As part of the agreement, United is committing to purchase 1.5 billion gallons of SAF from Alder when produced to United’s requirements. United’s purchase agreement, which is one and a half times the size of the known purchase commitments of all global airlines combined, makes this easily the largest publicly announced SAF agreement in aviation history. United’s purchase agreement with Alder also surpasses the previous record set by the airline in 2015 through its investment in Fulcrum BioEnergy with its option to purchase up to 900 million gallons of SAF.

“Since announcing our 100% green commitment in 2020, United has stayed focused on decarbonizing without relying on the use of traditional carbon offsets. Part of that commitment means increasing SAF usage and availability since it’s the fastest way to reduce emissions across our fleet. However, to scale SAF as quickly as necessary, we need to look beyond existing solutions and invest in research and development for new pathways like the one Alder is developing,” said United CEO Scott Kirby. “United has come further than any other airline making sustainable travel a reality by using SAF to power flights. Our leadership gives customers confidence that they are flying with an airline that recognizes the responsibility we have to help solve climate change.”

“As a pioneer of the SAF market with UOP Ecofining™ technology, our work with United and Alder on this new technology will help transform the industry and support the growth of a zero-carbon economy,” said Darius Adamczyk, Honeywell chairman and chief executive officer. “This solution will not only advance United’s SAF commitment but can help the aviation industry meet its commitments to decouple increases in carbon emissions from growth in passengers.”

According to the U.S. Department of Energy (DOE), U.S. forestry residues and agricultural residues alone could provide enough biomass energy to generate more than 17 billion gallons of jet fuel and displace 75% of U.S. aviation fuel consumption. If the U.S. were to broadly adopt regenerative agricultural practices, which capture more carbon in healthier soil compared to traditional methods, the U.S. could generate an additional seven billion gallons of SAF, which would completely replace the U.S.’s current fossil jet fuel consumption.

Alder’s technology and demand for its fuel from the aviation industry create a large new market for biomass from regenerative practices. Use of this biomass further enables Alder’s production process to be carbon negative over the fuel’s lifecycle.

“Aviation poses one of the greatest technology challenges for addressing climate change and SAF has demonstrated the greatest potential. However, there is insufficient raw material to meet demand,” said Bryan Sherbacow, CEO of Alder Fuels and senior advisor to World Energy, the company that owns and operates the world’s first SAF refinery. “Alder’s technology revolutionizes SAF production by enabling use of widely available, low-cost and low-carbon feedstock. The industry is now a major step closer to using 100% SAF with our drop-in fuel that accelerates the global transition to a zero-carbon economy.”

Prior to founding Alder, Sherbacow built the world’s first SAF refinery utilizing Honeywell’s technology and subsequently contracted with United, enabling the airline to become the first globally to use SAF in regular operations on a continuous basis. Since then, United has purchased more SAF than any other airline and, with this agreement now, has more than 70% of the airline industry’s publicly announced SAF commitments. Alder’s research is supported by the U.S. Defense Logistics Agency, the DOE and a partnership with DOE’s National Renewable Energy Laboratory (NREL), focused on developing technology to process organic waste and sustainable, non-food plant material into carbon-negative transportation fuels.

Honeywell innovation established the SAF market with its UOP Ecofining process, which is the first technology used to maximize SAF production for commercial aviation. Building on Honeywell’s focus to create sustainable technology, Honeywell will utilize its expertise and proven process of developing sustainable fuels alongside Alder, applying proprietary hydroprocessing design to the process to jointly commercialize the technology. Commercialization is expected by 2025. This announcement is a clear example of how Honeywell’s Sustainable Technology Solutions business can partner with early-stage companies and help them scale faster, access customers and advance research and development to help drive sustainability at the global level.

United’s joint investment in Alder is the latest by United Airlines Ventures, a venture fund launched earlier this year that focuses on startups, upcoming technologies, and sustainability concepts that will complement United’s goal of net zero emissions by 2050 — without relying on traditional carbon offsets. In 2020, United became the first airline to announce a commitment to invest in carbon capture and sequestration and has since followed with investments in electric vertical takeoff and landing aircraft and 19-seat electric aircraft that have the potential to fly customers up to 250 miles before the decade’s end.

About United

United’s shared purpose is “Connecting People. Uniting the World.” For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of UAL is traded on the Nasdaq under the symbol “UAL”.

About United Airlines Ventures

United’s corporate venture capital fund, United Airlines Ventures, allows the airline to continue investing in emerging companies that have the potential to influence the future of travel. The new fund will concentrate on sustainability concepts that will complement United’s goal of net zero emissions by 2050 — without relying on traditional carbon offsets — as well as revolutionary aerospace developments and innovative technologies that are expected to create value for customers and United’s operation. For more information about United Airlines Ventures, please visit https://www.united.com/ventures.

About Honeywell

Honeywell (www.honeywell.com) is a Fortune 100 technology company that delivers industry-specific solutions that include aerospace products and services; control technologies for buildings and industry; and performance materials globally. Our technologies help aircraft, buildings, manufacturing plants, supply chains, and workers become more connected to make our world smarter, safer, and more sustainable. For more news and information on Honeywell, please visit www.honeywell.com/newsroom.

