- 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.
First-Quarter Revenue
For the first quarter of 2017, revenue was
First-Quarter Costs
Operating expense was
Liquidity and Capital Allocation
In the first quarter of 2017, UAL increased its revolving credit facility by
UAL generated
For the 12 months ended
For more information on UAL’s second-quarter 2017 guidance, please visit ir.united.com for the company’s investor update.
First-Quarter Highlights
Customer Experience
- Modernized airport screening experience with fully redesigned security checkpoint at
Newark Liberty International Airport . - Debuted new Terminal C North at
Houston’s George Bush Intercontinental Airport – elevating the customer experience with roomier gate areas, the latest technology and chef-inspired dining choices. - United named “
Eco-Airline of the Year” fromAir Transport World magazine for its leadership in environmental action. - Launched United Jetstream, a new online portal for corporate and travel agency customers that simplifies the travel management process and gives customers an intuitive suite of self-service tools.
- Launched new Basic Economy fare for travel between
Minneapolis/St. Paul and any of United’s sevenU.S. hubs.
Network and Fleet
- Began implementing plan to improve the company’s route network with more destinations, more flights and more convenient connections, with expectations to add service to 31 destinations across the
U.S. andEurope in 2017. - Took delivery of six Boeing 777-300ER aircraft, two Boeing 787-9 aircraft and one used Airbus A319 aircraft in the quarter.
- Purchased 12 currently operated Boeing 737NG aircraft previously leased to the company.
- Entered into a new partnership with
Air Wisconsin Airlines to operate 50 regional jets under the United Express brand.
Operations and Employees
- Achieved a record-setting 25 zero-cancellation days for the mainline operation in the quarter.
- Consolidated completion factor was 97.5 percent in the first quarter, 0.6 points higher than the 96.9 percent from first-quarter 2016. This represents over 2,500 fewer flight cancellations compared to the first quarter of 2016.
- Achieved best-ever consolidated on-time departure rate for both February and March and lowest-ever first-quarter mishandled bag rate in company history.
- Employees earned cash-incentive payments of approximately
$18 million for achieving operational performance goals in the quarter.
About United
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Certain statements included in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as “expects,” “will,” “plans,” “anticipates,” “indicates,” “believes,” “forecast,” “guidance,” “outlook,” “goals” and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: our ability to comply with the terms of our various financing arrangements; the costs and availability of financing; our ability to maintain adequate liquidity; our ability to execute our operational plans and revenue-generating initiatives, including optimizing our revenue; our ability to control our costs, including realizing benefits from our resource optimization efforts, cost reduction initiatives and fleet replacement programs; costs associated with any modification or termination of our aircraft orders; our ability to utilize our net operating losses; our ability to attract and retain customers; potential