements and environmental regulations); labor costs; our ability to maintain satisfactory labor relations and the results of the collective bargaining agreement process with our union groups; any disruptions to operations due to any potential actions by our labor groups; weather conditions; the possibility that expected merger synergies will not be realized or will not be realized within the expected time period; and other risks and uncertainties set forth under Item 1A., Risk Factors, of UAL's Annual Report on Form 10-K, as well as other risks and uncertainties set forth from time to time in the reports we file with the SEC.
-tables attached-
| Three Months Ended December 31, 2014(In millions, except per share data) |
Three Months Ended December 31, 2013(In millions, except per share data) |
% Increase/ (Decrease) |
Year Ended December 31, 2014(In millions, except per share data) |
Year Ended December 31, 2013(In millions, except per share data) |
% Increase/ (Decrease) |
|
|---|---|---|---|---|---|---|
| Operating revenue: Passenger: Mainline |
$6,375 | $6,205 | 2.7 | $26,785 | $25,997 | 3.0 |
| Operating revenue: Passenger: Regional | 1,708 | 1,772 | (3.6) | 6,977 | 7,125 | (2.1) |
| Operating revenue: Passenger: Total passenger revenue | 8,083 | 7,977 | 1.3 | 33,762 | 33,122 | 1.9 |
| Operating revenue: Cargo | 260 | 220 | 18.2 | 938 | 882 | 6.3 |
| Operating revenue: Other operating revenue | 970 | 1,132 | (14.3) | 4,201 | 4,275 | (1.7) |
| Operating revenue:Total operating revenue | 9,313 | 9,329 | (0.2) | 38,901 | 38,279 | 1.6 |
| Operating expense: Aircraft fuel(A) |
2,530 | 2,965 | (14.7) | 11,675 | 12,345 | (5.4) |
| Operating expense: Salaries and related costs | 2,251 | 2,114 | 6.5 | 8,935 | 8,625 | 3.6 |
| Operating expense: Regional capacity purchase | 597 | 582 | 2.6 | 2,344 | 2,419 | (3.1) |
| Operating expense: Landing fees and other rent | 568 | 546 | 4.0 | 2,274 | 2,090 | 8.8 |
| Operating expense: Aircraft maintenance materials and outside repairs | 415 | 431 | (3.7) | 1,779 | 1,821 | (2.3) |
| Operating expense: Depreciation and amortization | 431 | 421 | 2.4 | 1,679 | 1,689 | (0.6) |
| Operating expense: Distribution expenses | 334 | 338 | (1.2) | 1,373 | 1,390 | (1.2) |
| Operating expense: Aircraft rent | 215 | 230 | (6.5) | 883 | 936 | (5.7) |
| Operating expense: Special charges (B) | 179 | 165 | NM1 | 443 | 520 | NM1 |
| Operating expense: Other operating expenses | 1,168 | 1,302 | (10.3) | 5,143 | 5,195 | (1.0) |
| Operating expense: Other Operating Expenses: Total operating expenses | 8,688 | 9,094 | (4.5) | 36,528 | 37,030 | (1.4) |
| Operating income | 625 | 235 | 166.0 | 2,373 | 1,249 | 90.0 |
| Nonoperating income (expense): Interest expense |
(176) | (193) | (8.8) | (735) | (783) | (6.1) |
| Nonoperating income (expense): Interest capitalized | 12 | 14 | (14.3) | 52 | 49 | 6.1 |
| Nonoperating income (expense): Interest income | 5 | 5 | - | 22 | 21 | 4.8 |
| Nonoperating income (expense): Miscellaneous, net (B) | (443) | 51 | NM1 | (584) | 3 | NM1 |
| Nonoperating income (expense): Miscellaneous, net (B): Total nonoperating expense | (602) | (123) | 389.4 | (1,245) | (710) | 75.4 |
| Income before income taxes: Income before income taxes | 23 | 112 | (79.5) | 1,128 | 539 | 109.3 |
| Income tax expense: Income tax expense (benefit) (C) | (5) | (28) | (82.1) | (4) | (32) | (87.5) |
| Net income: Net income | $28 | $140 | (80.0) | $1,132 | $571 | 98.2 |
| Earnings per share: Earnings per share, basic | $0.08 | $0.39 | (79.5) | $3.05 | $1.64 | 86.0 |
| Earnings per share: Earnings per share, diluted | $0.07 | $0.37 | (81.1) | $2.93 | $1.53 | 91.5 |
| Weighted average shares: Weighted average shares, basic | 372 | 361 | 3.0 | 371 | 348 | 6.6 |
| Weighted average shares: Weighted average shares, diluted | 376 | 391 | (3.8) | 390 | 391 | (0.3) |
|
||||||
| Three Months Ended December 31, 2014 (In millions, except per gallon) |
Three Months Ended December 31, 2013 (In millions, except per gallon) |
% Increase/ (Decrease) |
Year Ended December 31, 2014 (In millions, except per gallon) |
Year Ended December 31, 2013 (In millions, except per gallon) |
% Increase/ (Decrease) |
|
|---|---|---|---|---|---|---|
| Mainline fuel expense excluding hedge impacts Mainline fuel expense excluding hedge impacts | $1,982 | $2,404 | (17.6) | $9,408 | $10,008 | (6.0) |
| Hedge losses reported in fuel expense 2 | (85) | 22 | NM1 | (89) | 18 | NM1 |
| Total mainline fuel expenseTotal mainline fuel expense | 2,067 | 2,382 | (13.2) | 9,497 | 9,990 | (4.9) |
| Regional fuel expense Regional fuel expense | 463 | 583 | (20.6) | 2,178 | 2,355 | (7.5) |
| Consolidated fuel expenseConsolidated fuel expense | 2,530 | 2,965 | (14.7) | 11,675 | 12,345 | (5.4) |
| Cash paid on settled hedges that did not qualify for hedge accounting 3 | (151) | 4 | NM1 | (138) | 39 | NM1 |
| Fuel expense including all losses from settled hedges | $2,681 | $2,961 | (9.5) | $11,813 | $12,306 | (4.0) |
| Mainline fuel consumption (gallons) | 769 | 777 | (1.0) | 3,183 | 3,204 | (0.7) |
| Mainline average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense | $2.58 | $3.09 | (16.5) | $2.96 | $3.12 | (5.1) |
| Mainline average aircraft fuel price per gallon | $2.69 | $3.07 | (12.4) | $2.98 | $3.12 | (4.5) |
| Mainline average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accounting | $2.88 | $3.06 | (5.9) | $3.03 | $3.11 | (2.6) |
| Regional fuel consumption (gallons) | 179 | 184 | (2.7) | 722 | 743 | (2.8) |
| Regional average aircraft fuel price per gallon | $2.59 | $3.17 | (18.3) | $3.02 | $3.17 | (4.7) |
| Consolidated fuel consumption (gallons) | 948 | 961 | (1.4) | 3,905 | 3,947 | (1.1) |
| Consolidated average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense | $2.58 | $3.11 | (17.0) | $2.97 | $3.13 | (5.1) |
| Consolidated average aircraft fuel price per gallon | $2.67 | $3.09 | (13.6) | $2.99 | $3.13 | (4.5) |
| Consolidated average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accounting | $2.83 | $3.08 | (8.1) | $3.03 | $3.12 | (2.9) |
|
||||||
| Three Months Ended December 31, 2014 (In millions) |
Three Months Ended December 31, 2013 (In millions) |
Year Ended December 31, 2014 (In millions) |
Year Ended December 31, 2013 (In millions) |
|
|---|---|---|---|---|
| Operating: Severance and benefit costs |
$141 | $91 | $199 | $105 |
| Operating:Integration-related costs | 17 | 40 | 96 | 205 |
| Operating:Impairment of assets | 16 | 33 | 49 | 33 |
| Operating:Costs associated with permanently grounding Embraer ERJ 135 aircraft | - | - | 66 | - |
| Operating:Labor agreement costs | - | - | - | 127 |
| Operating:Losses on sale of assets and other special (gains) losses, net | 5 | 1 | 33 | 50 |
| Operating:Special charges | $179 | $165 | $443 | $520 |
| Nonoperating: Loss on extinguishment of debt and other, net |
$53 | $- | $74 | $- |
| Nonoperating: Income tax benefit | (6) | (7) | (10) | (7) |
| Nonoperating:Total operating and nonoperating special charges, net of income taxes | $226 | $158 | $507 | $513 |
| Nonoperating:Mark-to-market (MTM) losses from fuel derivative contracts settling in future periods | $225 | $(59) | $244 | $(84) |
| Nonoperating:Prior period gains (losses) on fuel derivative contracts settled in the current period | (18) | 9 | 83 | 39 |
| Nonoperating:Total special items, net of income taxes | $433 | $108 | $834 | $468 |
|
2014 - Special items |
|||||
|
Severance and benefit costs: During the fourth quarter of 2014, the company recorded $141 million of costs related primarily to a voluntary early-out program for its flight attendants. More than 2,500 participants elected a one-time opportunity to voluntarily separate from the company and will receive a severance payment, with a maximum value of $100,000 per participant, based on years of service, with retirement dates from November 30, 2014 through the end of 2015. The company will record additional expense associated with this program through 2015 over the remaining required service periods. In addition to the fourth quarter item, during the year ended December 31, 2014, the company recorded $58 million of severance and benefits primarily related to reductions of management and front-line employees, including from Cleveland airport, as part of its cost savings initiatives. The company is currently evaluating its options regarding its long-term contractual commitments at Cleveland. The capacity reductions at Cleveland may result in further special charges, which could be significant, related to our contractual commitments. |
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Integration-related costs: Integration-related costs include compensation costs related to systems integration, training, severance and relocation for employees.
