Delaware | 001-06033 | 36-2675207 | ||
Delaware | 001-10323 | 74-2099724 | ||
(State or other jurisdiction | (Commission File Number) | (IRS Employer | ||
of incorporation) | Identification Number) |
233 S. Wacker Drive, Chicago, IL | 60606 | |
233 S. Wacker Drive, Chicago, IL | 60606 | |
(Address of principal executive offices) | (Zip Code) |
UNITED CONTINENTAL 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 first-quarter net income of $292 million, diluted EPS of $1.09, pre-tax earnings of $367 million and pre-tax margin of 3.8 percent, expanding pre-tax margin 1.8 points versus the first quarter of 2018. |
• | Reported first-quarter adjusted net income of $309 million, adjusted diluted EPS of $1.15, adjusted pre-tax earnings of $389 million, adjusted pre-tax margin1 of 4.1 percent, expanding adjusted pre-tax margin 2.1 points versus the first quarter of 2018.1 |
• | Total passenger revenue increased 7.1 percent versus the first quarter of 2018. |
• | First-quarter passenger revenue per available seat mile (PRASM) increased 1.1 percent year-over-year. |
• | Consolidated first-quarter unit cost per available seat mile (CASM) decreased 2.1 percent year-over-year. |
• | Consolidated first-quarter CASM, excluding special charges, third-party business expenses, fuel and profit sharing, decreased 1.8 percent year-over-year. |
• | Repurchased $527 million of its common shares in the first-quarter of 2019, at an average purchase price of $83.68 per share. |
• | For the second consecutive quarter the airline reported adjusted pre-tax margin expansion. |
• | Flew the most revenue passengers ever for a first quarter in company history. |
• | Despite a weather-challenged first quarter, achieved second-highest mainline on-time departures rate performance versus the major U.S. airlines. |
• | Launched Backstage 2019 which will bring all 25,000 flight attendants to Chicago for an event which will help us elevate the way customers feel about their United experience. |
• | Earned 100 percent score on Human Rights Campaign Foundation's annual scorecard on LGBTQ workplace equality. |
• | Broke ground on a state-of-the-art Technical Operations Center at Los Angeles International Airport that will enable the airline to provide exceptional service for all of its aircraft fleets. |
• | Announced headquarters will remain at the iconic Willis Tower in the airline's hometown of Chicago, while making investments to completely transform the current workspace and experience. |
• | Introduced a re-imagined mobile app to customers around the world featuring a more dynamic experience that updates customers at each step of their travel journey while adding enhancements that make managing travel easier. |
• | Announced free live DIRECTV on 211 Boeing 737 United aircraft equipped with seat back TV, providing more than 100 channels of live television. |
• | Introduced the relaunch of the United MileagePlus X app, which offers United MileagePlus® members a unique opportunity to earn award miles for everyday purchases. |
• | Opened the fifth of its award-winning United Polaris Lounges at Los Angeles International Airport. |
• | Opened a brand-new 5,000-square-foot United Club at Fort Lauderdale-Hollywood International Airport - the first of four new United Club locations set to open in 2019. |
