UNITED AIRLINES, INC. (319687) SEC Filing 10-Q Quarterly report for the period ending Friday, March 31, 2017

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Exhibit 99.1

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United Airlines Reports

First-Quarter 2017 Performance

CHICAGO, April 17, 2017 – United Airlines (UAL) today announced its first-quarter 2017 financial results.

 

    UAL reported first-quarter net income of $96 million, diluted earnings per share of $0.31, pre-tax earnings of $145 million and pre-tax margin of 1.7 percent.

 

    Excluding special items, UAL reported first-quarter net income of $129 million, diluted earnings per share of $0.41, pre-tax earnings of $196 million and pre-tax margin of 2.3 percent.

Oscar Munoz, chief executive officer of United Airlines, said, “In the first quarter of 2017 our financial and operational performance gives us a lot of confidence about the foundation we are building. It is obvious from recent experiences that we need to do a much better job serving our customers. The incident that took place aboard Flight 3411 has been a humbling experience and I take full responsibility. This will prove to be a watershed moment for our company and we are more determined than ever to put our customers at the center of everything we do. We are dedicated to setting the standard for customer service among U.S. airlines, as we elevate the experience our customers have with us from booking to baggage claim.”

First-Quarter Revenue

For the first quarter of 2017, revenue was $8.4 billion, an increase of 2.7 percent year-over-year. First-quarter 2017 consolidated passenger revenue per available seat mile (PRASM) was flat and consolidated yield increased 0.4 percent compared to the first quarter of 2016.

Scott Kirby, president of United Airlines, said, “United is delivering on the commitments we made at investor day last fall. We saw positive trends in the revenue environment in the quarter and are optimistic about the year ahead. Looking forward, we expect second quarter consolidated PRASM to be up 1.0 to 3.0 percent. This would mark the fifth straight quarter of sequential improvement and the first quarter of positive unit revenue growth in two years.”

First-Quarter Costs

Operating expense was $8.1 billion in the first quarter, up 7.9 percent year-over-year. Excluding special charges, operating expense was $8.1 billion, a 10.0 percent increase year-over-year. Consolidated unit cost per available seat mile (CASM) increased 5.1 percent compared to the first quarter of 2016 due largely to higher fuel expense and the impact of labor agreements ratified in 2016. First-quarter consolidated CASM, excluding special charges, third-party business expenses, fuel and profit sharing, increased 5.0 percent year-over-year, driven mainly by higher labor expense.

 

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The following information was filed by UNITED AIRLINES, INC. on Monday, April 17, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Click a sentiment analysis snippet below from UNITED AIRLINES, INC.'s Management Discussions to find these positive and negative remarks within their 10-Q Quarterly report:
  • ual_10q_2017-04-18_12_18
    Revenue - Product
    United anticipates capturing this value through a variety of initiatives including a re-fleeting and upgauge program, additional customer choice through segmentation, improvements to the revenue management systems, ongoing sensible cost management, realizing our full network potential through improved schedule quality and enhancements to the MileagePlus program.
  • ual_10q_2017-04-18_55_61
    Financial - Expense
    Downgrades from these rating levels, among other things, could restrict the availability or increase the cost of future financing for the Company.
  • ual_10q_2017-04-18_50_50
    MA - Other
    As of March 31, 2017, UAL and United have total capital commitments primarily related to the acquisition of aircraft and related spare engines, aircraft improvements and include other capital purchase commitments for approximately $23.2 billion, of which approximately $2.9 billion, $2.8 billion, $3.5 billion, $3.1 billion, $2.2 billion and $8.7 billion are due in the last nine months of 2017 and for the full year for 2018, 2019, 2020, 2021 and thereafter, respectively.
  • ual_10q_2017-04-18_40_128
    Financial - Expense
    Other operating expenses increased $93 million, or 7.5%, in the first quarter of 2017 as compared to the year-ago period primarily due to increases in food and other amenities associated with the Companys customer experience initiatives and increases in other purchased services and technology initiatives contractor costs.
  • ual_10q_2017-04-18_4_100
    Revenue - Product
    Passenger revenue increased 2.6% to $7.2 billion during the first quarter of 2017 as compared to the first quarter of 2016.
  • ual_10q_2017-04-18_52_57
    Financial - Earnings
    We must sustain our profitability andor access the capital markets to meet our significant long-term debt and capital lease obligations and future commitments for capital expenditures, including the acquisition of aircraft and related spare engines.
  • ual_10q_2017-04-18_36_125
    Financial - Expense
    Salaries and related costs increased $171 million, or 6.9%, in the first quarter of 2017 as compared to the year-ago period primarily due to higher pay rates and benefit expenses driven by new and extended collective bargaining agreements, and a 3.3% increase in average full-time equivalent employees, partially offset by a decrease in profit sharing expense and other employee incentive programs expense.
  • ual_10q_2017-04-18_32_25
    Revenue - Product
    Consolidated passenger revenue in the first quarter of 2017 increased $184 million, or 2.6% as compared to the year-ago period.
  • ual_10q_2017-04-18_57_64
    Financial - Income
    Operating income for the first three months of 2017 decreased approximately $0.4 billion versus the year-ago period.
  • ual_10q_2017-04-18_47_39
    MA - Other
    In addition, we have substantial noncancelable commitments for capital expenditures, including the acquisition of new aircraft and related spare engines.
  • ual_10q_2017-04-18_52_56
    Other - Other
    As of March 31, 2017, a substantial portion of the Companys assets, principally aircraft, route authorities, airport slots and loyalty program intangible assets, was pledged under various loan and other agreements.
  • ual_10q_2017-04-18_5_101
    Financial - Expense
    First quarter 2017 aircraft fuel cost increased $342 million, 28.1% year-over-year.
  • ual_10q_2017-04-18_44_30
    Financial - Income
    The following table illustrates the year-over-year dollar and percentage changes in the Companys nonoperating income expense for the three months ended March 31 in millions, except for percentage changes:
  • ual_10q_2017-04-18_38_126
    Other - Other
    Depreciation and amortization increased $39 million, or 8.1%, in the first quarter of 2017 as compared to the year-ago period, primarily due to additions of new aircraft, aircraft improvements, accelerated depreciation of assets related to certain fleet types and increases in information technology assets.
  • ual_10q_2017-04-18_51_55
    Other - Other
    Financing may be necessary to satisfy the Companys capital commitments for its firm order aircraft and other related capital expenditures.

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Exhibit 10.1 - MATERIAL CONTRACT

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Exhibit 10.2 - MATERIAL CONTRACT

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Exhibit 10.3 - MATERIAL CONTRACT

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Exhibit 12.1 - STATEMENT REGARDING CALCULATION OF RATIOS

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Exhibit 12.2 - STATEMENT REGARDING CALCULATION OF RATIOS

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Exhibit 31.1 - RULE 13A-14(A)/15D-14(A) CERTIFICATION

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Exhibit 31.2 - RULE 13A-14(A)/15D-14(A) CERTIFICATION

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Exhibit 31.3 - RULE 13A-14(A)/15D-14(A) CERTIFICATION

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Exhibit 31.4 - RULE 13A-14(A)/15D-14(A) CERTIFICATION

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Exhibit 32.1 - SECTION 1350 CERTIFICATION

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Exhibit 32.2 - SECTION 1350 CERTIFICATION

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  • Form Type: Quarterly
  • Number of times amended: 0
  • Accession Number: 0001193125-17-127429
  • Submitted to the SEC: Tuesday, April 18, 2017 4:37:07 PM EST
  • Accepted by the SEC: Tuesday, April 18, 2017
  • Period ending: March 2017
  • Industry: Air Transportation Scheduled