(State or other jurisdiction | (Commission File Number) | (IRS Employer | ||
of incorporation) | Identification Number) |
(Address of principal executive offices) | (Zip Code) |
Registrant | Title of Each Class | Trading Symbol | Name on Each Exchange on Which Registered | |||
United Airlines Holdings, Inc. | ||||||
United Airlines, Inc. | None | None | None |
Exhibit No. | Description | |
99.1 | ||
99.2 | ||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
UNITED AIRLINES HOLDINGS, INC. | |
UNITED AIRLINES, INC. | |
By: | /s/ Chris Kenny |
Name: | Chris Kenny |
Title: | Vice President and Controller |
News Release United Airlines Worldwide Media Relations 872.825.8640 media.relations@united.com | ![]() |
• | Reported fourth quarter net income of $641 million, diluted EPS of $2.53, up 50% versus the fourth quarter of 2018, pre-tax earnings of $844 million and pre-tax margin of 7.8 percent, expanding pre-tax margin 2.5 points versus the fourth quarter of 2018. |
• | Reported fourth quarter adjusted net income of $676 million, adjusted diluted EPS of $2.67, up 11% versus the fourth quarter of 2018, adjusted pre-tax earnings of $889 million and adjusted pre-tax margin of 8.2 percent, expanding adjusted pre-tax margin 0.5 points versus the fourth quarter of 2018.1 |
• | Reported full year net income of $3.0 billion, diluted EPS of $11.58, up 51% versus full year 2018, pre-tax earnings of $3.9 billion and pre-tax margin of 9.0 percent, expanding pre-tax margin 2.6 points versus full year 2018. |
• | Reported full year adjusted net income of $3.1 billion, adjusted diluted EPS of $12.05, up 32% versus full year 2018, adjusted pre-tax earnings of $4.1 billion and adjusted pre-tax margin of 9.4 percent, expanding adjusted pre-tax margin 1.7 points versus full year 2018.1 |
• | Consolidated fourth quarter passenger revenue per available seat mile (PRASM) increased 0.8 percent year-over-year. |
• | Consolidated fourth quarter unit cost per available seat mile (CASM) decreased 1.3 percent year-over-year and consolidated full year unit cost per available seat mile (CASM) decreased 1.2 percent year-over-year. |
• | Consolidated fourth quarter CASM, excluding special charges, third party business expenses, fuel and profit sharing, increased 2.7 percent year-over-year. Consolidated full year CASM, excluding special charges, third-party business expenses, fuel and profit sharing, increased 1.0 percent year-over-year. |
• | Repurchased $216 million of its common shares in the fourth quarter of 2019, at an average purchase price of $88.95 per share, bringing share repurchases for full year 2019 to $1.6 billion. |
• | Flew most revenue passengers in company history. |
• | Set new company record for most mainline departures with nearly 800,000 departures. |
• | Number one in on-time departures at all hubs with direct competitors -- Chicago, Denver and Los Angeles. |
• | Hosted Backstage 2019, which brought all 25,000 flight attendants to Chicago for an event which was designed to underscore the important role flight attendants play in delivering great service. |
• | Profit sharing for 2019 was on average 45 percent higher per participating employee year-over-year. |
• | Launched Aviate, a new pilot recruiting and development program and career website to establish a more structured career path to becoming a United pilot. |
• | Hired nearly 9,000 aviation professionals in well paying careers with great benefits in 2019. |
• | Introduced ConnectionSaver, a new tool dedicated to improving the experience for customers connecting from one United flight to the next, saving nearly 100,000 connections to be made in 2019. |
• | Became the first U.S. airline to offer non-binary gender options throughout all booking channels in addition to providing the option to select the title "Mx." during booking. |