reputational or other impact from adverse events in our operations; demand for transportation in the markets in which we operate; an outbreak of a disease that affects travel demand or travel behavior; demand for travel and the impact that global economic and political conditions have on customer travel patterns; excessive taxation and the inability to offset future taxable income; general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aircraft fuel and energy refining capacity in relevant markets); our ability to cost-effectively hedge against increases in the price of aircraft fuel if we decide to do so; any potential realized or unrealized gains or losses related to fuel or currency hedging programs; economic and political instability and other risks of doing business globally; the effects of any hostilities, act of war or terrorist attack; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; the effects of any technology failures or cybersecurity breaches; disruptions to our regional network; the costs and availability of aviation and other insurance; industry consolidation or changes in airline alliances; the success of our investments in airlines in other parts of the world; competitive pressures on pricing and on demand; our capacity decisions and the capacity decisions of our competitors;
-tables attached-
|
||||||||||||
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED) |
||||||||||||
Three Months Ended |
% Increase/ (Decrease) |
|||||||||||
(In millions, except per share data) |
2017 |
2016 |
||||||||||
Operating revenue: |
||||||||||||
Passenger – Mainline |
$ |
5,831 |
$ |
5,577 |
4.6 |
|||||||
Passenger – Regional |
1,343 |
1,413 |
(5.0) |
|||||||||
Total passenger revenue (B) |
7,174 |
6,990 |
2.6 |
|||||||||
Cargo |
220 |
194 |
13.4 |
|||||||||
Other operating revenue |
1,026 |
1,011 |
1.5 |
|||||||||
Total operating revenue |
8,420 |
8,195 |
2.7 |
|||||||||
Operating expense: |
||||||||||||
Salaries and related costs |
2,661 |
2,490 |
6.9 |
|||||||||
Aircraft fuel (C) |
1,560 |
1,218 |
28.1 |
|||||||||
Landing fees and other rent |
544 |
525 |
3.6 |
|||||||||
Regional capacity purchase |
536 |
522 |
2.7 |
|||||||||
Depreciation and amortization |
518 |
479 |
8.1 |
|||||||||
Aircraft maintenance materials and outside repairs |
454 |
402 |
12.9 |
|||||||||
Distribution expenses |
307 |
303 |
1.3 |
|||||||||
Aircraft rent |
179 |
178 |
0.6 |
|||||||||
Special charges (D) |
51 |
190 |
NM |
|||||||||
Other operating expenses |
1,332 |
1,239 |
7.5 |
|||||||||
Total operating expense |
8,142 |
7,546 |
7.9 |
|||||||||
Operating income |
278 |
649 |
(57.2) |
|||||||||
Operating margin |
3.3 |
% |
7.9 |
% |
(4.6) |
pts. |
||||||
Operating margin, excluding special charges (A) (Non-GAAP) |
3.9 |
% |
10.2 |
% |
(6.3) |
pts. |
||||||
Nonoperating income (expense): |
||||||||||||
Interest expense |
(150) |
(159) |
(5.7) |
|||||||||
Interest capitalized |
23 |
14 |
64.3 |
|||||||||
Interest income |
11 |
8 |
37.5 |
|||||||||
Miscellaneous, net (D) |
(17) |
(18) |
(5.6) |
|||||||||
Total nonoperating expense |
(133) |
(155) |
(14.2) |
|||||||||
Income before income taxes |
145 |
494 |
(70.6) |
|||||||||
Pre-tax margin |
1.7 |
% |
6.0 |
% |
(4.3) |
pts. |
||||||
Pre-tax margin, excluding special items (A) (Non-GAAP) |
2.3 |
% |
8.4 |
% |
(6.1) |
pts. |
||||||
Income tax expense (E) |
49 |
181 |
(72.9) |
|||||||||