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Impairment of assets: During the fourth quarter of 2014, the company recorded a charge of $16 million ($10 million net of related income tax benefits) related to its annual assessment of impairment of its indefinite-lived intangible assets (primarily international Pacific routes). In addition to the fourth quarter item, during the year ended December 31, 2014, the company recorded $33 million for charges related primarily to impairment of its flight equipment held for disposal associated with its Boeing 737-300 and 737-500 fleets. |
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Costs associated with permanently grounding Embraer ERJ 135 aircraft: During the year ended December 31, 2014, the company recorded $66 million for the permanent grounding of 21 of the company's Embraer ERJ 135 regional aircraft under lease through 2018, which includes an accrual for remaining lease payments and an amount for maintenance return conditions. As a result of the current fuel prices, new Embraer 175 regional jet deliveries and impact of pilot shortages at regional carriers, the company decided to permanently ground these 21 Embraer ERJ 135 aircraft. The company continues to operate nine Embraer ERJ 135 aircraft and will assess the possibility of grounding those aircraft when the term of the current capacity purchase contract ends. |
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Loss on extinguishment of debt and other special charges, net: On October 10, 2014, United used cash to retire, at par, the entire $248 million principal balance of the 6% Convertible Junior Subordinated Debentures and the 6% Convertible Preferred Securities, Term Income Deferrable Equity Securities (TIDES). The $53 million expense is primarily associated with the write-off of non-cash debt discounts recorded on the TIDES due to purchase accounting during the merger with Continental Airlines in 2010. |
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MTM losses from fuel hedges settling in future periods and prior period gains (losses) on fuel contracts settled in the current period: The company utilizes certain derivative instruments that are economic hedges but do not qualify for hedge accounting under U.S. generally accepted accounting principles. The company records changes in the fair value of these economic hedges to Nonoperating income (expense): Miscellaneous, net in the statements of consolidated operations. During the three and twelve months ended December 31, 2014, the company recorded $225 million and $244 million, respectively, in MTM losses on economic hedges that will settle in future periods. For economic hedges that settled in the three and twelve months ended December 31, 2014, the company recorded MTM gains (losses) of ($18) million and $83 million, respectively, in prior periods. The figures above also include an insignificant amount of ineffectiveness on hedges that are designated for hedge accounting. |
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2013 - Special items |
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Severance and benefit costs: During the fourth quarter of 2013, the company recorded a $91 million severance and benefit special charge. The company offered a voluntary retirement program for its fleet service, passenger service, storekeeper and pilot workgroups. Approximately 1,200 employees volunteered during the fourth quarter and United recorded approximately $64 million of costs for the programs. The company also offered a voluntary leave of absence program that approximately 1,100 flight attendants accepted, which allowed for continued medical coverage during the leave of absence period, resulting in a charge of approximately $12 million. The remaining $15 million of severance and benefit costs is related to involuntary severance programs associated with other workgroups. During the year ended December 31, 2013, the company recorded a $14 million charge associated with a voluntary program offered by United in which flight attendants took an unpaid 13-month leave of absence. The flight attendants received medical benefits and other company benefits while on leave under this program. Approximately 1,300 flight attendants opted to participate in the program. |
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Integration-related costs: Integration-related costs included compensation costs related to systems integration and training, branding activities, new uniforms, write-off or acceleration of depreciation on systems and facilities that were no longer used or planned to be used for significantly shorter periods, relocation for employees and severance primarily associated with administrative headcount reductions. |
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Impairment of assets: During the year ended December 31, 2013, the company recorded $32 million of charges related primarily to impairment of its flight equipment held for disposal associated with its 737-300 and 737-500 fleets and a $1 million charge associated with a route to Manila to reflect the estimated fair value of this asset as part of its annual impairment test of indefinite-lived intangible assets. |
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Labor agreements costs: On September 26, 2013, the company announced that it had reached tentative agreements with respect to joint collective bargaining agreements with the International Association of Machinists for the fleet service, passenger service and storekeeper workgroups. The company recorded a $127 million special charge associated with lump sum cash payments that would be made in conjunction with the ratification of the agreements. The agreements were ratified and the payments were made in the fourth quarter of 2013. |
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Losses on sale of assets and other special (gains) losses, net: During the year ended December 31, 2013, the company recorded $18 million associated with the temporary grounding of its Boeing 787 aircraft. The charges were comprised of aircraft depreciation expense and dedicated personnel costs that the company incurred while the aircraft were grounded. The aircraft returned to service in May 2013. During the fourth quarter of 2013, the company recorded approximately $11 million in accruals for future rent associated with the early retirement of four leased 757-200 aircraft, offset by $5 million in gains on the sale of aircraft and a $5 million adjustment in legal reserves. In addition to the fourth quarter items, during the year ended December 31, 2013, the company adjusted its reserves for certain legal matters by $34 million, recorded a $5 million gain related to a contract termination and recorded $2 million in losses on the sale of assets. |
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MTM gains from fuel hedges settling in future periods and prior period gains on fuel contracts settled in the current period: During the three and twelve months ended December 31, 2013, the company recorded $59 million and $84 million, respectively, in MTM gains on economic hedges that settled in later periods. For economic hedges that settled in the three and twelve months ended December 31, 2013, the company recorded MTM gains of $9 million and $39 million, respectively, in prior periods. The figures above also include an insignificant amount of ineffectiveness on hedges that are designated for hedge accounting. |
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© |
No federal income tax expense was recognized related to the company's pretax income for the three months ended December 31, 2014, and 2013 and the year ended December 31, 2014, and 2013 due to the utilization of book net operating loss carry forwards for which no benefit has previously been recognized. The company is required to provide a valuation allowance for its deferred tax assets in excess of deferred tax liabilities because UAL concluded that it is more likely than not that such deferred tax assets will ultimately not be realized. |
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| Three Months Ended December 31, 2014 |
Three Months Ended December 31, 2013 |
% Increase/ (Decrease) |
Year Ended December 31, 2014 |
Year Ended December 31, 2013 |
% Increase/ (Decrease) |
|
|---|---|---|---|---|---|---|
| Mainline: Passengers (thousands) |
22,087 | 22,155 | (0.3) | 91,475 | 91,329 | 0.2 |
| Mainline:Revenue passenger miles (millions) | 42,609 | 42,531 | 0.2 | 179,015 | 178,578 | 0.2 |
| Mainline:Available seat miles (millions) | 52,197 | 51,670 | 1.0 | 214,105 | 213,007 | 0.5 |
| Mainline:Cargo ton miles (millions) | 674 | 599 | 12.5 | 2,487 | 2,213 | 12.4 |
| Mainline:Passenger load factor: Mainline |
81.6% | 82.3% | (0.7) pts. | 83.6% | 83.8% | (0.2) pts. |
| Mainline:Domestic | 84.1% | 84.8% | (0.7) pts. | 86.0% | 85.7% | 0.3 pts. |
| Mainline:International | 79.2% | 79.7% | (0.5) pts. | 81.3% | 81.9% | (0.6) pts. |
| Mainline:Passenger revenue per available seat mile (cents) | 12.21 | 12.01 | 1.7 | 12.51 | 12.20 | 2.5 |
| Mainline:Average yield per revenue passenger mile (cents) | 14.96 | 14.59 | 2.5 | 14.96 | 14.56 | 2.7 |
| Mainline:Average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense | $2.58 | $3.09 | (16.5) | $2.96 | $3.12 | (5.1) |
| Mainline:Average aircraft fuel price per gallon | $2.69 | $3.07 | (12.4) | $2.98 | $3.12 | (4.5) |
| Mainline:Average aircraft fuel price per gallon including cash received (paid) on settled hedges that did not qualify for hedge accounting | $2.88 | $3.06 | (5.9) | $3.03 | $3.11 | (2.6) |
| Mainline:Fuel gallons consumed (millions) | 769 | 777 | (1.0) | 3,183 | 3,204 | (0.7) |
| Mainline:Aircraft in fleet at end of period | 691 | 693 | (0.3) | 691 | 693 | (0.3) |
| Mainline:Average stage length (miles) | 1,936 | 1,916 | 1.0 | 1,958 | 1,934 | 1.2 |
| Mainline:Average daily utilization of each aircraft (hours) | 10:11 | 10:07 | 0.7 | 10:26 | 10:28 | (0.3) |
| Regional: Passengers (thousands) |
11,470 | 11,952 | (4.0) | 46,554 | 47,880 | (2.8) |
| Regional:Revenue passenger miles (millions) | 6,602 | 6,648 | (0.7) | 26,544 | 26,589 | (0.2) |
| Regional:Available seat miles (millions) | 8,016 | 8,021 | (0.1) | 31,916 | 32,347 | (1.3) |
| Regional:Passenger load factor | 82.4% | 82.9% | (0.5) pts. | 83.2% | 82.2% | 1.0 pts. |
| Regional:Passenger revenue per available seat mile (cents) | 21.31 | 22.09 | (3.5) | 21.86 | 22.03 | (0.8) |
| Regional:Average yield per revenue passenger mile (cents) | 25.87 | 26.65 | (2.9) | 26.28 | 26.80 | (1.9) |
| Regional:Aircraft in fleet at end of period | 566 | 572 | (1.0) | 566 | 572 | (1.0) |
| Regional:Average stage length (miles) | 570 | 544 | 4.8 | 561 | 542 | 3.5 |
| Consolidated (Mainline and Regional): Passengers (thousands) |
33,557 | 34,107 | (1.6) | 138,029 | 139,209 | (0.8) |
| Consolidated (Mainline and Regional)Revenue passenger miles (millions) | 49,211 | 49,179 | 0.1 | 205,559 | 205,167 | 0.2 |
| Consolidated (Mainline and Regional)Available seat miles (millions) | 60,213 | 59,691 | 0.9 | 246,021 | 245,354 | 0.3 |
| Consolidated (Mainline and Regional)Passenger load factor | 81.7% | 82.4% | (0.7) pts. | 83.6% | 83.6% | - pts. |
| Consolidated (Mainline and Regional)Passenger revenue per available seat mile (cents) | 13.42 | 13.36 | 0.4 | 13.72 | 13.50 | 1.6 |
| Consolidated (Mainline and Regional)Total revenue per available seat mile (cents) | 15.47 | 15.63 | (1.0) | 15.81 | 15.60 | 1.3 |
| Consolidated (Mainline and Regional)Average yield per revenue passenger mile (cents) | 16.43 | 16.22 | 1.3 | 16.42 | 16.14 | 1.7 |
| Consolidated (Mainline and Regional)Average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense 4 | $2.58 | $3.11 | (17.0) | $2.97 | $3.13 | (5.1) |
| Consolidated (Mainline and Regional)Average aircraft fuel price per gallon 4 | $2.67 | $3.09 | (13.6) | $2.99 | $3.13 | (4.5) |
| Consolidated (Mainline and Regional)Average aircraft fuel price per gallon including cash received (paid) on settled hedges that did not qualify for hedge accounting 4 | $2.83 | $3.08 | (8.1) | $3.03 | $3.12 | (2.9) |
| Consolidated (Mainline and Regional)Fuel gallons consumed (millions) | 948 | 961 | (1.4) | 3,905 | 3,947 | (1.1) |
| Consolidated (Mainline and Regional)Average full-time equivalent employees (thousands) | 80.5 | 82.2 | (2.1) | 82.0 | 84.2 | (2.6) |
|
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UNITED CONTINENTAL HOLDINGS, INC. |