• | Announced MileagePlus award miles never expire, giving members a lifetime to use miles on flights, experiences, hotels and more. |
• | Announced free live DIRECTV on 211 Boeing 737 United aircraft equipped with seat back TV, providing more than 100 channels of live television. |
• | Introduced a re-imagined mobile app to customers featuring a more dynamic experience that updates customers at each step of their travel journey. |
• | Customers are now provided three inflight snack options on domestic flights regardless of departure time, including the Stroopwafel. |
• | MileagePlus members between the ages of 18 to 22 received a discount on domestic flights when booked through the United mobile app through the end of 2019. |
• | Opened the fifth of its award-winning United Polaris Lounges at Los Angeles International Airport. |
• | Opened three new United Clubs at Fort Lauderdale-Hollywood International Airport, LaGuardia Airport and Raleigh-Durham International Airport. |
• | Announced the addition of more than 1,600 United Polaris® business class and United First seats to nearly 250 international and domestic aircraft. |
• | Began flight operations at LaGuardia Airport's new Terminal B Eastern Concourse. |
• | Customers can now pre-pay for bags as soon as their ticket is issued. Previously customers had to wait until check-in to pay for their bags. |
• | Announced partnership with CLEAR which includes a free or discounted CLEAR membership for U.S.-based MileagePlus members. |
• | Announced a total of nine new international routes and two new expanded routes beginning in 2020, including four new daily nonstop flights to Tokyo Haneda Airport. |
• | Strengthened the domestic route network with 69 new routes including launching 54 new routes and announcing 15 routes beginning in 2020. |
• | Launched 11 new international routes in 2019, including direct flights from Newark Liberty International Airport to Cape Town, South Africa; Prague, Czech Republic; and Naples, Italy. |
• | Took delivery of 49 aircraft in 2019, including eight Boeing 787-10 aircraft, becoming the first carrier in the world to operate all three Dreamliner models. |
• | Signed agreements to purchase 50 Airbus A321 XLR, 20 used Boeing 737-700 aircraft and 20 Embraer E175 aircraft operated by our regional partners. |
• | Introduced a brand new and revolutionary regional flying experience with the addition of the two-cabin, 50-seat Bombardier CRJ 550 aircraft. |
• | Unveiled next paint design, which brings a refreshed look to its fleet, serving as a visual representation of the airline's ongoing brand evolution. |
• | Launched Boeing 767-300ER ultra-premium United Polaris business class configuration on all flights between New York/Newark and Chicago to London-Heathrow. |
• | Launched Miles on a Mission, a first-of-its-kind crowdsourcing platform which gives customers a simple way to donate miles to non-profit organizations and charities in need of air travel. |
• | Pledged on Giving Tuesday to match up to 10 million MileagePlus miles to featured Miles on a Mission partners. |
• | Committed $40 million toward a new investment initiative focused on accelerating the development of sustainable aviation fuels and other decarbonization technologies. |
• | Made history with the departure of the "Flight for the Planet," the most eco-friendly commercial flight of its kind in the history of aviation. |
• | Renewed contract with Boston-based World Energy to purchase up to 10 million gallons of cost-competitive, commercial-scale, sustainable aviation biofuel. |
• | Launched Her Art Here, a contest where two women artists were chosen to have their work painted on California- and New York/New Jersey-themed Boeing 757s to uplift underrepresented women artists. |