• | Announced next step in airline's commitment to making customers more comfortable by adding more than 1,600 United Polaris® business class and United First seats to nearly 250 international and domestic aircraft. |
• | Launched new state-of-the-art United Meetings product, available on the airline's business portal, United Jetstream, which makes managing travel and redeeming rewards for meetings and events quicker and more streamlined. |
• | 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 and in a MileagePlus customer profile, providing customers the ability to identify themselves corresponding with what is indicated on their passports or identification. |
• | Began new service from four hubs to 18 cities in 12 states and one province and launched new nonstop seasonal service between San Francisco and Amsterdam. |
• | Announced 11 new domestic routes. |
• | Filed an application with the U.S. Department of Transportation for a total of six daily nonstop flights to Tokyo Haneda Airport from six of the airline's hubs. |
• | Announced a brand new and revolutionary regional flying experience with the addition of the two-cabin, 50-seat Bombardier CRJ 550 aircraft, offering customers on key regional routes more legroom, storage and amenities than any other 50-seat regional aircraft operating today. |
• | Became first carrier in the world to operate all three Dreamliner models as its first 787-10 began regular service in January from Los Angeles International Airport to Newark Liberty International Airport. |
• | Took delivery of four Boeing 737 MAX 9 aircraft (prior to the March 13, 2019 Federal Aviation Administration order grounding U.S.-registered 737 MAX aircraft) and four Boeing 787-10 aircraft. |
• | Donated $1 million to Feeding America's Shutdown Response Fund to directly support the food banks providing food for families of federal workers. |
• | Launched Her Art Here, a first-of-its-kind contest designed to find and uplift underrepresented women artists by providing a chance to paint a canvas like no other - a United Airlines aircraft. |
Three Months Ended March 31, | % Increase/ (Decrease) | |||||||||||
(In millions, except per share data) | 2019 | 2018 | ||||||||||
Operating revenue: | ||||||||||||
Passenger | $ | 8,725 | $ | 8,149 | 7.1 | |||||||
Cargo | 286 | 293 | (2.4 | ) | ||||||||
Other operating revenue | 578 | 590 | (2.0 | ) | ||||||||
Total operating revenue | 9,589 | 9,032 | 6.2 | |||||||||
Operating expense: | ||||||||||||
Salaries and related costs | 2,873 | 2,726 | 5.4 | |||||||||
Aircraft fuel | 2,023 | 1,965 | 3.0 | |||||||||
Regional capacity purchase | 688 | 630 | 9.2 | |||||||||
Landing fees and other rent | 588 | 579 | 1.6 | |||||||||
Depreciation and amortization | 547 | 524 | 4.4 | |||||||||
Aircraft maintenance materials and outside repairs | 408 | 440 | (7.3 | ) | ||||||||
Distribution expenses | 360 | 342 | 5.3 | |||||||||
Aircraft rent | 81 | 127 | (36.2 | ) | ||||||||
Special charges (B) | 18 | 40 | NM | |||||||||
Other operating expenses | 1,508 | 1,397 | 7.9 | |||||||||
Total operating expense | 9,094 | 8,770 | 3.7 | |||||||||
Operating income | 495 | 262 | 88.9 | |||||||||
Operating margin | 5.2 | % | 2.9 | % | 2.3 | pts. | ||||||
Adjusted operating margin (Non-GAAP) (A) | 5.3 | % | 3.3 | % | 2.0 | pts. | ||||||