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UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and Non-GAAP financial measures, including income before income taxes excluding special items, net earnings/loss per share excluding special items, and CASM, among others. CASM is a common metric used in the airline industry to measure an airline's cost structure and efficiency. Pursuant to SEC Regulation G, UAL has included the following reconciliation of reported Non-GAAP financial measures to comparable financial measures reported on a GAAP basis. UAL believes that adjusting for special items is useful to investors because special charges are non-recurring charges not indicative of UAL's ongoing performance. In addition, the company believes that adjusting for MTM gains and losses from fuel hedges settling in future periods and prior period gains and losses on fuel contracts settled in the current period is useful because the adjustments allow investors to better understand the cash impact of settled hedges in a given period. UAL also believes that excluding third-party business expenses, such as maintenance, ground handling and catering services for third parties, fuel sales and non-air mileage redemptions, provides more meaningful disclosure because these expenses are not directly related to UAL's core business. UAL also believes that excluding fuel costs from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence. UAL excludes profit sharing because this exclusion allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry. |
| Three Months Ended December 31, 2014 (In millions) |
Three Months Ended December 31, 2013 (In millions) |
$ Increase/ (Decrease) |
% Increase/ (Decrease) |
Year Ended December 31, 2014 (In millions) |
Year Ended December 31, 2013 (In millions) |
$ Increase/ (Decrease) |
% Increase/ (Decrease) |
|
|---|---|---|---|---|---|---|---|---|
| Operating expenses | $8,688 | $9,094 | $(406) | (4.5) | $36,528 | $37,030 | $(502) | (1.4) |
| Operating expensesLess: Special charges (B) | 179 | 165 | 14 | NM1 | 443 | 520 | (77) | NM1 |
| Operating expenses, excluding special charges | 8,509 | 8,929 | (420) | (4.7) | 36,085 | 36,510 | (425) | (1.2) |
| Operating expenses, excluding special chargesLess: Third-party business expenses | 65 | 198 | (133) | (67.2) | 534 | 694 | (160) | (23.1) |
| Operating expenses, excluding special chargesLess: Fuel expense | 2,530 | 2,965 | (435) | (14.7) | 11,675 | 12,345 | (670) | (5.4) |
| Operating expenses, excluding special chargesLess: Profit sharing, including taxes | 53 | 28 | 25 | 89.3 | 235 | 190 | 45 | 23.7 |
| Operating expenses, excluding fuel, profit sharing, special charges and third-party business expenses | $5,861 | $5,738 | $123 | 2.1 | $23,641 | $23,281 | $360 | 1.5 |
| Income before income taxes | $23 | $112 | $(89) | (79.5) | $1,128 | $539 | $589 | 109.3 |
| Income before income taxesLess: Special items before income tax benefit | 439 | 115 | 324 | 281.7 | 844 | 475 | 369 | 77.7 |
| Income before income taxes and excluding special items | $462 | $227 | $235 | 103.5 | $1,972 | $1,014 | $958 | 94.5 |
| Net income | $28 | $140 | $(112) | (80.0) | $1,132 | $571 | $561 | 98.2 |
| Net incomeLess: special items, net of tax (B) | 433 | 108 | 325 | NM1 | 834 | 468 | 366 | NM1 |
| Net income, excluding special items | $461 | $248 | $213 | 85.9 | $1,966 | $1,039 | $927 | 89.2 |
| Diluted earnings per shareDiluted earnings per share | $0.07 | $0.37 | $(0.30) | (81.1) | $2.93 | $1.53 | $1.40 | 91.5 |
| Diluted earnings per shareAdd back: Special items, net of tax | 1.12 | 0.28 | 0.84 | NM1 | 2.12 | 1.20 | 0.92 | NM1 |
| Diluted earnings per shareAdd back: Impact of dilution, net | 0.01 | - | 0.01 | NM1 | 0.01 | - | 0.01 | NM1 |
| Diluted earnings per share, excluding special items | $1.20 | $0.65 | $0.55 | 84.6 | $5.06 | $2.73 | $2.33 | 85.3 |
| Weighted average shares, diluted |
| Three Months Ended December 31, 2014 in cents |
Three Months Ended December 31, 2013 in cents |
% Increase/ (Decrease) |
Year Ended December 31, 2014 in cents |
Year Ended December 31, 2013 in cents |
% Increase/ (Decrease) |
|
|---|---|---|---|---|---|---|
| CASM Mainline Operations (cents) Cost per available seat mile (CASM) |
13.68 | 14.41 | (5.1) | 14.03 | 14.31 | (2.0) |
| CASM Mainline Operations (cents): Cost per available seat mile (CASM)Less: Special charges (B) | 0.34 | 0.31 | NM1 | 0.21 | 0.24 | NM1 |
| CASM Mainline Operations (cents): Cost per available seat mile (CASM)CASM, excluding special charges | 13.34 | 14.10 | (5.4) | 13.82 | 14.07 | (1.8) |
| CASM Mainline Operations (cents): CASM, excluding special chargesLess: Third-party business expenses | 0.12 | 0.39 | (69.2) | 0.25 | 0.33 | (24.2) |
| CASM Mainline Operations (cents):CASM, excluding special charges and third-party business expenses | 13.22 | 13.71 | (3.6) | 13.57 | 13.74 | (1.2) |
| CASM Mainline Operations (cents): CASM, excluding special charges and third-party business expensesLess: Fuel expense | 3.96 | 4.61 | (14.1) | 4.44 | 4.69 | (5.3) |
| CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses and fuel | 9.26 | 9.10 | 1.8 | 9.13 | 9.05 | 0.9 |
| CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses and fuelLess: Profit sharing per available seat mile | 0.10 | 0.05 | 100.0 | 0.11 | 0.09 | 22.2 |
| CASM Mainline Operations (cents): CASM, excluding special charges, third-party business expenses, fuel, and profit sharing | 9.16 | 9.05 | 1.2 | 9.02 | 8.96 | 0.7 |
| CASM Consolidated Operations (cents) Cost per available seat mile (CASM) |
14.43 | 15.24 | (5.3) | 14.85 | 15.09 | (1.6) |
| CASM Consolidated Operations (cents): Cost per available seat mile (CASM):Less: Special charges (B) | 0.30 | 0.28 | NM1 | 0.18 | 0.21 | NM1 |
| CASM Consolidated Operations (cents): CASM, excluding special charges | 14.13 | 14.96 | (5.5) | 14.67 | 14.88 | (1.4) |
| CASM Consolidated Operations (cents): CASM, excluding special charges: Less: Third-party business expenses | 0.11 | 0.33 | (66.7) | 0.22 | 0.28 | (21.4) |
| CASM Consolidated Operations (cents): CASM, excluding special charges and third-party business expenses | 14.02 | 14.63 | (4.2) | 14.45 | 14.60 | (1.0) |
| CASM Consolidated Operations (cents): CASM, excluding special charges and third-party business expenses:Less: Fuel expense | 4.20 | 4.97 | (15.5) | 4.75 | 5.03 | (5.6) |
| CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses and fuel | 9.82 | 9.66 | 1.7 | 9.70 | 9.57 | 1.4 |
| CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses and fuel: Less: Profit sharing per available seat mile | 0.09 | 0.05 | 80.0 | 0.09 | 0.08 | 12.5 |
| CASM Consolidated Operations (cents): CASM, excluding special charges, third-party business expenses, fuel, and profit sharing | 9.73 | 9.61 | 1.2 | 9.61 | 9.49 | 1.3 |
| Twelve Months Ended December 31, 2014 (in millions) |
|||||
|---|---|---|---|---|---|
| Net Operating Profit After Tax (NOPAT) Pre-tax income excluding special items 5 |
$1,972 | ||||
| Net Operating Profit After Tax (NOPAT): Add: Interest expense 6 | 733 | ||||
| Net Operating Profit After Tax (NOPAT): Add: Interest component of capitalized aircraft rent 6 | 431 | ||||
| Net Operating Profit After Tax (NOPAT): Add: Net interest on pension 6 | 107 | ||||
| Net Operating Profit After Tax (NOPAT): Less: Income tax expense | (6) | ||||
| Net Operating Profit After Tax (NOPAT): NOPAT | $3,237 | ||||
| Net Operating Profit After Tax (NOPAT): Effective tax rate 7 | 0.3% | ||||
| Invested Capital (five-quarter average) Total assets |
$37,560 | ||||
| Invested Capital (five-quarter average): Total assetsAdd: Capitalized aircraft rent (@7.0x) | 6,362 | ||||
| Invested Capital (five-quarter average): Total assetsLess: Advance ticket sales |
(4,290) | ||||
| Invested Capital (five-quarter average): Total assets: Less:Frequent flyer deferred revenue | (6,345) | ||||
| Invested Capital (five-quarter average): Total assets: Less:Deferred incomes taxes | 2,477 | ||||
| Invested Capital (five-quarter average): Total assets: Less:Tax valuation allowance | (4,076) | ||||
| Invested Capital (five-quarter average): Total assets: Less:Other non-interest bearing liabilities | (6,615) | ||||
| Invested Capital (five-quarter average): Average Invested Capital | $25,073 | ||||
| Invested Capital (five-quarter average): Return on Invested Capital | 12.9% | ||||
|
|||||
| Notes: | Twelve Months Ended December 31, 2014 |
||||
| Pre-tax income | $1,128 | ||||
| Return On Invested CapitalAdd: Special items | 844 | ||||
| Return On Invested CapitalPre-tax income excluding special items | $1,972 | ||||
Photo - http://photos.prnewswire.com/prnh/20141016/429327-INFO
Logo - http://photos.prnewswire.com/prnh/20130404/MM89155LOGO
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
"We know that having a wide variety of gourmet food and beverage options is important to our customers and we look forward to introducing these exciting, new options to enhance their flying experience," said Toby Enqvist, chief customer officer for United. "Our new contactless payment technology enables us to safely introduce this new menu on select flights as we continue to see more customer return to flying."
New Adult Beverage Menu
United's revamped adult beverage menu features a number of options sourced locally from United's hubs, along with customer favorites from iconic brands. The new menu includes:
- White Claw® Mango
- Breckenridge Brewery Juice Drop Hazy IPA
- Kona Brewing Co. Big Wave Golden Ale
- Michelob ULTRA®
- Stella Artois®
- Red, white and sparkling wine options
New Snack Boxes
United's new snack boxes offer three distinct experiences for travelers of all ages and tastes:
- Tapas Box: Hummus, bruschetta, breadstick crackers, flatbread crackers, sea salt almonds, olives, dark chocolate sea salt caramel
- Takeoff Box: Salami, apricots, gouda cheese spread, white cheddar cheese spread, multigrain crackers, cream crackers, smoked almonds, Toblerone®
- Recline Box: Pirate's Booty® white cheddar puffs, honey mustard pretzels, gummi bears, OREO® cookies
New A la Carte Options
In addition to the popular Pringles® Classic potato chips, United is adding three new a la carte snacks to its menu to give customers a larger variety of options, including high-protein and gluten-free options. The revamped menu includes:
- Trü Frü Banana Bites: hyper-dried bananas covered in dark chocolate
- Food Should Taste Good™ Chips & Salsa Box: gluten-free, sweet potato "tortilla" chips with roasted pepper salsa
- GourmetNut Mega Omega Trail Mix: snack mix with walnuts, dried mango, almonds, cranberries, pumpkin seeds
How Contactless Payment Works:
To purchase select drinks and snack items onboard a flight, United's contactless payment system allows customers to store their payment information in a digital wallet on the United app and on United.com prior to departure.
- Once in flight, customers can access a menu to view available items either on the United app and in Hemispheres.
- Rather than handing the flight attendant a credit card, the flight attendant will ask for the customer's name and seat to confirm the card on file.
- Once confirmed, customers will receive their products and the card on file will be charged accordingly.
For information on snacks available for purchase and step-by-step instructions on how to store a payment method and FAQs, visit United.com/snacktime.
New Domestic Premium Cabin Menu Items
United is also introducing brand-new meal offerings to customers seated in domestic premium cabins on flights over 1,500 miles and hub-to-hub flights over 800 miles. The enhanced meal service includes a choice of entrees – including fresher options like egg scramble with plant-based chorizo and grilled chicken breast with orzo and lemon basil pesto – sides and dessert. United has also partnered with Eli's Cheesecake to create a uniquely United chocolate pie flavor called "Pie in the Sky." The meals will be served on one tray, with items individually wrapped, to limit person-to-person contact and further the safety of our employees and customers.
Committed to Ensuring a Safer 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
"We appreciate the private sector proactively helping travelers have access to easy, reliable COVID-19 test options," said CDC Director Rochelle P. Walensky, MD, MPH. "Comprehensive testing that is easy, rapid, accurate and trusted is a fundamental strategy for preventing the spread of COVID-19."
United customers can depart the United States with the BinaxNOW Home Test in their carry-on bag and administer the test via the eMed digital health platform while overseas, avoiding the need to find a testing center abroad. United is the only airline to offer end-to-end integration between a digital platform and a testing app with the integration between the United Travel Ready Center platform and Abbott's NAVICA app which provides a seamless passenger experience when departing and re-entering the United States. Since the Travel-Ready Center launched in January, United customers have been able to easily access testing or vaccine requirements needed for travel destinations, upload completed test results and vaccine records, as well as have them verified, all within the United app.
"We want to give our customers greater peace of mind that when they travel internationally, they'll be able to return to the U.S quickly and safely," said Toby Enqvist, chief customer officer at United. "The Abbott BinaxNOW Home Test meets CDC requirements and, along with our partners at Abbott, United is doubling down on our commitment to make international travel as safe and convenient as possible by offering an easy testing option when customers are ready to return to the United States."
