A pilot walks by United Airlines planes at the San Francisco International Airport in April. GETTY IMAGES
United Airlines Holdings Inc. stock (Nasdaq: UAL) fell late Wednesday after the airline reported a 78% drop in quarterly sales as the pandemic continued to crimp air travel.
United said it lost $1.8 billion, or $6.33 a share, in the third quarter, contrasting with earnings of $1 billion, or $3.99 a share, in the year-ago quarter.
SEATTLE, WA Jan 16, 2019 – Boeing [NYSE:BA] and United Airlines [NASDAQ:UAL] announced the carrier ordered 24 additional 737 MAX jets and four more 777-300ER (Extended Range) airplanes last year. The $4.5 billion order, according to list prices, was booked as unidentified on Boeing’s Orders & Deliveries website.
The Chicago-based airline has steadily placed new orders for the two Boeing jets to serve its large domestic and international network. United Airlines is among the more than 100 customers who have made the 737 MAX the fastest-selling airplane in Boeing history, receiving more than 5,000 orders since the program’s launch.
“United Airlines has been instrumental to the phenomenal success of the Boeing 737 and 777 programs over the years. We are honored by United’s continued confidence in our people and our airplanes and services,” said Ihssane Mounir, senior vice president of Commercial Sales & Marketing for The Boeing Company. “We are proud to again extend our long-standing partnership with United Airlines with these latest orders.”
The MAX builds on the 737’s industry-leading performance and reliability by offering operators more range and 14-percent better fuel efficiency compared to today’s airplanes and 20 percent more than the airplanes it replaces. The MAX achieves the improved performance thanks to the CFM International LEAP-1B engines, Advanced Technology winglets, and other airframe enhancements.
The 777 has become the best-selling twin-aisle jet family in history, earning more than 2,000 orders. In fact, United’s order pushed the program over the 2,000 threshold in December. It is also the most reliable twin-aisle jet flying today with the highest schedule reliability in the industry at 99.5 percent. The 777-300ER can seat up to 386 passengers in a three-class configuration and has a maximum range of 7,930 nautical miles (14,685 km).
United also utilizes Boeing Global Services to enhance its operations of their large fleet of Boeing aircraft. Multiple digital Boeing solutions, including those powered by Boeing AnalytX, optimize its operations. Recently, United signed for crew management and electronic flight bag (EFB) tools to enhance operational efficiency across all phases of flight.
Q4 unit revenue up 5.0% year-over-year; full-year diluted 2018 EPS of $7.70; adjusted diluted EPS of $9.13
CHICAGO, Jan. 15, 2019 /PRNewswire/ — In a departure from industry trends, United (UAL) announced today that its fourth-quarter unit revenue came in at the high end of its guidance range and also exceeded its full-year adjusted diluted earnings per share target laid out last January. UAL reported full-year net income of $2.1 billion, diluted earnings per share of $7.70 (a 9.1 percent increase year-over-year), pre-tax earnings of $2.7 billion and pre-tax margin of 6.4 percent. UAL reported adjusted full-year net income of $2.5 billion, adjusted pre-tax earnings of $3.2 billion and adjusted pre-tax margin of 7.7 percent.1 UAL increased its full-year 2018 adjusted diluted earnings per share outlook three times during the year despite a $2.4 billion year-over-year headwind from fuel. Full-year adjusted diluted earnings per share increased 33.5 percent year-over-year to $9.13, above the high end of the company’s most recent guidance range.
“United’s financial performance is a testament to the successful implementation of the first year of our strategic plan and to the record-setting operational performance powered by the more than 90,000 airline professionals who work at United,” said Oscar Munoz, chief executive officer of United Airlines. “United delivered proof, not just promises in 2018 – even in the face of significant headwinds from higher than expected fuel costs. It’s why I couldn’t be more proud of our winning culture and customer-focused team and continue to be enthusiastic about United’s bright future.”
For 2019, UAL expects adjusted diluted earnings per share to again grow year-over-year to between $10.00 to $12.00.2
UAL reported fourth-quarter net income of $462 million, diluted earnings per share of $1.70, pre-tax earnings of $556 million and pre-tax margin of 5.3 percent.