About Alder Fuels

Alder Fuels, founded by biofuel and aviation industry entrepreneur Bryan Sherbacow, is a process technology and project development company in the low-carbon energy industry. Alder is commercializing a process to produce crude oil that is carbon negative, scalable and cost-competitive with the petroleum it replaces. Critical to rapid, world-scale deployment, the process will be compatible with the existing petroleum refining and logistics infrastructure. The company’s collaboration with United Airlines and Honeywell UOP is expected to propel use of new forms of biomass to power commercial aircraft, reduce fossil fuel consumption and commercialize technologies benefiting the flying public. It builds upon a decade-old relationship among the stakeholders in pioneering commercialization of industry-leading SAF technology. For more information about Alder Fuels, visit http://www.alderfuel.com/.

Forward Looking Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this press 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 United’s and Honeywell’s 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,” “intends,” “anticipates,” “indicates,” “remains,” “believes,” “estimates,” “forecast,” “guidance,” “outlook,” “goals,” “targets” 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 press release are based upon information available to us on the date of this press release. Neither United nor Honeywell undertakes any 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. United’s and Honeywell’s actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the risks and uncertainties set forth under Part II, Item 1A., “Risk Factors,” of United Airlines Holdings, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 and Honeywell’s Annual Report on Form 10-K for the year ended December 31, 2020, as well as other risks and uncertainties set forth from time to time in the reports United Airlines Holdings, Inc. and Honeywell file with the U.S. Securities and Exchange Commission.

SOURCE United Airlines

For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com; Honeywell, Mike Hockey, Mike.hockey@honeywell.com, 832 285 4933; Alder Fuels, Alex Gibson, 803-361-3016, agibson@apcoworldwide.com

As part of the agreement, United is committing to purchase 1.5 billion gallons of SAF from Alder when produced to United’s requirements. United’s purchase agreement, which is one and a half times the size of the known purchase commitments of all global airlines combined, makes this easily the largest publicly announced SAF agreement in aviation history. United’s purchase agreement with Alder also surpasses the previous record set by the airline in 2015 through its investment in Fulcrum BioEnergy with its option to purchase up to 900 million gallons of SAF.

“Since announcing our 100% green commitment in 2020, United has stayed focused on decarbonizing without relying on the use of traditional carbon offsets. Part of that commitment means increasing SAF usage and availability since it’s the fastest way to reduce emissions across our fleet. However, to scale SAF as quickly as necessary, we need to look beyond existing solutions and invest in research and development for new pathways like the one Alder is developing,” said United CEO Scott Kirby. “United has come further than any other airline making sustainable travel a reality by using SAF to power flights. Our leadership gives customers confidence that they are flying with an airline that recognizes the responsibility we have to help solve climate change.”

“As a pioneer of the SAF market with UOP Ecofining™ technology, our work with United and Alder on this new technology will help transform the industry and support the growth of a zero-carbon economy,” said Darius Adamczyk, Honeywell chairman and chief executive officer. “This solution will not only advance United’s SAF commitment but can help the aviation industry meet its commitments to decouple increases in carbon emissions from growth in passengers.”

According to the U.S. Department of Energy (DOE), U.S. forestry residues and agricultural residues alone could provide enough biomass energy to generate more than 17 billion gallons of jet fuel and displace 75% of U.S. aviation fuel consumption. If the U.S. were to broadly adopt regenerative agricultural practices, which capture more carbon in healthier soil compared to traditional methods, the U.S. could generate an additional seven billion gallons of SAF, which would completely replace the U.S.’s current fossil jet fuel consumption.

Alder’s technology and demand for its fuel from the aviation industry create a large new market for biomass from regenerative practices. Use of this biomass further enables Alder’s production process to be carbon negative over the fuel’s lifecycle.

“Aviation poses one of the greatest technology challenges for addressing climate change and SAF has demonstrated the greatest potential. However, there is insufficient raw material to meet demand,” said Bryan Sherbacow, CEO of Alder Fuels and senior advisor to World Energy, the company that owns and operates the world’s first SAF refinery. “Alder’s technology revolutionizes SAF production by enabling use of widely available, low-cost and low-carbon feedstock. The industry is now a major step closer to using 100% SAF with our drop-in fuel that accelerates the global transition to a zero-carbon economy.”

Prior to founding Alder, Sherbacow built the world’s first SAF refinery utilizing Honeywell’s technology and subsequently contracted with United, enabling the airline to become the first globally to use SAF in regular operations on a continuous basis. Since then, United has purchased more SAF than any other airline and, with this agreement now, has more than 70% of the airline industry’s publicly announced SAF commitments. Alder’s research is supported by the U.S. Defense Logistics Agency, the DOE and a partnership with DOE’s National Renewable Energy Laboratory (NREL), focused on developing technology to process organic waste and sustainable, non-food plant material into carbon-negative transportation fuels.

Honeywell innovation established the SAF market with its UOP Ecofining process, which is the first technology used to maximize SAF production for commercial aviation. Building on Honeywell’s focus to create sustainable technology, Honeywell will utilize its expertise and proven process of developing sustainable fuels alongside Alder, applying proprietary hydroprocessing design to the process to jointly commercialize the technology. Commercialization is expected by 2025. This announcement is a clear example of how Honeywell’s Sustainable Technology Solutions business can partner with early-stage companies and help them scale faster, access customers and advance research and development to help drive sustainability at the global level.

United’s joint investment in Alder is the latest by United Airlines Ventures, a venture fund launched earlier this year that focuses on startups, upcoming technologies, and sustainability concepts that will complement United’s goal of net zero emissions by 2050 — without relying on traditional carbon offsets. In 2020, United became the first airline to announce a commitment to invest in carbon capture and sequestration and has since followed with investments in electric vertical takeoff and landing aircraft and 19-seat electric aircraft that have the potential to fly customers up to 250 miles before the decade’s end.

