Category Archives: United Airline News

United Airlines: We’re Not Hurting from Government Shutdown [Yet]

United Airlines CEO Oscar Munoz says the partial US government shutdown has not had a significant financial impact yet, but warns that this could change dramatically if the furlough drags on much longer.

“There is some impact there,” Munoz told CNBC Wednesday (Jan. 16). “It’s not discernible and it’s not significant. Clearly the longer this goes, of course there’s going to be impact. And we do worry about that.”

Munoz made the remarks a day after the CEO of Delta Air Lines said it expects to lose $25 million in revenue for January due to the shutdown.

So far, Oscar Munoz says he’s unable to predict the exact economic impact the shutdown will have because he doesn’t know how much longer it will last.

UAL Stock is Flying High

However, the shutdown has not hurt the United Airlines (UAL) stock price so far.

Shares of United Continental Holdings ― the parent company of United Airlines ― closed Wednesday at $86.36, up 6.3%, on heavy volume of 10.8 million shares. Average daily trading volume is 4 million shares.

UAL shares have been inching up for the past five trading sessions amid a mild overall stock market rally. The Dow Jones Industrial Average closed today at 24,207 ― up 141 points.

21st US Govt Shutdown is Now the Longest

The aviation industry has been particularly hard-hit by the government shutdown. Some 51,000 employees of the Transportation Security Administration are working without pay amid the ongoing impasse between Congress and US President Donald Trump.

The shutdown started on Dec. 22, 2018, and is now in its fourth week. This is the 21st shutdown the US government has undergone over the years and is now the longest.

Trump has asked the Democrat-led House of Representatives for $5 billion to build a wall along the US-Mexico border. The Democrats responded by calling the wall “immoral” and saying they won’t offer any money for it.

Both sides have accused the other of acting in bad faith. As recently as 2015, Democrats favored immigration reform and a border fence, but that all apparently changed once Donald Trump took office. The Republicans, meanwhile, failed to pass border wall funding during two years of unified government.

Canadian Air Workers Send Pizza to US Peers

Even in the midst of a slowdown, aviation workers showed that their sense of humor remains intact.

As CCN reported, Canadian air traffic control workers sent pizzas to their US counterparts last week as a gesture of goodwill and support.

“It’s nice to see that there’s solidarity out there,” said former air traffic controller David Lombardo.

Meanwhile, JPMorgan CEO Jamie Dimon suggested that the shutdown could cut the United States’ economic growth to zero if it continues through March 31.

“Someone estimated that if it goes on for the whole quarter, it can reduce growth to zero,” Dimon told reporters. He did not cite who the source for the claim was.

Despite the government turmoil, Dimon remains bullish about the US and global economy. The billionaire banker insists that there is no recession ahead, and urged everyone to “take a deep breath.”

Featured Image from Shutterstock

The post United Airlines: We’re Not Hurting from Government Shutdown [Yet] appeared first on CCN.

United Airlines Names Bryan Quigley Senior Vice President – Flight Operations

“Bryan is an exceptional leader both in and out of the flight deck. He has developed a deep understanding of the entire airline after leading our San Francisco hub and I believe he will do great work as the leader of our pilots,” said Executive Vice President and Chief Operations Officer Greg Hart.

In addition to his time at United, Quigley spent 26 years in the United States Navy, serving as a U.S. naval aviator.

Attarian retires after more than 40 years in aviation. In addition to his time at United, he spent more than 23 years as a pilot for Northwest Airlines and held several leadership positions with the Air Line Pilots Association. Attarian also served in the United States Air Force and was a demonstration pilot with the U.S. Air Force Thunderbirds.

“Over the past five years, Howard has worked tirelessly to develop the best group of aviators in the industry. We will forever be grateful and wish him the best as he enters the next chapter of his life,” said Hart.

Quigley holds a bachelor of science degree in Business Administration from Appalachian State University and has completed the Executive Scholar Program from the Kellogg School of Business at Northwestern University.

Matt Miller, current vice president of international will replace Quigley as vice president of the San Francisco hub.