UAL reported fourth-quarter adjusted net income of $657 million, adjusted diluted earnings per share of $2.41 and adjusted pre-tax earnings of $814 million.
UAL reported fourth-quarter adjusted pre-tax margin of 7.8 percent,1 expanding margin on an adjusted basis of 0.9 points versus the fourth-quarter of 2017.
UAL recovered 98% percent of the year-over-year increase in fuel prices in 2018.
Consolidated fourth-quarter passenger revenue per available seat mile (PRASM) increased 5 percent year-over-year, at the high end of the company’s fourth-quarter 2018 guidance range.
Consolidated fourth-quarter unit cost per available seat mile (CASM) increased 7.0 percent year-over-year.
Consolidated fourth-quarter CASM, excluding special charges, third-party business expenses, fuel and profit sharing, decreased 0.7 percent year-over-year.
Employees earned $334 million in profit sharing for 2018.
For more information on UAL’s first-quarter and full-year 2019 guidance, please visit ir.united.com for the company’s investor update.
2018 Highlights
Record-Setting Operational Performance3
Set new UAL records by flying the most revenue passengers ever, operating the most mainline departures and achieving the fewest cancellations ever in a year, resulting in more UAL customers departing on-time in 2018 than ever before.
For the year, achieved the best completion rate in company history with more than 1.7 million flights.
In 2018, achieved the best ever company STAR performance (first departures of the day), with nearly 250,000 flights leaving on time.
In the fourth quarter, the company achieved top-tier performance in on-time departures among its largest competitors. For the December holiday season, UAL had its best-ever on-time departure performance while flying the most revenue customers it had ever flown during the holiday period.
Customer Experience
Opened three new United Polaris lounges located in San Francisco International Airport, Newark Liberty International Airport and Houston’s George Bush Intercontinental Airport.
Announced UAL’s newest premium seating, United® Premium Plus, which will provide more space, comfort and amenities on select international flights starting later this year.
Introduced a new boarding process designed to reduce customers’ stress by reducing time spent waiting in line and providing them with improved boarding information.
Expanded personal device entertainment option to all aircraft, providing at least one free entertainment option on all Wi-Fi equipped aircraft.
MileagePlus loyalty program voted Best Overall Frequent-Flyer Program in the world for the 15th consecutive year by readers of Global Traveler, and voted Favorite Frequent-Flyer Program in the Trazee Awards.
Employees
Employees earned incentive payments totaling approximately $14 million for achieving operational performance goals in the quarter, marking a full year of earned incentive payments totaling $55 million.
Introduced and trained over 90,000 team members on UAL’s new customer service decision framework, the core4, which focuses on the principles of safe, caring, dependable and efficient.
Deployed 6,000 iPads to maintenance employees, improving reliability and efficiency.
Unveiled a state-of-the-art flight training center in Denver, Colorado – the largest in the world and home to the company’s more than 30 full flight simulators representing all of UAL’s fleet types.
Successfully completed the full implementation of the flight attendant joint collective bargaining agreement, allowing the company to operate more efficiently and reliably.
Achieved the top score of 100 percent on the 2018 Disability Equality Index (DEI), a prominent benchmarking metric that rates U.S. companies on their disability inclusion policies and practices, also earning UAL a place on DEI’s 2018 “Best Places to Work” list.
Received “Best-of-the-Best” Award from the National LGBT Chamber of Commerce and National Business Inclusion Consortium for commitment to diversity and inclusion across all communities.
Network
Introduced 93 new routes, adding more flights in 2018 than any other U.S. airline.
Announced new international service including Washington-Dulles to Tel Aviv, Israel; San Francisco to Amsterdam, Netherlands; Newark/New York to Naples, Italy; as well as Newark/New York to Prague, Czech Republic and Denver to Frankfurt, Germany, all subject to government approval.
Launched several exciting new international routes including Houston to Sydney, San Francisco to Tahiti and Denver to London.
Announced schedule expansion at East Coast hubs in Newark/New York and Washington-Dulles to offer more nonstop flights to destinations popular with New York-area customers while reallocating largely connecting passenger flights to Washington-Dulles.
