EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

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Worldwide Press Office:

Email: media.relations@united.com

United Airlines Reports July 2010 Operational Performance

CHICAGO, August 9, 2010 – United Airlines today reported its preliminary consolidated traffic results for July 2010. Total consolidated revenue passenger miles (RPMs) increased in July by 2.1% on an increase of 1.8% in available seat miles (ASMs) compared with the same period in 2009. This resulted in a reported July consolidated passenger load factor of 87.2%, an increase of 0.3 points compared to 2009.

United reported a U.S. Department of Transportation on-time arrival rate of 82.9% in July.

For July 2010, consolidated passenger revenue per available seat mile (PRASM) is estimated to have increased 22.0% to 23.0% year-over-year. Consolidated PRASM is estimated to have increased 3.9% to 4.9% for July 2010 compared to July 2008, 2.0 percentage points of which is due to fees and other ancillary revenue. A table reviewing United’s 2009 monthly PRASM performance compared to 2008 and relative to the combined Air Transport Association (ATA) carriers is included at the end of this release.

Average July 2010 mainline fuel price, including gains or losses on settled fuel hedges and excluding non-cash, mark-to-market fuel hedge gains and losses, is estimated to be $2.31 per gallon. Including non-cash, mark-to-market fuel hedge gains and losses, the estimated fuel price is $2.33 per gallon for the month.

About United

United Airlines, a wholly-owned subsidiary of UAL Corporation (Nasdaq: UAUA), operates approximately 3,400* flights a day on United and United Express to more than 230 U.S. domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C. With key global air rights in the Asia-Pacific region, Europe and Latin America, United is one of the largest international carriers based in the United States. United also is a founding member of Star Alliance, which provides connections for our customers to 1,172 destinations in 181 countries worldwide. United’s 46,000 employees reside in every U.S. state and in many countries around the world. United ranked No. 1 in on-time performance for domestic scheduled flights for 2009 among America’s five largest global carriers, as measured by the Department of Transportation and published in the Air Travel Consumer Report for 2009. News releases and other information about United can be found at the company’s Web site at united.com. Follow United on Twitter @UnitedAirlines, and become a fan on Facebook by visiting facebook.com/unitedairlines.

 

* Based on United’s forward-looking flight schedule for July 2010 to June 2011.

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REVENUE PASSENGER MILES (‘000)**

                  
     July 2010     July 2009     Change  

North America

   5,461,151      5,699,161      -4.2

Pacific

   2,110,120      2,015,337      4.7

Atlantic

   1,950,231      1,829,100      6.6

Latin America

   308,472      271,767      13.5
                  

Total International

   4,368,823      4,116,204      6.1

Total Mainline

   9,829,974      9,815,365      0.1

Regional Affiliates

   1,559,412      1,336,551      16.7

Total Consolidated

   11,389,386      11,151,916      2.1

AVAILABLE SEAT MILES (‘000)**

                  

North America

   6,151,654      6,412,168      -4.1

Pacific

   2,428,822      2,406,580      0.9

Atlantic

   2,224,255      2,064,252      7.8

Latin America

   370,079      315,199      17.4
                  

Total International

   5,023,156      4,786,031      5.0

Total Mainline

   11,174,810      11,198,199      -0.2

Regional Affiliates

   1,888,945      1,638,755      15.3

Total Consolidated

   13,063,755      12,836,954      1.8

LOAD FACTOR**

                  

North America

   88.8   88.9   -0.1 pts   

Pacific

   86.9   83.7   3.2 pts   

Atlantic

   87.7   88.6   -0.9 pts   

Latin America

   83.4   86.2   -2.8 pts   
                  

Total International

   87.0   86.0   1.0 pts   

Total Mainline

   88.0   87.7   0.3 pts   

Regional Affiliates

   82.6   81.6   1.0 pts   

Total Consolidated

   87.2   86.9   0.3 pts   

REVENUE PASSENGERS BOARDED (‘000)**

                  

Mainline

   5,065      5,424      -6.6

Regional Affiliates

   2,657      2,402      10.6
                  

Total Consolidated

   7,722      7,826      -1.3

CARGO TON MILES (‘000)**

                  

Freight

   141,601      116,908      21.1

Mail

   13,646      15,120      -9.7
                  

Total Mainline

   155,247      132,028      17.6

 

** Includes Scheduled and Charter Operations. Regional Affiliates results only reflect flights operated under capacity purchase agreements and flights operated as part of our joint venture with Aer Lingus.