• | Celebrated Women in Aviation International’s annual Girls in Aviation Day by hosting more than 500 girls in 14 locations around the world. |
• | Became the first public company to be inducted into Pride Live's Stonewall Ambassador program in recognition of the airline's commitment to LGBTQ+ equality. |
• | Reached a milestone of 1 million meals packed for charity partner Rise Against Hunger. |
• | Donated $1 million to Feeding America's Shutdown Response Fund to directly support the food banks providing food for families of federal workers. |
Three Months Ended December 31, | % Increase/ (Decrease) | Year Ended December 31, | % Increase/ (Decrease) | |||||||||||||||||||||
(In millions, except per share data) | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Operating revenue: | ||||||||||||||||||||||||
Passenger | $ | 9,933 | $ | 9,556 | 3.9 | $ | 39,625 | $ | 37,706 | 5.1 | ||||||||||||||
Cargo | 316 | 334 | (5.4 | ) | 1,179 | 1,237 | (4.7 | ) | ||||||||||||||||
Other operating revenue | 639 | 601 | 6.3 | 2,455 | 2,360 | 4.0 | ||||||||||||||||||
Total operating revenue | 10,888 | 10,491 | 3.8 | 43,259 | 41,303 | 4.7 | ||||||||||||||||||
Operating expense: | ||||||||||||||||||||||||
Salaries and related costs | 3,078 | 2,924 | 5.3 | 12,071 | 11,458 | 5.3 | ||||||||||||||||||
Aircraft fuel | 2,249 | 2,380 | (5.5 | ) | 8,953 | 9,307 | (3.8 | ) | ||||||||||||||||
Regional capacity purchase | 725 | 650 | 11.5 | 2,849 | 2,649 | 7.6 | ||||||||||||||||||
Landing fees and other rent | 650 | 627 | 3.7 | 2,543 | 2,449 | 3.8 | ||||||||||||||||||
Depreciation and amortization | 606 | 558 | 8.6 | 2,288 | 2,165 | 5.7 | ||||||||||||||||||
Aircraft maintenance materials and outside repairs | 475 | 434 | 9.4 | 1,794 | 1,767 | 1.5 | ||||||||||||||||||
Distribution expenses | 417 | 396 | 5.3 | 1,651 | 1,558 | 6.0 | ||||||||||||||||||
Aircraft rent | 67 | 78 | (14.1 | ) | 288 | 433 | (33.5 | ) | ||||||||||||||||
Special charges (B) | 130 | 301 | NM | 246 | 487 | NM | ||||||||||||||||||
Other operating expenses | 1,630 | 1,508 | 8.1 | 6,275 | 5,801 | 8.2 | ||||||||||||||||||
Total operating expense | 10,027 | 9,856 | 1.7 | 38,958 | 38,074 | 2.3 | ||||||||||||||||||
Operating income | 861 | 635 | 35.6 | 4,301 | 3,229 | 33.2 | ||||||||||||||||||
Operating margin | 7.9 | % | 6.1 | % | 1.8 | pts. | 9.9 | % | 7.8 | % | 2.1 | pts. | ||||||||||||
Nonoperating income (expense): | ||||||||||||||||||||||||
Interest expense | (161 | ) | (173 | ) | (6.9 | ) | (731 | ) | (670 | ) | 9.1 | |||||||||||||
Interest capitalized | 20 | 19 | 5.3 | 85 | 65 | 30.8 | ||||||||||||||||||
Interest income | 30 | 31 | (3.2 | ) | 133 | 101 | 31.7 | |||||||||||||||||
Unrealized gains (losses) on investments, net (B) | 81 | 56 | 44.6 | 153 | (5 | ) | NM | |||||||||||||||||
Miscellaneous, net | 13 | (15 | ) | NM | (27 | ) | (72 | ) | (62.5 | ) | ||||||||||||||
Total nonoperating expense | (17 | ) | (82 | ) | (79.3 | ) | (387 | ) | (581 | ) | (33.4 | ) | ||||||||||||
Income before income taxes | 844 | 553 | 52.6 | 3,914 | 2,648 | 47.8 | ||||||||||||||||||
Pre-tax margin | 7.8 | % | 5.3 | % | 2.5 | pts. | 9.0 | % | 6.4 | % | 2.6 | pts. | ||||||||||||
Income tax expense (D) | 203 | 92 | 120.7 | 905 | 526 | 72.1 | ||||||||||||||||||
Net income | $ | 641 | $ | 461 | 39.0 | $ | 3,009 | $ | 2,122 | 41.8 | ||||||||||||||
Diluted earnings per share | $ | 2.53 | $ | 1.69 | 49.7 | $ | 11.58 | $ | 7.67 | 51.0 | ||||||||||||||
Diluted weighted average shares | 253.4 | 272.7 | (7.1 | ) | 259.9 | 276.7 | (6.1 | ) | ||||||||||||||||
NM Not meaningful |
4Q 2019 Passenger Revenue | 4Q 2018 Passenger Revenue (a) | Reporting Adjustments (b) | 4Q 2018 Passenger Revenue (b) | Passenger Revenue vs. 4Q 2018 (b) | PRASM vs. 4Q 2018 (b) | Yield vs. 4Q 2018 (b) | Available Seat Miles vs. 4Q 2018 | 4Q 2019 Available Seat Miles | 4Q 2019 Revenue Passenger Miles | ||||||||||||||||||||