About United

United Airlines and United Express operate approximately 4,800 flights a day to 353 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world’s most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline’s United Express carriers operate 559 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United’s parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol “UAL”.

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United Airlines Orders $4.5 Billion Worth of New Jets | Boeing

United Airlines has ordered 28 new Boeing jets worth $4.5 billion, planning to add 24 737MAX 10 aircraft and four 777-300ER aircraft, two models which the carrier already operates. According to the OEM, the airline has been ordering both models steadily to fill out its domestic and international network.

The orders were placed late last year and recorded in Boeing’s recent 2018 orders summary.

“United Airlines has been instrumental to the phenomenal success of the Boeing 737 and 777 programs over the years. We are honored by United’s continued confidence in our people and our airplanes and services,” stated Ihssane Mounir, Boeing Co.’ SVP for Commercial Sales Marketing.

The 737MAX is the latest generation of Boeing’s most successful series, the single-aisle 737. It was introduced in 2011 and made its commercial debut in 2017. United has ordered 136 737MAX jets already, 10 of the narrow-body jets in service already.

The 777-300ER is a twin-aisle, long-range aircraft, with a higher fuel capacity than the previous 777-300, capable of transporting up to 396 passengers to a range of 7,370 nautical miles (13,650 km). United presently operates 18 777-300ER aircraft.

In addition to a large fleet of Boeing aircraft, United subscribes to Boeing Global Services, including a range of digital technologies, to optimize its flight operations.

Tracy Reese Teams With United Airlines to Suit Up Female Employees

Tracy Reese will skip having a fashion show next month in New York, but she has been focused on another runway — designing uniforms for some of United airlines.

For the past five years, 70,000 staffers have been wearing uniforms (from Cintas) which have had the occasional updates. Reese, along with Brooks Brothers and Carhartt, is using her expertise to get the United team suited up in new looks. Pilots, male flight attendants and customer service reps will wear Brooks Brothers uniforms. Reese has designed uniforms for female flight attendants and customer service reps that will be manufactured by the American sportswear maker and retail chain. Carhartt will be dressing ramp service, technical operations and catering operations employees.

Still in the wear-testing stage, the final uniforms are expected to be rolled out some time in 2020.

The three U.S.-based companies are the latest brands to link up for airline uniforms. British Airways recruited Ozwald Boateng, Delta lined up Zac Posen and Turkish Airlines tapped Ettore Bilotta for their respective uniforms last year.

In a phone interview Thursday, Reese explained that United executives, “said the reason that they came to me really was because their population is very diverse and the women really felt like they were wearing uniforms that were tailored for men. They didn’t feel feminine. The uniforms lacked color and there was no pattern. They said, ‘We really thought of you because you design for women, you love color and that’s exactly what we need.”

Before designing anything, Reese took a seven-day, seven-city, cross-country tour to touch down in all the United hubs as well as Hawaii and London. “We spent hours at each hub talking to employees. They had let them know we would be there. There were huge cardboard cut-outs from my runway shows and things from Brooks Brothers. I talked to thousands of people, which was necessary to understand what the job entails and what that means for the clothing.” Reese said.

The designer said that she had access to “those secret underground passageways in the airport that other people don’t get to go to. It’s like a windowless cavern where a whole other world is operating and every airport has them apparently. We were like, ‘Are we going to see any daylight today?’” adding that she spotted a few employees-only stores. Unlimited United flights were not part of Reese’s contract, but everywhere they wish her to go, she flies “in a lovely class of service.” Additional transportation was not part of the deal. “I wish,” she said.

Changing her entire business model to become sustainable, Reese will skip next month’s New York Fashion Week. “It’s nice to take a pause, refocus and prepare for the future. The runway takes so much time away from everything,” Reese said. “It ruins your Christmas, New Year’s, Martin Luther King Jr. Day holidays — all of that. You’re pushing your factories and your team like crazy. You’re Grinch-y at Christmas. You’re focused on this 12-minute show. It’s great, magical and all of that but it’s also good to step away from that.”

