Full-year diluted earnings per share of
$7.89; full-year adjusted diluted
earnings per share1 of $10.05
Fourth quarter diluted earnings per share of
$1.81, adjusted diluted earnings per
share1 of $2.00, ahead of
expectations
Delivered best quarterly on-time arrival
performance in company history2
Newark
operations improved substantially with the best 4th quarter ever
for on-time performance
CHICAGO, Jan. 22,
2024 /PRNewswire/ -- United Airlines (UAL) today
reported fourth-quarter and full-year 2023 financial results. The
company delivered full-year diluted earnings per share of
$7.89 and adjusted full-year diluted
earnings per share1 of $10.05, achieving its initial full-year target of
$10 - $12 set at the beginning of 2023.
United's diversified revenue strategy proved, once again, to be
a critical, differentiated, competitive advantage. United's premium
cabin saw an increase in revenue of 16% for the quarter
year-over-year, while its Basic Economy offering again saw a
substantial revenue increase of 20% for the quarter
year-over-year.
United also benefited from cost convergence across the industry.
This cost convergence resulted in a stronger relationship between
United's unit costs and unit revenue performance. Combined with
durable demand for travel and an increasing preference for United's
reliable operational performance and premium offerings, the company
delivered on its initial full year 2023 earnings per share guidance
despite a wide range of headwinds.
"Our plans really came together in 2023, and I want to thank the
United team for all of the hard work it took to get us there," said
United Airlines CEO Scott Kirby.
"Despite unpredictable headwinds, we delivered on our ambitious EPS
target that few thought possible – and set new operational records
for our customers," said United Airlines CEO Scott Kirby. "Looking ahead, we expect these
trends to continue and United is incredibly well positioned to
capitalize on them and to deliver on our short and long-term
financial targets."
Fourth-Quarter Financial Results
- Capacity up 14.7% compared to fourth-quarter 2022.
- Total operating revenue of $13.6
billion, up 9.9% compared to fourth-quarter 2022.
- TRASM4 down 4.2% compared to fourth-quarter
2022.
- CASM4 down 0.1%, and CASM-ex1,4 up 4.9%,
compared to fourth-quarter 2022.
- Pre-tax income of $0.8 billion,
with a pre-tax margin of 5.7%; adjusted pre-tax income1
of $0.8 billion, with an adjusted
pre-tax margin1 of 6.2%.
- Net income of $0.6 billion;
adjusted net income1 of $0.7
billion.
- Diluted earnings per share of $1.81; adjusted diluted earnings per
share1 of $2.00.
- Average fuel price per gallon of $3.13.
Full-Year Financial Results
- Net income of $2.6 billion;
adjusted net income1 of $3.3
billion.
- Pre-tax income of $3.4 billion,
with a pre-tax margin of 6.3%; adjusted pre-tax income1
of $4.3 billion, with an adjusted
pre-tax margin1 of 8.0%.
- Diluted earnings per share of $7.89; adjusted diluted earnings per
share1 of $10.05.
- Ending available liquidity3 of $16.1 billion.
- Total debt and finance lease obligations of $29.3 billion at year end.
- Adjusted net debt1 to adjusted EBITDAR1
of 2.9x, consistent with the guidance provided at the start of the
year.
Key Highlights
- Announced orders for 110 more aircraft for delivery beginning
in 2028 – another significant milestone in the company's United
Next growth strategy.
- Took delivery and flew the first revenue flight of the
airline's first A321neo. The new aircraft is achieving the highest
customer survey results in the entire fleet.
- United pilots represented by the Air Line Pilots Association,
International (ALPA) ratified a new four-year contract. In
addition, employees represented by International Association of
Machinists & Aerospace Workers (IAM) and United ratified a new
2-year contract in May.
- Accrued $681 million for the year
for employee profit sharing.
- Opened five new United Club℠ locations across three hubs,
including the airline's largest – a 35,000 sq. ft. club in its
Denver hub.
- Announced significant updates to Houston and Denver hubs and opened a new Terminal A at
Newark.
- Celebrated the graduation of United Aviate Academy's inaugural
class of pilots, an important step toward training the next
generation of talented, qualified, and motivated aviators.
- Launched the United Airlines Ventures Sustainable Flight Fund℠,
a first-of-its-kind investment vehicle designed to leverage support
from cross-industry businesses to support start-ups focused on
decarbonizing air travel through sustainable aviation fuel (SAF)
research, technology and production associated with SAF, convening
nearly $200 million in investment
power to support the production of SAF since the launch.
- Opened an expanded and newly renovated global Inflight Training
Center in Houston, Texas – the
$32 million expansion project more
than doubles the available training space.
Customer Experience
- The United mobile app was named the Best Airline App by
Business Traveler USA at their
Business Traveler Awards North America in the fourth quarter,
making it the world's most downloaded airline app.
- Became the first airline to launch Live Activities for iPhone,
giving customers real-time access to their boarding pass, gate and
seat number, and countdown clock to departure time, hosting 65
million sessions in 2023.
- In the fourth quarter, United announced the largest overhaul
since 2016 of United Polaris® – the airline's international
business class – debuting new in-airport and onboard amenities from
Therabody® and Saks Fifth Avenue that are designed to give
customers "the best sleep in the sky."
- United launched WILMA in the fourth quarter, a new boarding
process that enables a smoother and faster boarding process.
- Best fourth quarter CSAT in the company's
history.2
- United was recognized in Forbes' first-ever best customer
service list in the fourth quarter, which honored top brands for
excelling in high-quality service.
- Throughout the year, saved 713,000 customer connections through
Connection Saver, ensuring more customers made their flights.
- Became the first U.S. airline to add braille to aircraft
interiors.
- Customers who were extremely likely to recommend United to
family and friends increased by 4% year over year.
- Two thirds of United's travelers in 2023 used the mobile app to
manage their day-of travel, from re-booking options, bag tracking
information and hotel vouchers when eligible.
Operations
- During the last two weeks of December, United operated its
busiest travel period in history, flying 8.2 million customers – an
average of 483,000 each day.
- In the fourth quarter, the airline achieved its best-ever
on-time performance2 for express and consolidated
flying, and second-best quarter for mainline flying.
- The fourth quarter set the record for the lowest quarterly
misconnect rate.2
- United carried the largest number of passengers ever in a year
at 165 million, and achieved the highest seat factor ever for the
year at 86.4%.
Network
- In the fourth quarter, United announced the largest
international winter schedule expansion in the airline's history,
with the addition of 50 daily flights and new routes between
Denver and the Caribbean including San Juan and Montego
Bay.
