UA Announces Q1 2021 Financial Results 19 April / Conference Call 20 April
United Releases First-Quarter Financial Results - Rebounding Demand is Driving Clear Path to Profitability Expects positive adjusted EBITDA margins* later this year Achieved highest customer satisfaction in history in the first quarter CHICAGO, April 19, 2021 -- United Airlines (UAL) today announced first-quarter 2021 financial results. The company has its eyes on the future, making continued progress on its commitment to remove $2 billion in structural costs and investing in key customer programs that will position the airline to capitalize on the recovery of business travel and long-haul international demand. Following its return to positive core cash flow1 in the month of March, the company is focused on returning to positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margins, even if business and long-haul international demand remain as much as 70% below 2019 levels. United is already moving to capitalize on emerging pent-up demand for travel to countries where vaccinated travelers are welcome. In fact, the company announced new international flying to Greece, Iceland and Croatia earlier today, subject to government approval. These opportunistic steps help position United to return to positive net income even if business and long-haul international demand only returns to about 35% below 2019 levels. "The United team has now spent a year facing down the most disruptive crisis our industry has ever faced and because of their skill and dedication to our customers, we're poised to emerge from this pandemic with a future that is brighter than ever," said United Airlines CEO Scott Kirby. "We've shifted our focus to the next milestone on the horizon and now see a clear path to profitability. We're encouraged by the strong evidence of pent-up demand for air travel and our continued ability to nimbly match it, which is why we're as confident as ever that we'll hit our goal to exceed 2019 adjusted EBITDA margins in 2023, if not sooner." United's efforts to improve the customer experience resulted in the company achieving its highest ever customer satisfaction in the first quarter. Looking ahead, the company is planning continued investment in customers, including continuing the United PolarisŪ retrofit program and starting retrofit on narrowbody aircraft, modernizing gates, upgrading and expanding United Club℠ locations in Newark and Denver, and rolling out tools that give customers the opportunity to pre-order onboard meals. * Adjusted EBITDA margin is a non-GAAP financial measure calculated as Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), excluding special charges and unrealized (gains) losses on investments, divided by total operating revenue. We are not providing a target or a reconciliation to profit margin (net income/total operating revenue), the most directly comparable GAAP measure, because we are unable to predict certain items contained in the GAAP measure without unreasonable efforts. Adjusted EBITDA margin does not reflect certain items, including special charges and unrealized (gains) losses on investments, which may be significant. For a reconciliation of adjusted EBITDA to net income for the three months ended March 31, 2021 and 2019 and the 12 months ended December 31, 2020 and 2019, please see the accompanying tables to this release. First-Quarter Financial Results
1. Core cash burn is defined as: Net cash from operations, investing and financing activities, adjusted to remove proceeds from the issuance of new debt (excluding expected aircraft financing), government grants associated with the Payroll Support Program of the CARES Act, issuance of new stock, net proceeds from the sale of short-term and other investments, changes in certain restricted cash balances, debt principal payments, timing of certain payments, capital expenditures (net of flight equipment purchase deposit returns), and investments in the recovery and severance payments. Core cash flow is defined in the same manner as core cash burn, except that the result is positive. The company's management views "core cash burn" or "core cash flow" as an important measure in monitoring liquidity in order to assess the company's operational cash needs without the impact of certain extraordinary actions or events, and the company believes this measure provides useful information to investors about the company's core operational performance. See the tables accompanying this release for further information. 2. Excludes operating and non-operating special charges, and unrealized gains and losses on investments. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in the tables accompanying this release. 3. Includes cash, cash equivalents, short-term investments, undrawn credit facilities and $7 billion available under the CARES Act loan program. 4. Excludes operating special charges. We are not providing a reconciliation to operating expenses, the most directly comparable GAAP measure, because we are unable to predict certain items contained in the GAAP measure without unreasonable efforts. 5. Adjusted EBITDA margin is a non-GAAP financial measure calculated as Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), excluding special charges and unrealized (gains) losses on investments, divided by total operating revenue. We are not providing a reconciliation to profit margin (net income/total operating revenue), the most directly comparable GAAP measure, because we are unable to predict certain items contained in the GAAP measure without unreasonable efforts. United to Hold Webcast of First-Quarter 2021 Financial Results CHICAGO, March 26, 2021 /PRNewswire/ -- United Airlines will hold a conference call to discuss first-quarter 2021 financial results on Tuesday, April 20 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 first-quarter financial results after market close on Monday, April 19. The webcast will be available for replay within 24 hours of the conference call and then archived on the website for three months. Q1 results (8K) PDF Q1 call presentation {no powerpoints used audio only, see webcast} Q1 call transcript link (AlphaStreet) Q1 call transcript link (SeekingAlpha) Beware these third-party sources now require a free registration. The transcripts have not be reviewed by UA and have been known to have errors, check against the recorded call Q1 webcast recording link from UA requires free registration Q1 Quarterly Report 10-Q - PDF also available as RTF, XLS, HTML, XSD Past results UA Q4/Full Year 2020 Results 20 Jan 2021 / Conference Call 21 Jan 2021 UA Announces Q1 2020 Financial Results 30 April / Conference Call 01 May |
Three notable items
Following its return to positive core cash flow1 in the month of March, the company is focused on returning to positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margins, even if business and long-haul international demand remain as much as 70% below 2019 levels. United is already moving to capitalize on emerging pent-up demand for travel to countries where vaccinated travelers are welcome. In fact, the company announced new international flying to Greece, Iceland and Croatia earlier today, subject to government approval.These opportunistic steps help position United to return to positive net income even if business and long-haul international demand only returns to about 35% below 2019 levels. UA seems to be positioning itself to somewhere between 35% to 70% business and long-haul "recovery" |
Clearly FT members did not participate in the survey nor read the book of grievances.