About United

United’s shared purpose is “Connecting People. Uniting the World.” For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of UAL is traded on the Nasdaq under the symbol “UAL”.

About United Airlines Ventures

United’s corporate venture capital fund, United Airlines Ventures, allows the airline to continue investing in emerging companies that have the potential to influence the future of travel. The new fund will concentrate on sustainability concepts that will complement United’s goal of net zero emissions by 2050 — without relying on traditional carbon offsets — as well as revolutionary aerospace developments and innovative technologies that are expected to create value for customers and United’s operation. For more information about United Airlines Ventures, please visit https://www.united.com/ventures.

About Honeywell

Honeywell (www.honeywell.com) is a Fortune 100 technology company that delivers industry-specific solutions that include aerospace products and services; control technologies for buildings and industry; and performance materials globally. Our technologies help aircraft, buildings, manufacturing plants, supply chains, and workers become more connected to make our world smarter, safer, and more sustainable. For more news and information on Honeywell, please visit www.honeywell.com/newsroom.

About Alder Fuels

Alder Fuels, founded by biofuel and aviation industry entrepreneur Bryan Sherbacow, is a process technology and project development company in the low-carbon energy industry. Alder is commercializing a process to produce crude oil that is carbon negative, scalable and cost-competitive with the petroleum it replaces. Critical to rapid, world-scale deployment, the process will be compatible with the existing petroleum refining and logistics infrastructure. The company’s collaboration with United Airlines and Honeywell UOP is expected to propel use of new forms of biomass to power commercial aircraft, reduce fossil fuel consumption and commercialize technologies benefiting the flying public. It builds upon a decade-old relationship among the stakeholders in pioneering commercialization of industry-leading SAF technology. For more information about Alder Fuels, visit http://www.alderfuel.com/.

Forward Looking Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this press 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 United’s and Honeywell’s 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,” “intends,” “anticipates,” “indicates,” “remains,” “believes,” “estimates,” “forecast,” “guidance,” “outlook,” “goals,” “targets” 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 press release are based upon information available to us on the date of this press release. Neither United nor Honeywell undertakes any 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. United’s and Honeywell’s actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the risks and uncertainties set forth under Part II, Item 1A., “Risk Factors,” of United Airlines Holdings, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 and Honeywell’s Annual Report on Form 10-K for the year ended December 31, 2020, as well as other risks and uncertainties set forth from time to time in the reports United Airlines Holdings, Inc. and Honeywell file with the U.S. Securities and Exchange Commission.

SOURCE United Airlines

For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com; Honeywell, Mike Hockey, Mike.hockey@honeywell.com, 832 285 4933; Alder Fuels, Alex Gibson, 803-361-3016, agibson@apcoworldwide.com

“Thanks to the professionalism and perseverance of the United employees who have worked so hard to take care of our customers through the pandemic, our airline has reached a meaningful turning point: we’re expecting to be back to making a profit once again,” said United Airlines CEO Scott Kirby. “As we emerge from the most disruptive crisis our company has faced, we’re now focused squarely on our United Next strategy that will transform our customers’ onboard experience and help fulfill United’s incredible potential.”

Second Quarter Financial Results

• Reported second quarter 2021 capacity down 46% compared to second quarter 2019.
• Reported second quarter 2021 net loss of $0.4 billion, adjusted net loss³ of $1.3 billion.
• Reported second quarter 2021 total operating revenue of $5.5 billion, down 52% compared to second quarter 2019.
• Reported second quarter 2021 Total Revenue per Available Seat Mile (TRASM) of down 11.3% compared to second quarter 2019.
• Reported second quarter 2021 operating expenses down 42%, down 32% excluding special charges (credits)⁴, compared to second quarter 2019.
• Reported second quarter 2021 pre-tax margin of negative 10.3%, negative 29.2% on an adjusted⁵ basis.
• Reported second quarter 2021 adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) margin⁶ of negative 10.7%.
• Raised secured financing collateralized by substantially all of United’s network of slots, routes, and gates — made up of $4 billion in a private offering of bonds, a $5 billion term loan, and a $1.75 billion revolving credit facility. This is a first of its kind financing and the largest non-merger financing transaction in airline history.
• Reported second quarter 2021 ending available liquidity⁷ of approximately $23 billion.

Outlook

• Expects third quarter 2021 capacity to be down around 26% compared to third quarter 2019, up 39% quarter over quarter.
• Based on current trends, the company expects third quarter 2021 TRASM growth to be positive compared to the third quarter 2019, the first quarter of positive TRASM growth since the second quarter of 2020.
• Expects third quarter 2021 cost per available seat mile, excluding fuel, profit sharing, third-party business expenses, and special charges (CASM-ex)² to be up approximately 17% compared to third quarter 2019 (includes a 6-point headwind largely driven by lower stage length and lower gauge of our network, including the temporary grounding of 52 Boeing Pratt & Whitney powered 777 widebody aircraft).
• Third quarter 2021 estimated fuel price of approximately $2.17 per gallon.
• Expects third quarter 2021 adjusted pre-tax income¹ to be positive, the first quarter of positive adjusted pre-tax income since fourth quarter 2019. Additionally, expects fourth quarter 2021 adjusted pre-tax income¹ to be positive.
• Expects 2022 cost per available seat mile, excluding fuel, profit sharing, third-party business expenses, and special charges (CASM-ex)² to be lower than 2019.