- United announced its largest-ever international summer 2024
schedule in the fourth quarter, including the first and only
non-stop flight between Newark and
Faro, Portugal and new flights to
Reykjavik, Iceland; Brussels; Rome and Málaga, Spain and the introduction of service to nine
of the airline's most popular seasonal routes up to two months
early.
- Re-introduced daily service to China, resuming service to Beijing from San
Francisco and increasing service to Shanghai to daily flights in the fourth
quarter.
- Operated the largest-ever fourth quarter schedule by available
seat miles from Denver in company
history, serving more daily flights to more destinations from
Denver than any other
airline.
- Became the world's largest airline by available seat miles for
the full year of 2023.
- Flew the largest domestic schedule in company history (by
available seat miles, excluding Canada) for the full fiscal year with over
3,500 daily domestic flights.
- Flew the largest international schedule among U.S. carriers by
available seat miles for the full fiscal year, 30% larger than the
next largest carrier.
- Launched three new international destinations including Málaga,
Spain; Dubai, United
Arab Emirates and the only nonstop service from the U.S. to
New Zealand's South Island with
flights to Christchurch, New
Zealand. Launched new international routes to existing
destinations, including Barcelona,
Spain; Rome; Shannon,
Ireland; Auckland, New Zealand; Brisbane, Australia; San Juan, Puerto Rico; Montego Bay, Jamaica; Hong Kong; Tokyo and the first nonstop service between
the continental U.S. and the
Philippines by a U.S. airline with flights to Manila, Philippines. Additionally resumed
service to Osaka, Japan;
Managua, Nicaragua; Stockholm, Sweden and Beijing for the first time since the pandemic
and added additional frequencies on routes to London; Edinburgh,
United Kingdom; Paris;
Naples, Italy; Delhi, India; Shanghai and Taipei.
- For the full fiscal year, United had the greatest increase
in-seat capacity year over year compared to the four other largest
U.S. carriers, and had the second largest increase in volume of
scheduled departures year over year.
Communities
- United hosted Fantasy Flight events across 12 stations in the
fourth quarter, where 770 employees volunteered to provide a unique
event for children across the world, including Hawaiian residents
impacted by wildfires, those terminally ill, or those suffering
from serious medical conditions.
- United, alongside MileagePlus® members, donated more than 106
million miles to non-profit charities across the globe in 2023 via
the Miles on a Mission℠ program.
- Welcomed nine new corporate participants to its Eco-Skies
Alliance program, set up to contribute to the purchase of SAF. To
date the program has invested in the future production of more than
five billion gallons of SAF.
- United collaborated with Sesame Workshop to announce Oscar the
Grouch as its first Chief Trash Officer as he and the airline
celebrate his love of rubbish. The campaign is designed to promote
the expected benefit of using SAF more broadly.
- In 2023, United received SAF-blended fuel deliveries at
Amsterdam, Los Angeles, London Heathrow and San Francisco airports, representing two new
airports where United has used a SAF blend.
- In 2023, approximately 5,600 employees volunteered over 59,000
hours at nonprofits organizations in communities around the
world.
- During the year, United transported nearly 313 million pounds
of cargo, including approximately 9.6 million pounds of medical
shipments and 264,000 pounds of military shipments.
Earnings Call
UAL will hold a conference call to discuss fourth quarter and
full-year 2023 financial results, as well as its financial and
operational outlook for first-quarter 2024 and beyond, on
Tuesday, Jan. 23, at 9:30 a.m. CST/10:30 a.m.
EST. 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.
Outlook
This press release should be read in conjunction with the
company's Investor Update issued in connection with this quarterly
earnings announcement, which provides additional information on the
company's business outlook (including certain financial and
operational guidance) and is furnished with this press release to
the U.S. Securities and Exchange Commission on a Current Report on
Form 8-K. The Investor Update is also available at ir.united.com.
Management will also discuss certain business outlook items,
including providing certain full year 2024 financial targets,
during the quarterly earnings conference call.
The company's business outlook is subject to risks and
uncertainties applicable to all forward-looking statements as
described elsewhere in this press release. Please see the section
entitled "Cautionary Statement Regarding Forward-Looking
Statements."
About United
At United, Good Leads The Way. With U.S. hubs in Chicago, Denver, Houston, Los
Angeles, New
York/Newark, San Francisco and Washington, D.C., United operates the most
comprehensive global route network among North American carriers,
and is now the largest airline in the world as measured by
available seat miles. For more about how to join the United team,
please visit www.united.com/careers and more information about the
company is at www.united.com. United Airlines Holdings, Inc., the
parent company of United Airlines, Inc., is traded on the Nasdaq
under the symbol "UAL".
Website Information
We routinely post important news and information regarding
United on our corporate website, www.united.com, and our investor
relations website, ir.united.com. We use our investor relations
website as a primary channel for disclosing key information to our
investors, including the timing of future investor conferences and
earnings calls, press releases and other information about
financial performance, reports filed or furnished with the U.S.
Securities and Exchange Commission, information on corporate
governance and details related to our annual meeting of
shareholders. We may use our investor relations website as a means
of disclosing material, non-public information and for complying
with our disclosure obligations under Regulation FD. We may also
use social media channels to communicate with our investors and the
public about our company and other matters, and those
communications could be deemed to be material information. The
information contained on, or that may be accessed through, our
website or social media channels are not incorporated by reference
into, and are not a part of, this document.
Cautionary Statement Regarding Forward-Looking
Statements:
This press release and the related attachments
and Investor Update (as well as the oral statements made with
respect to information contained in this release and the
attachments) contain certain "forward-looking statements," within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, relating to, among other things, goals, plans and
projections regarding the company's financial position, results of
operations, market position, capacity, fleet, announced routes
(which may be subject to government approval), product
development, ESG-related strategy initiatives and business
strategy. Such forward-looking statements are based on historical
performance and current expectations, estimates, forecasts and
projections about the company's future financial results, goals,
plans, commitments, strategies and objectives and involve inherent
risks, assumptions and uncertainties, known or unknown, including
internal or external factors that could delay, divert or change any
of them, that are difficult to predict, may be beyond the company's
control and could cause the company's future financial results,
goals, plans, commitments, strategies and objectives to differ
materially from those expressed in, or implied by, the statements.
Words such as "should," "could," "would," "will," "may," "expects,"
"plans," "intends," "anticipates," "indicates," "remains,"
"believes," "estimates," "projects," "forecast," "guidance,"
"outlook," "goals," "targets," "pledge," "confident," "optimistic,"
"dedicated," "positioned," "on track" and other words and terms of
similar meaning and expression are intended to identify
forward-looking statements, although not all forward-looking
statements contain such terms. All statements, other than those
that relate solely to historical facts, are forward-looking
statements.