Domestic | $ | 6,338 | $ | 6,088 | $ | 52 | $ | 6,140 | 3.2% | 0.6% | 1.5% | 2.6% | 40,612 | 34,051 | |||||||||||||||
Atlantic | 1,616 | 1,535 | (30 | ) | 1,505 | 7.4% | (0.2%) | (1.3%) | 7.6% | 12,649 | 10,373 | ||||||||||||||||||
Pacific | 1,088 | 1,139 | (31 | ) | 1,108 | (1.8)% | (1.2)% | (1.9)% | (0.7%) | 11,098 | 8,653 | ||||||||||||||||||
Latin America | 891 | 794 | 9 | 803 | 11.0% | 6.3% | 5.8% | 4.4% | 6,679 | 5,556 | |||||||||||||||||||
International | 3,595 | 3,468 | (52 | ) | 3,416 | 5.2% | 1.5% | 0.5% | 3.8% | 30,426 | 24,582 | ||||||||||||||||||
Consolidated | $ | 9,933 | $ | 9,556 | $ | — | $ | 9,556 | 3.9% | 0.8% | 1.0% | 3.1% | 71,038 | 58,633 | |||||||||||||||
Three Months Ended December 31, | % Increase/ (Decrease) | Year Ended December 31, | % Increase/ (Decrease) | |||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||
Passengers (thousands) | 40,306 | 39,891 | 1.0 | 162,443 | 158,330 | 2.6 | ||||||||||||||||||
Revenue passenger miles (millions) | 58,633 | 56,968 | 2.9 | 239,360 | 230,155 | 4.0 | ||||||||||||||||||
Available seat miles (millions) | 71,038 | 68,902 | 3.1 | 284,999 | 275,262 | 3.5 | ||||||||||||||||||
Passenger load factor: | ||||||||||||||||||||||||
Consolidated | 82.5 | % | 82.7 | % | (0.2 | ) | pts. | 84.0 | % | 83.6 | % | 0.4 | pts. | |||||||||||
Domestic | 83.8 | % | 84.6 | % | (0.8 | ) | pts. | 85.2 | % | 85.4 | % | (0.2 | ) | pts. | ||||||||||
International | 80.8 | % | 80.1 | % | 0.7 | pts. | 82.4 | % | 81.3 | % | 1.1 | pts. | ||||||||||||
Passenger revenue per available seat mile (cents) | 13.98 | 13.87 | 0.8 | 13.90 | 13.70 | 1.5 | ||||||||||||||||||
Total revenue per available seat mile (cents) | 15.33 | 15.23 | 0.7 | 15.18 | 15.00 | 1.2 | ||||||||||||||||||
Average yield per revenue passenger mile (cents) | 16.94 | 16.77 | 1.0 | 16.55 | 16.38 | 1.0 | ||||||||||||||||||
Cargo ton miles | 889 | 902 | (1.4 | ) | 3,329 | 3,425 | (2.8 | ) | ||||||||||||||||
Aircraft in fleet at end of period | 1,372 | 1,329 | 3.2 | 1,372 | 1,329 | 3.2 | ||||||||||||||||||
Average stage length (miles) | 1,446 | 1,426 | 1.4 | 1,460 | 1,446 | 1.0 | ||||||||||||||||||
Average full-time equivalent employees | 90,264 | 87,315 | 3.4 | 90,116 | 86,641 | 4.0 | ||||||||||||||||||
Average aircraft fuel price per gallon | $ | 2.10 | $ | 2.30 | (8.7 | ) | $ | 2.09 | $ | 2.25 | (7.1 | ) | ||||||||||||
Fuel gallons consumed (millions) | 1,071 | 1,036 | 3.4 | 4,292 | 4,137 | 3.7 |
(In millions) | December 31, 2019 | December 31, 2018 | |||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 2,762 | $ | 1,694 | |||
Short-term investments | 2,182 | 2,256 | |||||
Receivables, less allowance for doubtful accounts | 1,364 | 1,426 | |||||
Aircraft fuel, spare parts and supplies, less obsolescence allowance | 1,072 | 985 | |||||
Prepaid expenses and other | 814 | 733 | |||||
Total current assets | 8,194 | 7,094 | |||||
Total operating property and equipment, net | 30,170 | 27,399 | |||||
Operating lease right-of-use assets | 4,758 | 5,262 | |||||
Other assets: | |||||||
Goodwill | 4,523 | 4,523 | |||||
Intangibles, less accumulated amortization | 3,009 | 3,159 | |||||
Restricted cash | 106 | 105 | |||||
Notes receivable, net | 671 | 516 | |||||
Investments in affiliates and other, net | 1,180 | 966 | |||||
Total other assets | 9,489 | 9,269 | |||||
Total assets | $ | 52,611 | $ | 49,024 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Advance ticket sales | $ | 4,819 | $ | 4,381 | |||
Accounts payable | 2,703 | 2,363 | |||||
Frequent flyer deferred revenue | 2,440 | 2,286 | |||||
Accrued salaries and benefits | 2,271 | 2,184 | |||||
Current maturities of long-term debt | 1,407 | 1,230 | |||||
Current maturities of finance leases | 46 | 123 | |||||
Current maturities of operating leases | 686 | 719 | |||||