Designers should consider only doing runway shows when they have the fire for it, as opposed to feeling like they have to do a show, Reese said. “There are a lot of things that need to be addressed. Why are we shipping 12 months a year?”

United Airlines unveils its brand new uniforms

United Airlines has unveiled brand new uniforms that will be rolled out to its 70,000 employees from cabin crew to ramp agents.

The US-based carrier has teamed up with women’s wear designer Tracy Reese as well as men’s clothing brand Brooks Brothers and work wear specialists Carhartt to create the new outfits.

The uniforms will now be tested multiple times over the coming year and the airline hopes to distribute them to all staff in 2020.

United Airlines has unveiled brand new uniforms that will be rolled out to its 70,000 employees. Pictured left are the new cabin crew uniforms which have a flash of purple and right are the customer service agent outfits, which have a flash of turquoise

Customer service agents working for United in Hawaii can wear the ‘aloha wear’ uniforms of Hawaiian shirts and navy shorts 

All of the new uniforms will have a base colour called ‘rhapsody blue’ and the airline hopes this will make all staff across its business look like one team.

However, a different pop of colour on each outfit denotes the job of the wearer.

For example, the cabin crew uniforms include a flash of purple, while customer service agent outfits have a turquoise pop.

Flight crew suits have burgundy ties while tech operation and ramp agent uniforms stand out with hi-vis colors.

United says it has focused on using high quality fabrics with improved breathability so its staff ‘feel good as well as look good’.

All the new uniforms will have a base color called ‘rhapsody blue’ and a pop of colour depending on the wearer’s job. Pictured left is the flight crew uniform, which has a burgundy tie. The flight attendant attendant uniform, right, has a splash of purple 

More than 1,300 pilots, flight attendants and customer service agents will be the first to test out the new pieces.

United says that during this time, they will continue to refine the designs based on staff feedback.

Designer Tracy Reese, who created the female uniforms, said: ‘I’m excited for United employees and customers to see the designs we’ve been hard at work on, and for employees to begin to wear-test these new looks to test their fit and function.

‘I’ve travelled the world with United to meet with thousands of employees to better understand their job duties and hear first-hand what is needed in a uniform so that these women look and feel good, but most importantly – perform at their best.’

Both technical operatives, left, and ramp agents, right, will receive new uniforms. United hopes to roll out the new uniforms by 2020 

While Brian Lane of Brooks Brothers added: ‘These designs represent months of collaboration with United’s front-line employees to develop a uniforms programme that the United team will be proud to wear.

‘Uniforms are such a critical part of employees’ work lives, so no stone was un-turned as we created these designs with enthusiastic employee input.

‘This includes high quality fabric, improved breathability, enhanced fit and pops of color. We will continue to refine these garments based on feedback following the upcoming wear test.’

Pictured are United Airlines cabin crew staff walking through Houston Bush Airport wearing the company’s current uniform 

Apple spends $150M on United Airlines annually, leaked documents show

video

Apple may debut three new iPhones in 2019: Report

Loup Ventures managing partner Gene Munster and Wireless Fund portfolio manager Paul Meeks on how Apple may release three new iPhones this year and whether investors will dive back into the company.

Apple is United Airlines’ biggest corporate customer, spending $150 million each year on business flights around the world, according to the airline’s internal documents that leaked to social media last weekend.

Continue Reading Below

Photos of a United Airlines promotional banner revealed the tech giant books 50 business class seats to Shanghai, China, every day. China is home to many of Apple’s main parts suppliers and manufacturing hubs. Other top Apple flight destinations include Hong Kong, Taipei and London.

MORE ON THIS

    The internal materials also named Facebook, Google and Roche as top corporate customers, with annual spending of more than $34 million each. Other companies named as top spenders included Deloitte, Oracle and Cisco.

    The information was meant for a program for United employees on the importance of corporate relationships and “was not intended to be shared publicly,” a United spokesperson said in a statement.

    “A small group of customers were mentioned by name on this material and each has been contacted directly and we are working to address their concerns. The material has been taken down and moving forward we will review and further restrict sharing of internal customer information to a strictly need to know audience,” the statement added.