Nonoperating income (expense): | ||||||||||||
Interest expense | (188 | ) | (162 | ) | 16.0 | |||||||
Interest capitalized | 22 | 18 | 22.2 | |||||||||
Interest income | 29 | 17 | 70.6 | |||||||||
Miscellaneous, net (B) | 9 | 47 | (80.9 | ) | ||||||||
Total nonoperating expense | (128 | ) | (80 | ) | 60.0 | |||||||
Income before income taxes | 367 | 182 | 101.6 | |||||||||
Pre-tax margin | 3.8 | % | 2.0 | % | 1.8 | pts. | ||||||
Adjusted pre-tax margin (Non-GAAP) (A) | 4.1 | % | 2.0 | % | 2.1 | pts. | ||||||
Income tax expense (D) | 75 | 37 | 102.7 | |||||||||
Net income | $ | 292 | $ | 145 | 101.4 | |||||||
Diluted earnings per share | $ | 1.09 | $ | 0.51 | 113.7 | |||||||
Diluted weighted average shares | 268.3 | 284.9 | (5.8 | ) | ||||||||
NM Not meaningful |
1Q 2019 Passenger Revenue (millions) | Passenger Revenue vs. 1Q 2018 | PRASM vs. 1Q 2018 | Yield vs. 1Q 2018 | Available Seat Miles vs. 1Q 2018 | 1Q 2019 Available Seat Miles (millions) | ||||||||||
Domestic | $ | 5,367 | 8.0% | 0.6% | 0.9% | 7.4% | 36,726 | ||||||||
Atlantic | 1,331 | 6.3% | (2.8%) | (4.8%) | 9.4% | 10,626 | |||||||||
Pacific | 1,121 | 4.9% | 4.5% | 2.2% | 0.3% | 10,923 | |||||||||
Latin America | 906 | 5.3% | 2.6% | 2.3% | 2.6% | 7,370 | |||||||||
International | 3,358 | 5.6% | 1.4% | (0.1%) | 4.1% | 28,919 | |||||||||
Consolidated | $ | 8,725 | 7.1% | 1.1% | 0.5% | 5.9% | 65,645 | ||||||||
Three Months Ended March 31, | % Increase/ (Decrease) | |||||||||||
2019 | 2018 | |||||||||||
Passengers (thousands) | 36,454 | 34,495 | 5.7 | |||||||||
Revenue passenger miles (millions) | 53,097 | 49,849 | 6.5 | |||||||||
Available seat miles (millions) | 65,645 | 61,977 | 5.9 | |||||||||
Passenger load factor: | ||||||||||||
Consolidated | 80.9 | % | 80.4 | % | 0.5 | pts. | ||||||
Domestic | 82.6 | % | 82.8 | % | (0.2 | ) | pts. | |||||
International | 78.7 | % | 77.5 | % | 1.2 | pts. | ||||||
Passenger revenue per available seat mile (cents) | 13.29 | 13.15 | 1.1 | |||||||||
Total revenue per available seat mile (cents) | 14.61 | 14.57 | 0.3 | |||||||||
Average yield per revenue passenger mile (cents) | 16.43 | 16.35 | 0.5 | |||||||||
Aircraft in fleet at end of period | 1,348 | 1,295 | 4.1 | |||||||||
Average stage length (miles) | 1,448 | 1,443 | 0.3 | |||||||||
Average full-time equivalent employees | 88,730 | 85,561 | 3.7 | |||||||||
Average aircraft fuel price per gallon | $ | 2.05 | $ | 2.11 | (2.8 | ) | ||||||
Fuel gallons consumed (millions) | 985 | 932 | 5.7 |
(In millions) | March 31, 2019 | December 31, 2018 | |||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,848 | $ | 1,694 | |||
Short-term investments | 2,219 | 2,256 | |||||
Receivables, less allowance for doubtful accounts | 1,789 | 1,426 | |||||
Aircraft fuel, spare parts and supplies, less obsolescence allowance | 972 | 985 | |||||
Prepaid expenses and other | 780 | 733 | |||||
Total current assets | 7,608 | 7,094 | |||||
Total operating property and equipment, net | 28,586 | 27,399 | |||||
Operating lease right-of-use assets | 5,065 | 5,262 | |||||
Other assets: | |||||||
Goodwill | 4,523 | 4,523 | |||||
Intangibles, less accumulated amortization | 3,144 | 3,159 | |||||
Restricted cash | 103 | 105 | |||||
Notes receivable, net | 512 | 516 | |||||
Investments in affiliates and other, net | 1,098 | 966 | |||||