The BinaxNOW Home Test kit is lightweight, about the size of a day planner and fits easily into a passenger's carry-on luggage, briefcase or purse. It is recommended that passengers travel with more than one BinaxNOW test in their possession in the event of an inconclusive test result.
"The BinaxNOW COVID-19 rapid test is the most studied and widely used rapid test in the United States today and with our partner United, we're making testing even more broadly available as the country returns to international business and leisure travel," said Andrea F. Wainer, executive vice president of Abbott's rapid and molecular diagnostics business. "The CDC's recent guidance also reinforces the importance of our NAVICA app, because airlines and other safety-conscious industries, such as workplaces and higher education, will need digital solutions that can be used to quickly and easily validate and verify test results."
The BinaxNOW COVID-19 rapid test can help restore a sense of normalcy to everyday life by reuniting family members and loved ones, providing additional confidence while traveling, and making it easier to do international business. Authorized since August 2020, more than 200 million BinaxNOW tests have been distributed throughout the United States, where they've been used by K-12 schools, universities, nursing homes, and underserved communities and serve as a powerful tool to help prevent the virus from spreading.
For a detailed description of the Abbott home-testing process, visit united.emed.com. To view video and photos of the process click here.
The Abbott BinaxNOW™ Home Test meets the the CDC's guidance due to the unique digital proctor experience through eMed, which provides observed sample collection, testing and digitally verified test results. Abbott's recently authorized BinaxNOW™ Self Test for over-the-counter purchase is not eligible for travel purposes.
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".
About Abbott
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 109,000 colleagues serve people in more than 160 countries.
Connect with us at www.abbott.com, on LinkedIn at www.linkedin.com/company/abbott-/, on Facebook at www.facebook.com/Abbott and on Twitter @AbbottNews.
The BinaxNOW™ COVID-19 Ag Card Home Test is a lateral flow immunoassay intended for the qualitative detection of nucleocapsid protein antigen from SARS-CoV-2. This test is authorized for prescription home use with self-collected observed direct anterior nasal (nares) swab samples from individuals aged 15 years or older who are suspected of COVID-19 by their healthcare provider within the first seven days of symptom onset or adult collected nasal swab samples from individuals aged four years or older who are suspected of COVID-19 by their healthcare provider within the first seven days of symptom onset.
The BinaxNOW COVID-19 Ag Card Home Test is to be performed only with the supervision of a telehealth proctor.
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
CHICAGO, May 4, 2021 /PRNewswire/ -- Today, United Airlines expands its efforts to support those impacted by the COVID-19 crisis in India with the launch of a new online fundraising campaign. Customers can donate to the airline's relief partners: Airlink, Americares, GlobalGiving Foundation and World Central Kitchen. United is offering up to 5 million bonus miles to encourage MileagePlus® members to support this effort and will match each donation up to a total of $40,000 in cash donations. In addition, United is currently the only U.S. airline serving India, and over the last few days has helped transport more than 300,000 pounds of critical medical supplies to the region.
"Throughout the pandemic, we have been committed to leveraging our resources and relationships to provide support to communities hit hardest by COVID-19," said Luc Bondar, vice president of marketing & loyalty and president of MileagePlus at United. "As India faces this crisis, our generous customers, employees and MileagePlus members have stepped forward to ask how they can support those in need, and we are proud and humbled to facilitate this critical work."
United is working directly with its partner organizations, as well as engaging with community leaders to assist the impacted communities. Focus areas for some of the airline's partners include:
- Airlink: Transportation of medical supplies and PPE
- Americares: Supporting COVID-19 treatment facilities, donating critical medical equipment, PPE and supplies for health workers and educating the community on COVID-19 prevention and vaccination.
- World Central Kitchen: Hot meal distribution to health care workers by partnering with local restaurants
In addition to its fundraising efforts, United will also continue to leverage its cargo operations to transport greatly needed medical equipment to the region. Between April 28 and May 2, United operated 20 flights that transported more than 300,000 pounds of medical supplies to India. This included donations from the U.S. India Chamber of Commerce and the Indo-American Chamber of Commerce in Houston that brought 50 ventilators through the USICOC Foundation to the Indian Red Cross Society. United is continuing to coordinate humanitarian cargo efforts with partner, Airlink, which provides tactical coordination to help break through supply chain barriers to execute rapid response airlifts of humanitarian aid. United has proudly served India since 2005 and employs more than 300 individuals in the country. The online campaign platform is currently scheduled to be available for donations through June 15. United will continue to evaluate how it can provide support to the region.
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
"Throughout the past forty years, MileagePlus has evolved to meet the ever-changing needs of our members as well as reward their loyalty," said Luc Bondar, vice president of marketing & loyalty and president of MileagePlus at United. "That's why we celebrate this major milestone by offering our members generous promotions throughout May. We're also taking this occasion to launch the contest to show appreciation for the healthcare workers who stepped up to protect our communities during the pandemic."
Essential Healthcare Worker Contest
From now until May 17, 2021, customers are invited to nominate any frontline healthcare worker in the U.S. that goes above and beyond to make a difference for their community and embody some of United's core values including:
- Safe: They make the world a safer place for everyone around them.
- Caring: They show appreciation for all members of their community by being welcoming, kind and compassionate.
- Dependable: They're the person you can rely on for anything, big or small.
- Determined (Efficient): They keep things going even when the going gets tough.
Submissions will be reviewed by a panel of expert judges comprised of Dr. Pat Baylis, corporate medical director at United, Luc Bondar, and Dr. Jim Merlino, chief clinical transformation officer at Cleveland Clinic. Four winners will be announced in June and each will receive 1 million MileagePlus miles, which never expire like all MileagePlus miles, allowing these heroes to book award flights to more than 1,000 destinations when they are ready to travel. The contest is just the latest way the airline is showing support for healthcare workers during the pandemic; in 2020, United flew more than 3,000 healthcare workers to hotspots around the U.S. and Guam to be on the frontlines of battling COVID-19.
To nominate an essential healthcare worker and for the full contest terms, customers can visit united.com/essentialthanks and write a short explanation of why this person, or themself, deserves recognition. No purchase necessary.
Member Promotions
To recognize all MileagePlus members for their loyalty, United is launching a variety of promotions throughout May. Leading up to and on the MileagePlus anniversary, United will have discounted glasses of Moët champagne available at United Clubs across the country. Full details on the upcoming award sale will be announced later this week. The airline also worked closely with its MileagePlus partners on 10 anniversary offers for members to earn more miles and celebrate with exclusive deals including giveaway opportunities and the chance to win bonus miles. Highlights include:
- MileagePlus X eGift Cards: Earn up to 2x miles on eGift cards from 40 select brands using the United MileagePlusX(SM) app, now through May 31.
- United Cruises: Earn up to 7 miles per $1 spent, plus up to 40,000 bonus miles on select cruise lines when you book a cruise through 2023. Book now through May 31.
- Buy Miles: Starting May 5, boost your balance with 40% off when you buy miles through May 10.
- MP Dining: Starting May 10, dine out and enter for a chance to win bonus miles in our 1,000,000 Mile Sweepstakes. Valid through June 10.
- And more offers to launch throughout the month of May.
To take advantage of the anniversary offers, customers must be a MileagePlus member. For the full list of 40th anniversary promotions visit united.com/mp40.
A 40-Year Legacy
Over the past four decades, MileagePlus has continued to be a leading airline loyalty program, with a number of industry-first innovations designed to enhance the travel experience for members. United first introduced its airline Premier program in 1983 and then its first loyalty credit card in 1987. More recently, in 2019, United announced that MileagePlus award miles never expire, and introduced PlusPoints for MileagePlus Premier members, giving customers more flexibility in how they choose to fly. United has also proudly worked together with MileagePlus members to contribute to the communities it serves, most notably donating 3.4 billion miles to charity organizations since 2003.
MileagePlus was named the 2020 Best Frequent Flyer Program by Global Traveler for the 17th consecutive year and was recently recognized as the Best Overall Frequent Flyer program by WalletHub. For more milestones in MileagePlus's history throughout the past 40 years visit united.com/mp40.
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, April 29, 2021 /PRNewswire/ -- United Airlines today introduced three new promotions that let eligible MileagePlus Premier members "Pick Your Path" depending on their upcoming travel plans. The new promotions give members the chance to fast track their Premier status or earn bonus miles and will run from April 29 to July 27, 2021. Offers include:
- A 'Welcome-back Bonus' promotion that gives members deposits of bonus Premier Qualifying Points (PQPs) for their first three trips.
- An 'Easy PQP' offer which provides member with a PQP deposit without needing to travel.
- And an offer which allows members to earn double miles through the MileagePlus X app.
"While demand for travel is steadily increasing, we recognize that different customers are beginning to return to travel at different times," said Luc Bondar United's vice president of marketing and loyalty and President of MileagePlus. "Offering three separate promotions allows us to meet our Premier members where they are and gives our members the opportunity to select an offer that is meaningful to them whether they're ready to travel now or if they'd rather receive miles to save for a trip later on."
Welcome-back Bonus PQP
United is offering an option for eligible Premier members to earn up to 25% of the outright PQPs required for their current status level with the Welcome-back Bonus PQP offer. Combined with the 25% PQP deposit that United gave members at the start of this year, members who choose this option will have the opportunity to earn half of the PQP-only requirement to requalify for their status level.
Easy PQP
Premier members who aren't planning any travel before July 27, 2021 can choose to receive a 10% deposit of the outright PQP requirement for their current status level with the Easy PQP option. Members will automatically receive between 350 and 1,500 PQPs depending on their status level.
Bonus Miles Through MileagePlus X
Eligible U.S.-based Premier members who prefer to save up for their next trip can choose to earn double miles (up to 10,000 bonus miles total) on all transactions made with MileagePlus X. With the MileagePlus X app, members can buy eGift cards from hundreds of merchants, dine at participating restaurants, or shop online and earn miles for each purchase.
Members have until May 13, 2021 to choose their promotion option or they will be automatically enrolled in the Welcome-back Bonus PQP offer. To be eligible, members must have held Premier status on April 19, 2021. Eligible Premier members can visit united.com/pickyourpath or sign into the MileagePlus X app to make their selection.
These new offerings build on announcements United introduced last year including reducing Premier qualifying thresholds, automatically giving members 25% of the PQP requirements for their status level and offering additional promotions for travel earlier this year. To learn about all of the changes United made to its Premier program in the last year visit https://mileageplusupdates.com/.
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL".
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com
United will add nine brand-new routes in June, including daily flights from Denver to West Yellowstone, Mont. – the closest airport to Yellowstone National Park. In addition, United plans to add two new direct flights to Hawaii – from Chicago to Kona, and from New York/Newark to Maui. And as peak travel season to Alaska resumes, United will restart service from Chicago to Fairbanks and from Chicago, Houston, New York/Newark and San Francisco to Anchorage. United will also introduce brand new service between Fairbanks and Anchorage in June.
"As leisure travel continues to return this summer, we are adding more flights to our June schedule to national parks, Alaska, Hawaii, Florida and other popular destinations," said Ankit Gupta, vice president of domestic planning and scheduling at United. "June is historically the beginning of the peak summer travel season and ramping up to over 3,500 total daily flights across the system this June underscores the continued demand for leisure travel and our responsiveness to meeting that demand."
These new routes are part of United's ongoing strategy to capitalize on the pent-up customer demand for leisure travel with friends and family. Last month when United announced 26 brand new direct summer flights from Midwest cities to seven coastal destinations in the Southeast and New England, the airline received nearly 5,000 bookings for these routes in the first 48 hours.
June Domestic Schedule Highlights
- United will fly over 40 flights to the Hawaiian Islands on peak days in June, including new service to Kona from Chicago and Maui from New York/Newark – United will be the only carrier to operate these routes.