Net income |
$ |
96 |
$ |
313 |
(69.3) |
|||||||
Earnings per share, diluted |
$ |
0.31 |
$ |
0.88 |
(64.8) |
|||||||
Weighted average shares, diluted |
315 |
355 |
(11.3) |
|||||||||
NM Not meaningful |
|
||||||||||
STATISTICS |
||||||||||
Three Months Ended |
% Increase/ (Decrease) |
|||||||||
2017 |
2016 |
|||||||||
Mainline: |
||||||||||
Passengers (thousands) |
23,825 |
22,277 |
6.9 |
|||||||
Revenue passenger miles (millions) |
42,183 |
40,856 |
3.2 |
|||||||
Available seat miles (millions) |
53,054 |
51,165 |
3.7 |
|||||||
Cargo ton miles (millions) |
748 |
622 |
20.3 |
|||||||
Passenger revenue per available seat mile (cents) |
10.99 |
10.90 |
0.8 |
|||||||
Average yield per revenue passenger mile (cents) |
13.82 |
13.65 |
1.2 |
|||||||
Aircraft in fleet at end of period |
743 |
719 |
3.3 |
|||||||
Average stage length (miles) |
1,802 |
1,859 |
(3.1) |
|||||||
Average daily utilization of each aircraft (hours) |
9:45 |
9:36 |
1.6 |
|||||||
Regional: |
||||||||||
Passengers (thousands) |
9,280 |
9,810 |
(5.4) |
|||||||
Revenue passenger miles (millions) |
5,428 |
5,726 |
(5.2) |
|||||||
Available seat miles (millions) |
6,754 |
7,108 |
(5.0) |
|||||||
Passenger revenue per available seat mile (cents) |
19.88 |
19.88 |
— |
|||||||
Average yield per revenue passenger mile (cents) |
24.74 |
24.68 |
0.2 |
|||||||
Aircraft in fleet at end of period |
478 |
503 |
(5.0) |
|||||||
Average stage length (miles) |
573 |
575 |
(0.3) |
|||||||
Consolidated (Mainline and Regional): |
||||||||||
Passengers (thousands) |
33,105 |
32,087 |
3.2 |
|||||||
Revenue passenger miles (millions) |
47,611 |
46,582 |
2.2 |
|||||||
Available seat miles (millions) |
59,808 |
58,273 |
2.6 |
|||||||
Passenger load factor: |
||||||||||
Consolidated |
79.6 |
% |
79.9 |
% |
(0.3) |
pts. |
||||
Domestic |
83.3 |
% |
82.9 |
% |
0.4 |
pts. |
||||
International |
75.2 |
% |
76.4 |
% |
(1.2) |
pts. |
||||
Passenger revenue per available seat mile (cents) |
12.00 |
12.00 |
— |
|||||||
Total revenue per available seat mile (cents) |
14.08 |
14.06 |
0.1 |
|||||||
Average yield per revenue passenger mile (cents) |
15.07 |
15.01 |
0.4 |
|||||||
Aircraft in fleet at end of period |
1,221 |
1,222 |
(0.1) |
|||||||
Average stage length (miles) |
1,451 |
1,461 |
(0.7) |
|||||||
Average full-time equivalent employees (thousands) |
85.2 |
82.5 |
3.3 |
Note: See Part II, Item 6 Selected Financial Data of the company’s annual report on Form 10-K for the year ended |
|
||||||||||||
SUMMARY FINANCIAL METRICS |
||||||||||||
Note (A) provides a reconciliation of non-GAAP financial metrics to the comparable GAAP financial metrics and provides the reasons UAL management believes these financial metrics are useful. |
||||||||||||
Three Months Ended |
% Increase/ (Decrease) |
|||||||||||
2017 |
2016 |
|||||||||||
(In millions, except per share data) |
||||||||||||
Operating income (GAAP) |
$ |
278 |
$ |
649 |
(57.2) |
|||||||
Operating margin (GAAP) |
3.3 |
% |
7.9 |
% |
(4.6) |
pts. |
||||||
Operating income, excluding Special charges (Non-GAAP) |
329 |
839 |
(60.8) |
|||||||||
Operating margin, excluding Special charges (Non-GAAP) |
3.9 |
% |
10.2 |
% |
(6.3) |
pts. |
||||||
Adjusted EBITDA, excluding special items (Non-GAAP) |
$ |
830 |
$ |
1,304 |
(36.3) |
|||||||
Adjusted EBITDA margin, excluding special items (Non-GAAP) |
9.9 |
% |
15.9 |
% |
(6.0) |
pts. |
||||||