Other | 566 | 553 | |||||
Total current liabilities | 14,938 | 13,839 | |||||
Other long-term liabilities and deferred credits: | |||||||
Long-term debt | 13,145 | 12,215 | |||||
Long-term obligations under finance leases | 220 | 224 | |||||
Long-term obligations under operating leases | 4,946 | 5,276 | |||||
Frequent flyer deferred revenue | 2,836 | 2,719 | |||||
Postretirement benefit liability | 789 | 1,295 | |||||
Pension liability | 1,446 | 1,576 | |||||
Deferred income taxes | 1,736 | 828 | |||||
Other | 1,024 | 1,010 | |||||
Total other long-term liabilities and deferred credits | 26,142 | 25,143 | |||||
Stockholders' equity | 11,531 | 10,042 | |||||
Total liabilities and stockholders' equity | $ | 52,611 | $ | 49,024 |
(In millions) | Year Ended December 31, | ||||||
2019 | 2018 | ||||||
Cash Flows from Operating Activities: | |||||||
Net cash provided by operating activities | $ | 6,909 | $ | 6,164 | |||
Cash Flows from Investing Activities: | |||||||
Capital expenditures | (4,528 | ) | (4,070 | ) | |||
Purchases of short-term and other investments | (2,897 | ) | (2,552 | ) | |||
Proceeds from sale of short-term and other investments | 2,996 | 2,616 | |||||
Loans made to others | (174 | ) | (466 | ) | |||
Investment in affiliates | (36 | ) | (139 | ) | |||
Other, net | 79 | 156 | |||||
Net cash used in investing activities | (4,560 | ) | (4,455 | ) | |||
Cash Flows from Financing Activities: | |||||||
Proceeds from issuance of long-term debt and airport construction financing | 1,847 | 1,594 | |||||
Payments of long-term debt | (1,240 | ) | (1,727 | ) | |||
Repurchases of common stock | (1,645 | ) | (1,235 | ) | |||
Principal payments under finance leases | (151 | ) | (79 | ) | |||
Capitalized financing costs | (61 | ) | (37 | ) | |||
Other, net | (30 | ) | (17 | ) | |||
Net cash used in financing activities | (1,280 | ) | (1,501 | ) | |||
Net increase in cash, cash equivalents and restricted cash | 1,069 | 208 | |||||
Cash, cash equivalents and restricted cash at beginning of the year | 1,799 | 1,591 | |||||
Cash, cash equivalents and restricted cash at end of the year | $ | 2,868 | $ | 1,799 | |||
Investing and Financing Activities Not Affecting Cash: | |||||||
Property and equipment acquired through the issuance of debt | $ | 493 | $ | 143 | |||
Right-of-use assets acquired through operating leases | 498 | 663 | |||||
Property and equipment acquired through finance lease | 22 | 17 | |||||
Lease modifications and lease conversions | (2 | ) | 52 | ||||
Debt associated with termination of a maintenance service agreement | — | 163 | |||||
(in millions) | Year Ended December 31, 2019 | ||
Net Operating Profit After Tax ("NOPAT") | |||
Pre-tax income | $ | 3,914 | |
Adjustments: | |||
Special charges and unrealized (gains) losses on investments, net: | |||
Impairment of assets | 171 | ||
Severance and benefit costs | 16 | ||
Unrealized (gains) losses on investments, net | (153 | ) | |
(Gains) losses on sale of assets and other special charges | 59 | ||
Pre-tax income excluding special charges and unrealized (gains) losses on investments, net (Non-GAAP) | 4,007 | ||
add: Interest expense (net of income tax benefit) (a) | 726 | ||
add: Interest component of capitalized aircraft rent (net of income tax benefit) (a) | 154 | ||
add: Net interest on pension (net of income tax benefit) (a) | (19 | ) | |
less: Income taxes paid | (29 | ) | |
NOPAT (Non-GAAP) | $ | 4,839 | |
Average Invested Capital (five-quarter average) | |||
Total assets | $ | 51,325 | |
less: Non-interest bearing liabilities (b) | (18,113 | ) | |
Average invested capital (Non-GAAP) | $ | 33,212 | |
ROIC (Non-GAAP) | 14.6 | % | |
(a) | Income tax benefit measured based on the effective cash tax rate. The effective cash tax rate is calculated by dividing cash taxes paid by pre-tax income excluding special charges and unrealized (gains) losses on investments, net. For the year ended December 31, 2019, the effective cash tax rate was 0.7%. |