Announced a joint business agreement with Compañía Panameña de Aviación S.A. (Copa), Aerovías del Continente Americano S.A. (Avianca) and many of Avianca’s affiliates, pending government approval.
Fleet
Took delivery of 21 new Boeing aircraft, including four 777-300ER, four 787-9, three 787-10 and ten 737 MAX 9 aircraft.
In December 2018, ordered an additional four Boeing 777-300ER aircraft and 24 737 MAX aircraft.
Community and Environment
Pledged to reduce the company’s greenhouse gas emissions by 50 percent by 2050, the only U.S. airline to commit to emissions reductions, further strengthening UAL’s ambition to be the world’s most environmentally conscious airline.
Announced a total of $8 million in grants to benefit organizations in each of UAL’s domestic hub communities.
Announced new global partnership with the Special Olympics and flew hundreds of Team USA Olympic and Paralympic Winter Games 2018 athletes, coaches and family members to PyeongChang, South Korea, continuing the 38-year relationship between UAL and the United States Olympic Committee.
Ranked No. 1 among global carriers in Newsweek’s 2017 Global 500 Green Rankings, one of the most recognized environmental performance assessments of the world’s largest publicly traded companies.
Launched a Crowdrise fundraising campaign to support those affected by Hurricane Florence, Typhoon Mangkhut, flooding in Western Japan, wildfires in California and other disasters.
Earnings Call
UAL will hold a conference call to discuss its fourth-quarter and full-year 2018 financial results and its financial and operational outlook for the first quarter and full year of 2019 on Wednesday, January 16, at 9:30 a.m. Central time /10:30 a.m. Eastern time. 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.
SAO PAULO, Jan 11 (Reuters) – Lessor Aircastle is set to repossess 10 jets from Avianca Brasil, the country’s No. 4 airline, after a bankruptcy hearing on Monday, a source familiar with the matter said, potentially disrupting flights for thousands of passengers.
The 10 Airbus A320 planes represent more than 20 percent of Avianca Brasil’s current fleet, according to data provided by Brazil’s aviation regulator, raising doubts about the carrier’s ability to fly its full flight schedule if the aircraft are seized.
And it could lose more planes in the future. Lessor GE Capital Aviation Services and an affiliate are seeking to repossess 12 Airbus A320s from Avianca Brasil, according to James Luton, a GE spokesman.
When the airline filed for bankruptcy protections last month, the airline discussed the possible loss of 14 planes, which it said would affect 77,000 passengers over a three-week period.
A representative for Avianca Brasil declined to comment. The bankruptcy filing came after years of mounting losses and late aircraft payments.
Bankruptcy filings, while providing protection from creditors, do not cover leases, the source of the carrier’s entire 46-aircraft fleet.
Between the end of 2016 and September 2018, Avianca Brasil’s liabilities to aircraft lessors quintupled to 415 million reais ($112 million), according to the carrier’s financial statements.
Still, a Brazilian bankruptcy judge stayed a decision that would have allowed Aircastle to repossess the planes last month. That stay, however, expires on Monday.
Since the stay was issued, the source said, Avianca Brasil has not made any proposal to Aircastle that would have allowed the carrier to keep the planes. Avianca Brasil owes Aircastle more than $30 million, the source added.
The stakes are also high for Aircastle, as Avianca Brasil is its largest single customer, representing some 7 percent of its net book value, according to the lessor’s financial disclosures.
Avianca Brasil is separate from the better-known Avianca Holdings SA, which is based in Colombia. But they share the same owner, a family company owned in part by Bolivian-born airline entrepreneur German Efromovich.
United Continental Holdings gave the family company a $500 million loan last November.
Neither party has revealed why the loan was needed, but Efromovich has been sued for failure to repay his debts in the United States and Brazil in recent years.
(Reuters) – American Airlines Group Inc (AAL.O) shares fell as much as 11 percent on Thursday after the biggest U.S. carrier cut its estimate for a closely watched measure of performance, raising concerns that slowing global growth may be weakening travel demand.
The losses in American’s shares also weighed on the broader airline sector. Delta Air Lines Inc (DAL.N) fell 3.4 percent, United Continental Holdings Inc (UAL.N) 2.1 percent and Southwest Airlines Co (LUV.N) 2.6 percent.