Additionally, forward-looking statements include conditional
statements and statements that identify uncertainties or trends,
discuss the possible future effects of known trends or
uncertainties, or that 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 or regulation.
Our actual results could differ materially from these
forward-looking statements due to numerous factors including,
without limitation, the following: execution risks associated with
our strategic operating plan; 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 aircraft orders on less favorable
terms, as well as any inability to accept or integrate new aircraft
into our fleet as planned, including as a result of any mandatory
groundings of aircraft; any failure to effectively manage, and
receive anticipated benefits and returns from, acquisitions,
divestitures, investments, joint ventures and other portfolio
actions, or related exposures to unknown liabilities or other
issues or underperformance as compared to our expectations; adverse
publicity, harm to our brand, reduced travel demand, potential tort
liability and operational restrictions as a result of an accident,
catastrophe or incident involving us, our regional carriers, our
codeshare partners or another airline; the highly competitive
nature of the global airline industry and susceptibility of the
industry to price discounting and changes in capacity, including as
a result of alliances, joint business arrangements or other
consolidations; our reliance on a limited number of suppliers to
source a majority of our aircraft, engines and certain parts, and
the impact of any failure to obtain timely deliveries, additional
equipment or support from any of these suppliers; disruptions to
our regional network and United Express flights provided by
third-party regional carriers; unfavorable economic and political
conditions in the United States
and globally; reliance on third-party service providers and the
impact of any significant failure of these parties to perform as
expected, or interruptions in our relationships with these
providers or their provision of services; extended interruptions or
disruptions in service at major airports where we operate and
space, facility and infrastructure constraints at our hubs or other
airports; geopolitical conflict, terrorist attacks or security
events (including the continuation of the suspension of our
overflying in Russian airspace as a result of the Russia-Ukraine military conflict and to Tel Aviv as a result of the
Israeli-Palestinian military conflict and an escalation of the
broader economic consequences of the conflicts beyond their current
scope); any damage to our reputation or brand image; 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, these technologies or systems;
increasing privacy, data security and cybersecurity obligations or
a significant data breach; increased use of social media platforms
by us, our employees and others; the impacts of union disputes,
employee strikes or slowdowns, and other labor-related disruptions
or regulatory compliance costs on our operations; any failure to
attract, train or retain skilled personnel, including our senior
management team or other key employees; the monetary and
operational costs of compliance with extensive government
regulation of the airline industry; current or future litigation
and regulatory actions, or failure to comply with the terms of any
settlement, order or agreement relating to these actions; costs,
liabilities and risks associated with environmental regulation and
climate change, and any failure to achieve or demonstrate progress
towards our climate goals; high and/or volatile fuel prices or
significant disruptions in the supply of aircraft fuel (including
as a result of the Russia-Ukraine military conflict); the impacts of our
significant amount of financial leverage from fixed obligations and
the impacts of insufficient liquidity on our financial condition
and business; failure to comply with financial and other covenants
governing our debt, including our MileagePlus® financing
agreements; limitations on 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; our
failure to realize the full value of our intangible assets or our
long-lived assets, causing us to record impairments; fluctuations
in the price of our common stock; the impacts of seasonality,
weather events, infrastructure and other factors associated with
the airline industry; increases in insurance costs or inadequate
insurance coverage and other risks and uncertainties set forth in
Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for
the fiscal year ended December 31,
2022 and Part II, Item 1A. Risk Factors of our Quarterly
Report on Form 10-Q for the period ended September 30, 2023 and under "Economic and
Market Factors" and "Governmental Actions" in Part I, Item 2.
Management's Discussion and Analysis of Financial Condition and
Results of Operations, of our Quarterly Report on Form 10-Q for the
period ended September 30, 2023, 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.
Non-GAAP Financial Information:
In discussing
financial results and guidance, the company refers to financial
measures that are not in accordance with U.S. Generally Accepted
Accounting Principles ("GAAP"). The non-GAAP financial measures are
provided as supplemental information to the financial measures
presented in this press release that are calculated and presented
in accordance with GAAP and are presented because management
believes that they supplement or enhance management's, analysts'
and investors' overall understanding of the company's underlying
financial performance and trends and facilitate comparisons among
current, past and future periods. Non-GAAP financial measures such
as CASM-ex (which excludes the impact of fuel expense, profit
sharing, special charges and third-party expenses), adjusted
pre-tax margin (which is calculated as pre-tax margin excluding
operating and nonoperating special charges, unrealized (gains)
losses on investments, net and debt extinguishment and modification
fees), adjusted pre-tax income, adjusted earnings per share and
adjusted net income typically have exclusions or adjustments that
include one or more of the following characteristics, such as being
highly variable, difficult to project, unusual in nature,
significant to the results of a particular period or not indicative
of past or future operating results. These items are excluded
because the company believes they neither relate to the ordinary
course of the company's business nor reflect the company's
underlying business performance.
Because the non-GAAP financial measures are not calculated in
accordance with GAAP, they should not be considered superior to and
are not intended to be considered in isolation or as a substitute
for the related GAAP financial measures presented in the press
release and may not be the same as or comparable to similarly
titled measures presented by other companies due to possible
differences in method and in the items being adjusted. We encourage
investors to review our financial statements and publicly-filed
reports in their entirety and not to rely on any single financial
measure.
Please refer to the tables accompanying this release for a
description of the non-GAAP adjustments and reconciliations of the
historical non-GAAP financial measures used to the most comparable
GAAP financial measure and related disclosures.