Key Highlights

• Announced the purchase of 270 new Boeing and Airbus aircraft – the largest combined order in the airline’s history and the biggest by an individual carrier in the last decade.
• As part of “United Next” announced plans to retrofit 100% of the mainline, narrow-body fleet to transform the customer experience and create a new signature interior with a roughly 75% increase in premium seats per departure, larger overhead bins, seatback entertainment in every seat and the industry’s fastest available WiFi.
• Established a new diversity goal by striving to have 50% of students at the new United Aviate Academy be women and people of color.
• Launched the first-of-its-kind Eco-Skies Alliance℠ program through which corporate customers contributed to the purchase of approximately 3.4 million gallons of sustainable aviation fuel (SAF) in 2021.
• Entered into a commercial agreement with Denver-based aerospace company Boom Supersonic to add aircraft to United’s global fleet as well as a cooperative sustainability initiative — a move that facilitates a leap forward in returning supersonic speeds to aviation.
• Provided customers the ability to schedule COVID-19 tests and have results reviewed in advance through United’s industry-leading Travel-Ready Center.
• Teamed up with more than a dozen new environmental, nonprofit partners to strengthen the company’s sustainability commitment to become 100% green by reducing its greenhouse gas emissions 100% by 2050.
• Launched a new, corporate venture fund – United Airlines Ventures – which will allow the airline to continue investing in emerging companies that have the potential to influence the future of travel.
• Offered loyalty program members the chance to win free flights for a year’s worth of travel through “Your Shot to Fly” sweepstakes to encourage COVID-19 vaccinations in support of the Biden administration’s national effort to encourage people to get vaccinated.
• Announced a first-of-its-kind collaboration to use Abbott’s BinaxNOW™ COVID-19 Home Test and Abbott’s NAVICA app to help make the international travel experience more seamless.

Taking Care of Our Customers

• Introduced three new promotions that let eligible MileagePlus® Premier® members “Pick Your Path” depending on their upcoming travel plan giving members the chance to fast track their Premier status or earn bonus miles.
• Expanded beer, wine, and snacks to nearly all flights over two hours including new options like White Claw® Hard Seltzer, Breckenridge Brewery Juice Drop Hazy IPA, and Kona Brewing Co. Big Wave Golden Ale.

Reimagining the Route Network

• Announced seven new domestic routes and three new international routes and launched 39 domestic routes and five international routes, with 10 more international routes planned to launch in 2021.
• New route announcements included Dubrovnik, Croatia to Newark/New York; Athens, Greece to Washington, D.C.; and Reykjavik, Iceland to Chicago.
• New route launches included two new long-haul international routes from Accra, Ghana to Washington, DC, and Johannesburg, South Africa to Newark/New York, and three new routes to Hawaii including Maui/Kahului to Newark/New York, Honolulu to Orange County, and Kona to Chicago.
• Resumed nonstop service on 33 domestic routes and 14 international routes compared to the first quarter of 2021.
• Compared to March 2021, United had nonstop service in 55 more domestic and 24 more international routes in June 2021.
• Announced plans to fly roughly 80% of its full schedule in July 2021 compared to July 2019.

Assisting the Communities We Serve

• Announced a program with the Golden State Warriors to launch the Franchise Fund, a program designed to support minority-owned Bay Area small businesses.
• More than 5 million miles donated from United’s customers to charities in need of travel through United’s Miles on a Mission program.
• Over 18,200 pounds of food and beverages ($66,400 value) donated to local food banks.
• Over $326,000 raised for Airlink, World Central Kitchen, Americares, and Global Giving via CrowdRising to support COVID-19 relief efforts in India, including a $40,000 donation by United Airlines.

Additional Noteworthy Accomplishments

• Celebrated the 40th anniversary of the MileagePlus program by giving away 4 million miles to essential healthcare workers.
• Recently redesigned United mobile app was voted the Best Travel App in the 25th annual Webby Awards.
• Joined forces with Chase and Visa to offer eligible United MileagePlus Visa cardmembers the ability to earn five total miles for every dollar donated to select charities supporting the LGBTQ+ community.
• Became the first corporation in at least five years to be presented with the “Volunteer Group of the Year” award from Food Bank of the Rockies. Also, helped Food Bank of the Rockies raise the equivalent of 30,400 meals via a fundraiser.
• In the second quarter of 2021, through a combination of cargo-only flights and passenger flights, United has transported nearly 298 million pounds of freight, which includes nearly 48 million pounds of vital shipments, such as medical kits, PPE, pharmaceuticals, and medical equipment, and more than 765,000 pounds of military mail and packages.
• In the second quarter of 2021, there was an uptick in COVID-19 vaccine shipments, where United shipped 225,000 pounds of vaccines.

Earnings Call

UAL will hold a conference call to discuss second-quarter 2021 financial results as well as its financial and operational outlook for the third-quarter 2021 and beyond, on Wednesday, July 21, at 9:30 a.m. CT/10:30 a.m. ET. 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.

