United Airlines Holdings, Inc. - FORM 8-K - EX-99.2

Attached files

file	filename
EX-99.1 - EX-99.1 - United Airlines Holdings, Inc.	d286253dex991.htm
8-K - FORM 8-K - United Airlines Holdings, Inc.	d286253d8k.htm

Exhibit 99.2


News Release

United Airlines
Worldwide Media Relations
872.825.8640
media.relations@united.com

United Reports December 2016

Operational Performance

CHICAGO, Jan. 10, 2017 – United Airlines (UAL) today reported December 2016 operational results.

UAL’s December 2016 consolidated traffic (revenue passenger miles) increased 2.6 percent and consolidated capacity (available seat miles) increased 2.6 percent versus December 2015. UAL’s December 2016 consolidated load factor increased 0.1 points compared to December 2015.

The company now expects fourth-quarter 2016 consolidated passenger unit revenue to decline 1.25 to 1.75 percent compared to the fourth quarter of 2015. The improvement from revised guidance provided on Dec. 8 is due to stronger than expected close-in bookings and yields during the month of December.

About United

United Airlines and United Express operate more than 4,500 flights a day to 339 airports across five continents. In 2016, United and United Express operated more than 1.6 million flights carrying more than 143 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. The airline is a founding member of Star Alliance, which provides service to 192 countries via 28 member airlines. 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.

- more -

United Reports December 2016 Operational Performance / Page 2

Preliminary Operational Results


	December									Full Year
	2016			2015			Change			2016			2015			Change
REVENUE PASSENGER MILES (000)
Domestic		8,051,111			7,763,750			3.7	%		95,493,391			93,310,381			2.3	%

International		7,596,469			7,348,858			3.4	%		90,688,065			90,332,113			0.4	%
Atlantic		2,510,125			2,587,269			(3.0	%)		35,888,147			37,492,500			(4.3	%)
Pacific		3,025,679			2,746,177			10.2	%		34,185,845			33,299,439			2.7	%
Latin		2,060,665			2,015,412			2.2	%		20,614,073			19,540,174			5.5	%

Mainline		15,647,580			15,112,608			3.5	%		186,181,456			183,642,494			1.4	%
Regional		1,948,414			2,036,267			(4.3	%)		24,127,972			24,968,714			(3.4	%)
Consolidated		17,595,994			17,148,875			2.6	%		210,309,428			208,611,208			0.8	%

AVAILABLE SEAT MILES (000)
Domestic		9,469,788			9,070,643			4.4	%		111,452,951			108,140,642			3.1	%

International		9,387,777			9,149,908			2.6	%		113,238,631			111,848,191			1.2	%
Atlantic		3,196,530			3,335,361			(4.2	%)		47,106,793			47,188,858			(0.2	%)
Pacific		3,723,163			3,369,717			10.5	%		41,640,158			40,841,434			2.0	%
Latin		2,468,084			2,444,830			1.0	%		24,491,680			23,817,899			2.8	%

Mainline		18,857,565			18,220,551			3.5	%		224,691,582			219,988,833			2.1	%
Regional		2,324,061			2,434,232			(4.5	%)		28,897,972			30,014,601			(3.7	%)
Consolidated		21,181,626			20,654,783			2.6	%		253,589,554			250,003,434			1.4	%

PASSENGER LOAD FACTOR
Domestic		85.0	%		85.6	%		(0.6	) pts		85.7	%		86.3	%		(0.6	) pts

International		80.9	%		80.3	%		0.6	pts		80.1	%		80.8	%		(0.7	) pts
Atlantic		78.5	%		77.6	%		0.9	pts		76.2	%		79.5	%		(3.3	) pts
Pacific		81.3	%		81.5	%		(0.2	) pts		82.1	%		81.5	%		0.6	pts
Latin		83.5	%		82.4	%		1.1	pts		84.2	%		82.0	%		2.2	pts

Mainline		83.0	%		82.9	%		0.1	pts		82.9	%		83.5	%		(0.6	) pts
Regional		83.8	%		83.7	%		0.1	pts		83.5	%		83.2	%		0.3	pts
Consolidated		83.1	%		83.0	%		0.1	pts		82.9	%		83.4	%		(0.5	) pts

ONBOARD PASSENGERS (000)
Mainline		8,539			8,086			5.6	%		101,007			96,327			4.9	%
Regional		3,376			3,517			(4.0	%)		42,170			44,042			(4.3	%)
Consolidated		11,915			11,603			2.7	%		143,177			140,369			2.0	%

CARGO REVENUE TON MILES (000)
Total		258,651			223,908			15.5	%		2,805,292			2,614,125			7.3	%

Note: See Part II, Item 6 Selected Financial Data of the company’s Annual Report on Form 10-K for the year ended December 31, 2015 for the definition of these statistics

- more -

LOGO

United Reports December 2016 Operational Performance / Page 3

Fourth Quarter Preliminary Fuel Costs Per Gallon


Estimated average price per gallon of fuel, including operating cash-settled hedges¹		$1.62
Operating cash-settled hedge loss price per gallon		($0.02)
Estimated average price per gallon of fuel, excluding hedges		$1.60

Estimated average price per gallon of fuel, including operating cash-settled hedges¹		$1.62
Non-operating cash-settled hedge loss price per gallon²		$0.00
Estimated average price per gallon of fuel, including all cash-settled hedges³		$1.62

¹	This price per gallon corresponds to fuel expense in UAL’s income statement

²	This price per gallon corresponds to the impact of non-operating hedges that appear in non-operating expense in the income statement

³	This price per gallon corresponds to the total economic cost of the company’s fuel consumption including all cash-settled hedges but does not directly correspond to fuel expense in UAL’s income statement

Preliminary Operational Results


	2016			2015			Change
December On-Time Performance⁴		55.8	%		58.4	%		(2.6	) pts
December Completion Factor⁵		96.7	%		96.6	%		0.1	pts

⁴	Based on consolidated scheduled flights arriving on or before scheduled arrival time

⁵	Consolidated completion percentage

Safe Harbor Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements included in this investor update are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as “expects,” “will,” “plans,” “anticipates,” “indicates,” “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 investor update are based upon information available to us on the date of this investor update. 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 and revenue-generating initiatives, including optimizing our revenue; our ability to control our costs, including realizing benefits from our resource optimization efforts, revenue-generating initiatives, 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); economic and political instability and other risks of doing business globally; 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; disruptions to our regional network; 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); the impact of regulatory, investigative and legal proceedings and legal compliance risks; the impact of any management changes; labor costs; our ability to maintain satisfactory labor relations and the results of any collective bargaining agreement process with our union groups; any disruptions to operations due to any potential actions by our labor groups; weather conditions; and other risks and uncertainties set forth under Part I, Item 1A., “Risk Factors,” of UAL’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, 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.

# # #

LOGO

United Airlines Holdings, Inc. - FORM 8-K - EX-99.2 - January 10, 2017

Attached files

United Airlines Holdings, Inc. Reports