Total other assets | 9,380 | 9,269 | |||||
Total assets | $ | 50,639 | $ | 49,024 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Advance ticket sales | $ | 6,006 | $ | 4,381 | |||
Accounts payable | 2,707 | 2,363 | |||||
Frequent flyer deferred revenue | 2,388 | 2,286 | |||||
Accrued salaries and benefits | 1,660 | 2,184 | |||||
Current maturities of long-term debt | 1,201 | 1,230 | |||||
Current maturities of finance leases | 133 | 123 | |||||
Current maturities of operating leases | 639 | 719 | |||||
Other | 601 | 553 | |||||
Total current liabilities | 15,335 | 13,839 | |||||
Other long-term liabilities and deferred credits: | |||||||
Long-term debt | 12,734 | 12,215 | |||||
Long-term obligations under finance leases | 236 | 224 | |||||
Long-term obligations under operating leases | 5,145 | 5,276 | |||||
Frequent flyer deferred revenue | 2,750 | 2,719 | |||||
Postretirement benefit liability | 1,287 | 1,295 | |||||
Pension liability | 1,454 | 1,576 | |||||
Deferred income taxes | 898 | 828 | |||||
Other | 998 | 1,010 | |||||
Total other long-term liabilities and deferred credits | 25,502 | 25,143 | |||||
Stockholders' equity | 9,802 | 10,042 | |||||
Total liabilities and stockholders' equity | $ | 50,639 | $ | 49,024 |
(In millions) | Three Months Ended March 31, | ||||||
2019 | 2018 | ||||||
Cash Flows from Operating Activities: | |||||||
Net cash provided by operating activities | $ | 1,915 | $ | 1,709 | |||
Cash Flows from Investing Activities: | |||||||
Capital expenditures | (1,609 | ) | (944 | ) | |||
Purchases of short-term and other investments | (724 | ) | (596 | ) | |||
Proceeds from sale of short-term and other investments | 768 | 840 | |||||
Loans made to others | — | (10 | ) | ||||
Investment in affiliates | (27 | ) | — | ||||
Other, net | 12 | 15 | |||||
Net cash used in investing activities | (1,580 | ) | (695 | ) | |||
Cash Flows from Financing Activities: | |||||||
Proceeds from issuance of long-term debt | 646 | 673 | |||||
Payments of long-term debt | (250 | ) | (189 | ) | |||
Repurchases of common stock | (513 | ) | (529 | ) | |||
Principal payments under finance leases | (20 | ) | (18 | ) | |||
Capitalized financing costs | (17 | ) | (16 | ) | |||
Other, net | (29 | ) | (16 | ) | |||
Net cash used in financing activities | (183 | ) | (95 | ) | |||
Net increase in cash, cash equivalents and restricted cash | 152 | 919 | |||||
Cash, cash equivalents and restricted cash at beginning of the period | 1,799 | 1,591 | |||||
Cash, cash equivalents and restricted cash at end of the period | $ | 1,951 | $ | 2,510 | |||
Investing and Financing Activities Not Affecting Cash: | |||||||
Property and equipment acquired through the issuance of debt | $ | 92 | $ | 60 | |||
Operating lease conversions to finance lease | 36 | — | |||||
Right-of-use assets acquired through operating leases | 51 | 103 | |||||
Property and equipment acquired through finance leases | 8 | — |
(in millions) | Twelve Months Ended March 31, 2019 | ||
Net Operating Profit After Tax ("NOPAT") | |||
Pre-tax income | $ | 2,833 | |
Adjustments: | |||
Special charges and mark-to-market ("MTM") losses on financial instruments: | |||
Impairment of assets | 362 | ||
Termination of a maintenance service agreement | 64 | ||
Severance and benefit costs | 33 | ||