American’s announcement comes a week after rival Delta Air Lines Inc (DAL.N) cut its quarterly unit revenue estimate due to lower-than-expected improvement in fares booked last minute.
“The U.S. airlines are set to contend with easing unit revenue trends due to decelerating economic growth, lower fuel, and foreign exchange pressures,” Morgan Stanley analyst Rajeev Lalwani wrote in a note earlier this week.
The company said it now expects unit revenue, which compares sales to flight capacity, to increase about 1.5 percent in the quarter, compared with its earlier estimate of 1.5 percent to 3.5 percent rise. (http://bit.ly/2D1GRZi)
American also lowered full-year earnings per share expectation to a range of $4.40 to $4.60, from $4.50 to $5 earlier.
The airline said it expects its fuel expense to reduce in the fourth quarter to between $2.22 and $2.27 per gallon, compared with $2.30 to $2.35 per gallon earlier.
Investors have been fretting over lower fuel costs and the airlines’ ability to increase ticket prices, as a decline in fuel prices in 2016 and 2017 led U.S. airlines to competitively discount fares, hurting revenue.
Analysts were expecting earnings of $4.62 per share, according to IBES data from Refinitiv.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Shinjini Ganguli)
ROME (Reuters) – Air Italy will start flying to Chicago next year, a move likely to revive a dispute between its minority shareholder Qatar Airways and U.S rivals trying to squeeze Gulf operators out of their domestic market.
Formerly known as Meridiana, Air Italy is the country’s second-largest airline, behind ailing Alitalia [CAITLA.UL], and state-owned Qatar Airways holds a 49 percent stake in it.
Air Italy will fly to Chicago three times a week from Milan Malpensa airport starting from May 14, 2019, Chief Operating Officer Rossen Dimitrov told Reuters.
Since 2015 the largest U.S carriers — Delta Air Lines (DAL.N), American Airlines Group (AAL.O) and United Airlines (UAL.N) — have argued their Gulf rivals are being unfairly subsidised by their governments, distorting competition.
Gulf airlines have always denied those accusations and in May the companies reached a voluntary agreement, saying they would not add new flights to the United States.
However, Air Italy has been flying to New York and Miami since June and will start serving San Francisco and Los Angeles from April 2019.
That has drawn criticism from an alliance of U.S.-based airlines grouped in the “Partnership for Open & Fair Skies”, that Qatar Airways is using Air Italy to offer additional flights between the U.S. and Europe, despite the agreement.
“Once again, Qatar is using Air Italy as a Trojan horse built from subsidized cash to avoid its commitments to the Trump administration and launch new … routes,” said Scott Reed, campaign manager for the Partnership for Open & Fair Skies.
In an emailed statement, Reed called on U.S. President Donald Trump to intercede on the behalf of U.S. airlines.
Dimitrov tried to dismiss any suggestion that Air Italy was acting improperly, noting that Qatar Airways was a minority shareholder.
“They do not dictate what we do and where we go. They do not manage us,” he said.
He added that he would be happy to work with the U.S airlines under code-share agreements, from which both sides would benefit, “rather than spending time and money fighting each other”.
The opening of the Chicago route next year is part of a wider plan, announced in May, in which the airline aims to grow its fleet and passenger numbers fourfold by 2022.
(Reporting by Giulia Segreti and Alberto Sisto; Editing by Keith Weir and Crispian Balmer)
ST. GEORGE, UTAH, December 18, 2018 – SkyWest, Inc. (NASDAQ: SKYW) today announced that it ishas entered into definitive agreements to sell ExpressJet Airlines, Inc. (“ExpressJet”) to United Airlines(“United”) joint venture ManaAir, LLC. The transaction is expected to close in early 2019, subject tocustomary closing conditions.
Consideration for the transaction includes approximately $70 million in cash for the majority of the assetsand the assumption of liabilities of ExpressJet, subject to a working capital adjustment. The ExpressJetassets excluded from the transaction will be utilized or liquidated by SkyWest. The expected realizablevalue to SkyWest of the remaining inventory is estimated to approximate the value of the working capitaladjustment. SkyWest will retain ownership of the CRJ aircraft currently in service at ExpressJet.