(b) | Non-interest bearing liabilities include advance ticket sales, frequent flyer deferred revenue, deferred income taxes and other non-interest bearing liabilities. |
Three Months Ended December 31, | % Increase/ (Decrease) | Year Ended December 31, | % Increase/ (Decrease) | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
CASM (cents) | ||||||||||||||||||
Cost per available seat mile (CASM) (GAAP) | 14.11 | 14.30 | (1.3 | ) | 13.67 | 13.83 | (1.2 | ) | ||||||||||
Special charges (B) | 0.18 | 0.44 | NM | 0.09 | 0.18 | NM | ||||||||||||
Third-party business expenses | 0.07 | 0.03 | 133.3 | 0.06 | 0.04 | 50.0 | ||||||||||||
Fuel expense | 3.16 | 3.46 | (8.7 | ) | 3.14 | 3.38 | (7.1 | ) | ||||||||||
Profit sharing, including taxes | 0.17 | 0.12 | 41.7 | 0.17 | 0.12 | 41.7 | ||||||||||||
CASM, excluding special charges, third-party business expenses, fuel, and profit sharing (Non-GAAP) | 10.53 | 10.25 | 2.7 | 10.21 | 10.11 | 1.0 |
Three Months Ended December 31, | Increase/ (Decrease) | % Increase/ (Decrease) | Year Ended December 31, | Increase/ (Decrease) | % Increase/ (Decrease) | ||||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Operating expenses (GAAP) | $ | 10,027 | $ | 9,856 | $ | 171 | 1.7 | $ | 38,958 | $ | 38,074 | $ | 884 | 2.3 | |||||||||||||||
Special charges (B) | 130 | 301 | (171 | ) | NM | 246 | 487 | (241 | ) | NM | |||||||||||||||||||
Operating expenses, excluding special charges | 9,897 | 9,555 | 342 | 3.6 | 38,712 | 37,587 | 1,125 | 3.0 | |||||||||||||||||||||
Adjusted to exclude: | |||||||||||||||||||||||||||||
Third-party business expenses | 48 | 32 | 16 | 50.0 | 168 | 121 | 47 | 38.8 | |||||||||||||||||||||
Fuel expense | 2,249 | 2,380 | (131 | ) | (5.5 | ) | 8,953 | 9,307 | (354 | ) | (3.8 | ) | |||||||||||||||||
Profit sharing, including taxes | 123 | 82 | 41 | 50.0 | 491 | 334 | 157 | 47.0 | |||||||||||||||||||||
Adjusted operating expenses (Non-GAAP) | $ | 7,477 | $ | 7,061 | $ | 416 | 5.9 | $ | 29,100 | $ | 27,825 | $ | 1,275 | 4.6 | |||||||||||||||
Operating income (GAAP) | $ | 861 | $ | 635 | $ | 226 | 35.6 | $ | 4,301 | $ | 3,229 | $ | 1,072 | 33.2 | |||||||||||||||
Adjusted to exclude: | |||||||||||||||||||||||||||||
Special charges (B) | 130 | 301 | (171 | ) | NM | 246 | 487 | (241 | ) | NM | |||||||||||||||||||
Adjusted operating income (Non-GAAP) | $ | 991 | $ | 936 | $ | 55 | 5.9 | $ | 4,547 | $ | 3,716 | $ | 831 | 22.4 | |||||||||||||||
Operating margin | 7.9 | % | 6.1 | % | 1.8 | pts. | 9.9 | % | 7.8 | % | 2.1 | pts. | |||||||||||||||||
Adjusted operating margin (Non-GAAP) (A) | 9.1 | % | 8.9 | % | 0.2 | pts. | 10.5 | % | 9.0 | % | 1.5 | pts. | |||||||||||||||||
Pre-tax income (GAAP) | $ | 844 | $ | 553 | $ | 291 | 52.6 | $ | 3,914 | $ | 2,648 | $ | 1,266 | 47.8 | |||||||||||||||
Adjusted to exclude: | |||||||||||||||||||||||||||||
Special charges (B) | 130 | 301 | (171 | ) | NM | 246 | 487 | (241 | ) | NM | |||||||||||||||||||
Unrealized (gains) losses on investments, net (B) | (81 | ) | (56 | ) | (25 | ) | NM | (153 | ) | 5 | (158 | ) | NM | ||||||||||||||||
Interest expense on ERJ 145 finance leases (C) | (4 | ) | 13 | (17 | ) | NM | 64 | 26 | 38 | NM | |||||||||||||||||||
Adjusted pre-tax income (Non-GAAP) | $ | 889 | $ | 811 | $ | 78 | 9.6 | $ | 4,071 | $ | 3,166 | $ | 905 | 28.6 | |||||||||||||||
Pre-tax margin | 7.8 | % | 5.3 | % | 2.5 | pts. | 9.0 | % | 6.4 | % | 2.6 | pts. | |||||||||||||||||
Adjusted pre-tax margin (Non-GAAP) (A) | 8.2 | % | 7.7 | % | 0.5 | pts. | 9.4 | % | 7.7 | % | 1.7 | pts. | |||||||||||||||||
Net income (GAAP) | $ | 641 | $ | 461 | $ | 180 | 39.0 | $ | 3,009 | $ | 2,122 | $ | 887.0 | 41.8 | |||||||||||||||
