Tag Archives: N37267

United Airlines achieves its highest second quarter pre-tax income in company history

United Airlines Boeing 737-824 SSWL N37267 (msn 31586) YYZ (TMK Photography). Image: 946672.

United Airlines (UAL) today announced that the continued successful implementation of its strategy led to the company delivering two straight quarters of solid pre-tax margin growth – three quarters on an adjusted basis1 – and the highest second-quarter pre-tax income in the airline’s history.2

“Thanks to the outstanding and sustained efforts of 95,000 United team members, United is now consistently delivering results for our customers as well as investors as we raise the mid-point of our full-year 2019 adjusted diluted EPS3 guidance with a new range of $10.50 to $12.00,” said Oscar Munoz, CEO of United Airlines. “By once again delivering strong EPS over the last three months, top-tier results are now the expectation, not the exception for United.”

  • Reported second-quarter net income of $1.1 billion, diluted earnings per share (EPS) of $4.02, pre-tax earnings of $1.4 billion and pre-tax margin of 11.9 percent, expanding pre-tax margin 4.0 points versus the second quarter of 2018.
  • Reported second-quarter adjusted net income of $1.1 billion, adjusted diluted EPS of $4.21, adjusted pre-tax earnings of $1.4 billion and adjusted pre-tax margin of 12.4 percent, expanding adjusted pre-tax margin 2.0 points versus the second quarter of 2018.1
  • Total passenger revenue increased 6.1 percent versus the second quarter of 2018.
  • Consolidated second-quarter passenger revenue per available seat mile (PRASM) increased 2.5 percent year-over-year.
  • Consolidated second-quarter unit cost per available seat mile (CASM) decreased 0.4 percent year-over-year.
  • Consolidated second-quarter CASM, excluding special charges, third-party business expenses, fuel and profit sharing, increased 0.6 percent year-over-year.
  • Repurchased $536 million of its common shares in the second quarter of 2019, at an average purchase price of $84.07 per share.
  • On July 15, 2019, the company’s Board of Directors authorized a new $3 billion share repurchase program.

1 Excludes special charges, the mark-to-market impact of financial instruments and imputed interest on certain finance leases. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in the tables accompanying this release.

2 Airline history defined as post-2010 merger.

3Excludes special charges and the mark-to-market impact of financial instruments, the nature of which are not determined at this time, and imputed interest on certain finance leases. Accordingly, UAL is not providing earnings guidance on a GAAP basis.

Second-Quarter 2019 Highlights

Customer Experience

  • United Polaris lounge at San Francisco International Airport voted best business class lounge in the world by the 2019 World Airline Awards from Skytrax.
  • Introduced ConnectionSaver, a new tool dedicated to improving the experience for customers connecting from one United flight to the next, while ensuring those who have already boarded the aircraft arrive at their destination on time.
  • Began flight operations at LaGuardia Airport’s new Terminal B Eastern Concourse and opened newest United Club – conveniently located inside security with more than 10,500 square feet with sweeping views of the tarmac.
  • Awarded the “People’s Voice” Webby Award in the “Business and Finance” category for reimagined mobile app, which debuted earlier this year.
  • Partnered with luxury skincare line Sunday Riley on new United Polaris amenity kits.
  • Awarded the Crystal Cabin Award for Inflight Entertainment and Connectivity for new onboard entertainment.
  • Received IDG’s CIO 100 Award for innovative customer volunteer solicitation program.

Operations

  • Served nearly 43 million passengers, the most ever for United in the second quarter.
  • Achieved top-tier on-time departures rate performance versus the major U.S. airlines, despite headwinds caused by unusually high weather and ATC delays.
  • For the second quarter United had the second-best completion factor and the second fewest cancellations among the major U.S. airlines.

Employees

  • Received “Best-of-the-Best” award for commitment to diversity and inclusion by the National LGBT Chamber of Commerce (NGLCC) and the National Business Inclusion Consortium (NBIC), demonstrating the airline’s industry-leading results across all diverse segments and its commitment to building a more diverse economy.
  • Honored with the “DiversityInc Top 50” designation, lauding the airline’s leadership in promoting diversity through talent development, leadership accountability and a top supplier diversity program.
  • Expect profit sharing for 2019 to be about 20 percent higher per participating employee year-over-year.
  • Hosted more than half of the company’s 25,000 flight attendants at 17 separate Backstage 2019 events, which are designed to underscore the important role flight attendants play in delivering great service.

Network

  • Started 34 new domestic and international routes, including brand-new summer service between New York/Newark and Prague, and the only nonstop service between the United States and Naples, Italy.
  • Resumed popular seasonal service on 28 routes offering customers more access than ever before to connect to 54 countries around the world on United’s industry-leading global network.
  • Announced the only nonstop service from the United States to Cape Town, South Africa, and announced a second daily nonstop service between San Francisco and Hong Kong.
  • Launched ninth daily nonstop flight between the United States and Germany from its hub at Denver International Airport, becoming the only U.S. airline connecting Denver to Frankfurt nonstop.
  • Tentatively granted a total of four daily nonstop flights to Tokyo Haneda Airport from United’s hubs at Newark Liberty International Airport, Chicago O’Hare International Airport, Washington Dulles International Airport and Los Angeles International Airport.
  • Unveiled 2019 college football flying schedule, adding around 10,000 seats between its hubs and popular game destinations and, for the first time, adding several point-to-point flights enabling fans to fly nonstop from one college town to another.
  • Entered into a new alliance agreement with New Delhi-based airline Vistara – further expanding the airline’s global route network to more than 20 destinations throughout India and expected to begin in the fall.

