LOS ANGELES, CALIFORNIA, OCTOBER 27, 2021 – The Port of Long Beach (POLB), the Utah Inland Port Authority (UIPA), and Union Pacific Railroad (NYSE: UNP) announced today a bold initiative that brings rapid relief from existing port congestion by optimizing rail deliveries between California and Utah.
The initiative is the first implementation of an agreement between POLB and UIPA that focuses on reducing congestion and cost associated with cargo movement through the corridor by optimizing the existing on- and near-dock rail system of the Port of Long Beach to reduce dwell times and improve the speed and consistency of rail deliveries to and from Utah.
Millions of TEUs of international goods are imported to or exported from the Intermountain West annually, but only 10% of this cargo currently moves by rail. This initiative aims to provide consistent, reliable movement of cargo on rail that improves fluidity and reduces delays of shipments already set to come to the Intermountain region, rather than increase cargo volume.
Loading 100 intermodal rail cars equates to 300 trucks off the road. An analysis by the Association of American Railroads concluded railroads are, on average, four times more fuel efficient than trucks and moving freight by rail instead of truck lowers greenhouse gas emissions by 75 percent.
Improving visibility of cargo is also a key component to untangling the supply chain and improving capacity. UIPA has announced the Intelligent Crossroads Network (“ICN”), a private 5G and artificial intelligence network built in partnership with QuayChain Technologies that will allow cargo tracking, monitoring and planning, and even greater efficiencies for users throughout the corridor connecting Long Beach and Utah.
Delta Air Lines will contribute $100,000 to the American Red Cross to support relief efforts in Haiti following a devastating 7.2 magnitude earthquake that struck the country on August 14.
The affected region is home to more than 800,000 people. This donation enables the global Red Cross network in its efforts helping families impacted by the earthquake. The Haitian Red Cross with the support of the global Red Cross Red Crescent network are leading efforts to aid families, including providing first aid and helping with search and rescue efforts.
This contribution is in addition to the $1 million grant to the American Red Cross as an Annual Disaster Giving Program (ADGP) partner.
The American Red Cross is Delta’s longest-standing non-profit partner, and the partnership has allowed the airline, its customers and employees to help people in need around the world since 1941. For more information on the services of the Red Cross, please visit redcross.org or cruzrojaamericana.org.
Japan Coast Guard (JCG) will expand its fleet with two new Airbus (OTC: EADSY) H225 helicopters, taking its total Super Puma fleet up to 17, comprising two AS332s and 15 H225s. The largest Super Puma operator in Japan received its tenth H225 in February this year. The new helicopters will join its growing fleet to support territorial coastal activities, security enforcement, as well as disaster relief missions in the country.
JCG’s H225 fleet is covered by Airbus’ highly adaptive HCare Smart full-by-the-hour material support. This customised fleet availability programme allows the national coast guard agency to focus on its flight operations whilst Airbus manages its assets
Offering the industry’s best range, speed, payload and reliability in the 11-ton-category twin-engine rotorcraft, the H225 is the latest member of Airbus Helicopters’ Super Puma family that has accumulated more than 5.7 million flight hours in all-weather conditions around the world. Equipped with state-of-the-art electronic instruments and renowned autopilot precision, the H225 offers outstanding endurance and fast cruise speed, and can be fitted with various equipment to suit a variety of roles.
Close to 30 helicopters from the Super Puma family are currently flown in Japan by civil, parapublic operators, and Japan’s Ministry of Defense for various search and rescue missions, VIP, fire-fighting, and passenger and goods transportation.
Also, the Republic of Singapore Air Force (RSAF) has taken delivery of its first H225M helicopter. Airbus Helicopters signed the contract with Singapore’s Ministry of Defence for the acquisition of H225M Medium Lift Helicopters in 2016.
Singapore’s fleet of H225Ms is expected to assume a wide range of roles, including search and rescue, aeromedical evacuation, as well as humanitarian assistance and disaster relief operations.