The transaction also includes certain protections around existing SkyWest Airlines flying, as well as priorityposition to add 25 new dual-cabin aircraft with United should those opportunities arise. As part of thetransaction, SkyWest has also agreed to lease 20 CRJ200s to ExpressJet for up to five years.
“Today’s announcement provides further clarity and focus for the future,” said Chip Childs, SkyWest, Inc.President and Chief Executive Officer. “We want to thank the employees of ExpressJet for their valuedcontributions and we look forward to continuing to strengthen our partnership with United.”
About SkyWest
Based in St. George, Utah, SkyWest, Inc. is the holding company for two scheduled passenger airlineoperations and an aircraft leasing company with more than 17,000 employees. SkyWest’s airlinecompanies provide commercial air service in cities throughout North America with more than 2,500 dailyflights carrying approximately 50 million passengers annually. SkyWest Airlines operates throughpartnerships with United Airlines (“United”), Delta Air Lines (“Delta”), American Airlines (“American”) andAlaska Airlines. ExpressJet Airlines operates through partnerships with United and American. This pressrelease and additional information regarding SkyWest can be accessed at inc.skywest.com.
Forward-Looking Statements
In addition to historical information, this release contains forward-looking statements within the meaning of the PrivateSecurities Litigation Reform Act of 1995. Words such as “forecasts,” “expects,” “intends,” “believes,” “anticipates,”“estimates”, “should,” “likely” and similar expressions identify forward-looking statements. Such statements include, but arenot limited to, statements about the expected terms, timing and benefits related to the ExpressJet transaction, SkyWest’sfuture financial and operating results, plans, objectives, expectations, estimates, intentions and outlook, and otherstatements that are not historical facts. All forward-looking statements included in this release are made as of the datehereof and are based on information available to SkyWest as of such date. SkyWest assumes no obligation to update anyforward-looking statement. Readers should note that many factors could affect the future operating and financial results ofSkyWest, SkyWest Airlines or ExpressJet, and could cause actual results to vary materially from those expressed inforward-looking statements set forth in this release including the risk that the ExpressJet transaction may not close on theterms or timing described herein, or at all. Additional risk factors, cautionary statements and other conditions which couldcause SkyWest’s actual results to differ materially from management’s current expectations are contained in SkyWest’sfilings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and QuarterlyReports on Form 10-Q.
BOGOTA (Reuters) – Airline Avianca Holdings SA (AVT_p.CN) will begin negotiations with Airbus (AIR.PA) to reduce the 100 planes it had agreed to purchase in a 2015 deal to as few as 50, the chief executive of the Latin American company said.
Avianca was also seeking a strategic alliance with German airline Lufthansa (LHAG.DE), CEO Hernan Rincon said late on Sunday, part of its bid to expand in Europe.
Avianca representatives will travel to France in the coming days for re-negotiations with Airbus, Rincon said. Avianca had agreed to buy 100 A320neo planes to modernize its fleet.
“Of those 100, we’ll probably receive between 50 and 80 planes,” he said. “We don’t have any doubt that we will keep growing, what has changed is the rhythm of the growth.”
Technological advancement is part of the reason for the airline wanting to reduce its purchases, Rincon added.
“The rhythm of technology is changing, it will take a while to get all of the order and we don’t want to have a commitment to planes with today’s technology which will be received by us in 10 or 15 years,” he said.
A reduction in the original order, which was set to cost $10 billion, will also give Avianca some financial breathing room, Rincon added.
At the end of last month Avianca, United Continental Holdings Inc (UAL.O) and Copa Airlines of Panama said they had finalized a three-way joint venture that will allow them to plan routes and fares together and share revenues on those routes.
United, Avianca and Copa are already codeshare partners and Star Alliance members.
“We’ve started conversations with Lufthansa, but its very embryonic,” said Rincon. “We hope to reach an agreement to benefit our passengers in Europe, which is a relevant and growing market.”
The deal with Lufthansa would be similar to the one just agreed with United and Copa, Rincon added.
