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UAL · United Airlines Holdings

35 filings

10-K

UAL 10-K Annual Reports

United Airlines Holdings - 35 annual reports

Filing record · 2016–202610-K1110-Q338-K265

2025
United Airlines Holdings Annual Report, Year Ended Dec 31, 2025
United Airlines Holdings, Inc. (UAL) reported 2025 operating revenue of $59.07 billion, up from $57.06 billion in 2024, and net income of $3.35 billion, up from $3.15 billion. Operating income declined to $4.71 billion from $5.10 billion, with total operating expense rising to $54.36 billion from $51.97 billion. Passenger revenue grew $1.6 billion, or 3.1%, driven by a 6.1% increase in capacity and a 4.3% increase in passengers, while the passenger load factor fell to 82.2% from 83.1%. Fuel expense fell to $11.40 billion as the average price per gallon dropped to $2.44 from $2.65. Special charges of $259 million included a $561 million labor ratification charge for the flight attendant group, which voted against the tentative agreement in July 2025 and remains in negotiations. Liquidity was $12.2 billion in unrestricted cash and short-term investments at year-end, down from approximately $14.5 billion. The company had approximately $31.0 billion of debt, finance lease, operating lease and other financial liabilities, including $5.1 billion due within 12 months. Long-term debt, finance leases and other financial liabilities fell to $20.56 billion from $25.20 billion, reflecting the July 2025 redemption of $1.52 billion of MileagePlus senior secured notes. In February 2026 the company issued $1.0 billion of 5.375% Senior Notes due 2031 and $1.0 billion of 4.875% Senior Notes due 2029, and it lowered the margin on its 2024 term loans. The company expects less than $8.0 billion of adjusted capital expenditures in 2026 because of aircraft delivery delays, and it plans to take delivery of over 630 new aircraft by the end of 2034 under its United Next plan. The company reported a $10.6 billion U.S. federal net operating loss carryforward and continued to repurchase stock, buying 8.1 million shares for about $640 million in 2025 with about $0.8 billion remaining under the program. Credit ratings are BB+ at S&P and Fitch and Ba1 at Moody's. The filing also discloses a dispute with Rolls-Royce over a $175 million commitment payment, for which a loss is not considered probable or estimable, and a pending antitrust class action over airline capacity.
Feb 12, 2026
2024
United Airlines Holdings Annual Report, Year Ended Dec 31, 2024
United Airlines Holdings, Inc. (UAL) and its wholly-owned subsidiary United Airlines, Inc. reported 2024 operating revenue of $57.06 billion, up from $53.72 billion in 2023, and net income of $3.15 billion, compared with $2.62 billion in 2023. Operating income rose to $5.10 billion from $4.21 billion, while nonoperating expense, net, was $928 million. Passenger revenue was $51.83 billion, and the company carried approximately 173.6 million passengers. Diluted earnings per share were $9.45, versus $7.89 in 2023. The company ended 2024 with $14.5 billion in unrestricted cash, cash equivalents and short-term investments, and operating cash flow of $9.45 billion. Approximately $33.6 billion of debt, finance lease, operating lease and other financial liabilities were outstanding, including $3.9 billion due in the next 12 months. Credit ratings were BB (S&P), Ba2 (Moody's) and BB- (Fitch). For 2025, the company expects less than $7.0 billion of adjusted capital expenditures, reflecting certain aircraft delivery delays. The United Next plan calls for over 660 new narrow- and widebody aircraft by the end of 2033, and the company does not currently hedge fuel. Key risk areas disclosed include dependence on a limited number of aircraft suppliers (Boeing and Airbus), fuel price volatility, labor costs (about 82% of employees are union-represented), intense competition, and a significant debt load. The filing also notes a 2024 temporary grounding of 79 Boeing 737 MAX 9 aircraft and an ongoing DOJ-related antitrust class action on capacity.
Feb 27, 2025
2023
United Airlines Holdings Annual Report, Year Ended Dec 31, 2023
United Airlines Holdings, Inc. (UAL) reported operating revenue of $53.72 billion for 2023, up from $44.96 billion in 2022, and operating income of $4.21 billion versus $2.34 billion a year earlier. Net income was $2.62 billion, or $7.89 per diluted share, compared with $737 million in 2022. Passenger revenue rose $9.0 billion, or 22.5%, driven by a 17.5% increase in capacity, while cargo revenue fell 31.1%. Operating expenses included $949 million of special charges, including $814 million of labor contract ratification bonuses tied to new agreements with pilots and other work groups. Aircraft fuel expense fell 3.5% to $12.65 billion as the average price per gallon declined to $3.01 from $3.63. The company ended 2023 with $14.4 billion in unrestricted cash, cash equivalents and short-term investments, versus about $16.4 billion a year earlier. It had approximately $36.7 billion of debt, finance lease, operating lease and other financial liabilities, including $4.8 billion due within 12 months. Net cash from operating activities was $6.91 billion, while capital expenditures, net of deposit returns, were $7.17 billion. For 2024 the company expects approximately $8 billion of adjusted capital expenditures. Its credit ratings are below investment grade (BB- at S&P and Fitch, Ba2 at Moody's). The filing also highlights the United Next fleet plan, which includes over 700 new narrow and widebody aircraft to be delivered by the end of 2033, and notes that the FAA grounded all 79 of the company's Boeing 737 MAX 9 aircraft in January 2024.