- United will operate up to 12 daily/69 weekly flights to Alaska from five hubs including Chicago, Denver, Houston, New York/Newark and San Francisco.
- United will operate over 500 daily flights to 66 national park destinations including brand new service between Denver and West Yellowstone. United will fly to more national parks this summer than any other airline.
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. 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 to United's Travel Ready Center. United was the first airline to integrate all these features into its mobile app and website.
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, April 21, 2021 /PRNewswire/ -- Since the Travel-Ready Center launched in January, United customers have been able to easily access testing or vaccine requirements needed for travel destinations, upload completed testing results and vaccine records as well as have them verified, all within the United App. Today, the industry-leading digital platform gets even better as customers can now choose from more than 200 COVID-19 testing providers across the country, book appointments and receive confirmation whether their test results meet their destination's requirements. Once the test is validated, customers will see a status indicator informing them that they are "travel-ready" and receive their mobile boarding pass. United is the only airline that offers its customers these services as part of an integrated experience within its app and website and since launch, the airline has processed more than 275,000 COVID-19 tests through the Travel-Ready Center.
"We continue to look for innovative solutions that make travel easier and safer for our customers and employees," said United's Chief Customer Officer Toby Enqvist. "This new feature enables customers to travel with confidence knowing they can quickly locate a testing provider if they need one, schedule an appointment and get the results they need – all within the United Travel-Ready Center experience."
United customers will have access to more than 200 testing sites in the TrustAssure network, including testing sites within United's hubs of Chicago, Houston, New York/Newark, Los Angeles and San Francisco as well as those located at many drug store and pharmacy chains. In the weeks and months ahead, the airline plans to expand availability to more U.S. cities, and add access to international testing sites for customers flying to the U.S. This process was designed with privacy in mind so that limited personal data is involved.
This new and updated ability to schedule a COVID-19 test and upload results directly within the Travel-Ready Center is just one of the many industry-first solutions United has introduced to make travel easier and safer during the pandemic. United was the first airline to offer COVID-19 tests to customers traveling from San Francisco to Hawaii, and the first to launch a free transatlantic COVID-19 testing pilot program for customers traveling from Newark to London. United also was the first domestic airline to require customers to perform a self-health assessment prior to flying.
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
Following its return to positive core cash flow1 in the month of March, the company is focused on returning to positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margins, even if business and long-haul international demand remain as much as 70% below 2019 levels. United is already moving to capitalize on emerging pent-up demand for travel to countries where vaccinated travelers are welcome. In fact, the company announced new international flying to Greece, Iceland and Croatia earlier today, subject to government approval. These opportunistic steps help position United to return to positive net income even if business and long-haul international demand only returns to about 35% below 2019 levels.
"The United team has now spent a year facing down the most disruptive crisis our industry has ever faced and because of their skill and dedication to our customers, we're poised to emerge from this pandemic with a future that is brighter than ever," said United Airlines CEO Scott Kirby. "We've shifted our focus to the next milestone on the horizon and now see a clear path to profitability. We're encouraged by the strong evidence of pent-up demand for air travel and our continued ability to nimbly match it, which is why we're as confident as ever that we'll hit our goal to exceed 2019 adjusted EBITDA margins in 2023, if not sooner."
United's efforts to improve the customer experience resulted in the company achieving its highest ever customer satisfaction in the first quarter. Looking ahead, the company is planning continued investment in customers, including continuing the United Polaris® retrofit program and starting retrofit on narrowbody aircraft, modernizing gates, upgrading and expanding United Club℠ locations in Newark and Denver, and rolling out tools that give customers the opportunity to pre-order onboard meals.
* 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 three months ended March 31, 2021 and 2019 and the 12 months ended December 31, 2020 and 2019, please see the accompanying tables to this release. | |
First-Quarter Financial Results
- Reported first-quarter 2021 net loss of $1.4 billion, adjusted net loss2 of $2.4 billion.
- Reported first-quarter total operating revenue of $3.2 billion, down 66% versus first-quarter 2019.
- Reported first-quarter operating expenses down 49% versus first-quarter 2019, down 34% excluding special charges.
- Reported first-quarter 2021 ending available liquidity3 of $21 billion.
- Reported first-quarter capacity down 54% versus first-quarter 2019.
- Reported first-quarter average core cash burn of $9 million per day, an improvement of about $10 million per day versus the fourth-quarter 2020.
Second-Quarter 2021 Outlook
- Based on current trends, the company expects second quarter 2021 Total Revenue Per Available Seat Mile (TRASM) to be down approximately 20% versus the second quarter 2019.
- Expects second quarter 2021 capacity to be down around 45% versus the second quarter 2019.
- Expects second quarter operating expenses excluding special charges4 to be down approximately 32% versus the second quarter 2019, with second quarter 2021 fuel price per gallon estimated to be approximately $1.83.
- Expects second quarter 2021 adjusted EBITDA margin5 of around (20%).
Key Highlights
- Set a new diversity goal and plan for 50% of the 5,000 students the airline has committed to train by 2030 at the new United Aviate Academy to be women and people of color.
- Created the Eco-Skies Alliance℠, a first-of-its-kind program, offering United's corporate customers the opportunity to help reduce their environmental impact by allowing them to pay the additional cost for sustainable aviation fuel (SAF). Additionally, United is giving customers the ability to contribute funds for additional SAF purchases by United or for use on initiatives United believes will help decarbonize aviation – the first of any U.S. airline to do so.
- Launched industry-exclusive "Travel-Ready Center" to ease the burden of COVID-19 travel restrictions. 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.
- Announced an agreement to work with air mobility company Archer as part of the company's broader effort to invest in emerging technologies that decarbonize air travel rather than relying on traditional combustion engines.
- Returned to John F. Kennedy Airport after a five-year absence, and are now operating direct service to the airline's West Coast hubs – Los Angeles International Airport and San Francisco International Airport.
- Announced a new luxury bus collaboration for customers to travel to Breckenridge and Fort Collins, Colorado with convenient year-round ground transportation service connecting through its Denver hub. This is the first time Breckenridge has ever been served by an airline and will be Fort Collins' first global network carrier service in 25 years.
Taking Care of Our Customers
- The only airline that lets customers upload travel documents to the United app and have them certified allowing customers to get their boarding pass before arriving at the airport.
- Announced plans to introduce United Premium Plus® service on seven Hawaii routes to Honolulu (Oahu), Kahului (Maui), and Kona (Hawaii) beginning in May 2021.
- Expanded COVID-19 testing and pre-clearance program to make Hawaii travel easier.
- Reducing stress of international travel by starting a test on Houston to Brazil flights, allowing customers to take an Abbott BinaxNOW test prior to their re-entry into the United States.
- In partnership with the Centers for Disease Control and Prevention (CDC), launched a program to collect information from passengers, allowing them to be contacted in the event they are near a Covid-19 positive passenger while on a United aircraft.
- Expanded rollout of virtual, on-demand customer service, now available at all U.S. hub airports.
- Recognized by the Airline Passenger Experience Association (APEX) and SimpliFlying for providing a hospital-grade standard of cleanliness and safety during the travel journey. United is the first airline among the four largest U.S. carriers to receive the highest possible certification.
Reimagining the Route Network
- In the first quarter, announced 41 new domestic routes and two new international routes and launched six domestic routes and four international routes, with 13 more international routes planned to launch in 2021.
- The company resumed nonstop service on 12 domestic routes and five international routes compared to the fourth quarter of 2020.
- Compared to December 2020, United had nonstop service in 12 more domestic and three more international routes in March 2021.
- Announced plans to fly roughly 52% of its full schedule in May 2021 compared to May 2019.
- Announced plans to expand the company's global route network with new, nonstop service between Boston Logan International Airport and London Heathrow – the only U.S. carrier to offer nonstop service between the nation's top seven business markets and London Heathrow.
Assisting the Communities We Serve
- More than 7 million miles donated to charities in need of travel through United's Miles on a Mission program.
- Over 65,000 lbs. of food and beverages ($322,549 value) donated to Houston Food Bank for winter storm relief.
- Unique Black History Month campaign raised over $255,000 for The Thurgood Marshall College Fund, The Leadership Conference Education Fund, The NAACP Legal Defense and Educational Fund, and United Negro College Fund.
- In the first quarter of 2021, through a combination of cargo-only flights and passenger flights, United has transported nearly 290 million pounds of freight, which includes nearly 60 million pounds of vital shipments, such as medical kits, PPE, pharmaceuticals, and medical equipment, and more than 800,000 pounds of military mail and packages.
Additional Noteworthy Accomplishments
- For the tenth 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.
- Teamed up with Chase and Visa in honor of Black History Month to encourage and reward United Credit Cardmembers to make donations to non-profits focused on providing access to educational opportunities for Black students and supporting human and civil rights policies.
_________________________________________________________________________ |
1. Core cash burn is defined as: Net cash from operations, investing and financing activities, adjusted to remove 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, changes in certain restricted cash balances, debt principal payments, timing of certain payments, capital expenditures (net of flight equipment purchase deposit returns), and investments in the recovery and severance payments. Core cash flow is defined in the same manner as core cash burn, except that the result is positive. The company's management views "core cash burn" or "core cash flow" as an important measure in monitoring liquidity in order to assess the company's operational cash needs without the impact of certain extraordinary actions or events, and the company believes this measure provides useful information to investors about the company's core operational performance. See the tables accompanying this release for further information. |
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. Includes cash, cash equivalents, short-term investments, undrawn credit facilities and $7 billion available under the CARES Act loan program. |
4. Excludes operating special charges. We are not providing a reconciliation to operating expenses, the most directly comparable GAAP measure, because we are unable to predict certain items contained in the GAAP measure without unreasonable efforts. |
5. 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 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. |
Earnings Call
UAL will hold a conference call to discuss first-quarter 2021 financial results as well as its financial and operational outlook for the second-quarter 2021, on Tuesday, April 20, 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 second quarter 2021 and our adjusted EBITDA margin targets, 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," "intends," "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 adverse impacts of the ongoing COVID-19 global pandemic, and possible outbreaks of another disease or similar public health threat in the future, on our business, operating results, financial condition, liquidity and near-term and long-term strategic operating plan, including possible additional adverse impacts resulting from the duration and spread of the pandemic; unfavorable economic and political conditions in the United States and globally; the highly competitive nature of the global airline industry and susceptibility of the industry to price discounting and changes in capacity; high and/or volatile fuel prices or significant disruptions in the supply of aircraft fuel; our reliance on technology and automated systems to operate our business and the impact of any significant failure or disruption of, or failure to effectively integrate and implement, the technology or systems; our reliance on third-party service providers and the impact of any failure of these parties to perform as expected, or interruptions in our relationships with these providers or their provision of services; adverse publicity, harm to our brand; reduced travel demand and potential tort liability as a result of an accident, catastrophe or incident involving us, our regional carriers, our codeshare partners, or another airline; terrorist attacks, international hostilities or other security events, or the fear of terrorist attacks or hostilities, even if not made directly on the airline industry; increasing privacy and data security obligations or a significant data breach; disruptions to our regional network and United Express flights provided by third-party regional carriers; further changes to the airline industry with respect to alliances and joint business arrangements or due to consolidations; changes in our network strategy or other factors outside our control resulting in less economic aircraft orders, costs related to modification or termination of aircraft orders or entry into less favorable aircraft orders; our reliance on single suppliers to source a majority of our aircraft and certain parts, and the impact of any failure to obtain timely deliveries, additional equipment or support from any of these suppliers; the impacts of union disputes, employee strikes or slowdowns, and other labor-related disruptions on our operations; extended interruptions or disruptions in service at major airports where we operate; the impacts of the United Kingdom's withdrawal from the European Union on our operations in the United Kingdom and elsewhere; the impacts of seasonality and other factors associated with the airline industry; our failure to realize the full value of our intangible assets or our long-lived assets, causing us to record impairments; any damage to our reputation or brand image; the limitation of our ability to use our net operating loss carryforwards and certain other tax attributes to offset future taxable income for U.S. federal income tax purposes; the costs of compliance with extensive government regulation of the airline industry; costs, liabilities and risks associated with environmental regulation and climate change; our inability to accept or integrate new aircraft into our fleet as planned; the impacts of our significant amount of financial leverage from fixed obligations, the possibility we may seek material amounts of additional financial liquidity in the short-term and the impacts of insufficient liquidity on our financial condition and business; failure to comply with the covenants in the MileagePlus financing agreements, resulting in the possible acceleration of the MileagePlus indebtedness, foreclosure upon the collateral securing the MileagePlus indebtedness or the exercise of other remedies; failure to comply with financial and other covenants governing our other debt; changes in, or failure to retain, our senior management team or other key employees; current or future litigation and regulatory actions, or failure to comply with the terms of any settlement, order or arrangement relating to these actions; increases in insurance costs or inadequate insurance coverage; 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, 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.