About United

United’s shared purpose is “Connecting People. Uniting the World.” For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United’s parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol “UAL”.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this release, including statements regarding our outlook for the remainder of 2021, 2022 and 2023, 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,” “intends,” “anticipates,” “indicates,” “remains,” “believes,” “estimates,” “forecast,” “guidance,” “outlook,” “goals,” “targets” 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 conditional statements, 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: the adverse impacts of the ongoing COVID-19 global pandemic, and possible outbreaks of another disease or similar public health threat in the future, on our business, operating results, financial condition, liquidity and near-term and long-term strategic operating plan, including possible additional adverse impacts resulting from the duration and spread of the pandemic; unfavorable economic and political conditions in the United States and globally; the highly competitive nature of the global airline industry and susceptibility of the industry to price discounting and changes in capacity; high and/or volatile fuel prices or significant disruptions in the supply of aircraft fuel; our reliance on technology and automated systems to operate our business and the impact of any significant failure or disruption of, or failure to effectively integrate and implement, the technology or systems; our reliance on third-party service providers and the impact of any significant failure of these parties to perform as expected, or interruptions in our relationships with these providers or their provision of services; adverse publicity, harm to our brand; reduced travel demand, potential tort liability and voluntary or mandatory operational restrictions as a result of an accident, catastrophe or incident involving us, our regional carriers, our codeshare partners, or another airline; terrorist attacks, international hostilities or other security events, or the fear of terrorist attacks or hostilities, even if not made directly on the airline industry; increasing privacy and data security obligations or a significant data breach; disruptions to our regional network and United Express flights provided by third-party regional carriers; the failure of our significant investments in other airlines, equipment manufacturers and other aviation industry participants to produce the returns or results we expect; further changes to the airline industry with respect to alliances and joint business arrangements or due to consolidations; changes in our network strategy or other factors outside our control resulting in less economic aircraft orders, costs related to modification or termination of aircraft orders or entry into less favorable aircraft orders, as well as any inability to accept or integrate new aircraft into our fleet as planned; our reliance on single suppliers to source a majority of our aircraft and certain parts, and the impact of any failure to obtain timely deliveries, additional equipment or support from any of these suppliers; the impacts of union disputes, employee strikes or slowdowns, and other labor-related disruptions on our operations; extended interruptions or disruptions in service at major airports where we operate; the impacts of seasonality and other factors associated with the airline industry; our failure to realize the full value of our intangible assets or our long-lived assets, causing us to record impairments; any damage to our reputation or brand image; the limitation of our ability to use our net operating loss carryforwards and certain other tax attributes to offset future taxable income for U.S. federal income tax purposes; the costs of compliance with extensive government regulation of the airline industry; costs, liabilities and risks associated with environmental regulation and climate change; the impacts of our significant amount of financial leverage from fixed obligations, the possibility we may seek material amounts of additional financial liquidity in the short-term and the impacts of insufficient liquidity on our financial condition and business; failure to comply with the covenants in the MileagePlus financing agreements, resulting in the possible acceleration of the MileagePlus indebtedness, foreclosure upon the collateral securing the MileagePlus indebtedness or the exercise of other remedies; failure to comply with financial and other covenants governing our other debt; changes in, or failure to retain, our senior management team or other key employees; current or future litigation and regulatory actions, or failure to comply with the terms of any settlement, order or arrangement relating to these actions; increases in insurance costs or inadequate insurance coverage; and other risks and uncertainties set forth under Part II, Item 1A., “Risk Factors,” of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2021, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission.

-tables attached-

UNITED AIRLINES HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION

UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and Non-GAAP financial measures, including adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), adjusted operating income (loss), adjusted operating margin, adjusted pre-tax income (loss), adjusted pre-tax margin, adjusted net income (loss), adjusted diluted earnings (loss) per share, CASM, excluding special charges, third-party business expenses, fuel, and profit sharing (CASM-ex), and operating expenses excluding special charges, among others. UAL believes that adjusting for special charges (credits), nonoperating debt extinguishment and modification fees, nonoperating special termination benefits and settlement losses and nonoperating credit losses is useful to investors because these items are not indicative of UAL’s ongoing performance. UAL believes that adjusting for unrealized (gains) losses on investments, net is useful to investors because those unrealized gains or losses may not ultimately be realized on a cash basis.

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 (credits), third-party business expenses, fuel and profit sharing. UAL believes that adjusting for special charges (credits) is useful to investors because special charges (credits) are 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, 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 operating cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.

Reconciliations of reported non-GAAP financial measures to the most directly comparable GAAP financial measures are included below.

UNITED AIRLINES HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION (Continued)

UAL believes that adjusting capital expenditures for assets acquired through the issuance of debt, finance leases and other financial liabilities is useful to investors in order to appropriately reflect the total amounts spent on capital expenditures. UAL also believes that adjusting net cash provided by operating activities for capital expenditures, adjusted capital expenditures, and aircraft operating lease additions is useful to allow investors to evaluate the company’s ability to generate cash that is available for debt service or general corporate initiatives.

CARES Act grant: During the six months ended June 30, 2021, the company received approximately $5.8 billion in funding pursuant to certain Payroll Support Programs under the CARES Act (“PSP2” and “PSP3”) which included an approximately $1.7 billion unsecured loan. The company recorded $1.1 billion and $2.9 billion as grant income during the three and six months ended June 30, 2021, respectively. The company also recorded $52 million and $99 million for the related warrants issued to United States Treasury (“Treasury”) as part of the agreements related to PSP2 and PSP3, within stockholders’ equity, as an offset to the grant income in the three and six months ended June 30, 2021, respectively. The company deferred recognition of $1.1 billion of the funds received under the PSP3 program as of June 30, 2021 as the funds can only be used for the payment of eligible salaries, wages and benefits. The company expects the remainder of the PSP3 funds will be recognized as income in the third quarter of 2021.