Fleet

  • Unveiled next paint design, which brings a refreshed look to its fleet, serving as a visual representation of the airline’s ongoing brand evolution while staying true to the history it has developed over the past 93 years of proudly serving customers around the world.
  • Took delivery of two Boeing 787-10 aircraft, two used Airbus A319 aircraft, and seven Embraer E175 aircraft operated by our regional partners.
  • Signed agreement to purchase 19 used Boeing 737-700 aircraft with deliveries expected beginning in December.

Community and Environment

  • 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, becoming the first known airline to demonstrate all of the following key actions on a single commercial flight: utilization of sustainable aviation biofuel, zero cabin waste efforts, carbon offsetting, and operational efficiencies.
  • 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, a global nonprofit, working to end hunger by providing food and life-changing aid to the world’s most vulnerable and creating a global commitment to mobilize critical resources.
  • Renewed contract with Boston-based World Energy, agreeing to purchase up to 10 million gallons of cost-competitive, commercial-scale, sustainable aviation biofuel over the next two years.
  • Revealed the two winning designs for Her Art Here, a first-of-its-kind contest designed to find and uplift underrepresented women artists by providing a chance to have their work painted on a canvas like no other – a United Airlines aircraft. The painted aircraft will begin flying in the fall.
  • Announced new and exciting opportunities to help customers celebrate Pride Month through MileagePlus Exclusives benefiting United charity partner The Trevor Project.

Top Copyright Photo: United Airlines Boeing 737-824 SSWL N37267 (msn 31586) YYZ (TMK Photography). Image: 946672.

United Airlines aircraft slide show:

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United Airlines introduces “Connection Saver”

United's 2019 updated "out with the gold" livery, unveiled on April 24, 2019

United Airlines is introducing ConnectionSaver, a new tool dedicated to improving the experience for customers connecting from one United flight to the next. ConnectionSaver is powered by new technology that automatically identifies departing flights that can be held for connecting customers, while ensuring those who have already boarded the aircraft arrive at their destination on time. ConnectionSaver also sends personalized text messages to every connecting customer (who has opted in to receive notifications) with clear directions to the gate for their connecting flight and information about how long the walk will take.

United’s ConnectionSaver technology automatically scans flights for customers who are making tight connections to determine if the connecting flight can be held without inconveniencing other customers. The ConnectionSaver tool takes into account factors such as the time it will take for late connecting customers to travel gate-to-gate as well as the impact the hold may have on other flights and customers.

United launched its ConnectionSaver tool on all flights at Denver International Airport in February, and then expanded it to Chicago O’Hare International Airport – two of the airline’s busiest hubs with thousands of connecting customers every day. During the past four months, more than 14,400 customers, who would have otherwise missed their connections, were able to make their flights thanks to ConnectionSaver. Flights that were held for connecting customers were delayed an average of six minutes. This ConnectionSaver technology will expand to the airline’s hubs by this fall and to all other airports that United operates at in the future.

The ConnectionSaver program also includes text notifications personalized for customers making connections through the airline’s hub airports, that will help them navigate and travel efficiently to the gate for their next flight. Once customers land at their connecting airport, they will receive a text message that tells them the gate where they are arriving, the gate where they will depart and the expected travel time between the two gates. The texts will also include a link with step-by-step directions to the next gate and a map of nearby amenities.

Earlier this year United added more detailed and helpful connection information to its reimagined mobile app. Customers using the latest version of the app will be prompted with information about their arrival and departing gates and a map of the airport once they land.

Top Copyright Photo: United Airlines Boeing 737-824 SSWL N37267 (msn 31586) IAD (Brian McDonough). Image: 946413.

United Airlines aircraft slide show:

Video: Filming the new livery.

Inc.: United Airlines President says only frequent flyers are happy on the airline. The reason why is staggering

United's 2019 updated "out with the gold" livery, unveiled on April 24, 2019

From Inc.: Scott Kirby does, though, want his employees to try harder to be nice to the less privileged. He’s even giving them candy. Read the full article: CLICK HERE

Top Copyright Photo: Gold is gone in the revised 2019 livery. United Airlines Boeing 737-824 SSWL N37267 (msn 31586) IAD (Brian McDonough). Image: 946413.

United Airlines aircraft slide show:

United: Our “next livery” has been cleared for takeoff – really?

United Airlines has issued another teaser on social media with a video glimpse of its “next livery”. It will be officially introduced in the Chicago later today.

CEO Oscar Munoz called it more of an “evolution than a revolution”. He was right. At best, it is a minor tweak rather than a new livery. The new look includes a lot of blue.

United is probably guilty of over hype for such a minor change to a livery that started with Continental Airlines in 1991. The gold trim has been removed. It has more blue. The Continental globe has been tweaked but it remains the logo of United.

In advertising, you never over promise and under deliver. We will leave it to the readers (see poll below) to decide if this was over-hype.

After a photo of the “new livery” was leaked online, United quickly introduced this short revealing video on Twitter.

The first aircraft to wear the “new look” is the pictured Boeing 737-824 N37267 as seen in the video.

We will post the official announcement latter today. In the meantime, what do you think?