Adjusted to exclude: | |||||||||||||||||||||||||||||
Special charges (B) | 130 | 301 | (171 | ) | NM | 246 | 487 | (241 | ) | NM | |||||||||||||||||||
Unrealized (gains) losses on investments, net (B) | (81 | ) | (56 | ) | (25 | ) | NM | (153 | ) | 5 | (158 | ) | NM | ||||||||||||||||
Interest expense on ERJ 145 finance leases (C) | (4 | ) | 13 | (17 | ) | NM | 64 | 26 | 38 | NM | |||||||||||||||||||
Income tax benefit related to adjustments above | (10 | ) | (58 | ) | 48 | NM | (35 | ) | (116 | ) | 81 | NM | |||||||||||||||||
Special income tax adjustment (D) | — | (5 | ) | 5 | NM | — | (5 | ) | 5 | NM | |||||||||||||||||||
Adjusted net income (Non-GAAP) | $ | 676 | $ | 656 | $ | 20 | 3.0 | $ | 3,131 | $ | 2,519 | $ | 612 | 24.3 | |||||||||||||||
Diluted earnings per share (GAAP) | $ | 2.53 | $ | 1.69 | $ | 0.84 | 49.7 | $ | 11.58 | $ | 7.67 | $ | 3.91 | 51.0 | |||||||||||||||
Adjusted to exclude: | |||||||||||||||||||||||||||||
Special charges (B) | 0.52 | 1.10 | (0.58 | ) | NM | 0.95 | 1.76 | (0.81 | ) | NM | |||||||||||||||||||
Unrealized (gains) losses on investments, net (B) | (0.32 | ) | (0.21 | ) | (0.11 | ) | NM | (0.59 | ) | 0.02 | (0.61 | ) | NM | ||||||||||||||||
Interest expense on ERJ 145 finance leases (C) | (0.02 | ) | 0.05 | (0.07 | ) | NM | 0.25 | 0.09 | 0.16 | NM | |||||||||||||||||||
Income tax benefit related to adjustments | (0.04 | ) | (0.21 | ) | 0.17 | NM | (0.14 | ) | (0.41 | ) | 0.27 | NM | |||||||||||||||||
Special income tax adjustment (D) | — | (0.02 | ) | 0.02 | NM | — | (0.02 | ) | 0.02 | NM | |||||||||||||||||||
Adjusted diluted earnings per share (Non-GAAP) | $ | 2.67 | $ | 2.40 | $ | 0.27 | 11.3 | $ | 12.05 | $ | 9.11 | $ | 2.94 | 32.3 |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
Capital Expenditures (in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Capital expenditures (GAAP) | $ | 1,192 | $ | 1,574 | $ | 4,528 | $ | 4,070 | ||||||||
Property and equipment acquired through the issuance of debt | 187 | 18 | 493 | 143 | ||||||||||||
Property and equipment acquired through finance leases | 14 | 17 | 22 | 17 | ||||||||||||
Adjusted capital expenditures (Non-GAAP) | $ | 1,393 | $ | 1,609 | $ | 5,043 | $ | 4,230 | ||||||||
Free Cash Flow (in millions) | ||||||||||||||||
Net cash provided by operating activities (GAAP) | $ | 1,181 | $ | 1,129 | $ | 6,909 | $ | 6,164 | ||||||||
Less capital expenditures | 1,192 | 1,574 | 4,528 | 4,070 | ||||||||||||
Free cash flow, net of financings (Non-GAAP) | $ | (11 | ) | $ | (445 | ) | $ | 2,381 | $ | 2,094 | ||||||
Net cash provided by operating activities (GAAP) | $ | 1,181 | $ | 1,129 | $ | 6,909 | $ | 6,164 | ||||||||
Less adjusted capital expenditures (Non-GAAP) | 1,393 | 1,609 | 5,043 | 4,230 | ||||||||||||
Free cash flow (Non-GAAP) | $ | (212 | ) | $ | (480 | ) | $ | 1,866 | $ | 1,934 |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating: | ||||||||||||||||
Impairment of assets | $ | 102 | $ | 232 | $ | 171 | $ | 377 | ||||||||
Severance and benefit costs | 2 | 7 | 16 | 41 | ||||||||||||
Termination of an engine maintenance service agreement | — | 64 | — | 64 | ||||||||||||
(Gains) losses on sale of assets and other special charges | 26 | (2 | ) | 59 | 5 | |||||||||||
Total special charges | 130 | 301 | 246 | 487 | ||||||||||||
Nonoperating unrealized (gains) losses on investments, net | (81 | ) | (56 | ) | (153 | ) | 5 | |||||||||
Total special charges and unrealized (gains) losses on investments, net | 49 | 245 | 93 | 492 | ||||||||||||
Income tax benefit related to special charges and unrealized (gains) losses on investments, net | (11 | ) | (55 | ) | (21 | ) | (110 | ) | ||||||||
Income tax adjustment (D) | — | (5 | ) | — | (5 | ) | ||||||||||
Total special charges and unrealized (gains) losses on investments, net of income taxes | $ | 38 | $ | 185 | $ | 72 | $ | 377 |
![]() | ![]() | |