Feb 29, 2024
2022
United Airlines Holdings Annual Report, Year Ended Dec 31, 2022
United Airlines Holdings, Inc. (UAL) reported 2022 operating revenue of $44.96 billion, up from $24.63 billion in 2021, and operating income of $2.34 billion, compared with an operating loss of $1.02 billion in 2021. Net income was $737 million, versus a net loss of $1.96 billion in 2021. Passenger revenue rose $19.8 billion, or 98.2%, driven by the ongoing recovery in air travel and strong pricing as inflationary pressures lifted fares. Aircraft fuel expense reached $13.11 billion, with the average price per gallon rising to $3.63 from $2.11, and the company does not currently hedge fuel. Operating income reflected a recovery from the pandemic, though the company still operated at approximately 87% of its 2019 capacity during 2022. The balance sheet remains heavily leveraged. As of December 31, 2022, the company had $16.4 billion in unrestricted cash, cash equivalents and short-term investments, and approximately $37.3 billion of debt, finance lease, operating lease and other financial liabilities, including $3.6 billion due in the next 12 months. Long-term debt, net, was $28.28 billion, and stockholders' equity increased to $6.90 billion. UAL's credit ratings are below investment grade (S&P B+, Moody's Ba2, Fitch B+). Management expects approximately $8.5 billion of gross capital expenditures in 2023, and the company has a firm order book of about 700 narrow- and widebody aircraft to be delivered by the end of 2033 under its United Next plan. Key risks highlighted in the filing include fuel price volatility, competitive pressure from low-cost carriers, labor costs and union activity (approximately 84% of employees are represented by U.S. labor organizations), dependence on a limited number of aircraft suppliers, covenant and cross-default provisions in its financing agreements, and a $13.2 billion federal NOL carryforward whose use may be limited under Section 382. The company also faces a pending antitrust class action alleging capacity collusion among U.S. airlines.
Feb 16, 2023
2021
United Airlines Holdings Annual Report, Year Ended Dec 31, 2021
United Airlines Holdings, Inc. (UAL) reported a 2021 net loss of $1.96 billion on operating revenue of $24.63 billion, up from $15.36 billion in 2020, as passenger demand recovered with the easing of COVID-19 travel restrictions. The company operated approximately 63% of its 2019 capacity during 2021. Operating expense rose to $25.66 billion, though the year included a $4.02 billion CARES Act grant credit recorded in special charges. Aircraft fuel expense was $5.76 billion, with the average price per gallon rising to $2.11 from $1.57. Management stated that the COVID-19 pandemic has materially and adversely affected the business and that recovery has not been linear. Liquidity was strengthened through debt issuance. As of December 31, 2021, unrestricted cash, cash equivalents and short-term investments totaled $18.4 billion, while debt, finance lease, operating lease and sale-leaseback obligations reached approximately $41.1 billion, including $4.5 billion due within twelve months. Long-term debt, net was $30.36 billion. The company's credit ratings are below investment grade (UAL: S&P B+, Moody's Ba2, Fitch B+). The company expects full-year 2022 scheduled capacity to be down versus 2019, and CASM-ex to be higher than 2019, and projects approximately $5.9 billion of gross capital expenditures for 2022. Strategically, the company's United Next plan targets an almost 30% increase in average gauge by 2026 versus 2019, and includes firm orders for 270 aircraft. The company has also committed to becoming 100% green by eliminating greenhouse gas emissions by 2050 and to reducing carbon intensity by 50% by 2035 compared with 2019. Key risks disclosed include fuel price volatility (the company does not currently hedge fuel), reliance on a limited number of aircraft suppliers, regional pilot shortages, and a $9.9 billion federal NOL carryforward whose use could be limited by an ownership change.
Feb 18, 2022
2020
United Airlines Holdings Annual Report, Year Ended Dec 31, 2020
United Airlines Holdings, Inc. (UAL) reported a severe deterioration in 2020 driven by COVID-19. Operating revenue fell to $15.36 billion from $43.26 billion in 2019, and the company posted an operating loss of $6.36 billion and a net loss of $7.07 billion, or $(25.30) per diluted share, compared with net income of $3.01 billion in 2019. Passenger revenue dropped $27.8 billion, or 70.2%, and the company cut approximately 57% of its 2020 scheduled capacity. Results were supported by a $3.5 billion CARES Act grant recorded as a special credit, which partly offset operating expenses. Fuel expense fell to $3.15 billion from $8.95 billion, and salaries and related costs declined to $9.52 billion. Liquidity was strengthened substantially through financing. Unrestricted cash, cash equivalents and short-term investments rose to $11.7 billion at year-end from $4.9 billion in 2019. The company issued or entered into approximately $13.4 billion of secured notes, term loans and aircraft financings, borrowed $1.0 billion under its revolver, and raised about $2.1 billion