Adjusted EBITDAR, excluding special items (Non-GAAP) |
1,009 |
1,482 |
(31.9) |
|||||||||
Adjusted EBITDAR margin, excluding special items (Non-GAAP) |
12.0 |
% |
18.1 |
% |
(6.1) |
pts. |
||||||
Pre-tax income (GAAP) |
$ |
145 |
$ |
494 |
(70.6) |
|||||||
Pre-tax margin (GAAP) |
1.7 |
% |
6.0 |
% |
(4.3) |
pts. |
||||||
Pre-tax income, excluding special items (Non-GAAP) |
196 |
688 |
(71.5) |
|||||||||
Pre-tax margin, excluding special items (Non-GAAP) |
2.3 |
% |
8.4 |
% |
(6.1) |
pts. |
||||||
Net income (GAAP) |
$ |
96 |
$ |
313 |
(69.3) |
|||||||
Net income, excluding special items (Non-GAAP) |
129 |
435 |
(70.3) |
|||||||||
Diluted earnings per share (GAAP) |
$ |
0.31 |
$ |
0.88 |
(64.8) |
|||||||
Diluted earnings per share, excluding special items (Non-GAAP) |
0.41 |
1.23 |
(66.7) |
|||||||||
Net cash provided by operating activities |
$ |
547 |
$ |
1,199 |
(54.4) |
|||||||
Capital expenditures |
$ |
691 |
$ |
816 |
(15.3) |
|||||||
Adjusted capital expenditures |
1,354 |
823 |
64.5 |
|||||||||
Free cash flow, net of financings (Non-GAAP) |
$ |
(144) |
$ |
383 |
NM |
|||||||
Free cash flow (Non-GAAP) |
(807) |
376 |
NM |
|
|||
RETURN ON INVESTED CAPITAL (ROIC) |
|||
ROIC is a Non-GAAP financial measure that we believe provides useful supplemental information for management and investors by measuring the effectiveness of our operations’ use of invested capital to generate profits. ROIC is calculated as the company’s net operating profit after tax (“NOPAT”) divided by the company’s average invested capital. |
|||
(in millions) |
Twelve Months Ended |
||
Net Operating Profit After Tax (NOPAT) |
|||
Pre-tax income excluding special items (a) |
$ |
3,970 |
|
NOPAT adjustments (b) |
975 |
||
NOPAT |
$ |
4,945 |
|
Effective cash tax rate (c) |
0.5 |
% |
|
|
|||
Total assets |
$ |
40,552 |
|
Invested capital adjustments (d) |
12,271 |
||
|
$ |
28,281 |
|
Return on |
17.5 |
% |
|
Notes: |
Twelve Months Ended |
||
(a) Non-GAAP Financial Reconciliation |
|||
Pre-tax income |
$ |
3,470 |
|
Add: Special items |
500 |
||
Pre-tax income excluding special items |
$ |
3,970 |
(b) |
NOPAT adjustments include: adding back (net of tax shield) interest expense, the interest component of capitalized aircraft rent, net interest on pension and subtracting cash taxes paid. |
(c) |
Effective cash tax rate is calculated by dividing cash taxes paid by adjusted pre-tax income. |
(d) |
Invested capital adjustments include: adding back capital aircraft rent (at 7.0X) and deferred income taxes, less advance ticket sales, frequent flyer deferred revenue, tax valuation allowance and other non-interest bearing liabilities. |
|
|||||||||
NON-GAAP FINANCIAL RECONCILIATION |
|||||||||
(A) UAL evaluates its financial performance utilizing various accounting principles generally accepted in |
|||||||||
CASM is a common metric used in the airline industry to measure an airline’s cost structure and efficiency. UAL reports CASM excluding special charges, third-party business expenses, fuel and profit sharing. UAL believes that adjusting for special charges is useful to investors because special charges are non-recurring charges not indicative of UAL’s ongoing performance. UAL also believes that excluding third-party business expenses, such as maintenance, ground handling and catering services for third parties, fuel sales and non-air mileage redemptions, provides