Under the United and Copa agreement, United said it would provide a $456 million term loan to cash-strapped Avianca’s top shareholder, Synergy Group Corp. Loss-making Avianca has a roughly $4 billion debt pile, of which 40 percent is due within the next two years, according to recent financial statements.
That deal still has to be approved by regulators.
Avianca will also start operating a regional subsidiary in Colombia in 2019, meant to serve medium and small-sized cities with 12 ATR 42 planes. The planes are already part of Avianca’s fleet, Rincon said.
(Reporting by Luis Jaime Acosta; Writing by Julia Symmes Cobb; Editing by Helen Murphy and Marguerita Choy)
DENVER, Nov. 29, 2018 /PRNewswire/ — United Airlines (UAL), the U.S. carrier with the most service to Germany, today announced it will begin its 15th daily nonstop flight between the United States and Germany from its hub at Denver International Airport. The airline announced it will begin year-round service between Denver and Frankfurt, Germany, beginning May 2, 2019, subject to government approval. Tickets are now available for purchase on united.com.
United’s new service between Denver and Frankfurt is the only nonstop service from Denver to Germany by a U.S. carrier and is the airline’s ninth flight between the United States and Frankfurt. United currently operates daily nonstop service between Frankfurt and its hubs in Chicago, Houston, New York/Newark, San Francisco and Washington Dulles.
Denver (DEN) – Frankfurt (FRA) starts May 2, 2019
Flight
Frequency
City Pair
Depart
Arrive
Aircraft
UA 182
Daily
DEN – FRA
3:40 p.m.
09:20 a.m. +1day
Boeing 787
UA 181
Daily
FRA – DEN
11:05 a.m.
1:20 p.m.
Boeing 787
From Denver, United will connect more than 60 cities across the Western United States including Las Vegas, Phoenix, Salt Lake City and Seattle to Frankfurt.
“United is committed to expanding our global network for our customers and our employees and we are excited to continue this growth with the addition of new service between Denver and Frankfurt,” said Patrick Quayle, United’s vice president of International Network. “From the mid-continent United States to the rest of the world, United offers customers more choice and more international flights and destinations than any other carrier.”
United Airlines has served the Denver community since 1937 and is the only airline to continuously operate service in Denver – operating 6.5 million flights and serving more than 580 million customers.
“We are appreciative to have such a great partnership with United Airlines and that they continue to grow and invest in Denver with the addition of this new year-round transatlantic service,” said DEN CEO Kim Day.
United Airlines in Germany
United Airlines has continuously served Germany for more than 28 years, when the airline began daily service between Frankfurt and its Chicago and Washington Dulles hubs. In addition to United’s new daily service between Denver and Frankfurt, the airline offers customers daily, year-round service to Frankfurt from its hubs in Chicago, Houston, New York/Newark, San Francisco and Washington Dulles. United also operates daily nonstop service from Munich to Chicago, Houston, New York/Newark, San Francisco and Washington Dulles, and year-round nonstop service between New York/Newark and Berlin/Tegel. Additionally, United offers seasonal service between Munich and San Francisco. All flights are conveniently timed to connect at United’s U.S. hubs with an extensive connecting network to destinations throughout the United States and beyond.
United Airlines in Denver
Denver International Airport, a United hub since 1937, offers customers more than 400 flights daily across its domestic network and more than 15 international flights to key business and leisure destinations in five countries in Europe, Asia and the Americas. The airport is the region’s key gateway to international economic and tourism development.
Customers traveling to the U.S. from Frankfurt can conveniently connect to hundreds of U.S. destinations including easy connecting services between Denver and Jackson Hole and Aspen, popular ski destinations for European visitors.
About United
United Airlines and United Express operate approximately 4,700 flights a day to 356 airports across five continents. In 2017, United and United Express operated more than 1.6 million flights carrying more than 148 million customers. United is proud to have the world’s most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 760 mainline aircraft and the airline’s United Express carriers operate 546 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United’s parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol “UAL”.
SOURCE United Airlines
For further information: United Airlines Worldwide Media Relations, 872-825-8640, media.relations@united.com
For further information: United Airlines Worldwide Media Relations, 872-825-8640, media.relations@united.com