Investor Update | Issue Date: January 21, 2020 |
First-Quarter and Full-Year 2020 Outlook (A) | Estimated 1Q 2020 | Estimated FY 2020 | ||||||||||||||||||
Revenue | ||||||||||||||||||||
Consolidated PRASM (¢/ASM) | 13.29 | - | 13.56 | |||||||||||||||||
Year-Over-Year Change Higher/(Lower) | 0.0 | % | - | 2.0 | % | |||||||||||||||
Cargo and Other Revenue ($M) | $ | 825 | - | $ | 925 | |||||||||||||||
Non-Fuel Operating Expense | ||||||||||||||||||||
Consolidated CASM Excluding Third-Party Business Expenses, Fuel & Profit Sharing1 (¢/ASM) (Non-GAAP) | 10.76 | - | 10.86 | |||||||||||||||||
Year-Over-Year Change Higher/(Lower) | 1.0 | % | - | 2.0 | % | |||||||||||||||
Third-Party Business Expenses2 ($M) | $ | 40 | - | $ | 50 | |||||||||||||||
Profit Sharing ($M) | $ | 10 | - | $ | 50 | |||||||||||||||
Consolidated Fuel Expense | ||||||||||||||||||||
Fuel Consumption (Million Gallons) | 1,030 | - | 1,050 | |||||||||||||||||
Consolidated Average Aircraft Fuel Price per Gallon3 | $ | 2.04 | - | $ | 2.14 | |||||||||||||||
Adjusted Non-Operating Expense4 ($M) (Non-GAAP) | $ | 75 | - | $ | 105 | |||||||||||||||
Effective Income Tax Rate | 22 | % | - | 24 | % | 22 | % | - | 24 | % | ||||||||||
Diluted Share Count5 (M) | 252 | |||||||||||||||||||
Adjusted Diluted Earnings Per Share6 (Non-GAAP) | $ | 0.75 | $ | 1.25 | $ | 11.00 | - | $ | 13.00 | |||||||||||
Adjusted Capital Expenditures7 ($B) (Non-GAAP) | ~$7.0 |
1. | Excludes special charges, the nature of which are not determinable at this time. |
2. | Third-party business revenue associated with third-party business expense is recorded in other revenue. |
3. | Fuel price including taxes and fees. This price per gallon corresponds to fuel expense as reported in the income statement. |
4. | Excludes the unrealized gains and losses impact of investments, the nature of which is not determinable at this time. Accordingly, the Company does not provide non-operating expense guidance on a GAAP basis. |
5. | Does not include an assumption related to future share repurchases. Diluted share count is approximately equal to basic share count. |
6. | Excludes special charges and the unrealized gains and losses impact of investments, the nature of which are not determinable at this time. Accordingly, UAL does not provide earnings guidance on a GAAP basis. |
7. | Non-cash capital expenditures are not determinable at this time. Accordingly, the Company does not provide capital expenditure guidance on a GAAP basis. |
• | Approximately 7.4% of total adjusted earnings up to a 6.9% adjusted pre-tax margin |
• | Approximately 13.2% for any adjusted earnings above a 6.9% adjusted pre-tax margin |
• | Approximately 1.7% for any adjusted earnings above the prior year's adjusted pre-tax earnings |
1Q 2020 | 2Q 2020 | 3Q 2020 | YE 2020 | |
B777-200/300 | 96 | 96 | 96 | 96 |
B787-8/9/10 | 53 | 59 | 63 | 63 |
B767-300/400 | 54 | 54 | 54 | 54 |
B757-200/300 | 74 | 74 | 74 | 74 |
B737 MAX1 | 14 | 14 | 14 | 14 |
B737-700/800/900 | 333 | 336 | 338 | 338 |
A319/A320 | 183 | 183 | 184 | 189 |
Total Mainline Aircraft | 807 | 816 | 823 | 828 |
50-seat (ERJ-145, CRJ-200, CRJ-550) | 345 | 356 | 355 | 345 |
70-seat (CRJ-700, EMB-170, EMB-175LL) | 102 | 102 | 102 | 102 |
76-seat (EMB-175) | 153 | 153 | 153 | 153 |
Total Regional Aircraft | 600 | 611 | 610 | 600 |
Estimated | |||||
CASM Consolidated Operations (cents) | 1Q 2020 | ||||
Cost per available seat mile (CASM) excluding special charges (a) (Non-GAAP) | 13.92 | - | 14.24 | ||
Third-party business expenses | 0.06 | - | 0.07 | ||
Fuel expense (b) | 3.09 | - | 3.24 | ||
Profit sharing, including taxes | 0.01 | - | 0.07 | ||
CASM, excluding special charges, third-party business expenses, fuel, and profit sharing (Non-GAAP) | 10.76 | - | 10.86 |
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