more meaningful disclosure because these expenses are not directly related to UAL’s core business. UAL also believes that excluding fuel costs from certain measures is useful to investors because it provides an additional measure of management’s performance excluding the effects of a significant cost item over which management has limited influence. UAL excludes profit sharing because this exclusion allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry. In addition, the company believes that adjusting for prior period gains and losses on fuel derivative contracts settled in the current period is useful because the adjustments allow investors to better understand the cash impact of settled fuel derivative contracts in a given period. |
|||||||||
Pursuant to SEC Regulation G, UAL has included the following reconciliations of reported Non-GAAP financial measures to comparable financial measures reported on a GAAP basis. |
|||||||||
Three Months Ended |
% Increase/ (Decrease) |
||||||||
2017 |
2016 |
||||||||
CASM Mainline Operations (cents) |
|||||||||
Cost per available seat mile (CASM) |
13.22 |
12.47 |
6.0 |
||||||
Less: Special charges (D) |
0.09 |
0.37 |
NM |
||||||
Less: Third-party business expenses |
0.13 |
0.13 |
— |
||||||
Less: Fuel expense |
2.44 |
2.00 |
22.0 |
||||||
CASM, excluding special charges, third-party business expenses and fuel |
10.56 |
9.97 |
5.9 |
||||||
Less: Profit sharing per available seat mile |
0.03 |
0.18 |
(83.3) |
||||||
CASM, excluding special charges, third-party business expenses, fuel, and profit sharing |
10.53 |
9.79 |
7.6 |
||||||
CASM Consolidated Operations (cents) |
|||||||||
Cost per available seat mile (CASM) |
13.61 |
12.95 |
5.1 |
||||||
Less: Special charges (D) |
0.08 |
0.33 |
NM |
||||||
Less: Third-party business expenses |
0.12 |
0.11 |
9.1 |
||||||
Less: Fuel expense |
2.60 |
2.09 |
24.4 |
||||||
CASM, excluding special charges, third-party business expenses and fuel |
10.81 |
10.42 |
3.7 |
||||||
Less: Profit sharing per available seat mile |
0.04 |
0.16 |
(75.0) |
||||||
CASM, excluding special charges, third-party business expenses, fuel, and profit sharing |
10.77 |
10.26 |
5.0 |
|
|||||||||||||||
NON-GAAP FINANCIAL RECONCILIATION (Continued) |
|||||||||||||||
Three Months Ended |
$ Increase/ (Decrease) |
% Increase/ (Decrease) |
|||||||||||||
(in millions) |
2017 |
2016 |
|||||||||||||
Operating expenses |
$ |
8,142 |
$ |
7,546 |
$ |
596 |
7.9 |
||||||||
Less: Special charges (D) |
51 |
190 |
(139) |
NM |
|||||||||||
Operating expenses, excluding special charges |
8,091 |
7,356 |
735 |
10.0 |
|||||||||||
Less: Third-party business expenses |
68 |
67 |
1 |
1.5 |
|||||||||||
Less: Fuel expense |
1,560 |
1,218 |
342 |
28.1 |
|||||||||||
Less: Profit sharing, including taxes |
20 |
93 |
(73) |
(78.5) |
|||||||||||
Operating expenses, excluding fuel, profit sharing, special charges and third-party business expenses |
$ |
6,443 |
$ |
5,978 |
$ |
465 |
7.8 |
||||||||
Operating income |
$ |
278 |
$ |
649 |
$ |
(371) |
(57.2) |
||||||||
Less: Special charges (D) |
51 |
190 |
(139) |
NM |
|||||||||||
Operating income, excluding special charges |
$ |
329 |
$ |
839 |
$ |
(510) |
(60.8) |
||||||||
Income before income taxes |
$ |
145 |
$ |
494 |
$ |
(349) |
(70.6) |
||||||||
Less: special items before income taxes (D) |
51 |
194 |
(143) |
NM |
|||||||||||
