.
First Quarter Financial Results
- Reported first quarter 2022 capacity down 19% compared to first quarter 2019.
- Reported first quarter 2022 net loss of $1.4 billion, adjusted net loss3 of $1.4 billion.
- Reported first quarter 2022 total operating revenue of $7.6 billion, down 21% compared to first quarter 2019.
- Reported first quarter 2022 TRASM of down 3% compared to first quarter 2019.
- Reported first quarter 2022 Cost Per Available Seat Mile (CASM) of up 21%, and CASM-ex3 of up 18%, compared to first quarter 2019.
- Reported first quarter 2022 operating loss of $1.4 billion, adjusted operating loss3 of $1.4 billion.
- Reported first quarter 2022 fuel price of approximately $2.88 per gallon.
- Reported first quarter 2022 pre-tax margin of negative 23.2%, negative 23.2% on an adjusted3 basis.
- Reported first quarter 2022 ending available liquidity4 of $20 billion.
- Reported a decline in total debt of over $700 million.
Operational Performance
- Finished second among mainline carriers for completion for the quarter.
- Achieved best first quarter baggage handling performance in the last 6 years excluding the pandemic.
- Protected 225,000 passengers' trips with ConnectionSaver in Q1.
- Achieved the highest Net Promoter Score (NPS) for inflight satisfaction.
Key Highlights
- Officially opened the United Aviate Academy with the goal of training 5,000 new pilots by 2030. United is the only major U.S. airline to own a flight training school and the historic inaugural pilot class is 80% women or people of color.
- United Airlines Ventures and Oxy Low Carbon Ventures announced an investment in biotech firm Cemvita Factory to commercialize the production of Sustainable Aviation Fuel intended to be developed through a revolutionary new process using CO2 and synthetic microbes.
- Debuted free "bag drop shortcut" – a simple way for customers at United's U.S. hubs to skip the line, check their bag in a minute or less on average, and get to their flight.
Network
- Announced plans to expand service to one of the world's most popular vacation destinations by offering three nonstop flights per week, year-round, between New York/Newark and Cape Town International Airport, subject to government approval.
- Resumed 19 International routes and relaunched service to six cities not served since the beginning of the pandemic including Berlin; Edinburgh, Scotland; Grand Cayman, Cayman Islands; Porto, Portugal; Singapore; and Shannon, Ireland.
- Completed all United Polaris® lounge re-openings with the addition of San Francisco International Airport and Los Angeles International Airport.
Environmental, Social and Governance (ESG)
- U.S. President Joe Biden announced his intent to appoint United President Brett Hart to the Board of Advisors on Historically Black Colleges and Universities.
- Along with the PGA TOUR, announced that it will award 51 golf teams at Historically Black Colleges and Universities with more than half a million dollars in grants to fund travel for golf tournaments and recruiting efforts.
- The United Aviate Academy announced it aims to potentially quadruple the size of its fleet of training aircraft – adding 25 new, state-of-the-art Cirrus TRAC SR20 aircraft to its current fleet.
- Launched Ukraine relief effort to support flying workers and supplies to areas in need by giving MileagePlus® members the ability to donate cash or miles to United's humanitarian relief partners. To date, more than 31 million miles were donated and over $224,000 raised by MileagePlus members, with an additional approximately 5 million miles and $100,000 matched by United.
- Donated $50,000 to Boulder County Wildfire Relief to support those affected by Colorado wildfires.
- Led Black History Month fundraising campaign – alongside JPMorgan Chase and VISA – supporting Thurgood Marshall College Fund, Leadership Conference Education Fund; NAACP Legal Defense and Education Fund, and United Negro College Fund.
- Through a combination of cargo-only flights and passenger flights, transported approximately 274 million pounds of freight, which includes nearly 41 million pounds of vital shipments, such as medical kits, personal protective equipment, pharmaceuticals and medical equipment in Q1.