During the three and six months ended June 30, 2020, the company received approximately $4.5 billion in funding pursuant to a separate Payroll Support Program under the CARES Act, which consisted of a $3.2 billion grant and a $1.3 billion unsecured loan. The company recognized $1.6 billion of the grant as a credit to Special charges (credit) and $57 million in warrants issued to Treasury, within stockholder’s equity, as an offset to the grant income.

Impairment of assets: During the three and six months ended June 30, 2021, the company recorded $59 million of impairments primarily related to 64 Embraer EMB 145LR aircraft and related engines that United retired from its regional aircraft fleet.

During the three and six months ended June 30, 2020, the company recorded impairment charges of $80 million and $130 million, respectively, for its China routes, which was primarily caused by the COVID-19 pandemic and the company’s subsequent suspension of flights to China.

Severance and benefit costs: During the three and six months ended June 30, 2021, the company recorded charges of $11 million and $428 million, respectively, related to pay continuation and benefits-related costs provided to employees who chose to voluntarily separate from the company. The company offered, based on employee group, age and completed years of service, pay continuation, health care coverage, and travel benefits. Approximately 4,500 employees elected to voluntarily separate from the company.

During the three and six months ended June 30, 2020, the company recorded $63 million related to pay continuation and benefits provided to employees who chose to voluntarily separate from the company.

(Gains) losses on sale of assets and other special charges: During the three and six months ended June 30, 2021, the company recorded charges of $61 million and $77 million, respectively, primarily related to incentives for certain of its front-line employees to receive a COVID-19 vaccination and the termination of the lease associated with three floors of its headquarters at the Willis Tower in Chicago in the first quarter of 2021.

Nonoperating unrealized gains and losses on investments, net: During the three and six months ended June 30, 2021, the company recorded $90 million of gains related to its equity investments and warrants in the equity of Clear Secure, Inc. (formerly, Alclear, Inc.). Clear Secure, Inc. undertook its initial public stock offering in June 2021. Also during the three and six months ended June 30, 2021, the company recorded gains of $57 million and $35 million, respectively, primarily for the change in the market value of its investment in Azul Linhas Aéreas Brasileiras S.A. (“Azul”).

During the three and six months ended June 30, 2020, the company recorded gains of $9 million and losses of $310 million, respectively. The losses in the six months ended June 30, 2020 were primarily due to a $284 million decrease in the market value of the company’s investment in Azul and a $24 million decrease in the fair value of the Avianca Holdings S.A. (“AVH”) share call options, AVH share appreciation rights and AVH share-based upside sharing agreement.

Nonoperating debt extinguishment and modification fees: On April 21, 2021, United issued, through a private offering to eligible purchasers, $4.0 billion in aggregate principal amount of two series of notes, consisting of $2.0 billion in aggregate principal amount of 4.375% senior secured notes due 2026 and $2.0 billion in aggregate principal amount of 4.625% senior secured notes due 2029. United used the net proceeds from the offering of the notes and borrowings under a new $5.0 billion term loan facility to repay in full the $1.4 billion aggregate principal amount outstanding under the then-existing term loan facility included in the Amended and Restated Credit and Guaranty Agreement, dated as of March 29, 2017 (the “Existing Credit Agreement”), the $1.0 billion aggregate principal amount outstanding under the revolving credit facility included in the Existing Credit Agreement and the $520 million aggregate principal amount outstanding under the CARES Act loan. During the three and six months ended June 30, 2021, the company recorded $62 million of charges for fees and discounts related to the issuance of new debt and the prepayment of these debt agreements.

Nonoperating special termination benefits and settlement losses: During the six months ended June 30, 2021, as part of a first quarter voluntary separation program, the company recorded $46 million of special termination benefits in the form of additional subsidies for retiree medical costs for certain U.S.-based front-line employees. The subsidies were in the form of a one-time contribution into the employee’s Retiree Health Account of $125,000 for full-time employees and $75,000 for part-time employees.

During the three and six months ended June 30, 2020, the company recorded $231 million of settlement losses related to the company’s primary defined benefit pension plans covering certain U.S. non-pilot employees, and special termination benefits offered under voluntary separation programs to certain U.S. based front-line employees participating in the non-pilot defined benefit pension plan and postretirement medical programs.

Nonoperating credit loss on BRW term loan and related guarantee: During the six months ended June 30, 2020, the company recorded a $697 million expected credit loss allowance for the company’s Term Loan Agreement (the “BRW Term Loan”), with, among others, BRW Aviation Holding LLC and BRW Aviation LLC, and the related guarantee. BRW’s equity and BRW’s holdings of AVH equity are secured as a pledge under the BRW Term Loan, which is currently in default.

Effective tax rate:

The company’s effective tax rates for the three and six months ended June 30, 2021 were 23.0% and 22.6%, respectively. The effective tax rates for the three and six months ended June 30, 2020 were 18.8% and 19.1%, respectively. The provision for income taxes is based on the estimated annual effective tax rate which represents a blend of federal, state and foreign taxes and includes the impact of certain nondeductible items. The effective tax rates for the three and six months ended June 30, 2021 were impacted by $74 million and $79 million, respectively, of valuation allowance related to unrealized capital losses and state attributes. The effective tax rates for the three and six months ended June 30, 2020 were impacted by $64 million and $130 million, respectively, of valuation allowance related to unrealized capital losses.