Income before income taxes and excluding special items |
$ |
196 |
$ |
688 |
$ |
(492) |
(71.5) |
||||||||
Net income |
$ |
96 |
$ |
313 |
$ |
(217) |
(69.3) |
||||||||
Less: special items, net of tax (D) |
33 |
122 |
(89) |
NM |
|||||||||||
Net income, excluding special items |
129 |
435 |
(306) |
(70.3) |
|||||||||||
Diluted earnings per share |
$ |
0.31 |
$ |
0.88 |
$ |
(0.57) |
(64.8) |
||||||||
Less: special items |
0.16 |
0.55 |
(0.39) |
NM |
|||||||||||
Less: tax effect related to special items |
(0.06) |
(0.20) |
0.14 |
NM |
|||||||||||
Diluted earnings per share, excluding special items |
$ |
0.41 |
$ |
1.23 |
$ |
(0.82) |
(66.7) |
|
||||||||
NON-GAAP FINANCIAL RECONCILIATION (Continued) |
||||||||
UAL provides financial metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA) as well as earnings before interest, taxes, depreciation and amortization, and aircraft rent (EBITDAR), that we believe provides useful supplemental information for management and investors by measuring profit and profit as a percentage of total operating revenues. These financial metrics are adjusted for special items that are non-recurring and that management believes are not indicative of UAL’s ongoing performance. |
||||||||
Three Months Ended |
||||||||
EBITDA and EBITDAR |
2017 |
2016 |
||||||
(In millions) |
||||||||
Net income |
$ |
96 |
$ |
313 |
||||
Adjusted for: |
||||||||
Depreciation and amortization |
518 |
479 |
||||||
Interest expense |
150 |
159 |
||||||
Interest capitalized |
(23) |
(14) |
||||||
Interest income |
(11) |
(8) |
||||||
Income tax expense |
49 |
181 |
||||||
Special items before income taxes (D) |
51 |
194 |
||||||
Adjusted EBITDA, excluding special items |
830 |
1,304 |
||||||
Aircraft rent |
179 |
178 |
||||||
Adjusted EBITDAR, excluding special items |
$ |
1,009 |
$ |
1,482 |
UAL believes that adjusting capital expenditures for assets acquired through the issuance of debt, airport construction financing and excluding fully reimbursable projects is useful to investors in order to appropriately reflect the non-reimbursable funds spent on capital expenditures. |
||||||||
Three Months Ended |
||||||||
Capital Expenditures (in millions) |
2017 |
2016 |
||||||
Capital expenditures – GAAP |
$ |
691 |
$ |
816 |
||||
Property and equipment acquired through the issuance of debt |
711 |
59 |
||||||
Airport construction financing |
21 |
9 |
||||||
Fully reimbursable projects |
(69) |
(61) |
||||||
Adjusted capital expenditures – Non-GAAP |
$ |
1,354 |
$ |
823 |
||||
Free Cash Flow (in millions) |
||||||||
Net cash provided by operating activities |
$ |
547 |
$ |
1,199 |
||||
Less capital expenditures – GAAP |
691 |
816 |
||||||
Free cash flow, net of financings – Non-GAAP |
$ |
(144) |
$ |
383 |
||||
Net cash provided by operating activities |
$ |
547 |
$ |
1,199 |
||||
Less adjusted capital expenditures – Non-GAAP |
1,354 |
823 |
||||||
Free cash flow – Non-GAAP |
$ |
(807) |
$ |
376 |
|
||||||||||||
NOTES (UNAUDITED) |
||||||||||||
(B) Select passenger revenue information is as follows (in millions): |
||||||||||||
1Q 2017 Passenger Revenue (millions) |
Passenger Revenue vs. 1Q 2016 |
PRASM vs. 1Q 2016 |
Yield vs. 1Q 2016 |
Available Seat Miles vs. 1Q 2016 |
||||||||
Domestic |
$ |
4,358 |
3.0% |
(0.1%) |
(0.6%) |
3.1% |
||||||
|
1,048 |
0.8% |
2.1% |
3.7% |
(1.3%) |
|||||||
Pacific |
987 |
3.7% |
(3.5%) |
(0.1%) |
7.4% |
|||||||