UNITED AIRLINES HOLDINGS, INC | ||||||||
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED) | ||||||||
Three Months Ended March 31, | % Increase/ (Decrease) | |||||||
(In millions, except per share data) | 2022 | 2021 | 2019 | |||||
Operating revenue: | ||||||||
Passenger revenue | $ 6,348 | $ 2,316 | $ 8,725 | (27.2) | ||||
Cargo | 627 | 497 | 286 | 119.2 | ||||
Other operating revenue | 591 | 408 | 578 | 2.2 | ||||
Total operating revenue | 7,566 | 3,221 | 9,589 | (21.1) | ||||
Operating expense: | ||||||||
Salaries and related costs | 2,787 | 2,224 | 2,873 | (3.0) | ||||
Aircraft fuel | 2,230 | 851 | 2,023 | 10.2 | ||||
Landing fees and other rent | 612 | 519 | 588 | 4.1 | ||||
Depreciation and amortization | 611 | 623 | 547 | 11.7 | ||||
Regional capacity purchase | 565 | 479 | 688 | (17.9) | ||||
Aircraft maintenance materials and outside repairs | 407 | 269 | 408 | (0.2) | ||||
Distribution expenses | 226 | 85 | 360 | (37.2) | ||||
Aircraft rent | 61 | 55 | 81 | (24.7) | ||||
Special charges (credits) | (8) | (1,377) | 18 | NM | ||||
Other operating expenses | 1,451 | 874 | 1,508 | (3.8) | ||||
Total operating expense | 8,942 | 4,602 | 9,094 | (1.7) | ||||
Operating income (loss) | (1,376) | (1,381) | 495 | NM | ||||
Nonoperating income (expense): | ||||||||
Interest expense | (424) | (353) | (188) | 125.5 | ||||
Interest capitalized | 24 | 17 | 22 | 9.1 | ||||
Interest income | 5 | 7 | 29 | (82.8) | ||||
Unrealized gains (losses) on investments, net | — | (22) | 17 | (100.0) | ||||
Miscellaneous, net | 19 | (19) | (8) | NM | ||||
Total nonoperating expense, net | (376) | (370) | (128) | 193.8 | ||||
Income (loss) before income taxes | (1,752) | (1,751) | 367 | NM | ||||
Income tax expense (benefit) | (375) | (394) | 75 | NM | ||||
Net income (loss) | $ (1,377) | $ (1,357) | $ 292 | NM | ||||
Diluted earnings (loss) per share | $ (4.24) | $ (4.29) | $ 1.09 | NM | ||||
Diluted weighted average shares | 325.0 | 316.6 | 268.3 | 21.1 | ||||
NM Not meaningful |
UNITED AIRLINES HOLDINGS, INC. | |||||||||||||
PASSENGER REVENUE INFORMATION AND STATISTICS | |||||||||||||
Information is as follows (in millions, except for percentage changes): | |||||||||||||
1Q 2022 Passenger Revenue | Passenger Revenue vs. 1Q 2019 | PRASM vs. | Yield vs. | Available Seat Miles vs. 1Q 2019 | 1Q 2022 | 1Q 2022 | |||||||
Domestic | $ 4,510 | (16.0%) | (7.2%) | (1.1%) | (9.4%) | 33,263 | 25,780 | ||||||
Latin America | 800 | (11.7%) | (14.9%) | (4.2%) | 3.7% | 7,645 | 5,686 | ||||||
Europe | 550 | (50.2%) | (27.9%) | (16.1%) | (30.9%) | 6,084 | 3,780 | ||||||
Middle East/India/Africa | 261 | 15.5% | (23.1%) | (17.0%) | 50.3% | 2,728 | 2,157 | ||||||
Pacific | 227 | (79.8%) | (37.5%) | 41.5% | (67.6%) | 3,544 | 1,241 | ||||||
International | 1,838 | (45.3%) | (20.8%) | (3.2%) | (30.8%) | 20,001 | 12,864 | ||||||
Consolidated | $ 6,348 | (27.2%) | (10.3%) | 0.0% | (18.9%) | 53,264 | 38,644 | ||||||
Select operating statistics are as follows: | |||||||||
Three Months Ended March 31, | % Increase/ (Decrease) | ||||||||
2022 | 2021 | 2019 | |||||||
Passengers (thousands) (a) | 29,333 | 14,674 | 36,454 | (19.5) | |||||
Revenue passenger miles ("RPMs") (millions) (b) | 38,644 | 17,248 | 53,097 | (27.2) | |||||
Available seat miles ("ASMs") (millions) (c) | 53,264 | 30,370 | 65,645 | (18.9) | |||||
Passenger load factor: (d) | |||||||||
Consolidated | 72.6% | 56.8% | 80.9% | (8.3) | pts. | ||||
Domestic | 77.5% | 65.1% | 82.6% | (5.1) | pts. | ||||
International | 64.3% | 43.1% | 78.7% | (14.4) | pts. | ||||
Passenger revenue per available seat mile (cents) | 11.92 | 7.63 | 13.29 | (10.3) | |||||
Total revenue per available seat mile ("TRASM") (cents) | 14.20 | 10.61 | 14.61 | (2.8) | |||||
Average yield per revenue passenger mile (cents) (e) | 16.43 | 13.43 | 16.43 | — | |||||
Cargo revenue ton miles (millions) (f) | 791 | 765 | 805 | (1.7) | |||||
Aircraft in fleet at end of period | 1,343 | 1,320 | 1,348 | (0.4) | |||||
Average stage length (miles) (g) | 1,370 | 1,282 | 1,448 | (5.4) | |||||
Employee headcount, as of March 31 (in thousands) (h) | 87.4 | 84.1 | 93.0 | (6.0) | |||||
Average aircraft fuel price per gallon | $ 2.88 | $ 1.74 | $ 2.05 | 40.5 | |||||
Fuel gallons consumed (millions) | 775 | 490 | 985 | (21.3) |
(a) The number of revenue passengers measured by each flight segment flown. |
(b) The number of scheduled miles flown by revenue passengers. |
(c) The number of seats available for passengers multiplied by the number of scheduled miles those seats are flown. |
(d) RPMs divided by ASMs. |
(e) The average passenger revenue received for each revenue passenger mile flown. |
(f) The number of cargo revenue tons transported multiplied by the number of miles flown. |
(g) Average stage length equals the average distance a flight travels weighted for size of aircraft. |
(h) This total includes employees who elected to voluntarily separate from the company but who are still on pre-separation leave of absence with pay and benefits. |