-tables attached-
UNITED AIRLINES
HOLDINGS, INC
STATEMENTS OF
CONSOLIDATED OPERATIONS (UNAUDITED)
|
|
|
|
Three Months Ended
December 31,
|
|
%
Increase/
(Decrease)
|
|
|
Year Ended
December 31,
|
|
%
Increase/
(Decrease)
|
(In millions, except
percentage changes and per share data)
|
|
2023
|
|
2022
|
|
|
|
2023
|
|
2022
|
|
Operating
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
revenue
|
|
$
12,421
|
|
$
11,202
|
|
10.9
|
|
|
$
49,046
|
|
$
40,032
|
|
22.5
|
Cargo
|
|
402
|
|
472
|
|
(14.8)
|
|
|
1,495
|
|
2,171
|
|
(31.1)
|
Other operating
revenue
|
|
803
|
|
726
|
|
10.6
|
|
|
3,176
|
|
2,752
|
|
15.4
|
Total operating
revenue
|
|
13,626
|
|
12,400
|
|
9.9
|
|
|
53,717
|
|
44,955
|
|
19.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and related
costs
|
|
3,841
|
|
3,000
|
|
28.0
|
|
|
14,787
|
|
11,466
|
|
29.0
|
Aircraft
fuel
|
|
3,315
|
|
3,317
|
|
(0.1)
|
|
|
12,651
|
|
13,113
|
|
(3.5)
|
Landing fees and other
rent
|
|
793
|
|
657
|
|
20.7
|
|
|
3,076
|
|
2,576
|
|
19.4
|
Aircraft maintenance
materials and outside repairs
|
|
664
|
|
600
|
|
10.7
|
|
|
2,736
|
|
2,153
|
|
27.1
|
Depreciation and
amortization
|
|
684
|
|
624
|
|
9.6
|
|
|
2,671
|
|
2,456
|
|
8.8
|
Regional capacity
purchase
|
|
594
|
|
571
|
|
4.0
|
|
|
2,400
|
|
2,299
|
|
4.4
|
Distribution
expenses
|
|
571
|
|
434
|
|
31.6
|
|
|
1,977
|
|
1,535
|
|
28.8
|
Aircraft
rent
|
|
46
|
|
59
|
|
(22.0)
|
|
|
197
|
|
252
|
|
(21.8)
|
Special
charges
|
|
47
|
|
16
|
|
NM
|
|
|
949
|
|
140
|
|
NM
|
Other operating
expenses
|
|
2,073
|
|
1,745
|
|
18.8
|
|
|
8,062
|
|
6,628
|
|
21.6
|
Total operating
expense
|
|
12,628
|
|
11,023
|
|
14.6
|
|
|
49,506
|
|
42,618
|
|
16.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
998
|
|
1,377
|
|
(27.5)
|
|
|
4,211
|
|
2,337
|
|
80.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(484)
|
|
(479)
|
|
1.0
|
|
|
(1,956)
|
|
(1,778)
|
|
10.0
|
Interest
income
|
|
207
|
|
156
|
|
32.7
|
|
|
827
|
|
298
|
|
NM
|
Interest
capitalized
|
|
54
|
|
32
|
|
68.8
|
|
|
182
|
|
105
|
|
73.3
|
Unrealized gains
(losses) on investments, net
|
|
(27)
|
|
32
|
|
NM
|
|
|
27
|
|
20
|
|
35.0
|
Miscellaneous,
net
|
|
23
|
|
12
|
|
91.7
|
|
|
96
|
|
8
|
|
NM
|
Total nonoperating
expense, net
|
|
(227)
|
|
(247)
|
|
(8.1)
|
|
|
(824)
|
|
(1,347)
|
|
(38.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax expense
|
|
771
|
|
1,130
|
|
(31.8)
|
|
|
3,387
|
|
990
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
171
|
|
287
|
|
(40.4)
|
|
|
769
|
|
253
|
|
NM
|
Net income
|
|
$ 600
|
|
$ 843
|
|
(28.8)
|
|
|
$
2,618
|
|
$ 737
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$ 1.81
|
|
$ 2.55
|
|
(29.0)
|
|
|
$ 7.89
|
|
$ 2.23
|
|
NM
|
Diluted weighted
average shares
|
|
331.3
|
|
330.4
|
|
0.3
|
|
|
331.9
|
|
330.1
|
|
0.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM-Greater than 100%
change or otherwise not meaningful.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNITED AIRLINES
HOLDINGS, INC.
PASSENGER REVENUE
INFORMATION AND STATISTICS (UNAUDITED)
|
|
Information is as
follows (in millions, except for percentage
changes):
|
|
|
4Q 2023
Passenger
Revenue
|
|
Passenger
Revenue
vs.
4Q 2022
|
|
Passenger
Revenue
per
Available
Seat Mile
("PRASM")
vs. 4Q 2022
|
|
Yield vs.
4Q 2022
|
|
Available
Seat Miles
("ASMs")
vs.
4Q 2022
|
|
4Q 2023
ASMs
|
|
4Q 2023
Revenue
Passenger
Miles
("RPMs")
|
Domestic
|
$
7,697
|
|
6.9 %
|
|
(0.5 %)
|
|
1.0 %
|
|
7.4 %
|
|
40,343
|
|
34,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
1,910
|
|
15.3 %
|
|
3.9 %
|
|
6.4 %
|
|
11.0 %
|
|
12,707
|
|
10,147
|
Pacific
|
1,328
|
|
61.2 %
|
|
(11.6 %)
|
|
(2.5) %
|
|
82.3 %
|
|
10,800
|
|
7,708
|
Latin
America
|
1,196
|
|
6.9 %
|
|
(11.6 %)
|
|
(8.4 %)
|
|
20.9 %
|
|
7,797
|
|
6,580
|
Middle
East/India/Africa
|
290
|
|
(28.2 %)
|
|
1.0 %
|
|
4.0 %
|
|
(29.0 %)
|
|
2,080
|
|
1,730
|
International
|
4,724
|
|
18.0 %
|
|
(5.5 %)
|
|
0.0 %
|
|
24.8 %
|
|
33,384
|
|
26,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
$
12,421
|
|
10.9 %
|
|
(3.3 %)
|
|
0.0 %
|
|
14.7 %
|
|
73,727
|
|
60,671
|
Select operating
statistics are as follows:
|
|
|
|
Three Months
Ended
December 31,
|
|
%
Increase/
(Decrease)
|
|
|
Year Ended
December 31,
|
|
%
Increase/
(Decrease)
|
|
|
|
2023
|
|
2022
|
|
|
|
2023
|
|
2022
|
|
|
Passengers (thousands)
(a)
|
|
41,779
|
|
38,242
|
|
9.2
|
|
|
164,927
|
|
144,300
|
|
14.3
|
|
RPMs (millions)
(b)
|
|
60,671
|
|
54,758
|
|
10.8
|
|
|
244,435
|
|
206,791
|
|
18.2
|
|
ASMs (millions)
(c)
|
|
73,727
|
|
64,294
|
|
14.7
|
|
|
291,333
|
|
247,858
|
|
17.5
|
|
Passenger load factor:
(d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
82.3 %
|
|
85.2 %
|
|
(2.9)
|
pts.
|
|
83.9 %
|
|
83.4 %
|
|
0.5
|
pts.
|
Domestic
|
|
85.5 %
|
|
86.8 %
|
|
(1.3)
|
pts.
|
|
85.1 %
|
|
85.5 %
|
|
(0.4)
|
pts.
|
International
|
|
78.4 %
|
|
82.9 %
|
|
(4.5)
|
pts.
|
|
82.4 %
|
|
80.5 %
|
|
1.9
|
pts.