|
781 |
2.0% |
2.8% |
2.3% |
(0.8%) |
|||||||
International |
2,816 |
2.1% |
0.0% |
1.6% |
2.1% |
|||||||
Consolidated |
$ |
7,174 |
2.6% |
0.0% |
0.4% |
2.6% |
||||||
Mainline |
$ |
5,831 |
4.6% |
0.8% |
1.2% |
3.7% |
||||||
Regional |
1,343 |
(5.0%) |
0.0% |
0.2% |
(5.0%) |
|||||||
Consolidated |
$ |
7,174 |
|
|||||||||||
NOTES (UNAUDITED) |
|||||||||||
(C) UAL’s results of operations include fuel expense for both mainline and regional operations. |
|||||||||||
Three Months Ended |
% Increase/ (Decrease) |
||||||||||
(In millions, except per gallon) |
2017 |
2016 |
|||||||||
Mainline fuel expense excluding hedge impacts |
$ |
1,290 |
$ |
885 |
45.8 |
||||||
Hedge losses reported in fuel expense (a) |
(2) |
(138) |
NM |
||||||||
Total mainline fuel expense |
1,292 |
1,023 |
26.3 |
||||||||
Regional fuel expense |
268 |
195 |
37.4 |
||||||||
Consolidated fuel expense |
$ |
1,560 |
$ |
1,218 |
28.1 |
||||||
Mainline fuel consumption (gallons) |
761 |
734 |
3.7 |
||||||||
Mainline average aircraft fuel price per gallon |
$ |
1.70 |
$ |
1.39 |
22.3 |
||||||
Mainline average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense |
$ |
1.70 |
$ |
1.21 |
40.5 |
||||||
Regional fuel consumption (gallons) |
149 |
156 |
(4.5) |
||||||||
Regional average aircraft fuel price per gallon |
$ |
1.80 |
$ |
1.25 |
44.0 |
||||||
Consolidated fuel consumption (gallons) |
910 |
890 |
2.2 |
||||||||
Consolidated average aircraft fuel price per gallon |
$ |
1.71 |
$ |
1.37 |
24.8 |
||||||
Consolidated average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense |
$ |
1.71 |
$ |
1.21 |
41.3 |
(a) |
Includes losses from settled hedges that were designated for hedge accounting. UAL allocates 100 percent of hedge accounting gains (losses) to mainline fuel expense. |
|
||||||||
NOTES (UNAUDITED) |
||||||||
(D) Special items include the following: |
||||||||
Three Months Ended |
||||||||
(In millions) |
2017 |
2016 |
||||||
Operating: |
||||||||
Severance and benefit costs |
$ |
37 |
$ |
8 |
||||
Labor agreement costs |
— |
100 |
||||||
|
— |
74 |
||||||
(Gains) losses on sale of assets and other special charges |
14 |
8 |
||||||
Special charges |
51 |
190 |
||||||
Nonoperating and income taxes: |
||||||||
Foreign currency loss |
— |
8 |
||||||
Income tax benefit related to special charges |
(18) |
(72) |
||||||
Total operating and nonoperating special charges, net of income taxes |
33 |
126 |
||||||
Prior period losses on fuel derivative contracts settled in the current period |
— |
(4) |
||||||
Total special items, net of income taxes |
$ |
33 |
$ |
122 |
Special items |
Severance and benefit costs: During the three months ended |
During the three months ended |
Labor agreement costs: In |
|
Foreign currency loss: During the three months ended |
Prior period losses on fuel derivative contracts settled in the current period: Prior to 2017, the company used certain combinations of derivative contracts that were economic hedges but did not qualify for hedge accounting under |
(E) Effective tax rate: The company’s effective tax rate for the three months ended |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/united-airlines-reports-first-quarter-2017-performance-300440400.html
SOURCE
Stellus Capital Investment Corporation Declares Second Quarter 2017 Regular Dividend of $0.34 Per Share
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