 

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REVENUE PASSENGER MILES (‘000)**

                  
     YTD July 2010     YTD July 2009     Change  

North America

   33,375,812      34,347,589      -2.8

Pacific

   13,150,073      12,276,424      7.1

Atlantic

   10,625,294      10,187,863      4.3

Latin America

   1,963,260      1,902,442      3.2
                  

Total International

   25,738,627      24,366,729      5.6

Total Mainline

   59,114,439      58,714,318      0.7

Regional Affiliates

   9,400,970      7,746,586      21.4

Total Consolidated

   68,515,409      66,460,904      3.1

AVAILABLE SEAT MILES (‘000)**

                  

North America

   39,311,821      41,041,222      -4.2

Pacific

   15,616,250      16,238,768      -3.8

Atlantic

   12,994,688      12,952,209      0.3

Latin America

   2,454,684      2,518,934      -2.6
                  

Total International

   31,065,622      31,709,911      -2.0

Total Mainline

   70,377,443      72,751,133      -3.3

Regional Affiliates

   11,999,179      10,138,063      18.4

Total Consolidated

   82,376,622      82,889,196      -0.6

LOAD FACTOR**

                  

North America

   84.9   83.7   1.2 pts   

Pacific

   84.2   75.6   8.6 pts   

Atlantic

   81.8   78.7   3.1 pts   

Latin America

   80.0   75.5   4.5 pts   
                  

Total International

   82.9   76.8   6.1 pts   

Total Mainline

   84.0   80.7   3.3 pts   

Regional Affiliates

   78.3   76.4   1.9 pts   

Total Consolidated

   83.2   80.2   3.0 pts   

REVENUE PASSENGERS BOARDED (‘000)**

                  

Mainline

   31,471      33,178      -5.1

Regional Affiliates

   16,393      14,380      14.0
                  

Total Consolidated

   47,864      47,558      0.6

CARGO TON MILES (‘000)**

                  

Freight

   1,019,613      735,586      38.6

Mail

   105,644      116,191      -9.1
                  

Total Mainline

   1,125,257      851,777      32.1

 

** Includes Scheduled and Charter Operations. Regional Affiliates results only reflect flights operated under capacity purchase agreements and flights operated as part of our joint venture with Aer Lingus.

 

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United’s Consolidated Year-Over-Year PRASM

          
     2009 vs. 2008     Higher / Lower than
Industry (ATA)
including fees

January 2009

   -6.7   -4.0 points

February 2009

   -11.2   -3.4 points

March 2009

   -15.0   -1.2 points
          

First Quarter 2009

   -11.1   -2.7 points

April 2009

   -14.2   -5.1 points

May 2009

   -17.6   -1.2 points

June 2009

   -19.5   -1.2 points
          

Second Quarter 2009

   -17.2   -2.3 points

July 2009

   -14.9   -0.8 points

August 2009

   -15.1   -0.7 points

September 2009

   -14.2   +0.6 points
          

Third Quarter 2009

   -14.7   -0.3 points

October 2009

   -11.3   -1.4 points

November 2009

   -4.4   -1.5 points

December 2009

   1.5   +1.8 points
          

Fourth Quarter 2009

   -5.2   -0.6 points

GAAP To Non-GAAP Reconciliations

Pursuant to SEC Regulation G, the Company has included the following reconciliation of reported non-GAAP financial measures to comparable financial measures reported on a GAAP basis. Since the Company did not apply cash flow hedge accounting prior to April 1, 2010, the Company believes that the net fuel hedge adjustments provide management and investors with a better perspective of its performance and comparison to its peers because the adjustments reflect the economic fuel cost during the periods presented and many of our peers apply cash flow hedge accounting. The non-cash mark-to-market gain/loss adjustment includes the reversal of prior period non-cash mark-to-market gain/loss related to July hedge settlements.

 

     July 2010

Mainline fuel price per gallon excluding non-cash, net mark-to-market gains and losses

   $ 2.31

Add: Non-cash, net mark-to-market (gains) and losses per gallon

     0.02
      

Mainline fuel price per gallon

   $ 2.33

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements included in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and financial performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as “expects,” “will,” “plans,” “anticipates,” “indicates,” “believes,” “forecast,” “guidance,” “outlook” and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements which do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise. 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 amended credit facility and other financing arrangements; the costs and availability of financing; our ability to maintain adequate liquidity; our ability to execute our operational plans; our ability to control our costs, including realizing

 

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benefits from our resource optimization efforts, cost reduction initiatives and fleet replacement programs; our ability to utilize our net operating losses; our ability to attract and retain customers; demand for transportation in the markets in which we operate; an outbreak of a disease that affects travel demand or travel behavior; demand for travel and the impact the economic recession has on customer travel patterns; the increasing reliance on enhanced video-conferencing and other technology as a means of conducting virtual meetings; general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aviation fuel and energy refining capacity in relevant markets); our ability to cost-effectively hedge against increases in the price of aviation fuel; any potential realized or unrealized gains or losses related to fuel or currency hedging programs; the effects of any hostilities, act of war or terrorist attack; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; the costs and availability of aviation or other insurance; the costs associated with security measures and practices; industry consolidation; competitive pressures on pricing and on demand; capacity decisions of United and/or our competitors; U.S. or foreign governmental legislation, regulation and other actions (including open skies agreements); labor costs; our ability to maintain satisfactory labor relations and the results of the collective bargaining agreement process with our union groups; any disruptions to operations due to any potential actions by our labor groups; weather conditions; our ability to complete the planned merger with Continental Airlines, Inc.; and other risks and uncertainties set forth under the caption “Risk Factors” in Item 1A. of the 2009 Annual Report, 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 (“SEC”). Consequently, forward-looking statements should not be regarded as representations or warranties by UAL Corporation or United that such matters will be realized.

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The United Building, 77 West Wacker Drive, Chicago, Illinois 60601