    Apple declined to comment.

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    The original photo, shared by Twitter user @LAflyer, has since been taken down for copyright reasons. The documents did not detail the flight habits of companies other than Apple.

    First look: United unveils new uniforms for 70,000 frontline employees

    United shares jump as airline’s fourth-quarter revenue, profit beat estimates

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    United Continental Holdings shares surged Wednesday after the airline posted stronger revenue and profits than Wall Street expected in the fourth quarter, while issuing a sunny outlook for earnings growth in 2019.

    The company’s shares were up more than 7 percent in morning trading Wednesday.

    United’s unit revenue, a measure of how much an airline makes for each seat it flies a mile and a gauge of airfares, rose 5 percent in the fourth quarter from a year earlier, at the high end of the company’s estimate. The airline said revenue grew in each of the regions it operates, while domestic revenues grew at the fastest clip: 12 percent.

    The results, which the airline released on Tuesday after the market closed, represent a sharp turnaround for United. A year ago, United CEO Oscar Munoz struggled to persuade investors the company’s plan to expand as much as 6 percent a year would pay off. But the airline has topped earnings estimates and plans to continue with capacity expansion of as much as 6 percent in the first quarter.

    The Chicago-based airline said it expects unit revenue to be flat to up 3 percent in the first three months of this year from the same period in 2018.

    The parent company of United Airlines said revenue in the last three months of 2018 was $10.49 billion, higher than the $10.34 billion analysts polled by Refinitiv were expecting. Net income, however, fell 20 percent from a year earlier to $462 million, as costs rose. United said its fuel bill in the fourth quarter was 27 percent higher than a year earlier.

    In the first quarter of 2019, United expects to post earnings of $1 a share on an adjusted basis, above analysts’ estimates of 84 cents.

    Its per-share earnings in the quarter were $2.41 on an adjusted basis, compared with the $2.04 that was expected.

    Earlier Tuesday, Delta Air Lines said it expected its unit revenue to grow by a maximum of 2 percent in the first quarter due to the U.S. partial government shutdown and the timing of the Easter holiday in the second quarter.

    United’s Munoz on Wednesday said the company isn’t seeing a “significant” impact on reservations.

    “There is some impact there,” Munoz told CNBC’s Phil LeBeau in an interview. “It’s not discernible and it’s not significant. Clearly the longer this goes, of course there’s going to be impact, and we do worry about that.”

    United expects to earn between $10 and $12 a share on an adjusted basis this year, in line with estimates.

    The airline’s executives will hold a call with analysts at 10:30 a.m. ET on Wednesday.





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    Stocks making the biggest moves after hours: United Airlines, Snap, Apple & more

    Check out the companies making headlines after the bell:

    United Airlines shares jumped as much as 6 percent following a strong top and bottom line beat for the airline’s fourth-quarter earnings report. United turned in a profit of $2.41 a share for the most recent quarter, better than the $2.04 a share expected by Wall Street. The airline also gave a forecast for first-quarter earnings of $1 a share, topping analyst estimates of 84 cents a share.

    Snap shares fell more than 8 percent after the company announced that CFO Tim Stone is resigning to pursue other opportunities. He joined the company in May. The company also said it expects fourth-quarter results to come in near the top end of its guidance. Snap is scheduled to report those results on Feb. 5.

    Apple launched three smart battery cases for its latest generation of iPhones. The tech giant’s new offerings can be ordered now and Apple says they will be available to purchase in stores on Jan. 18.

    PGE Corporation shares dropped as much 8 percent, continuing to to crater after closing down more than 17.5 percent in trading Tuesday. The utility lost longtime board director Roger Kimmel, with PGE’s stock adding to its losses of more than 80 percent over the last three months. The massive California utility is facing bankruptcy after its alleged part in helping spark a wave of historic wildfires in California.

    Petrobras reported fiscal year 2018 production of 2.6 million barrels of oil and gas per day. The Brazilian energy giant projects in 2019 it will grow that total oil and natural gas production to 2.8 million barrels per day.

    — CNBC’s Christine Wang contributed to this report.