|
PRASM
(cents)
|
|
16.85
|
|
17.42
|
|
(3.3)
|
|
|
16.84
|
|
16.15
|
|
4.3
|
|
Total revenue per
available seat mile ("TRASM") (cents)
|
|
18.48
|
|
19.29
|
|
(4.2)
|
|
|
18.44
|
|
18.14
|
|
1.7
|
|
Average yield per RPM
(cents) (e)
|
|
20.47
|
|
20.46
|
|
—
|
|
|
20.07
|
|
19.36
|
|
3.7
|
|
Cargo revenue ton miles
(millions) (f)
|
|
894
|
|
765
|
|
16.9
|
|
|
3,159
|
|
3,041
|
|
3.9
|
|
Aircraft in fleet at
end of period
|
|
1,358
|
|
1,338
|
|
1.5
|
|
|
1,358
|
|
1,338
|
|
1.5
|
|
Average stage length
(miles) (g)
|
|
1,475
|
|
1,436
|
|
2.7
|
|
|
1,479
|
|
1,437
|
|
2.9
|
|
Employee headcount, as
of December 31 (in thousands)
|
|
103.3
|
|
92.8
|
|
11.3
|
|
|
103.3
|
|
92.8
|
|
11.3
|
|
Cost per ASM ("CASM")
(cents)
|
|
17.13
|
|
17.14
|
|
(0.1)
|
|
|
16.99
|
|
17.19
|
|
(1.2)
|
|
CASM-ex (cents)
(h)
|
|
12.28
|
|
11.71
|
|
4.9
|
|
|
12.03
|
|
11.73
|
|
2.6
|
|
Average aircraft fuel
price per gallon
|
|
$
3.13
|
|
$
3.54
|
|
(11.6)
|
|
|
$ 3.01
|
|
$ 3.63
|
|
(17.1)
|
|
Fuel gallons consumed
(millions)
|
|
1,059
|
|
936
|
|
13.1
|
|
|
4,205
|
|
3,608
|
|
16.5
|
|
|
|
(a)
|
The number of revenue
passengers measured by each flight segment flown.
|
(b)
|
The number of scheduled
miles flown by revenue passengers.
|
(c)
|
The number of seats
available for passengers multiplied by the number of scheduled
miles those seats are flown.
|
(d)
|
RPMs divided by
ASMs.
|
(e)
|
The average passenger
revenue received for each RPM flown.
|
(f)
|
The number of cargo
revenue tons transported multiplied by the number of miles
flown.
|
(g)
|
Average stage length
equals the average distance a flight travels weighted for size of
aircraft.
|
(h)
|
CASM-ex is CASM less
the impact of fuel expense, profit sharing, special charges and
third-party expenses. See NON-GAAP FINANCIAL INFORMATION for a
reconciliation of CASM-ex to CASM, the most comparable GAAP
measure.
|
UNITED AIRLINES HOLDINGS, INC.
1 NON-GAAP FINANCIAL INFORMATION
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 EBITDA margin, adjusted EBITDA excluding aircraft rent
(adjusted EBITDAR), 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, CASM-ex, adjusted capital expenditures, adjusted
total debt, adjusted net debt, free cash flow, and free cash flow,
net of financings, among others. The non-GAAP financial measures
are provided as supplemental information to the financial measures
presented in this press release that are calculated and presented
in accordance with GAAP and are presented because management
believes that they supplement or enhance management's, analysts'
and investors' overall understanding of the company's underlying
financial performance and trends and facilitate comparisons among
current, past and future periods.
Because the non-GAAP financial measures are not calculated in
accordance with GAAP, they should not be considered superior to and
are not intended to be considered in isolation or as a substitute
for the related GAAP financial measures presented in the press
release and may not be the same as or comparable to similarly
titled measures presented by other companies due to possible
differences in method and in the items being adjusted. We encourage
investors to review our financial statements and publicly-filed
reports in their entirety and not to rely on any single financial
measure.
The company does not provide a reconciliation of forward-looking
measures where the company believes such a reconciliation would
imply a degree of precision and certainty that could be confusing
to investors and is unable to reasonably predict certain items
contained in the GAAP measures without unreasonable efforts. This
is due to the inherent difficulty of forecasting the timing or
amount of various items that have not yet occurred and are out of
the company's control or cannot be reasonably predicted. For the
same reasons, the company is unable to address the probable
significance of the unavailable information. Forward-looking
non-GAAP financial measures provided without the most directly
comparable GAAP financial measures may vary materially from the
corresponding GAAP financial measures. See "Cautionary Statement
Regarding Forward-Looking Statements" above. The information below
provides an explanation of certain adjustments reflected in the
non-GAAP financial measures and shows a reconciliation of non-GAAP
financial measures reported in this press release to the most
directly comparable GAAP financial measures. Within the financial
tables presented, certain columns and rows may not add due to the
use of rounded numbers. Percentages and earnings per share amounts
presented are calculated from the underlying amounts.
CASM: 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, third-party business
expenses, fuel expense, and profit sharing. UAL believes that
adjusting for special charges is useful to investors because those
items are not indicative of UAL's ongoing performance. UAL also
believes that excluding third-party business expenses, such as
maintenance, flight academy, 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 expense 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 it believes that this exclusion allows
investors to better understand and analyze UAL's operating cost
performance and provides a more meaningful comparison of our core
operating costs to the airline industry.
Adjusted EBITDA and EBITDAR: UAL also reports EBITDA and
EBITDAR excluding special charges, nonoperating unrealized (gains)
losses on investments, net and nonoperating debt extinguishment and
modification fees. UAL believes that adjusting for these items is
useful to investors because they are not indicative of UAL's
ongoing performance.
Adjusted Capital Expenditures and Free Cash
Flow: 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
(used in) operating activities for capital expenditures, net of
flight equipment purchase deposit returns, 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.