A combat-proven multi-purpose and versatile asset, the H225M enables military forces to deploy wherever and whenever needed. 104 H225Ms are currently in service across the world, having accumulated more than 143,000 flight hours. The H225M is relied upon by Brazil, France, Indonesia, Malaysia, Mexico Thailand to support their most demanding missions.
EVERETT, Wash., Feb. 9, 2021 – The first Boeing [NYSE: BA] KC-46 tanker destined for the Japan Air Self-Defense Force (JASDF) took to the skies on its maiden flight yesterday. This successful flight highlights an important milestone as the aircraft now transitions into the certification phase of development.
“This is an exciting milestone for the JASDF and Boeing,” said Jamie Burgess, KC-46 program manager. “Japan is getting closer to receiving the most advanced air refueling tanker in the world.”
Japan is the KC-46 program’s first international customer and is scheduled to receive its first jet this year.
“Boeing’s KC-46 and its robust defensive systems will play an invaluable role in the security alliance between our two countries,” said Will Shaffer, president of Boeing Japan. “This tanker’s ability to carry cargo and passengers also makes it a critical tool to support humanitarian relief efforts across the Pacific region and beyond.”
The KC-46 refueling certification encompasses U.S. Air Force, U.S. Navy, U.S. Marine Corps and JASDF aircraft.
The U.S. Air Force awarded Boeing a $279 million contract for the JASDF’s first KC-46A tanker in December 2017. The agreement was completed through the Foreign Military Sale process between the U.S. government and Japan. Japan is now on contract for a total of four KC-46 tankers.
Boeing is assembling KC-46A aircraft for both the U.S. Air Force and Japan on its 767 production line in Everett, Washington. Boeing’s Japanese partners produce 16% of the KC-46 airframe structure.
Leonardo celebrates today the 20th anniversary of the AW139 helicopter’s maiden flight. The first aircraft took to the skies from the Company’s facility in Cascina Costa di Samarate, Italy on 3 February 2001. The helicopter flew for 45 minutes checking initial airworthiness tests, hovering, lateral and forward flight, handling qualities and subsystems. This soon confirmed the impressive characteristics and the smoothness of the new model and its performance and capabilities were to become a new market benchmark, making it the most important helicopter programme in the last two decades at an international level.
The AW139 intermediate-twin engine 7 tonne boasts orders of almost 1,200 units from more than 280 customers in over 70 countries on all continents. The aircraft has shown extraordinary levels of reliability and operational capabilities with more than 3 million flight hours recorded since the first delivery took place at the beginning of 2004. Data of use testifies the extreme versatility of the AW139 which satisfies any market need: approximately half the world’s fleet for public utility tasks such as search and rescue and air ambulance, law enforcement, fire-fighting, disaster relief and military duties. The rest account for a leading position in its class in the offshore transport sector, plus VIP, institutional and corporate transport as well as other civil missions. The AW139 fleet has a global presence: around 30% in Europe, almost as much in Asia and Australasia, 15% in the Americas, followed by the Middle East. The international success of the AW139 is so important that to meet market demands the helicopter is produced on different assembly lines both in Italy, in the Vergiate plant, and in the United States in Philadelphia which has delivered around 30% of all units to date. The US Air Force will soon introduce the AW139-based Boeing MH-139 to replace the UH-1N fleet.
The AW139 has grown significantly over the years, adapting to the changing needs of customers. The maximum take-off weight increased from 6.4 to 7 tons. Almost 1,000 mission kits and equipment have been certified. With advanced protection systems against icing, the AW139 can fly in all-weather conditions. This model is also the only one in the world capable of continuing to fly for over 60 minutes without oil in the transmission, twice as much as the 30 minutes set by certification authorities. In 2020 new distinguished features for the avionics suite were introduced including synthetic vision, Enhanced Ground Proximity Warning System with offshore modes, improved 2D maps and wireless data loading, increasing crew situational awareness and reducing workload for operations at night or in marginal weather. Despite the experience and maturity achieved in almost 17 years of operational activity, the AW139 remains a young and modern programme, destined to play a leading role into the future. The AW139 truly embeds all areas of excellence and leadership in its field at Leonardo such as transmissions and dynamics, system integration and customization, best in class performance, mission versatility, latest safety standards and a comprehensive range of increasingly localised customer support and training services and solutions, developed and grown to allow customers worldwide to maximise the capabilities of the type.