-tables attached-
UNITED AIRLINES HOLDINGS, INC | ||||||||||||
Three Months Ended March 31, | % Increase/ (Decrease) | |||||||||||
(In millions, except per share data) | 2021 | 2020 | ||||||||||
Operating revenue: | ||||||||||||
Passenger revenue | $ | 2,316 | $ | 7,065 | (67.2) | |||||||
Cargo | 497 | 264 | 88.3 | |||||||||
Other operating revenue | 408 | 650 | (37.2) | |||||||||
Total operating revenue | 3,221 | 7,979 | (59.6) | |||||||||
Operating expense: | ||||||||||||
Salaries and related costs | 2,224 | 2,955 | (24.7) | |||||||||
Aircraft fuel | 851 | 1,726 | (50.7) | |||||||||
Depreciation and amortization | 623 | 615 | 1.3 | |||||||||
Landing fees and other rent | 519 | 623 | (16.7) | |||||||||
Regional capacity purchase | 479 | 737 | (35.0) | |||||||||
Aircraft maintenance materials and outside repairs | 269 | 434 | (38.0) | |||||||||
Distribution expenses | 85 | 295 | (71.2) | |||||||||
Aircraft rent | 55 | 50 | 10.0 | |||||||||
Special charges (credits) | (1,377) | 63 | NM | |||||||||
Other operating expenses | 874 | 1,453 | (39.8) | |||||||||
Total operating expense | 4,602 | 8,951 | (48.6) | |||||||||
Operating loss | (1,381) | (972) | 42.1 | |||||||||
Nonoperating income (expense): | ||||||||||||
Interest expense | (353) | (171) | 106.4 | |||||||||
Interest capitalized | 17 | 21 | (19.0) | |||||||||
Interest income | 7 | 26 | (73.1) | |||||||||
Unrealized losses on investments, net | (22) | (319) | (93.1) | |||||||||
Miscellaneous, net | (19) | (699) | (97.3) | |||||||||
Total nonoperating expense, net | (370) | (1,142) | (67.6) | |||||||||
Loss before income tax benefit | (1,751) | (2,114) | (17.2) | |||||||||
Income tax benefit | (394) | (410) | (3.9) | |||||||||
Net loss | $ | (1,357) | $ | (1,704) | (20.4) | |||||||
Diluted loss per share | $ | (4.29) | $ | (6.86) | (37.5) | |||||||
Diluted weighted average shares | 316.6 | 248.5 | 27.4 | |||||||||
NM Not meaningful | ||||||||||||
UNITED AIRLINES HOLDINGS, INC. | |||||||||||||||||||
Passenger revenue information is as follows (in millions, except for percentage changes): | |||||||||||||||||||
1Q 2021 Passenger Revenue | Passenger Revenue vs. 1Q 2020 | PRASM vs. | Yield vs. | Available Seat Miles vs. 1Q 2020 | Available Seat Miles vs. 1Q 2019 | 1Q 2021 | 1Q 2021 | ||||||||||||
Domestic | $ | 1,712 | (62.0%) | (27.6%) | (21.1%) | (47.5%) | (48.6%) | 18,871 | 12,290 | ||||||||||
Atlantic | 206 | (80.8%) | (54.4%) | (33.6%) | (57.8%) | (59.3%) | 4,329 | 2,031 | |||||||||||
Pacific | 89 | (87.1%) | (49.9%) | 86.3% | (74.2%) | (81.6%) | 2,013 | 380 | |||||||||||
Latin America | 309 | (61.4%) | (48.0%) | (20.9%) | (25.7%) | (30.0%) | 5,157 | 2,547 | |||||||||||
International | 604 | (76.4%) | (48.7%) | (15.7%) | (54.0%) | (60.2%) | 11,499 | 4,958 | |||||||||||
Consolidated | $ | 2,316 | (67.2%) | (34.2%) | (17.8%) | (50.2%) | (53.7%) | 30,370 | 17,248 | ||||||||||
Select operating statistics are as follows: | ||||||||||||
Three Months Ended March 31, | % Increase/ (Decrease) | |||||||||||
2021 | 2020 | |||||||||||
Passengers (thousands) | 14,674 | 30,359 | (51.7) | |||||||||
Revenue passenger miles (millions) | 17,248 | 43,229 | (60.1) | |||||||||
Available seat miles (millions) | 30,370 | 60,938 | (50.2) | |||||||||
Passenger load factor: | ||||||||||||
Consolidated | 56.8 | % | 70.9 | % | (14.1) | pts. | ||||||
Domestic | 65.1 | % | 71.0 | % | (5.9) | pts. | ||||||
International | 43.1 | % | 70.9 | % | (27.8) | pts. | ||||||
Passenger revenue per available seat mile (cents) | 7.63 | 11.59 | (34.2) | |||||||||
Total revenue per available seat mile (cents) | 10.61 | 13.09 | (18.9) | |||||||||
Average yield per revenue passenger mile (cents) | 13.43 | 16.34 | (17.8) | |||||||||
Cargo revenue ton miles (millions) | 765 | 695 | 10.1 | |||||||||
Aircraft in fleet at end of period | 1,320 | 1,388 | (4.9) | |||||||||
Average stage length (miles) | 1,282 | 1,399 | (8.4) | |||||||||
Employee headcount, as of March 31 (in thousands) | 84.1 | 95.2 | (11.7) | |||||||||
Average aircraft fuel price per gallon | $ | 1.74 | $ | 1.90 | (8.4) | |||||||
Fuel gallons consumed (millions) | 490 | 910 | (46.2) | |||||||||
Note: See Part II, Item 6, Selected Financial Data, of UAL's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, for definitions of these statistics. | ||||||||||||
Core cash flow (burn): The company's management views "core cash burn" or "core cash flow" as an important measure in monitoring liquidity in order to assess the company's cash needs without the impact of certain extraordinary actions or events, and the company believes this provides useful information to investors about the company's core operational performance.
(in millions except for the number of days in the period) | Three Months Ended March 31, 2021 | ||
Net cash provided by operating activities | $ | 447 | |
Cash flows used by investing activities | (329) | ||
Cash flows provided by financing activities | 1,278 | ||
1,396 | |||
Adjusted to remove: | |||
CARES Act Payroll Support Program ("PSP") grant and note | 2,610 | ||
Secured debt (net of discount and fees) | 600 | ||
Equity issuances | 532 | ||
Net proceeds from sale of short-term and other investments and increase in certain restricted cash balances | 105 | ||
Total adjustments | 3,847 | ||
Cash Flow (Burn) | $ | (2,451) | |
Days in the period | 90 | ||
Average daily cash flow (burn) | $ | (27) | |
Further adjusted to remove: | |||
Debt principal and severance payments (a) | (615) | ||
Timing of certain payments (b) | (152) | ||
Capital expenditures, net of flight equipment purchase deposit returns | (444) | ||
Investments in the recovery (c) | (396) | ||
Total additional adjustments | (1,607) | ||
Cash flow (burn) | $ | (844) | |
Days in the period | 90 | ||
Average daily core cash flow (burn) | $ | (9) | |
(a) Debt principal payments and severance includes principal payments on indebtedness, payments related to the workforce reduction and voluntary plans for employee severance, pay continuance from voluntary retirements, vacation payouts and benefits-related costs. | |||
(b) 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. | |||
(c) Investments in the recovery primarily include, but are not limited to, spending on engine and airframe maintenance and pay and benefits for recalled employees in excess of operational need due to PSP. | |||
UNITED AIRLINES HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION
UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and Non-GAAP financial measures, including adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), adjusted operating income (loss), adjusted operating margin, adjusted pre-tax income (loss), adjusted pre-tax margin, adjusted net income (loss), adjusted diluted earnings (loss) per share and CASM, excluding special charges, third-party business expenses, fuel, and profit sharing, among others. UAL believes that adjusting for special charges (credits) and for nonoperating credit losses and nonoperating special termination benefits is useful to investors because these items are not indicative of UAL's ongoing performance. UAL believes that adjusting for unrealized (gains) losses on investments, net is useful to investors because those unrealized gains or losses may not ultimately be realized on a cash basis.
CASM is a common metric used in the airline industry to measure an airline's cost structure and efficiency. UAL reports CASM excluding special charges (credits), third-party business expenses, fuel and profit sharing. UAL believes that adjusting for special charges (credits) is useful to investors because special charges (credits) are not indicative of UAL's ongoing performance. UAL also believes that excluding third-party business expenses, such as maintenance, ground handling and catering services for third parties, 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 operating cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.
Reconciliations of reported non-GAAP financial measures to the most directly comparable GAAP financial measures are included below.
Three Months Ended March 31, | % Increase/ (Decrease) | ||||||||
2021 | 2020 | ||||||||
CASM (cents) | |||||||||
Cost per available seat mile (CASM) (GAAP) | 15.15 | 14.69 | 3.1 | ||||||
Special charges (credits) | (4.54) | 0.10 | NM | ||||||
Third-party business expenses | 0.09 | 0.08 | 12.5 | ||||||
Fuel expense | 2.80 | 2.83 | (1.1) | ||||||
Profit sharing | — | — | NM | ||||||
CASM, excluding special charges, third-party business expenses, fuel, and profit sharing (Non-GAAP) | 16.80 | 11.68 | 43.8 | ||||||
Adjusted EBITDA | Three Months Ended March 31, | Twelve Months Ended | ||||||||||||||
2021 | 2019 | 2020 | 2019 | |||||||||||||
Net income (loss) | $ | (1,357) | $ | 292 | $ | (7,069) | 3,009 | |||||||||
Adjusted for: | ||||||||||||||||
Depreciation and amortization | 623 | 547 | 2,488 | 2,288 | ||||||||||||
Interest expense, net of capitalized interest and interest income | 329 | 137 | 942 | 513 | ||||||||||||
Income tax expense (benefit) | (394) | 75 | (1,753) | 905 | ||||||||||||
Special charges (credits) | (1,377) | 18 | (2,616) | 246 | ||||||||||||
Nonoperating special termination benefits and settlement losses | 46 | — | 687 | — | ||||||||||||
Nonoperating unrealized (gains) losses on investments, net | 22 | (17) | 194 | (153) | ||||||||||||
Nonoperating credit loss on BRW term loan and guarantee | — | — | 697 | — | ||||||||||||
Adjusted EBITDA, excluding operating and nonoperating special charges (credits) | $ | (2,108) | $ | 1,052 | $ | (6,430) | $ | 6,808 | ||||||||
Adjusted EBITDA margin | (65.4) | % | 11.0 | % | (41.9) | % | 15.7 | % | ||||||||
NM Not Meaningful | ||||||||||||||||
UNITED AIRLINES HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION (Continued)
UAL believes that adjusting capital expenditures for assets acquired through the issuance of debt, finance leases and other financial liabilities is useful to investors in order to appropriately reflect the total amounts spent on capital expenditures. UAL also believes that adjusting net cash provided by operating activities for capital expenditures, adjusted capital expenditures, and aircraft operating lease additions is useful to allow investors to evaluate the company's ability to generate cash that is available for debt service or general corporate initiatives.