Adjusted Total Debt and Adjusted Net Debt: Adjusted total
debt is a non-GAAP financial measure that includes current and
long-term debt, operating lease obligations and finance lease
obligations, current and noncurrent other financial liabilities and
noncurrent pension and postretirement obligations. Adjusted net
debt is adjusted total debt minus cash, cash equivalents and
short-term investments. UAL provides adjusted total debt and
adjusted net debt because we believe these measures provide useful
supplemental information for assessing the company's debt and
debt-like obligation profile.
|
|
Three Months Ended
December 31,
|
|
%
Increase/
(Decrease)
|
|
Year Ended
December 31,
|
|
%
Increase/
(Decrease)
|
|
|
2023
|
|
2022
|
|
|
2023
|
|
2022
|
|
CASM-ex
(cents)
|
|
|
|
|
|
|
|
|
|
|
|
|
CASM
(GAAP)4
|
|
17.13
|
|
17.14
|
|
(0.1)
|
|
16.99
|
|
17.19
|
|
(1.2)
|
Fuel
expense
|
|
4.49
|
|
5.16
|
|
(13.0)
|
|
4.34
|
|
5.29
|
|
(18.0)
|
Special
charges
|
|
0.07
|
|
0.02
|
|
NM
|
|
0.32
|
|
0.05
|
|
NM
|
Profit
sharing
|
|
0.22
|
|
0.19
|
|
15.8
|
|
0.23
|
|
0.06
|
|
NM
|
Third-party business
expenses
|
|
0.07
|
|
0.06
|
|
16.7
|
|
0.07
|
|
0.06
|
|
16.7
|
CASM-ex
(Non-GAAP)4
|
|
12.28
|
|
11.71
|
|
4.9
|
|
12.03
|
|
11.73
|
|
2.6
|
UNITED AIRLINES
HOLDINGS, INC.
NON-GAAP FINANCIAL
INFORMATION (Continued)
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
Adjusted EBITDA and
EBITDAR (in millions)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Net income
|
|
$
600
|
|
$
843
|
|
$ 2,618
|
|
$
737
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
684
|
|
624
|
|
2,671
|
|
2,456
|
|
Interest expense, net
of capitalized interest and interest income
|
|
223
|
|
291
|
|
947
|
|
1,375
|
|
Income tax
expense
|
|
171
|
|
287
|
|
769
|
|
253
|
|
Special
charges
|
|
47
|
|
16
|
|
949
|
|
140
|
|
Nonoperating
unrealized (gains) losses on investments, net
|
|
27
|
|
(32)
|
|
(27)
|
|
(20)
|
|
Nonoperating debt
extinguishment and modification fees
|
|
—
|
|
—
|
|
11
|
|
7
|
|
Adjusted
EBITDA
|
|
$ 1,752
|
|
$ 2,029
|
|
$ 7,938
|
|
$ 4,948
|
|
Adjusted EBITDA
margin
|
|
12.9 %
|
|
16.4 %
|
|
14.8 %
|
|
11.0 %
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$ 1,752
|
|
$ 2,029
|
|
$ 7,938
|
|
$ 4,948
|
|
Aircraft
rent
|
|
46
|
|
59
|
|
197
|
|
252
|
|
Adjusted
EBITDAR
|
|
$ 1,798
|
|
$ 2,088
|
|
$ 8,135
|
|
$ 5,200
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
Adjusted Capital
Expenditures (in millions)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Capital expenditures,
net of flight equipment purchase deposit returns (GAAP)
|
$
2,066
|
|
$
2,539
|
|
$
7,171
|
|
$
4,819
|
Property and equipment
acquired through the issuance of debt, finance leases, and other
financial liabilities
|
100
|
|
19
|
|
777
|
|
19
|
Adjusted capital
expenditures (Non-GAAP)
|
$
2,166
|
|
$
2,558
|
|
$
7,948
|
|
$
4,838
|
|
|
|
|
|
|
|
|
Free Cash Flow
(in millions)
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities (GAAP)
|
$
(910)
|
|
$
1,158
|
|
$
6,911
|
|
$
6,066
|
Less capital
expenditures, net of flight equipment purchase deposit
returns
|
2,066
|
|
2,539
|
|
7,171
|
|
4,819
|
Free cash flow, net of
financings (Non-GAAP)
|
$
(2,976)
|
|
$
(1,381)
|
|
$
(260)
|
|
$
1,247
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities (GAAP)
|
$
(910)
|
|
$
1,158
|
|
$
6,911
|
|
$
6,066
|
Less adjusted capital
expenditures (Non-GAAP)
|
2,166
|
|
2,558
|
|
7,948
|
|
4,838
|
Less aircraft
operating lease additions
|
—
|
|
—
|
|
—
|
|
4
|
Free cash flow
(Non-GAAP)
|
$
(3,076)
|
|
$
(1,400)
|
|
$
(1,037)
|
|
$
1,224
|
|
|
December 31,
|
|
Increase/
(Decrease)
|
|
Adjusted total debt
and Adjusted net debt (in millions)
|
|
2023
|
|
2022
|
|
|
Debt - current and
noncurrent (GAAP)
|
|
$ 29,075
|
|
$ 31,194
|
|
$ (2,119)
|
|
Operating lease
obligations - current and noncurrent
|
|
5,079
|
|
5,020
|
|
59
|
|
Finance lease
obligations - current and noncurrent
|
|
263
|
|
219
|
|
44
|
|
Pension and
postretirement liabilities - noncurrent
|
|
1,605
|
|
1,418
|
|
187
|
|
Other financial
liabilities - current and noncurrent
|
|
2,322
|
|
867
|
|
1,455
|
|
Adjusted total debt
(Non-GAAP)
|
|
$ 38,344
|
|
$ 38,718
|
|
(374)
|
|
Less: Cash and cash
equivalents
|
|
$
6,058
|
|
$
7,166
|
|
(1,108)
|
|
Short-term investments
|
|
8,330
|
|
9,248
|
|
(918)
|
|
Adjusted net
debt
|
|
$ 23,956
|
|
$ 22,304
|
|
1,652
|
|
Adjusted net debt
divided by year ended December 31 adjusted EBITDAR
|
|
2.9
|
|
4.3
|
|
(1.4)
|
pts.
|
UNITED AIRLINES
HOLDINGS, INC.