The aircraft of choice in its class against which all existing and newcomers are measured, the AW139 also represents a turning point in the rotary-wing sector through the introductory concept of the Leonardo “helicopter family”. The AW139 is, in fact, the forefather of a helicopter family comprising of the smaller and lighter AW169 and the larger and heavier AW189. Models, the only case in the world, that share the same design philosophy, the same high performance, the same flight characteristics and the same certification standards, as well as the same approach to maintenance and training. A concept that allows operators with large diversified fleets, with models ranging from 4 to 9 tons of weight, to create significant synergies in crew training, flight operations, maintenance and logistics support.
Qatar Airways Cargo took delivery of three Boeing [NYSE:BA] 777 Freighters as the airline continues to build its cargo division with the world’s largest and most capable twin-engine freighter. The milestone also marks the 200th 777 Freighter to be delivered.
The triple delivery comes as air freight is playing a pivotal role amid the COVID-19 pandemic – including transporting newly approved vaccines – and is projected to increase more than 4% over the next two decades.
With the arrival of the trio of 777 Freighters, Qatar Airways Cargo now operates 24 of this airplane model along with two 747-8 Freighters. As one of the leading air cargo carriers in the world, Qatar’s dedicated freighter fleet serves more than 60 freighter destinations worldwide via its world-class Doha hub and also delivers freight on the belly-hold deck of passenger aircraft to an extensive network.
“With the arrival of these new freighters, we are injecting more capacity in the market which is very much required during the pandemic. The added capacity will also enable us to support the logistics around the COVID-19 vaccination, which is projected to be one of the greatest logistical challenges for the industry,” said Qatar Airways Group Chief Executive, His Excellency Mr. Akbar Al Baker. “With our investments in innovation and fleet, we are able to fulfill our customers’ logistical requirements and facilitate the continuity of global trade.”
The 777 Freighter can fly 4,970 nautical miles (9,200 kms) and carry a payload of 224,900 pounds (102,010 kg). The airplane’s long range translates into significant savings for operators like Qatar Airways Cargo as fewer stops reduce landing fees, congestion, cargo handling costs and delivery times.
“During these challenging times, Qatar Airways Cargo has been transporting humanitarian relief and medical goods to those in need, and we are proud that their growing fleet of 777 Freighters is supporting such a commendable effort,” said Ihssane Mounir, senior vice president, Commercial Sales and Marketing, The Boeing Company. “We deeply appreciate our long-standing partnership with Qatar Airways and their confidence in the 777 Freighters as the backbone of their expansive global air cargo operations.”
The 777 Freighter is now Boeing’s top selling freighter. Customers from around the world have ordered 242 777 Freighters since the program began in 2005, including a record 45 units in 2018. Boeing, the market leader in air cargo aircraft, provides more than 90% of the dedicated freighter capacity around the world, including new production and converted freighters.
Mesa Air Group, Inc. (NASDAQ: MESA) today announced that it has completed a second closing through its previously disclosed five-year Loan and Guarantee Agreement under the Coronavirus Air, Relief, and Economic Security Act (CARES Act).
The Loan Agreement provided a secured term loan facility of up to $200 million. On October 30, 2020, Mesa borrowed $43 million under the facility and today, completed a second closing to borrow an additional $152 million. These funds may be used for general corporate purposes and operating expenses, to the extent permitted by the CARES Act.