SOURCE United Airlines

For further information: United Airlines Worldwide Media Relations, 872.825.8640, media.relations@united.com

CHICAGO, Sept. 17, 2021 /PRNewswire/ — United Airlines announced today that new service between Washington, D.C. and Lagos, Nigeria will begin November 29 (subject to government approval). The airline will operate three weekly flights connecting the U.S. capital to Nigeria’s largest city, which is also the top Western African destination for U.S-based travelers. Tickets will be available for sale on united.com and the United app this weekend.

“This new flight to Lagos has been highly anticipated by our customers and offers the first ever nonstop service between Washington, D.C. and Nigeria, as well as convenient, one-stop connections to over 80 destinations throughout the Americas including Houston and Chicago,” said Patrick Quayle, United’s vice president of international network and alliances. “On behalf of all of United we’d like to offer our sincere thanks to the Nigerian Civil Aviation Authority and U.S. Department of Transportation for supporting our plans to provide this service.”

“We are honored to work with our partners at United Airlines to welcome their second nonstop connection from Dulles International to the African continent,” said Carl Schultz, acting vice president of airline business development at the Metropolitan Washington Airports Authority. “Lagos joins nearly 50 other nonstop international destinations currently served by the National Capital Region’s gateway to the world.”

United will operate this route with a Boeing 787 Dreamliner featuring 28 United Polaris^® business class lie-flat seats, 21 United Premium Plus^® premium economy seats, 36 Economy Plus^® seats and 158 standard economy seats. This flight is the only service between the U.S. and Nigeria to offer premium economy product. Flights will depart Washington, D.C. on Monday, Thursday and Saturday and return from Lagos on Tuesday, Friday and Sunday.

This new flight builds on United’s expansion into Africa and solidifies United’s leadership position to Africa from the D.C. metro area, with more flights to the continent than any other airline. Just this year, United launched new service between New York/Newark and Johannesburg, South Africa and between Washington, D.C. and Accra, Ghana. And this December and January, United will increase its service to Accra from three weekly flights to daily* as customers travel home for the winter holidays. United is also returning its popular service between New York/Newark and Cape Town, South Africa on December 1.

United’s new flights comply with each country’s COVID-19 protocols and customers should check destination requirements before traveling.

Making International Travel Easier

United is the only U.S. airline to offer its own one-stop-shop where customers can conveniently get “travel-ready” by finding a location to schedule a COVID-19 test as well as upload and store their test results and vaccination records directly through the airline’s website and award-winning mobile app with the Travel-Ready Center. The airline’s easy-to-use travel tool available on United’s mobile app enables customers to reduce stress and save valuable time at the airport right from the palm of their hand. United also announced a collaboration with Abbott and became the first U.S. carrier to set up an easy way for international travelers to bring a CDC-approved test with them, self-administer while abroad, and return home.

United Next

United is more focused than ever on its commitment to customers and employees. In addition to today’s announcement, United has recently:

• Launched an ambitious plan to transform the United customer experience by adding and upgrading hundreds of aircraft as well as investing in features like larger overhead bins, seatback entertainment in every seat and the industry’s fastest available Wi-Fi.
• Announced a goal to create 25,000 unionized jobs by 2026 that includes careers as pilots, flight attendants, agents, technicians, and dispatchers.
• Announced that United will train at least 5,000 pilots by 2030 through the United Aviate Academy, with the plan of at least half being women and people of color.
• Required all U.S. employees to receive a COVID-19 vaccination.
• Became the first airline to offer customers the ability to check their destination’s travel requirements, schedule COVID-19 tests and more on its mobile app and website. 
• Invested in emerging technologies that are designed to decarbonize air travel, like an agreement to work with urban air mobility company Archer, an investment in aircraft startup Heart Aerospace and a purchase agreement with Boom Supersonic.
• Committed to going 100% green by 2050 by reducing 100% of our greenhouse gas emissions without relying on traditional carbon offsets, including a recent agreement to  purchase one and a half times the amount of all of the rest of the world’s airlines’ publicly announced Sustainable Aviation Fuel commitments combined.
• Eliminated change fees for all economy and premium cabin tickets for travel within the U.S.

About United

United’s shared purpose is “Connecting People. Uniting the World.” In 2019, United and United Express® carriers operated more than 1.7 million flights carrying more than 162 million customers. United has the most comprehensive route network among North American carriers, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C.  For more about how to join the United team, please visit united.com/careers and more information about the company is at united.com. United Airlines Holdings, Inc. is traded on the Nasdaq under the symbol “UAL”.

*daily flights to Accra this winter are subject to government approval

 

SOURCE United Airlines

For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com

CHICAGO, Aug. 4, 2021 /PRNewswire/ — As football fans across the U.S. get ready to cheer on their favorite teams on the road this fall, United is adding new routes, more flights and flying planes with more seats to give diehard fans every chance to get in on action on their rival’s home turf. To meet an expected increase in demand for fans to travel to watch their favorite teams in person this season, United is adding 74 flights, including 52 new direct flights between college towns and professional football markets on gameday weekends this September through November. The airline will operate three times more direct flights to college towns this year than it did in 2019.

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“Nothing brings people together like the opportunity to cheer on the teams they love,” said Ankit Gupta, vice president of domestic network planning at United. “This upcoming season, United is adding even more direct flights to college and professional football games than we’ve ever added before so our customers can reunite with the teams, tailgates and touchdowns they may have missed last season.”