MTM losses on financial instruments | 33 | ||
(Gains) losses on sale of assets and other special charges | 6 | ||
Pre-tax income excluding special charges and MTM losses on financial instruments (Non-GAAP) | 3,331 | ||
add: Interest expense (net of income tax benefit) (a) | 693 | ||
add: Interest component of capitalized aircraft rent (net of income tax benefit) (a) | 193 | ||
add: Net interest on pension (net of income tax benefit) (a) | (12 | ) | |
less: Income taxes paid | (14 | ) | |
NOPAT (Non-GAAP) | $ | 4,191 | |
Average Invested Capital (five-quarter average) | |||
Total assets | $ | 49,392 | |
less: Non-interest bearing liabilities (b) | (16,966 | ) | |
Average invested capital (Non-GAAP) | $ | 32,426 | |
ROIC (Non-GAAP) | 12.9 | % | |
(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 MTM gains on financial instruments. For the twelve months ended March 31, 2019, the effective cash tax rate was 0.4%. |
(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 March 31, | % Increase/ (Decrease) | |||||||||
2019 | 2018 | |||||||||
CASM (cents) | ||||||||||
Cost per available seat mile (CASM) (GAAP) | 13.85 | 14.15 | (2.1 | ) | ||||||
Special charges (B) | 0.02 | 0.07 | NM | |||||||
Third-party business expenses | 0.05 | 0.05 | — | |||||||
Fuel expense | 3.08 | 3.17 | (2.8 | ) | ||||||
Profit sharing, including taxes | 0.05 | 0.02 | 150.0 | |||||||
CASM, excluding special charges, third-party business expenses, fuel, and profit sharing (Non-GAAP) | 10.65 | 10.84 | (1.8 | ) |
Three Months Ended March 31, | $ Increase/ (Decrease) | % Increase/ (Decrease) | ||||||||||||||
(in millions) | 2019 | 2018 | ||||||||||||||
Operating expenses (GAAP) | $ | 9,094 | $ | 8,770 | $ | 324 | 3.7 | |||||||||
Special charges (B) | 18 | 40 | (22 | ) | NM | |||||||||||
Operating expenses, excluding special charges | 9,076 | 8,730 | 346 | 4.0 | ||||||||||||
Adjusted to exclude: | ||||||||||||||||
Third-party business expenses | 30 | 31 | (1 | ) | (3.2 | ) | ||||||||||
Fuel expense | 2,023 | 1,965 | 58 | 3.0 | ||||||||||||
Profit sharing, including taxes | 33 | 17 | 16 | 94.1 | ||||||||||||
Adjusted operating expenses (Non-GAAP) | $ | 6,990 | $ | 6,717 | $ | 273 | 4.1 | |||||||||
Operating income (GAAP) | $ | 495 | $ | 262 | $ | 233 | 88.9 | |||||||||
Adjusted to exclude: | ||||||||||||||||
Special charges (B) | 18 | 40 | (22 | ) | NM | |||||||||||
Adjusted operating income (Non-GAAP) | $ | 513 | $ | 302 | $ | 211 | 69.9 | |||||||||
Pre-tax income (GAAP) | $ | 367 | $ | 182 | $ | 185 | 101.6 | |||||||||
Adjusted to exclude: | ||||||||||||||||
Special charges (B) | 18 | 40 | (22 | ) | NM | |||||||||||
MTM gains on financial instruments (B) | (17 | ) | (45 | ) | 28 | NM | ||||||||||
Interest expense on ERJ 145 finance leases (C) | 21 | — | 21 | NM | ||||||||||||
Adjusted pre-tax income (Non-GAAP) | $ | 389 | $ | 177 | $ | 212 | 119.8 | |||||||||
Net income (GAAP) | $ | 292 | $ | 145 | $ | 147 | 101.4 | |||||||||
Adjusted to exclude: | ||||||||||||||||
Special charges (B) | 18 | 40 | (22 | ) | NM | |||||||||||
MTM gains on financial instruments (B) | (17 | ) | (45 | ) | 28 | NM | ||||||||||
Interest expense on ERJ 145 finance leases (C) | 21 | — | 21 | NM | ||||||||||||
Income tax expense (benefit) related to adjustments above | (5 | ) | 1 | (6 | ) | NM | ||||||||||