Three Months Ended March 31, | ||||||||
Capital Expenditures (in millions) | 2021 | 2020 | ||||||
Capital expenditures, net of flight equipment purchase deposit returns (GAAP) | $ | 444 | $ | 1,959 | ||||
Property and equipment acquired through the issuance of debt, finance leases, and other financial liabilities | 509 | 128 | ||||||
Adjustment to property and equipment acquired through other financial liabilities (a) | (40) | — | ||||||
Adjusted capital expenditures (Non-GAAP) | $ | 913 | $ | 2,087 | ||||
Free Cash Flow (in millions) | ||||||||
Net cash provided by operating activities (GAAP) | $ | 447 | $ | 63 | ||||
Less capital expenditures, net of flight equipment purchase deposit returns | 444 | 1,959 | ||||||
Free cash flow, net of financings (Non-GAAP) | $ | 3 | $ | (1,896) | ||||
Net cash provided by operating activities (GAAP) | $ | 447 | $ | 63 | ||||
Less adjusted capital expenditures (Non-GAAP) | 913 | 2,087 | ||||||
Less aircraft operating lease additions | 142 | 21 | ||||||
Free cash flow (Non-GAAP) | $ | (608) | $ | (2,045) | ||||
(a) United entered into agreements with third parties to finance through sale and leaseback transactions new Boeing model 787-9 aircraft and Boeing model 737 MAX aircraft subject to purchase agreements between United and Boeing. In connection with the delivery of each aircraft from Boeing, United assigned its right to purchase such aircraft to the buyer, and simultaneous with the buyer's purchase from Boeing, United entered into a long-term lease for such aircraft with the buyer as lessor. Ten Boeing model aircraft were delivered in 2021 under these transactions (and each is presently subject to a long-term lease to United). Upon delivery, the company accounted for the aircraft, which have a repurchase option at a price other than fair value, as part of Flight equipment on the company's balance sheet and the related obligation as Other current liabilities and Other financial liabilities from sale-leasebacks (noncurrent) since they do not qualify for sale recognition. If the repurchase option is not exercised, these aircraft will be accounted for as leased assets at the time of the option expiration and the related assets and liabilities will be adjusted to the present value of the remaining lease payments at that time. This adjustment reflects the difference between the recorded amounts and the present value of future lease payments at inception. | ||||||||
UNITED AIRLINES HOLDINGS, INC. | ||||||||||||||
Three Months Ended March 31, | Increase/ (Decrease) | % Increase/ (Decrease) | ||||||||||||
(in millions) | 2021 | 2020 | ||||||||||||
Operating expenses (GAAP) | $ | 4,602 | $ | 8,951 | $ | (4,349) | (48.6) | |||||||
Special charges (credits) | (1,377) | 63 | (1,440) | NM | ||||||||||
Operating expenses, excluding special charges | 5,979 | 8,888 | (2,909) | (32.7) | ||||||||||
Adjusted to exclude: | ||||||||||||||
Third-party business expenses | 26 | 44 | (18) | (40.9) | ||||||||||
Fuel expense | 851 | 1,726 | (875) | (50.7) | ||||||||||
Adjusted operating expenses (Non-GAAP) | $ | 5,102 | $ | 7,118 | $ | (2,016) | (28.3) | |||||||
Operating loss (GAAP) | $ | (1,381) | $ | (972) | $ | (409) | 42.1 | |||||||
Adjusted to exclude: | ||||||||||||||
Special charges (credits) | (1,377) | 63 | (1,440) | NM | ||||||||||
Adjusted operating loss (Non-GAAP) | $ | (2,758) | $ | (909) | $ | (1,849) | 203.4 | |||||||
Operating margin | (42.9) | % | (12.2) | % | (30.7) | pts. | ||||||||
Adjusted operating margin (Non-GAAP) | (85.6) | % | (11.4) | % | (74.2) | pts. | ||||||||
Pre-tax loss (GAAP) | $ | (1,751) | $ | (2,114) | $ | (363) | (17.2) | |||||||
Adjusted to exclude: | ||||||||||||||
Special charges (credits) | (1,377) | 63 | (1,440) | NM | ||||||||||
Special termination benefits | 46 | — | 46 | NM | ||||||||||
Unrealized losses on investments, net | 22 | 319 | (297) | NM | ||||||||||
Credit loss on BRW term loan and guarantee | — | 697 | (697) | NM | ||||||||||
Adjusted pre-tax loss (Non-GAAP) | $ | (3,060) | $ | (1,035) | $ | 2,025 | 195.7 | |||||||
Pre-tax margin | (54.4) | % | (26.5) | % | (27.9) | pts. | ||||||||
Adjusted pre-tax margin (Non-GAAP) | (95.0) | % | (13.0) | % | (82.0) | pts. | ||||||||
Net loss (GAAP) | $ | (1,357) | $ | (1,704) | $ | (347) | (20.4) | |||||||
Adjusted to exclude: | ||||||||||||||
Special charges (credits) | (1,377) | 63 | (1,440) | NM | ||||||||||
Special termination benefits | 46 | — | 46 | NM | ||||||||||
Unrealized losses on investments, net | 22 | 319 | (297) | NM | ||||||||||
Credit loss on BRW term loan and guarantee | — | 697 | (697) | NM | ||||||||||
Income tax expense (benefit) related to adjustments above, net of valuation allowance | 291 | (14) | 305 | NM | ||||||||||
Adjusted net loss (Non-GAAP) | $ | (2,375) | $ | (639) | $ | 1,736 | 271.7 | |||||||
Diluted loss per share (GAAP) | $ | (4.29) | $ | (6.86) | $ | (2.57) | (37.5) | |||||||
Adjusted to exclude: | ||||||||||||||
Special charges (credits) | (4.35) | 0.25 | (4.60) | NM | ||||||||||
Special termination benefits | 0.15 | — | 0.15 | NM | ||||||||||
Unrealized (gains) losses on investments, net | 0.07 | 1.29 | (1.22) | NM | ||||||||||
Credit loss on BRW term loan and guarantee | — | 2.81 | (2.81) | NM | ||||||||||
Income tax expense (benefit) related to adjustments, net of valuation allowance | 0.92 | (0.06) | 0.98 | NM | ||||||||||
Adjusted diluted loss per share (Non-GAAP) | $ | (7.50) | $ | (2.57) | $ | 4.93 | 191.8 | |||||||
NM Not Meaningful | ||||||||||||||
UNITED AIRLINES HOLDINGS, INC | |||||||
(In millions) | March 31, 2021 | December 31, 2020 | |||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 12,666 | $ | 11,269 | |||
Short-term investments | 309 | 414 | |||||
Restricted cash | 254 | 255 | |||||
Receivables, less allowance for credit losses (2021 — $74; 2020 — $78) | 1,389 | 1,295 | |||||
Aircraft fuel, spare parts and supplies, less obsolescence allowance (2021 — $502; 2020 — $478) | 918 | 932 | |||||
Prepaid expenses and other | 483 | 635 | |||||
Total current assets | 16,019 | 14,800 | |||||
Total operating property and equipment, net | 31,915 | 31,466 | |||||
Operating lease right-of-use assets | 4,516 | 4,537 | |||||
Other assets: | |||||||
Goodwill | 4,527 | 4,527 | |||||
Intangibles, less accumulated amortization (2021 — $1,507; 2020 — $1,495) | 2,840 | 2,838 | |||||
Restricted cash | 218 | 218 | |||||
Deferred income taxes | 520 | 131 | |||||
Investments in affiliates and other, less allowance for credit losses (2021 — $526; 2020 — $522) | 1,107 | 1,031 | |||||
Total other assets | 9,212 | 8,745 | |||||
Total assets | $ | 61,662 | $ | 59,548 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,838 | $ | 1,595 | |||
Accrued salaries and benefits | 2,267 | 1,960 | |||||
Advance ticket sales | 5,502 | 4,833 | |||||
Frequent flyer deferred revenue | 1,251 | 908 | |||||
Current maturities of long-term debt | 1,783 | 1,911 | |||||
Current maturities of operating leases | 623 | 612 | |||||
Current maturities of finance leases | 179 | 182 | |||||
Other | 724 | 724 | |||||
Total current liabilities | 14,167 | 12,725 | |||||
Long-term liabilities and deferred credits: | |||||||
Long-term debt | 25,849 | 24,836 | |||||
Long-term obligations under operating leases | 4,985 | 4,986 | |||||
Long-term obligations under finance leases | 240 | 224 | |||||
Frequent flyer deferred revenue | 4,858 | 5,067 | |||||
Pension liability | 2,478 | 2,460 | |||||
Postretirement benefit liability | 1,013 | 994 | |||||
Other financial liabilities from sale-leasebacks | 1,568 | 1,140 | |||||
Other | 1,298 | 1,156 | |||||
Total long-term liabilities and deferred credits | 42,289 | 40,863 | |||||
Total stockholders' equity | 5,206 | 5,960 | |||||
Total liabilities and stockholders' equity | $ | 61,662 | $ | 59,548 | |||
UNITED AIRLINES HOLDINGS, INC. | |||||||
(In millions) | Three Months Ended March 31, | ||||||
2021 | 2020 | ||||||
Cash Flows from Operating Activities: | |||||||
Net cash provided by operating activities | $ | 447 | $ | 63 | |||
Cash Flows from Investing Activities: | |||||||
Capital expenditures | (444) | (1,959) | |||||
Purchases of short-term and other investments | — | (541) | |||||
Proceeds from sale of short-term and other investments | 105 | 927 | |||||
Other, net | 10 | 1 | |||||
Net cash used in investing activities | (329) | (1,572) | |||||
Cash Flows from Financing Activities: | |||||||
Proceeds from issuance of debt, net of discounts and fees | 1,336 | 2,813 | |||||
Proceeds from equity issuance | 532 | — | |||||
Payments of long-term debt, finance leases and other financing liabilities | (569) | (253) | |||||
Repurchases of common stock | — | (353) | |||||
Other, net | (21) | (18) | |||||
Net cash provided by financing activities | 1,278 | 2,189 | |||||
Net increase in cash, cash equivalents and restricted cash | 1,396 | 680 | |||||
Cash, cash equivalents and restricted cash at beginning of the period | 11,742 | 2,868 | |||||
Cash, cash equivalents and restricted cash at end of the period (a) | $ | 13,138 | $ | 3,548 | |||
Investing and Financing Activities Not Affecting Cash: | |||||||
Property and equipment acquired through the issuance of debt, finance leases and other | $ | 509 | $ | 128 | |||
Lease modifications and lease conversions | 22 | 439 | |||||
Right-of-use assets acquired through operating leases | 180 | 30 | |||||
Warrants received for entering into agreements with Archer Aviation Inc ("Archer") | 81 | — | |||||
UNITED AIRLINES HOLDINGS, INC. | ||||||||
Special charges (credits) and unrealized losses on investments, net include the following: | ||||||||
Three Months Ended March 31, | ||||||||
(In millions) | 2021 | 2020 | ||||||
Operating: | ||||||||
CARES Act grant | $ | (1,810) | $ | — | ||||
Severance and benefit costs | 417 | — | ||||||
Impairment of assets | — | 50 | ||||||
(Gains) losses on sale of assets and other special charges | 16 | 13 | ||||||
Total operating special charges (credits) | (1,377) | 63 | ||||||
Nonoperating special termination benefits | 46 | — | ||||||
Nonoperating unrealized losses on investments, net | 22 | 319 | ||||||
Nonoperating credit loss on BRW Aviation Holding LLC and BRW Aviation LLC ("BRW") term loan and related guarantee | — | 697 | ||||||
Total nonoperating special charges and unrealized losses on investments, net | 68 | 1,016 | ||||||
Total operating and nonoperating special charges (credits) and unrealized losses on investments, net | (1,309) | 1,079 | ||||||
Income tax expense (benefit), net of valuation allowance | 291 | (14) | ||||||
Total operating and non-operating special charges (credits) and unrealized losses on investments, net of income taxes | $ | (1,018) | $ | 1,065 | ||||
CARES Act grant. During the three months ended March 31, 2021, the company received approximately $2.6 billion in funding pursuant to the Payroll Support Agreement (the "PSP2 Agreement") with the U.S. Treasury Department, which included a $753 million unsecured loan. The company recorded $1.8 billion as grant income and $47 million for warrants issued to Treasury as part of the PSP2 Agreement, within stockholders' equity, as an offset to the grant income.