College Football

United is adding 58 new flights to help some of the most loyal fans in college sports cheer on their teams including adding 44 point to point flights for 21 of their biggest away games. Some of these flights include:

September:

• Austin, TX to Bentonville, AR to see University of Texas at University of Arkansas
• Lincoln, NE to Lansing, MI to see University of Nebraska at Michigan State University

October:

• State College, PA to Cedar Rapids, IA to see Pennsylvania State University at University of Iowa
• Birmingham, AL to College Station, TX to see University of Alabama at Texas A&M University
• Greenville/Spartanburg to Syracuse, NY to see Clemson University at Syracuse University
• Los Angeles, CA to South Bend, IN to see University of Southern California at University of Notre Dame
• Raleigh, NC to South Bend, IN to see University of North Carolina at University of Notre Dame

November:

• Baton Rouge, LA to Birmingham, AL to see Louisiana State University at University of Alabama
• South Bend, IN to San Francisco, CA to see University of Notre Dame at Stanford University

Professional Football

United isn’t forgetting about diehard professional football fans and will add 16 new direct flights for four of the most highly anticipated games of the early season, including flights between:

• Green Bay, WI and New Orleans, LA to watch two of the most proficient offenses square off opening weekend in the Big Easy on Sept. 12
• Green Bay, WI and San Francisco, CA to witness the San Francisco 49ers host one of their fiercest conference rivals under the lights of Levi’s Stadium the weekend of Sept. 26
• Tampa, FL and Boston, MA when the “GOAT” returns to his old stomping ground on Oct. 3
• Buffalo, NY and Kansas City, MO to see the road team get a shot at revenge the weekend of Oct. 10

The addition of these new point-to-point routes is just the latest way the airline is creatively rebuilding its network. United started to prepare for the return of air travel more than a year ago, matching its flying schedule to demand by maintaining close coordination between its network planning teams and the airline’s operating groups. In September, United will fly 88% of its 2019 domestic schedule. To purchase one of these flights, visit https://www.united.com/en-us/game-day.

As customers book trips this fall, they will notice new upgrades to United’s service as part of its customer experience transformation. Updates include the option to pre-order snacks and beverages online and through United’s app. And customers can book trips with confidence knowing that if their plans change, they have the flexibility to adjust their travel. United was the first global U.S. airline to eliminate change fees on most tickets and to allow all customers to fly standby for free on the same day of travel to the same destination.

About United

United’s shared purpose is “Connecting People. Uniting the World.” For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of UAL is traded on the Nasdaq under the symbol “UAL”.

SOURCE United Airlines

For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com

CHICAGO, July 28, 2021 /PRNewswire/ — With today’s announcement of England reopening to fully vaccinated travelers from the U.S. beginning Aug 2, United Airlines is making it easier for business and leisure customers to jet across the pond with the addition of flights to London. In August, United will have six daily flights between the U.S. and London, including a second daily flight from Washington, D.C. and increasing service from Houston to daily. United looks forward to resuming additional London service in the coming months as well as launching new nonstop service between Boston and London. Customers traveling to England must be fully vaccinated in the U.S. with vaccines that have been approved by the FDA and must take a test before departure as well as a PCR test within the first two days of arrival. Passengers vaccinated in the U.S. will also need to complete a passenger locator form prior to traveling to England and provide proof of U.S. residency.

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United is the only U.S. airline to offer its own one-stop-shop where customers can conveniently get “travel-ready” by uploading and storing their COVID-19 test results and vaccination records directly through the airline’s website and award-winning mobile app with the Travel-Ready Center. The airline’s easy-to-use travel tool enables customers to reduce stress and save valuable time at the airport right from the palm of their hand. United also announced a new collaboration with Abbott and became the first U.S. carrier to set up an easy way for international travelers to bring a CDC-approved test with them, self-administer while abroad, and return home.

“Today’s announcement is yet another major milestone in recovering from the COVID-19 pandemic with the opening of one of the most important markets from the U.S.” said Patrick Quayle, vice president of international network and alliances at United. “United has demonstrated that we can operate flights between the U.S. and England safely and we are eager to help rebuild these economies by facilitating business and leisure travel.”

United in England

United has provided service to London Heathrow for nearly 30 years and over the course of the pandemic has maintained continuous service between the U.S. and London. In August, United is increasing its service from Houston to London from five times weekly to daily and adding a second daily flight from Washington, D.C. United will continue operating daily flights to London from Chicago, New York/Newark, San Francisco. The airline plans to continue offering these six daily flights in September.

United flies to more European destinations than any other U.S. carrier, and is welcoming back customers on more than 30 daily flights to 16 destinations in Europe this summer. The carrier has expanded its service to Europe including new routes to Dubrovnik, Croatia; Reykjavik, Iceland and Athens, Greece. All of these flights are available for purchase on united.com. To see the full list of reopened countries where United is flying visit united.com/reopen. Customers should review local country requirements before they travel.

Committed to Ensuring a Safe Journey

United is committed to putting health and safety at the forefront of every customer’s journey, with the goal of delivering an industry-leading standard of cleanliness through its United CleanPlus ^SM program. United has teamed up with Clorox and Cleveland Clinic to redefine cleaning and health safety procedures from check-in to landing and has implemented more than a dozen new policies, protocols and innovations designed with the safety of customers and employees in mind. To manage entry requirements in different destinations, and find places to get tests, customer can visit Travel Ready Center on United’s app and website.

About United

United’s shared purpose is “Connecting People. Uniting the World.” For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of UAL is traded on the Nasdaq under the symbol “UAL”.

SOURCE United Airlines

For further information: United Airlines Worldwide Media Relations, +1-872-825-8640, media.relations@united.com