Adjusted net income (Non-GAAP) | $ | 309 | $ | 141 | $ | 168 | 119.1 | |||||||||
Diluted earnings per share (GAAP) | $ | 1.09 | $ | 0.51 | $ | 0.58 | 113.7 | |||||||||
Adjusted to exclude: | ||||||||||||||||
Special charges (B) | 0.07 | 0.14 | (0.07 | ) | NM | |||||||||||
MTM gains on financial instruments (B) | (0.07 | ) | (0.16 | ) | 0.09 | NM | ||||||||||
Interest expense on ERJ 145 finance leases (C) | 0.08 | — | 0.08 | NM | ||||||||||||
Income tax benefit related to adjustments | (0.02 | ) | — | (0.02 | ) | NM | ||||||||||
Adjusted diluted earnings per share (Non-GAAP) | $ | 1.15 | $ | 0.49 | $ | 0.66 | 134.7 |
Three Months Ended March 31, | |||||||||
Capital Expenditures (in millions) | 2019 | 2018 | |||||||
Capital expenditures (GAAP) | $ | 1,609 | $ | 944 | |||||
Property and equipment acquired through the issuance of debt | 92 | 60 | |||||||
Property and equipment acquired through finance leases | 8 | — | |||||||
Adjusted capital expenditures (Non-GAAP) | $ | 1,709 | $ | 1,004 | |||||
Free Cash Flow (in millions) | |||||||||
Net cash provided by operating activities (GAAP) | $ | 1,915 | $ | 1,709 | |||||
Less capital expenditures | 1,609 | 944 | |||||||
Free cash flow, net of financings (Non-GAAP) | $ | 306 | $ | 765 | |||||
Net cash provided by operating activities (GAAP) | $ | 1,915 | $ | 1,709 | |||||
Less adjusted capital expenditures (Non-GAAP) | 1,709 | 1,004 | |||||||
Free cash flow (Non-GAAP) | $ | 206 | $ | 705 |
Three Months Ended March 31, | |||||||||
(In millions) | 2019 | 2018 | |||||||
Operating: | |||||||||
Impairment of assets | $ | 8 | $ | 23 | |||||
Severance and benefit costs | 6 | 14 | |||||||
(Gains) losses on sale of assets and other special charges | 4 | 3 | |||||||
Total special charges | 18 | 40 | |||||||
Nonoperating MTM gains on financial instruments | (17 | ) | (45 | ) | |||||
Total special charges and MTM gains on financial instruments | 1 | (5 | ) | ||||||
Income tax expense related to special charges and MTM gains on financial instruments | — | 1 | |||||||
Total special charges and MTM gains on financial instruments, net of income taxes | $ | 1 | $ | (4 | ) |
Investor Update | Issue Date: April 16, 2019 |
Second-Quarter and Full-Year 2019 Outlook (A) | Estimated 2Q 2019 | Estimated FY 2019 | ||||||||||||||||||
Consolidated Capacity Year-Over-Year Change Higher/(Lower) | 3.5 | % | - | 4.5 | % | 4.0 | % | - | 5.0 | % | ||||||||||
Adjusted Pre-Tax Margin1 (Non-GAAP) | 11.0 | % | - | 13.0 | % | |||||||||||||||
Revenue | ||||||||||||||||||||
Consolidated PRASM (¢/ASM) | 14.04 | - | 14.32 | |||||||||||||||||
Year-Over-Year Change Higher/(Lower) | 0.5 | % | - | 2.5 | % | |||||||||||||||
Cargo and Other Revenue ($M) | $ | 850 | - | $ | 950 | |||||||||||||||
Non-Fuel Operating Expense | ||||||||||||||||||||
Consolidated CASM Excluding Third-Party Business Expenses, Fuel & Profit Sharing2 (¢/ASM) (Non-GAAP) | 9.87 | - | 9.97 | ~10.11 | ||||||||||||||||
Year-Over-Year Change Higher/(Lower) | 0.0 | - | 1.0 | % | ~Flat | |||||||||||||||
Third-Party Business Expenses3 ($M) | $ | 30 | - | $ | 40 | |||||||||||||||
Profit Sharing ($M) | $ | 125 | - | $ | 165 | |||||||||||||||
Consolidated Fuel Expense | ||||||||||||||||||||
Fuel Consumption (Million Gallons) | 1,090 | - | 1,110 | |||||||||||||||||
