United Airlines Reports Second-Quarter 2019 Performance & Earnings Call 17 July 2019
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United Airlines Reports Second-Quarter 2019 Performance & Earnings Call 17 July 2019
United Airlines Reports Second-Quarter 2019 Performance
PDF
Links
Q2 presentation link
Q2 call transcript link
Q2 webcast recording link... mp3
Quarterly 10-K
Investor Update -- 16 July 2019
UA Announces Q1 2019 Financial Results 16 April / Conference Call 17 April
United Airlines Reports Second-Quarter 2018 Performance & Earnings Call 18 July 2018
United Airlines Achieves Highest Second-Quarter Pre-Tax Income In Company History
Company also achieves record second-quarter diluted EPS of $4.02; adjusted diluted EPS[1] of $4.21
CHICAGO, July 16, 2019 /
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."
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.For more information on UAL's third-quarter and full-year 2019 guidance, please visit ir.united.com for the company's investor update.
Second-Quarter 2019 Highlights
Customer Experience
Company also achieves record second-quarter diluted EPS of $4.02; adjusted diluted EPS[1] of $4.21
CHICAGO, July 16, 2019 /
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.
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.For more information on UAL's third-quarter and full-year 2019 guidance, please visit ir.united.com for the company's investor update.
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.
- 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.
- 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.
- 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.
- 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.
- 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.
Links
Q2 presentation link
Q2 call transcript link
Q2 webcast recording link... mp3
Quarterly 10-K
Investor Update -- 16 July 2019
UA Announces Q1 2019 Financial Results 16 April / Conference Call 17 April
United Airlines Reports Second-Quarter 2018 Performance & Earnings Call 18 July 2018
Last edited by WineCountryUA; Jul 17, 2019 at 3:19 pm
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United Airlines to Hold Live Webcast of Second-Quarter 2019 Financial Results
July 01, 2019
CHICAGO, July 1, 2019 /PRNewswire/ -- United Airlines will hold a conference call to discuss second-quarter 2019 financial results on Wednesday, July 17, at 9:30 a.m. CT/10:30 a.m. ET. A live, listen-only webcast of the conference call will be available at ir.united.com. The company will issue its second-quarter financial results and third-quarter investor update after market close on Tuesday, July 16.
The webcast will be available for replay within 24 hours of the conference call and then archived on the website for three months.
July 01, 2019
CHICAGO, July 1, 2019 /PRNewswire/ -- United Airlines will hold a conference call to discuss second-quarter 2019 financial results on Wednesday, July 17, at 9:30 a.m. CT/10:30 a.m. ET. A live, listen-only webcast of the conference call will be available at ir.united.com. The company will issue its second-quarter financial results and third-quarter investor update after market close on Tuesday, July 16.
The webcast will be available for replay within 24 hours of the conference call and then archived on the website for three months.
Last edited by WineCountryUA; Jul 16, 2019 at 4:54 pm
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United Airlines Achieves Highest Second-Quarter Pre-Tax Income In Company History
https://hub.united.com/united-airlin...639211870.html
United Airlines Achieves Highest Second-Quarter Pre-Tax Income In Company History
July 16, 2019CHICAGO, July 16, 2019 /PRNewswire/ -- 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."For more information on UAL's third-quarter and full-year 2019 guidance, please visit ir.united.com for the company's investor update.Second-Quarter 2019 Highlights
Customer Experience
- 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.
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.
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.
- 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.
- 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.
- 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.
- 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.
- 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.
#4
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Is there a link on FT about UA's acquisition of these 737-700s?
(Not to turn this into another 737MAX thread, but I guess this is related to that.)
ETA: based on my quick Googling, it appears this new news.
(Not to turn this into another 737MAX thread, but I guess this is related to that.)
ETA: based on my quick Googling, it appears this new news.
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#7
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Well US government-approved industry consolidation and a current pro-corporation administration, the massive amount of ancillary fee revenue, low oil prices, and a generally robust US and world economy certainly don't hurt. If you can't make money in this environment, you are a hopeless legacy airline basket case.
#9
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Some of this comes down to strategically enabling fundamentals. UA arguably has the best hubs and seemingly keeps steering more traffic to the most lucrative ones: EWR, ORD, SFO. Premerger, tons of A319/320 at ORD, now hardly any but instead a lot of B739 and B753s. Airbus fleet largely relegated to IAH and DEN. Then, several routes added to high $ EWR/SFO. Maybe Kirby knows what he’s doing?
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Operating Revenue/Income/Margin: DL: 12.53B/2.12B/16.9% UA: 11.4B/1.47B/12.9%
PRASM DL: 15.84 c/mi +2.9%; UA: 14.32 c/mi +2.5%
Given how UA's network is strong is exactly the places which are doing really well right now (especially SFO, but also DC and EWR) and constrained capacity, not surprised.
I think at this point its DAL > UAL > AAL in both financial results and in quality of service and product. My guess is that as the airline that is most directly competing with AA, UAL is picking up some traffic as Parker pulls a Smisik at American, with UAL is running - operationally at least - a much better airline.
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You didn’t mention American Airlines, an airline worse than UA by so many measures and which has been driving customers toward UA, Delta and even little ole Alaska.
#12
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But what’s our conventional wisdom - 1Ks are 1% of flyers accounting for 3% of rev and 2% of profit? So if 10% of 1Ks defect, that’s nothing more than a rounding error. What realistic choice does an SFO, IAH or DEN based 1K have for global travel? That’s like half of UA’s hubs.
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Ironically, these results will likely lead to further cuts to the quality of the product and further MP devaluations.
Nice sound bite, but no substance.
DL's results are even better. Follow the AS forum, you'll find plenty of UA refugees. I have 82k EQM on AS so far this year, 79k UA. Four CX TPAC RTs in J; 7 unused GPU.
Huh? DEN is reported to be UA's most profitable hub. ORD is a black hole.
DL's results are even better. Follow the AS forum, you'll find plenty of UA refugees. I have 82k EQM on AS so far this year, 79k UA. Four CX TPAC RTs in J; 7 unused GPU.
Huh? DEN is reported to be UA's most profitable hub. ORD is a black hole.
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It’s about total profitability, not marginal (except for short-term growth.) So due to ORD’s immense size for UA, more impactful than DEN. 3X daily LHR B767 etc flights out of ORD generate a heck of a lot more bank than seasonal DEN small flights into ski country.
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You're just making that up.