“I’d like to again express my sincere gratitude to everyone involved in making this deal happen. Our people have been working very hard to ensure Mesa and its employees are prepared to weather this storm”, said Jonathan Ornstein, Chairman and Chief Executive Officer. “These additional funds will substantially benefit our airline and the communities we serve as we continue to navigate the obstacles created by the pandemic”.
In connection with the additional $152 million drawn under the facility, Mesa issued warrants to the U.S. Treasury to purchase 3,819,095 shares of common stock, no par value. The Warrants have a five-year term from the date issued, were issued pursuant to the Warrant Agreement, and have substantially identical terms to the warrants issued on the initial closing.
– Financial results continue to be significantly impacted by COVID-19 and the 737 MAX grounding
– Proactively managing liquidity and transforming for the future
– Revenue of $14.1 billion, GAAP loss per share of ($0.79) and core (non-GAAP)* loss per share of ($1.39)
– Operating cash flow of ($4.8) billion; cash and marketable securities of $27.1 billion
– Total backlog of $393 billion, including more than 4,300 commercial airplanes
Table 1. Summary Financial Results
Third Quarter
Nine Months
(Dollars in Millions, except per share data)
2020
2019
Change
2020
2019
Change
Revenues
$14,139
$19,980
(29)%
$42,854
$58,648
(27)%
GAAP
(Loss)/Earnings From Operations
($401)
$1,259
NM
($4,718)
$229
NM
Operating Margin
(2.8)%
6.3%
NM
(11.0)%
0.4%
NM
Net (Loss)/Earnings
($466)
$1,167
NM
($3,502)
$374
NM
(Loss)/Earnings Per Share
($0.79)
$2.05
NM
($6.10)
$0.66
NM
Operating Cash Flow
($4,819)
($2,424)
NM
($14,401)
($226)
NM
Non-GAAP*
Core Operating (Loss)/Earnings
($754)
$895
NM
($5,773)
($864)
NM
Core Operating Margin
(5.3)%
4.5%
NM
(13.5)%
(1.5)%
NM
Core (Loss)/Earnings Per Share
($1.39)
$1.45
NM
($7.88)
($1.13)
NM
*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.”
The Boeing Company [NYSE: BA] reported third-quarter revenue of $14.1 billion, GAAP loss per share of ($0.79) and core loss per share (non-GAAP)* of ($1.39), reflecting lower commercial deliveries and services volume primarily due to COVID-19 (Table 1). Boeing recorded operating cash flow of ($4.8) billion.
“The global pandemic continued to add pressure to our business this quarter, and we’re aligning to this new reality by closely managing our liquidity and transforming our enterprise to be sharper, more resilient and more sustainable for the long term,” said Boeing President and Chief Executive Officer Dave Calhoun. “Our diverse portfolio, including our government services, defense and space programs, continues to provide some stability for us as we adapt and rebuild for the other side of the pandemic. We remain focused on the health and safety of our employees and their communities. I’m proud of the dedication and commitment our teams have demonstrated as they continued to deliver for our customers in this challenging environment. Despite the near-term headwinds, we remain confident in our long term future and are focused on sustaining critical investments in our business and the meaningful actions we are taking to strengthen our safety culture, improve transparency and rebuild trust.”
Following the lead of global regulators, Boeing made steady progress toward the safe return to service of the 737 MAX, including rigorous certification and validation flights conducted by the U.S. Federal Aviation Administration, Transport Canada and the European Union Aviation Safety Agency. The Joint Operational Evaluation Board, featuring civil aviation authorities from the United States, Canada, Brazil, and the European Union, also conducted its evaluations of updated crew training. The 737 MAX has now completed around 1,400 test and check flights and more than 3,000 flight hours as it progresses through the robust and comprehensive certification process.