NON-GAAP FINANCIAL
INFORMATION (Continued)
|
|
|
Three Months Ended
December 31,
|
|
%
Increase/
(Decrease)
|
|
Year Ended
December 31,
|
|
%
Increase/
(Decrease)
|
(in millions, except
percentage changes and per share data)
|
2023
|
|
2022
|
|
|
2023
|
|
2022
|
|
Operating expenses
(GAAP)
|
$ 12,628
|
|
$ 11,023
|
|
14.6
|
|
$ 49,506
|
|
$ 42,618
|
|
16.2
|
Special
charges
|
47
|
|
16
|
|
NM
|
|
949
|
|
140
|
|
NM
|
Operating expenses,
excluding special charges
|
12,581
|
|
11,007
|
|
14.3
|
|
48,557
|
|
42,478
|
|
14.3
|
Adjusted to
exclude:
|
|
|
|
|
|
|
|
|
|
|
|
Fuel
expense
|
3,315
|
|
3,317
|
|
(0.1)
|
|
12,651
|
|
13,113
|
|
(3.5)
|
Profit
sharing
|
160
|
|
125
|
|
28.0
|
|
681
|
|
133
|
|
NM
|
Third-party business
expenses
|
53
|
|
36
|
|
47.2
|
|
192
|
|
146
|
|
31.5
|
Adjusted operating
expenses (Non-GAAP)
|
$
9,053
|
|
$
7,529
|
|
20.2
|
|
$ 35,033
|
|
$ 29,086
|
|
20.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(GAAP)
|
$ 998
|
|
$
1,377
|
|
(27.5)
|
|
$
4,211
|
|
$
2,337
|
|
80.2
|
Special
charges
|
47
|
|
16
|
|
NM
|
|
949
|
|
140
|
|
NM
|
Adjusted operating
income (Non-GAAP)
|
$
1,045
|
|
$
1,393
|
|
(25.0)
|
|
$
5,160
|
|
$
2,477
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
7.3 %
|
|
11.1 %
|
|
(3.8)
pts
|
|
7.8 %
|
|
5.2 %
|
|
2.6
pts
|
Adjusted operating
margin (Non-GAAP)
|
7.7 %
|
|
11.2 %
|
|
(3.5)
pts
|
|
9.6 %
|
|
5.5 %
|
|
4.1
pts
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income
(GAAP)
|
$ 771
|
|
$
1,130
|
|
(31.8)
|
|
$
3,387
|
|
$ 990
|
|
242.1
|
Adjusted to
exclude:
|
|
|
|
|
|
|
|
|
|
|
|
Special
charges
|
47
|
|
16
|
|
NM
|
|
949
|
|
140
|
|
NM
|
Unrealized (gains)
losses on investments, net
|
27
|
|
(32)
|
|
NM
|
|
(27)
|
|
(20)
|
|
NM
|
Debt extinguishment
and modification fees
|
—
|
|
—
|
|
NM
|
|
11
|
|
7
|
|
NM
|
Adjusted pre-tax income
(Non-GAAP)
|
$ 845
|
|
$
1,114
|
|
(24.1)
|
|
$
4,320
|
|
$
1,117
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
margin
|
5.7 %
|
|
9.1 %
|
|
(3.4)
pts.
|
|
6.3 %
|
|
2.2 %
|
|
4.1
pts.
|
Adjusted pre-tax
margin (Non-GAAP)
|
6.2 %
|
|
9.0 %
|
|
(2.8)
pts.
|
|
8.0 %
|
|
2.5 %
|
|
5.5
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
$ 600
|
|
$ 843
|
|
(28.8)
|
|
$
2,618
|
|
$ 737
|
|
255.2
|
Adjusted to
exclude:
|
|
|
|
|
|
|
|
|
|
|
|
Special
charges
|
47
|
|
16
|
|
NM
|
|
949
|
|
140
|
|
NM
|
Unrealized (gains)
losses on investments, net
|
27
|
|
(32)
|
|
NM
|
|
(27)
|
|
(20)
|
|
NM
|
Debt extinguishment
and modification fees
|
—
|
|
—
|
|
NM
|
|
11
|
|
7
|
|
NM
|
Income tax benefit on
adjustments, net
|
(10)
|
|
(16)
|
|
NM
|
|
(214)
|
|
(33)
|
|
NM
|
Adjusted net
income (Non-GAAP)
|
$ 664
|
|
$ 811
|
|
(18.1)
|
|
$
3,337
|
|
$ 831
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share (GAAP)
|
$ 1.81
|
|
$ 2.55
|
|
(29.0)
|
|
$ 7.89
|
|
$ 2.23
|
|
NM
|
Adjusted to
exclude:
|
|
|
|
|
|
|
|
|
|
|
|
Special
charges
|
0.14
|
|
0.05
|
|
NM
|
|
2.86
|
|
0.42
|
|
NM
|
Unrealized (gains)
losses on investments, net
|
0.08
|
|
(0.10)
|
|
NM
|
|
(0.08)
|
|
(0.06)
|
|
NM
|
Debt extinguishment
and modification fees
|
—
|
|
—
|
|
NM
|
|
0.03
|
|
0.03
|
|
NM
|
Income tax benefit on
adjustments, net
|
(0.03)
|
|
(0.04)
|
|
NM
|
|
(0.65)
|
|
(0.10)
|
|
NM
|
Adjusted diluted
earnings per share (Non-GAAP)
|
$ 2.00
|
|
$ 2.46
|
|
(18.7)
|
|
$
10.05
|
|
$ 2.52
|
|
NM
|
UNITED AIRLINES
HOLDINGS, INC
CONDENSED CONSOLIDATED
BALANCE SHEETS
|
|
(In
millions)
|
December 31, 2023
(UNAUDITED)
|
|
December 31,
2022
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
6,058
|
|
$
7,166
|
Short-term
investments
|
8,330
|
|
9,248
|
Restricted
cash
|
31
|
|
45
|
Receivables, less
allowance for credit losses (2023—$18; 2022—$11)
|
1,898
|
|
1,801
|
Aircraft fuel, spare
parts and supplies, less obsolescence allowance (2023—$689;
2022—$610)
|
1,561
|
|
1,109
|
Prepaid expenses and
other
|
609
|
|
689
|
Total current
assets
|
18,487
|
|
20,058
|
|
|
|
|
Total operating
property and equipment, net
|
39,815
|
|
34,448
|
Operating lease
right-of-use assets
|
3,914
|
|
3,889
|
Other
assets:
|
|
|
|
Goodwill
|
4,527
|
|
4,527
|
Intangibles, less
accumulated amortization (2023—$1,495; 2022—$1,472)
|
2,725
|
|
2,762
|
Restricted
cash
|
245
|
|
210
|
Deferred income
taxes
|
—
|
|
91
|
Investments in
affiliates and other, less allowance for credit losses (2023—$38;
2022—$21)
|
1,391
|
|
1,373
|
Total other
assets
|
8,888
|
|
8,963
|
Total assets
|
$
71,104
|
|
$
67,358
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
3,835
|
|
$
3,395
|
Accrued salaries and
benefits
|
2,940
|
|
1,971
|
Advance ticket
sales
|
6,704
|
|
7,555
|
Frequent flyer
deferred revenue
|
3,095
|
|
2,693
|
Current maturities of
long-term debt
|
4,018
|
|
2,911
|
Current maturities of
other financial liabilities
|
57
|
|
23
|
Current maturities of
operating leases
|
576
|
|
561
|
Current maturities of
finance leases
|
172
|
|
104
|
Other
|
806
|
|
779
|
Total current
liabilities
|
22,203
|
|
19,992
|
Long-term liabilities
and deferred credits:
|
|
|
|
Long-term
debt
|
25,057
|
|
28,283
|
Long-term obligations
under operating leases
|
4,503
|
|
4,459
|
Long-term obligations
under finance leases
|
91
|
|
115
|
Frequent flyer
deferred revenue
|
4,048
|
|
3,982
|
Pension
liability
|
968
|
|
747
|
Postretirement benefit
liability
|
637
|
|
671
|
Deferred income
taxes
|
594
|
|
—
|
Other financial
liabilities
|
2,265
|
|
844
|
Other
|
1,414
|
|
1,369
|
Total long-term
liabilities and deferred credits
|
39,577
|
|
40,470
|
Total stockholders'
equity
|
9,324
|
|
6,896
|
Total liabilities and
stockholders' equity
|
$
71,104
|
|
$
67,358
|
UNITED AIRLINES
HOLDINGS, INC.