Consolidated Average Aircraft Fuel Price per Gallon4 | $ | 2.13 | - | $ | 2.23 | |||||||||||||||
Adjusted Non-Operating Expense5 ($M) (Non-GAAP) | $ | 100 | - | $ | 130 | |||||||||||||||
Effective Income Tax Rate | 21 | % | - | 23 | % | 21 | % | - | 23 | % | ||||||||||
Diluted Share Count6 (M) | 264 | |||||||||||||||||||
Adjusted Diluted Earnings Per Share1 (Non-GAAP) | $ | 10.00 | - | $ | 12.00 | |||||||||||||||
Adjusted Capital Expenditures7 ($B) (Non-GAAP) | ~$4.7 |
1. | Excludes special charges and the mark-to-market impact of financial instruments, the nature of which are not determinable at this time, and imputed interest on certain finance leases. Accordingly, UAL is not providing earnings guidance on a GAAP basis. |
2. | Excludes special charges, the nature of which are not determinable at this time. |
3. | Third-party business revenue associated with third-party business expense is recorded in other revenue. |
4. | Fuel price including taxes and fees. This price per gallon corresponds to fuel expense as reported in the income statement. |
5. | Excludes the mark-to-market impact of financial instruments, the nature of which is not determinable at this time, and imputed interest on certain finance leases. Accordingly, the Company is not providing non-operating expense guidance on a GAAP basis. |
6. | Does not include an assumption related to future share repurchases. Diluted share count is approximately equal to basic share count. |
7. | Non-cash capital expenditures are not determinable at this time. Accordingly, the Company is not providing capital expenditure guidance on a GAAP basis. |
• | Approximately 7.4% of total adjusted earnings up to a 6.9% adjusted pre-tax margin |
• | Approximately 13.1% 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 2019 | 2Q 2019 | 3Q 2019 | YE 2019 | |
B777-200/300 | 92 | 92 | 92 | 94 |
B787-8/9/10 | 44 | 46 | 46 | 48 |
B767-300/400 | 54 | 54 | 54 | 54 |
B757-200/300 | 76 | 76 | 76 | 74 |
B737 MAX1 | 14 | 19 | 30 | 30 |
B737-700/800/900 | 329 | 329 | 329 | 329 |
A319/A320 | 170 | 172 | 176 | 174 |
Total Mainline Aircraft | 779 | 788 | 803 | 803 |
50-seat (ERJ-145, CRJ200, ERJ-550) | 314 | 307 | 308 | 320 |
70-seat (CRJ700, EMB 170, EMB 175-LL) | 102 | 102 | 102 | 102 |
76-seat (EMB 175) | 153 | 153 | 153 | 153 |
Total Regional Aircraft | 569 | 562 | 563 | 575 |
2020 | |
B777-200/300 | 2 |
B787-8/9/10 | 15 |
B737 MAX | 28 |
Total Aircraft Deliveries | 45 |
Estimated | Estimated | ||||||||
CASM Consolidated Operations (cents) | 2Q 2019 | FY 2019 | |||||||
Cost per available seat mile (CASM) excluding special charges (a) (Non-GAAP) | 13.30 | - | 13.55 | 13.45 | |||||
Third-party business expenses | 0.04 | - | 0.05 | 0.06 | |||||
Fuel expense (b) | 3.21 | - | 3.31 | 3.28 | |||||
Profit sharing, including taxes (c) | 0.18 | - | 0.22 | N/A | |||||
CASM, excluding special charges, third-party business expenses, fuel, and profit sharing (Non-GAAP) | 9.87 | - | 9.97 | 10.11 |
Estimated | ||||||||
Non-Operating Expense ($M) | 2Q 2019 | |||||||
Non-Operating Expense excluding the mark-to-market impact of financial instruments (d) (Non-GAAP) | $ | 120 | - | $ | 170 | |||
Interest expense on ERJ 145 finance leases | $ | 20 | - | $ | 40 | |||
Adjusted Non-Operating Expense (Non-GAAP) | $ | 100 | - | $ | 130 |
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