To adapt to the market impacts of COVID-19 and position the company for the future, Boeing continued its business transformation across five key areas including its infrastructure footprint, overhead and organizational structure, portfolio and investment mix, supply chain health and operational excellence. As the company resizes its operations to align with market realities, Boeing expects to continue lowering overall staffing levels through natural attrition as well as voluntary and involuntary workforce reductions, and recorded additional severance costs in the third quarter.
Table 2. Cash Flow
Third Quarter
Nine Months
(Millions)
2020
2019
2020
2019
Operating Cash Flow
($4,819)
($2,424)
($14,401)
($226)
Less Additions to Property, Plant & Equipment
($262)
($465)
($1,038)
($1,387)
Free Cash Flow*
($5,081)
($2,889)
($15,439)
($1,613)
*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.”
Operating cash flow was ($4.8) billion in the quarter, reflecting lower commercial deliveries and services volume primarily due to COVID-19, as well as timing of receipts and expenditures (Table 2).
Table 3. Cash, Marketable Securities and Debt Balances
Quarter-End
(Billions)
Q3 20
Q2 20
Cash
$10.6
$20.0
Marketable Securities1
$16.5
$12.4
Total
$27.1
$32.4
Debt Balances:
The Boeing Company, net of intercompany loans to BCC
$59.1
$59.5
Boeing Capital, including intercompany loans
$1.9
$1.9
Total Consolidated Debt
$61.0
$61.4
1Marketable securities consists primarily of time deposits due within one year classified as “short-term investments.”
Cash and investments in marketable securities decreased to $27.1 billion, compared to $32.4 billion at the beginning of the quarter, primarily driven by operating cash outflows (Table 3). Debt was $61.0 billion, down from $61.4 billion at the beginning of the quarter due to the repayment of maturing debt.
Total company backlog at quarter-end was $393 billion.
Segment Results
Commercial Airplanes
Table 4. Commercial Airplanes
Third Quarter
Nine Months
(Dollars in Millions)
2020
2019
Change
2020
2019
Change
Commercial Airplanes Deliveries
28
62
(55)%
98
301
(67)%
Revenues
$3,596
$8,249
(56)%
$11,434
$24,793
(54)%
Loss from Operations
($1,369)
($40)
NM
($6,199)
($3,813)
NM
Operating Margin
(38.1)%
(0.5)%
NM
(54.2)%
(15.4)%
NM
Commercial Airplanes third-quarter revenue decreased to $3.6 billion, reflecting lower delivery volume primarily due to COVID-19 impacts as well as 787 quality issues and associated rework. Third-quarter operating margin decreased to (38.1) percent, primarily driven by lower delivery volume, as well as $590 million of abnormal production costs related to the 737 program.
Commercial Airplanes added the final 777X flight test airplane to the test program and the GE9X engine received FAA certification. In October, the company decided it will consolidate 787 production in South Carolina in mid-2021, which did not have a significant financial impact on the program in the third quarter. Commercial Airplanes delivered 28 airplanes during the quarter, and backlog included over 4,300 airplanes valued at $313 billion.
Defense, Space & Security
Table 5. Defense, Space & Security
Third Quarter
Nine Months
(Dollars in Millions)
2020
2019
Change
2020
2019
Change
Revenues
$6,848
$7,002
(2)%
$19,478
$20,168
(3)%
Earnings from Operations
$628
$754
(17)%
$1,037
$2,581
(60)%
Operating Margin
9.2%
10.8%
(1.6) Pts
5.3%
12.8%
(7.5) Pts
Defense, Space & Security third-quarter revenue decreased to $6.8 billion, primarily due to derivative aircraft award timing, partially offset by higher fighter volume (Table 5). Third-quarter operating margin decreased to 9.2 percent reflecting less favorable performance, including a $67 million KC-46A Tanker charge.