Severance and benefit costs: During the three months ended March 31, 2021, the company recorded $417 million related to pay continuation and benefits-related costs provided to employees who chose to voluntary separate from the company. The company offered, based on employee group, age and completed years of service, pay continuation, health care coverage, and travel benefits. Approximately 4,500 employees elected to voluntary separate from the company.
Impairment of assets: Impairment of assets. In February 2021, the company voluntarily and temporarily removed all 52 Boeing 777-200/200ER aircraft powered by Pratt & Whitney 4000 series engines from its schedule due to an engine failure incident with one of its aircraft. The company viewed this incident as an indicator of potential impairment. Accordingly, as required under relevant accounting standards, United performed forecasted cash flow analyses and determined that the carrying value of the Boeing 777-200/200ER fleet is recoverable from future cash flows expected to be generated by that fleet and, consequently, no impairment was recorded.
During the three months ended March 31, 2020, the company recorded a $50 million impairment for its China routes which was primarily caused by the COVID-19 pandemic and the company's subsequent suspension of flights to China.
Gains (loss) on sale of other assets and other special charges:: During the three months ended March 31, 2021, the company recorded $16 million of net charges, driven by charges for the termination of the lease associated with three floors of its headquarters at the Willis Tower in Chicago and utility charges related to the February winter storms in Texas, partially offset by net gains, primarily on sale-leaseback transactions.
During the three months ended March 31, 2020, the company recorded a $10 million one-time special charge related to the wind-down of the capacity purchase agreement with Trans States Airlines, LLC and $3 million for costs related to the transition of fleet types within other regional carrier contracts.
Nonoperating credit loss on BRW term loan and related guarantee: During the three months ended March 31, 2020, the company recorded a $697 million expected credit loss allowance for the company's Term Loan Agreement (the "BRW Term Loan"), with, among others, BRW Aviation Holding LLC and BRW Aviation LLC, and the related guarantee. BRW's equity and BRW's holdings of Avianca Holdings S.A.'s ("AVH") equity are secured as a pledge under the BRW Term Loan, which is currently in default.
Nonoperating special termination benefits. During the three months ended March 31, 2021, as part of first quarter voluntary separation leave programs, the company recorded $46 million of special termination benefits in the form of additional subsidies for retiree medical costs for certain U.S. based front-line employees. The subsidies are in the form of additional subsidies for retiree medical costs as a one-time contribution into the employee's Retiree Health Account of $125,000 for full-time employees and $75,000 for part-time employees.
Unrealized losses on investments, net: During the three months ended March 31, 2021, the company recorded losses of $22 million primarily for the decrease in the market value of its investment in Azul Linhas Aéreas Brasileiras S.A. ("Azul").
During the three months ended March 31, 2020, the company recorded losses of $319 million primarily for the $293 million decrease in the market value of its investment in Azul and $24 million for the decrease in fair value of the AVH share call options, AVH share appreciation rights, and AVH share-based upside sharing agreement that United obtained as part of the BRW Term Loan and related agreements with Kingsland Holdings Limited.
Effective tax rate
The company's effective tax rate for the three months ended March 31, 2021 and March 31, 2020 was 22.5% and 19.4%, respectively. The provision for income taxes is based on the estimated annual effective tax rate which represents a blend of federal, state and foreign taxes and includes the impact of certain nondeductible items. The first quarter 2020 rate was impacted by a $66 million valuation allowance related to unrealized capital losses.
SOURCE United Airlines
For further information: United Airlines, Worldwide Media Relations, 872.825.8640, media.relations@united.com
United's Travel-Ready Center enables customers to upload their COVID-19 testing and vaccine documentation, and have it certified ahead of check-in so customers can get their boarding pass before getting to the airport. United is the only airline that does this seamlessly in the airline's mobile app.
The addition of these new routes reflects an increase in interest among United's customers: in the last month, searches on United.com for flights to Croatia, Greece and Iceland are up 61%. And customers can book travel starting today at United.com and on the United mobile app.
"As countries around the world begin the process of reopening, leisure travelers are eager to take a long-awaited getaway to new international destinations," said Patrick Quayle, vice president of international network and alliances. "These three new routes unlock the natural beauty of the outdoors for our guests. They are also the latest example of how United is remaining nimble in rebuilding our network."
Croatia
United plans to add the only nonstop service between the U.S. and Croatia on July 8, with service to Dubrovnik on Croatia's Dalmatian Coast. The airline will operate three weekly flights between Newark and Dubrovnik through October 3 on a Boeing 767-300ER with 30 United Polaris business class seats. Flights will operate Monday, Thursday, and Saturday from Newark and on Tuesday, Friday, and Sunday from Dubrovnik and will be timed to connect in Newark to over 65 cities in North America.
Greece
United will expand its service to Athens with daily flights from Washington Dulles beginning July 1 and operating through October 3. This new route marks the first time daily nonstop flights have been available between Washington D.C. and Athens. The schedule is timed for connections in Washington Dulles to over 95 cities in North America and will be operated by a Boeing 787-8 Dreamliner with all-aisle-access Polaris business and United Premium Plus seats. This builds on United's existing daily summer service to Athens from Newark Liberty International Airport, which resumes on June 3.
Iceland
United is expanding its service to Iceland with the first U.S. carrier service from Chicago to Reykjavik, beginning July 1 and running daily through October 3. The schedule is timed for connections in Chicago O'Hare to over 100 cities in North America and will be operated by a Boeing 757-200 with 16 lie flat business class seats in the Polaris cabin. This new service builds upon United's existing service to Reykjavik from Newark, with daily flights resuming June 3 and operating through October 29.
These new routes are just the latest adjustments United is making to its international schedule in response to increased demand. In addition:
- United is adding three new markets in Africa*, with service three times weekly to Accra, Ghana from Washington Dulles beginning May 14, three times weekly service to Lagos, Nigeria from Washington Dulles set to begin later this year and daily service to Johannesburg, South Africa from Newark beginning June 3 (*subject to government approval).
- United is expanding its India portfolio to 5 daily flights with new service from San Francisco to Bangalore beginning May 27
- United is growing service to Tel Aviv as Israel prepares to welcome back group tourists, with Chicago service resuming three times weekly on May 7 and expansion of San Francisco to daily service on June 3, for a total of 24 weekly frequencies.
- In May, United will resume service from Newark to Rome and Milan, and from Chicago to Munich, Amsterdam, and Tokyo Haneda
- In June, United will resume flights between San Francisco and Tahiti.
Vaccinated travelers may still be subject to local country restrictions related to quarantines, testing, curfews and other requirements. Customers should check with their destination or United's Destination Travel Guide for specific details.
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. To manage entry requirements in different destinations, and find places to get tests, customer can visit United's Travel Ready Center.
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
As inaugural participants, the following companies are taking a lead within their respective industries, reducing their aviation-related impact on the environment at the source, and creating demand for more SAF production.
- Autodesk
- Boston Consulting Group
- CEVA Logistics
- Deloitte
- DHL Global Forwarding
- DSV Panalpina
- HP Inc.
- Nike
- Palantir
- Siemens
- Takeda Pharmaceuticals
"While we've partnered with companies for years to help them offset their flight emissions, we applaud those participating in the Eco-Skies Alliance for recognizing the need to go beyond carbon offsets and support SAF-powered flying, which will lead to more affordable supply and ultimately, lower emissions," said United CEO Scott Kirby. "This is just the beginning. Our goal is to add more companies to the Eco-Skies Alliance program, purchase more SAF and work across industries to find other innovative paths towards decarbonization."
United has made the airline industry's single largest investment in SAF and has purchased more SAF than any other airline in the world. World Energy, a long-term partner of United, will supply the SAF to Los Angeles International Airport (LAX), which makes it conveniently accessible to United's operations.
Customers traveling with United can now purchase SAF
In addition to the Eco-Skies Alliance program, United is giving customers the ability to contribute funds for additional SAF purchase or for use on initiatives United believes will help decarbonize aviation – the first of any U.S. airline to do so. Understanding there is a growing interest among customers for real, lasting solutions, this new capability will be available starting immediately via portal on united.com/ecoskiesalliance.
Advocating for sustainable travel, together with United
Strong federal and state policy leadership will be essential to reducing the climate impacts of air travel, so starting immediately United will help individuals connect with elected representatives to advocate for policies that would make air travel more sustainable for the long term. United will be the first airline in the world to connect customers directly with policy makers to voice the support that is needed to advance and accelerate permanent, scalable solutions that hold the potential to decarbonize the air transportation industry – and not just offset emissions.
"We know there is a growing demand from a wide range of our customers including corporations, cargo shippers and individuals who share the same concern we do – that climate change is the most pressing issue of our generation," Kirby said.
United's 100% Green Commitment
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've committed to become 100% green and reduce our greenhouse gas emissions 100% by 2050 by taking the harder, better path of reducing emissions from flying, rather than relying on traditional carbon offsets.
Here are some of the ways we're making sustainability the new standard in flight:
- In February 2021, we announced an agreement to work with Archer Aviation to accelerate the development and production of their electric aircraft – an urban mobility solution that has the potential to serve as an 'air taxi,' giving United customers another opportunity to reduce their carbon footprint before they even board a United flight.
- In 2020, we became the first airline to announce a commitment to invest in carbon capture and sequestration by committing to a multimillion-dollar investment in 1PointFive, a joint venture between Oxy Low Carbon Ventures and Rusheen Capital that plans to build the first industrial-sized Direct Air Capture plant in the United States. A single plant is expected to capture and permanently sequester one million tons of CO2 each year, the equivalent of the work of 40 million trees, but covering a land area about 3,000 times smaller.
- 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 commit to reducing its greenhouse gas emissions—50% by 2050.
- In 2016, we became the first airline globally to use SAF in regular operations on a continuous basis with SAF from World Energy.
- In 2015, we invested $30 million in Fulcrum BioEnergy, a SAF producer that converts trash to low-carbon jet fuel, the largest investment by any airline in a SAF producer. Through the associated purchase agreement, United has nearly half the global airline industry's publicly announced commitments for SAF.
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 (CDP) named United as the only airline globally to its 2020 Climate '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 inNewsweek's2017 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/sustainability.
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