"Achieved highest customer satisfaction in history in the first quarter". |
Originally Posted by WineCountryUA
(Post 33189608)
The norm for 2020?
Leisure is king for 2020 David |
Originally Posted by DELee
(Post 33189888)
Should these be "2021"?
David Usually by April I get the year right but I guess not for 2021 |
Originally Posted by HNLbasedFlyer
(Post 33189677)
Clearly FT members did not participate in the survey nor read the book of grievances.
"Achieved highest customer satisfaction in history in the first quarter". |
There is a mention of continued investment in customers with a little passing note on lounges in Denver and Newark but no mention of opening up existing lounges. This customer would be interested in that tidbit
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Originally Posted by Jprod
(Post 33189942)
There is a mention of continued investment in customers with a little passing note on lounges in Denver and Newark but no mention of opening up existing lounges. This customer would be interested in that tidbit
If the 65% of 2019 levels (35% below 2019) estimate is for 2021 full year, I'm guessing we'll see Polaris lounges reopen sometime in the Fall (assuming travel restrictions lift). If it takes longer, that may be more of a winter timing thing. |
Although the market is down in general - it appears the analysts didn't like what they heard as UA stock is getting hit particularly hard today.
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I heard there was a mention of adding narrowbody PTVs in the call. Did anyone hear it?
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Originally Posted by HNLbasedFlyer
(Post 33191966)
Although the market is down in general - it appears the analysts didn't like what they heard as UA stock is getting hit particularly hard today.
Originally Posted by MatthewLAX
(Post 33192096)
I heard there was a mention of adding narrowbody PTVs in the call. Did anyone hear it?
Edit to include Hart's words from the transcript: I want to start by reiterating Scott's comments on how the United team performed in the first quarter. In the face of continued uncertainty and some severe winter storms, our team never failed to pull together but we couldn't be prouder of their performance. As just outlined in the first quarter, United made further progress on our commitment to return to new. I once again ramping up investments in our customers experience including, modernizing the gate areas in our hubs, reconstructing and expanding United clubs in Newark and Denver, enhancements to the onboard experience like pre-order meal functionality and providing individualized customer feedback to our flight attendants and hard product investments, such as the continuation of our Polaris seat retrofit program and the overhaul of the interior of our narrow body aircraft. |
First post updated with
Q1 results (8K) PDF Q1 call transcript link (AlphaStreet) Q1 call transcript link (SeekingAlpha) Beware these third-party sources now require a free registration. The transcripts have not be reviewed by UA and have been known to have errors, check against the recorded call Q1 webcast recording link from UA requires free registration |
So in their earnings press conference they didn't sound hopeful about the rest of 2021?
https://www.flyertalk.com/articles/u...al-report.html |
Originally Posted by exp
(Post 33192587)
So in their earnings press conference they didn't sound hopeful about the rest of 2021?
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Originally Posted by exp
(Post 33192587)
So in their earnings press conference they didn't sound hopeful about the rest of 2021?
https://www.flyertalk.com/articles/u...al-report.html United is, very roughly, 1/3 domestic leisure, 1/3 domestic business and 1/3 long haul international. When 2/3 of those segments are depressed, and likely to stay that way for a while, it's hard to forecast a rapid bounce-back for United. |
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