During the quarter, Defense, Space & Security received an award for eight F-15EX advanced fighter aircraft for the U.S. Air Force and a contract extension for the International Space Station for NASA, as well as contracts for nine additional MH-47G Block II Chinook helicopters for the U.S. Army Special Operations and four additional 702X satellites. Also in the quarter, the U.S. Air Force and Boeing team was awarded the Collier Trophy for aerospace excellence for the X-37B autonomous spaceplane. Significant milestones included inducting the 20th U.S. Navy F/A-18 into the Service Life Modification program as well as delivering the firstBell Boeing V-22 Osprey to Japan and the first MH-47G Block II Chinook to the U.S. Army Special Operations.
Backlog at Defense, Space & Security was $62 billion, of which 30 percent represents orders from customers outside the U.S.
Global Services
Table 6. Global Services
Third Quarter
Nine Months
(Dollars in Millions)
2020
2019
Change
2020
2019
Change
Revenues
$3,694
$4,658
(21)%
$11,810
$13,820
(15)%
Earnings from Operations
$271
$673
(60)%
$307
$2,013
(85%)
Operating Margin
7.3%
14.4%
(7.1) Pts
2.6%
14.6%
(12.0) Pts
Global Services third-quarter revenue decreased to $3.7 billion, driven by lower commercial services volume due to COVID-19, partially offset by higher government services volume (Table 6). Third-quarter operating margin decreased to 7.3 percent primarily due to lower commercial services volume and additional severance costs.
During the quarter, Global Services signed an agreement with GECAS for 11 737-800 Boeing Converted Freighters, secured a six-year P-8A support contract for the Royal Australian Air Force, and was awarded F-15EX training and services support contracts by the U.S. Air Force. Global Services also delivered the first P-8A Operational Flight Trainer for the United Kingdom Royal Air Force.
Additional Financial Information
Table 7. Additional Financial Information
Third Quarter
Nine Months
(Dollars in Millions)
2020
2019
2020
2019
Revenues
Boeing Capital
$71
$66
$205
$207
Unallocated items, eliminations and other
($70)
$5
($73)
($340)
Earnings from Operations
Boeing Capital
$30
$29
$47
$86
FAS/CAS service cost adjustment
$353
$364
$1,055
$1,093
Other unallocated items and eliminations
($314)
($521)
($965)
($1,731)
Other income, net
$119
$121
$325
$334
Interest and debt expense
($643)
($203)
($1,458)
($480)
Effective tax rate
49.6%
0.8%
40.1%
(350.6)%
At quarter-end, Boeing Capital’s net portfolio balance was $2.0 billion. The change in revenue and earnings from other unallocated items and eliminations was primarily due to the timing of cost allocations. Earnings from other unallocated items and eliminations was also impacted by lower enterprise research and development expense. Interest and debt expense increased due to higher debt balances. The third quarter effective tax rate reflects tax benefits related to the five year net operating loss carryback provision in the Coronavirus Aid, Relief, and Economic Security (CARES) Act as well as the impact of pre-tax losses.
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information determined under Generally Accepted Accounting Principles in the United States of America (GAAP) with certain non-GAAP financial information. The non-GAAP financial information presented excludes certain significant items that may not be indicative of, or are unrelated to, results from our ongoing business operations. We believe that these non-GAAP measures provide investors with additional insight into the company’s ongoing business performance. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The following definitions are provided:
Core Operating Earnings, Core Operating Margin and Core Earnings Per Share
Core operating earnings is defined as GAAP earnings from operations excluding the FAS/CAS service cost adjustment. The FAS/CAS service cost adjustment represents the difference between the FAS pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Core operating margin is defined as core operating earnings expressed as a percentage of revenue. Core earnings per share is defined as GAAP diluted earnings per share excluding the net earnings per share impact of the FAS/CAS service cost adjustment and Non-operating pension and postretirement expenses. Non-operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. Pension costs, comprising service and prior service costs computed in accordance with GAAP are allocated to Commercial Airplanes and BGS businesses supporting commercial customers. Pension costs allocated to BDS and BGS businesses supporting government customers are computed in accordance with U.S. Government Cost Accounting Standards (CAS), which employ different actuarial assumptions and accounting conventions than GAAP. CAS costs are allocable to government contracts. Other postretirement benefit costs are allocated to all business segments based on CAS, which is generally based on benefits paid. Management uses core operating earnings, core operating margin and core earnings per share for purposes of evaluating and forecasting underlying business performance. Management believes these core earnings measures provide investors additional insights into operational performance as they exclude non-service pension and post-retirement costs, which primarily represent costs driven by market factors and costs not allocable to government contracts. A reconciliation between the GAAP and non-GAAP measures is provided on pages 12-13.