CONDENSED STATEMENTS OF
CONSOLIDATED CASH FLOWS
|
|
(In
millions)
|
Year Ended December
31,
|
|
2023
(UNAUDITED)
|
|
2022
|
Cash Flows from
Operating Activities:
|
|
|
|
Net cash provided by
operating activities
|
$
6,911
|
|
$
6,066
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Capital expenditures,
net of flight equipment purchase deposit returns
|
(7,171)
|
|
(4,819)
|
Purchases of
short-term and other investments
|
(9,470)
|
|
(11,232)
|
Proceeds from sale of
short-term and other investments
|
10,519
|
|
2,084
|
Proceeds from sale of
property and equipment
|
39
|
|
207
|
Other, net
|
(23)
|
|
(69)
|
Net cash used in
investing activities
|
(6,106)
|
|
(13,829)
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Proceeds from issuance
of debt and other financing liabilities, net of discounts and
fees
|
2,388
|
|
736
|
Payments of long-term
debt, finance leases and other financial liabilities
|
(4,248)
|
|
(4,011)
|
Other, net
|
(32)
|
|
(74)
|
Net cash used in
financing activities
|
(1,892)
|
|
(3,349)
|
Net decrease in cash,
cash equivalents and restricted cash
|
(1,087)
|
|
(11,112)
|
Cash, cash equivalents
and restricted cash at beginning of the period
|
7,421
|
|
18,533
|
Cash, cash equivalents
and restricted cash at end of the period
|
$
6,334
|
|
$
7,421
|
|
|
|
|
Investing and Financing
Activities Not Affecting Cash:
|
|
|
|
Property and equipment
acquired through the issuance of debt, finance leases and
other
|
$
777
|
|
$
19
|
Right-of-use assets
acquired through operating leases
|
552
|
|
137
|
Lease modifications and
lease conversions
|
546
|
|
(84)
|
Investment interests
received in exchange for goods and services
|
33
|
|
103
|
UNITED AIRLINES
HOLDINGS, INC.
NOTES
(UNAUDITED)
|
|
Special charges and
unrealized (gains) losses on investments, net include the
following:
|
|
|
|
Three Months Ended
December 31,
|
|
|
Year Ended
December 31,
|
(In
millions)
|
|
2023
|
|
2022
|
|
|
2023
|
|
2022
|
Operating:
|
|
|
|
|
|
|
|
|
|
Labor contract
ratification bonuses
|
|
$
—
|
|
$
—
|
|
|
$ 814
|
|
$
—
|
(Gains) losses on sale
of assets and other special charges
|
|
47
|
|
16
|
|
|
135
|
|
140
|
Total operating special
charges
|
|
47
|
|
16
|
|
|
949
|
|
140
|
|
|
|
|
|
|
|
|
|
|
Nonoperating:
|
|
|
|
|
|
|
|
|
|
Nonoperating unrealized
(gains) losses on investments, net
|
|
27
|
|
(32)
|
|
|
(27)
|
|
(20)
|
Nonoperating debt
extinguishment and modification fees
|
|
—
|
|
—
|
|
|
11
|
|
7
|
Total nonoperating special
charges and unrealized (gains) losses on investments,
net
|
|
27
|
|
(32)
|
|
|
(16)
|
|
(13)
|
Total operating and
nonoperating special charges and unrealized (gains) losses on
investments, net
|
|
74
|
|
(16)
|
|
|
933
|
|
127
|
Income tax benefit, net
of valuation allowance
|
|
(10)
|
|
(16)
|
|
|
(214)
|
|
(33)
|
Total operating and non-operating special charges and unrealized
(gains) losses on investments, net of income taxes
|
|
$
64
|
|
$
(32)
|
|
|
$ 719
|
|
$
94
|
Labor contract ratification bonuses: During the year ended
December 31, 2023, the company recorded $814 million of expense associated with the
agreements with the Air Line Pilots Association, the International
Association of Machinists & Aerospace Workers and other work
groups.
(Gains) losses on sale of assets and other special
charges: During the three and twelve months ended
December 31, 2023, the company recorded $47 million and $135
million, respectively, of net charges primarily comprised of
accelerated depreciation related to certain of the company's assets
that will be retired early, reserves for various legal matters, a
write-down of flight training equipment that is being sold and
other gains and losses on the sale of assets.
During the three and twelve months ended December 31, 2022, the company recorded net
charges of $16 million and
$140 million, respectively. For the
full year 2022, the net charges primarily consisted of $94 million for various legal matters, and
$23 million related to certain
contract disputes.
Nonoperating unrealized (gains) losses on investments,
net: All amounts represent changes to the market value of
equity investments.
Nonoperating debt extinguishment and modification fees:
During the year ended December 31, 2023, the company recorded
$11 million of charges primarily related to the prepayment of
$1.0 billion of the outstanding
principal amount under a 2021 term loan facility.
During the year ended December 31,
2022, the company recorded $7
million of charges mainly related to the early redemption of
$400 million of the outstanding
principal amount of its 4.25% senior notes due 2022.
Effective tax rate:
The company's effective tax rates were as follows:
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Effective tax
rate
|
22.2 %
|
|
25.4 %
|
|
22.7 %
|
|
25.6 %
|
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.
|
|
|
|
|
|
|
1 For additional
information about the non-GAAP measures used in this press release,
see "Non-GAAP Financial Information" below.
|
2 Excluding years
impacted by the COVID-19 pandemic — 2020 and 2021.
|
3 Includes cash, cash
equivalents, short-term investments and undrawn credit
facilities.
|
4 Effective with the
current period, the Company reclassified certain commissions
totaling $80 million from contra-revenue to distribution expense as
an immaterial classification correction. The reclassification
increased fourth quarter 2023 CASM, CASM-Ex and TRASM by 0.6%, 1.0%
and 0.6%, respectively, compared to the prior period, but had no
impact on operating income, net income, or cash flows from
operations.
|
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SOURCE United Airlines