Free Cash Flow
Free cash flow is GAAP operating cash flow reduced by capital expenditures for property, plant and equipment. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity. Table 2 provides a reconciliation of free cash flow to GAAP operating cash flow.
Caution Concerning Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “should,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “anticipates,” and similar expressions generally identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on expectations and assumptions that we believe to be reasonable when made, but that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to: (1) the COVID-19 pandemic and related government actions, including with respect to our operations, our liquidity, the health of our customers and suppliers, and future demand for our products and services; (2) the 737 MAX, including the timing and conditions of 737 MAX regulatory approvals, lower than planned production rates and/or delivery rates, and increased considerations to customers and suppliers, (3) general conditions in the economy and our industry, including those due to regulatory changes; (4) our reliance on our commercial airline customers; (5) the overall health of our aircraft production system, planned commercial aircraft production rate changes, our commercial development and derivative aircraft programs, and our aircraft being subject to stringent performance and reliability standards; (6) changing budget and appropriation levels and acquisition priorities of the U.S. government; (7) our dependence on U.S. government contracts; (8) our reliance on fixed-price contracts; (9) our reliance on cost-type contracts; (10) uncertainties concerning contracts that include in-orbit incentive payments; (11) our dependence on our subcontractors and suppliers, as well as the availability of raw materials; (12) changes in accounting estimates; (13) changes in the competitive landscape in our markets; (14) our non-U.S. operations, including sales to non-U.S. customers; (15) threats to the security of our or our customers’ information; (16) potential adverse developments in new or pending litigation and/or government investigations; (17) customer and aircraft concentration in our customer financing portfolio; (18) changes in our ability to obtain debt financing on commercially reasonable terms and at competitive rates; (19) realizing the anticipated benefits of mergers, acquisitions, joint ventures/strategic alliances or divestitures; (20) the adequacy of our insurance coverage to cover significant risk exposures; (21) potential business disruptions, including those related to physical security threats, information technology or cyber-attacks, epidemics, sanctions or natural disasters; (22) work stoppages or other labor disruptions; (23) substantial pension and other postretirement benefit obligations; and (24) potential environmental liabilities.
Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.
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.
St. George, Utah, Sept. 29, 2020 /PRNewswire/ — SkyWest, Inc. (NASDAQ: SKYW) (“SkyWest”) today announced that it and its wholly-owned subsidiary SkyWest Airlines, Inc. have entered into a five-year Loan and Guarantee Agreement with the U.S. Treasury Department which provides SkyWest Airlines with a secured term loan facility to borrow up to $573 million under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). On September 29, 2020, upon entry into the Loan Agreement, SkyWest Airlines borrowed $60 million under the facility and has until March 26, 2021 to determine if it will borrow additional amounts in up to two subsequent borrowings.
The interest rate under the secured term loan facility is LIBOR plus 3.0% with no amortization. In consideration for the loan, SkyWest is obligated to issue warrants to the U.S. Treasury Department to purchase shares of common stock based on, and in connection with, amounts drawn under the secured term loan facility. In connection with the initial $60 million draw under the facility, SkyWest issued warrants to purchase 211,416 shares of common stock at an exercise price of $28.38 per share.
The Loan and Guarantee Agreement also includes certain restrictions, including restrictions on the payment of dividends and the repurchase of SkyWest shares. The Secured Loan is collateralized by aircraft engines and aircraft parts.