from common stock sales. Total debt and finance lease obligations increased to $27.2 billion from $14.8 billion. Operating cash flow was negative $4.1 billion. In January 2021 the company received a further PSP2 agreement with Treasury for approximately $2.6 billion. Management states that 2021 liquidity needs will be met through existing liquidity plus additional debt or equity issuances, and that the company must return to profitability and/or access capital markets to meet long-term obligations. The filing highlights continuing risks, including the pace of demand recovery, the ongoing Avianca/AVH Chapter 11 proceedings and a $697 million expected credit loss on the BRW Term Loan, restrictions on the Boeing 737 MAX, covenant and liquidity constraints under MileagePlus and other secured financings, and credit ratings below investment grade (UAL rated B+ by S&P, Ba2 by Moody's and BB- by Fitch). Management also expects a non-linear recovery in demand, with first-quarter 2021 scheduled capacity down at least 51% versus the first quarter of 2019.
Mar 1, 2021
2019
United Airlines Holdings Annual Report, Year Ended Dec 31, 2019
United Airlines Holdings, Inc. (UAL) reported 2019 net income of $3.0 billion, or $11.58 per diluted share, up from $2.1 billion, or $7.67, in 2018. Operating revenue rose 4.7% to $43.26 billion, driven by a 3.5% increase in ASMs and a 1.5% PRASM increase, while operating expense grew 2.3% to $38.96 billion. Operating income was $4.30 billion versus $3.23 billion in 2018. Aircraft fuel expense fell 3.8% to $8.95 billion as the average price per gallon dropped 7.1% to $2.09. Cash flow from operations was $6.9 billion, and the company ended 2019 with $4.9 billion in unrestricted cash, cash equivalents and short-term investments, plus $6.9 billion of unrestricted liquidity including the revolver. Total debt and finance lease obligations were about $14.8 billion, and the company's credit ratings remained below investment grade (BB / Ba2 / BB). The filing highlights significant risks. The Boeing 737 MAX grounding removed 14 MAX 9 aircraft from service and delayed 16 aircraft deliveries in 2019, with 28 more planned for 2020 affected. The company disclosed a $456 million BRW term loan that is in default and is being foreclosed upon in New York courts, plus a $150 million convertible loan provided to Avianca Holdings in December 2019. COVID-19 is also flagged: flights to China were suspended through April 24, 2020, and near-term demand was described as down approximately 100% to China and 75% on the remaining trans-Pacific routes. Management also announced that J. Scott Kirby will become CEO after the May 2020 annual meeting, with Oscar Munoz moving to Executive Chairman. The company repurchased 19.2 million shares for $1.6 billion in 2019 and had approximately $3.1 billion remaining under its repurchase programs. It expects approximately $7.0 billion of gross capital expenditures in 2020 and has firm aircraft commitments of 304 aircraft with total commitments of $26.7 billion.
Feb 25, 2020
2018
United Airlines Holdings Annual Report, Year Ended Dec 31, 2018
United Continental Holdings, Inc. reported 2018 operating revenue of $41.30 billion, up from $37.78 billion in 2017, with operating income of $3.29 billion versus $3.67 billion a year earlier. Net income was $2.13 billion, or $7.70 diluted earnings per share, compared with $2.14 billion, or $7.06 per diluted share, in 2017. Passenger revenue rose $3.25 billion, or 9.4%, driven by a 6.4% increase in traffic and a 4.3% increase in PRASM. Aircraft fuel expense rose $2.39 billion, or 34.6%, mainly on higher fuel prices, with the average price per gallon at $2.25 versus $1.74. The company generated $6.18 billion in operating cash flow and spent $4.18 billion on capital expenditures. It repurchased about 17.5 million shares for $1.2 billion and ended the year with $6.0 billion in unrestricted liquidity. Total debt and capital lease obligations were $14.7 billion, and the company's credit ratings are below investment grade (BB by S&P and Fitch, Ba2 by Moody's). The filing also notes a $456 million loan to Synergy Aerospace tied to Avianca, impairment charges on Hong Kong and Brazil route authorities, and ongoing DOJ investigations and class action lawsuits related to airline capacity. The company expects approximately $4.7 billion in gross capital expenditures for 2019 and held firm aircraft commitments totaling $24.7 billion. Management's priorities for 2019 are operational reliability and customer service alongside continued growth of the domestic network.
Feb 28, 2019
2017
United Airlines Holdings Annual Report, Year Ended Dec 31, 2017
United Continental Holdings, Inc. (UAL) and its wholly owned subsidiary United Airlines, Inc. filed a combined 10-K for fiscal 2017. UAL reported 2017 operating revenue of $37.736 billion, operating income of $3.498 billion, and net income of $2.131 billion, or $7.02 diluted earnings per share, compared with $36.556 billion of revenue, $4.338 billion of operating income and $2.263 billion of net income in 2016. Aircraft fuel expense rose 18.9% to $6.913 billion on higher fuel prices, and salaries and related costs increased 7.5% to $11.045 billion. Special charges fell to $176 million from $638 million in 2016, when the company wrote off its Newark slots. Liquidity was $5.8 billion at year-end, including $3.8 billion of unrestricted cash, cash equivalents and short-term investments. Total debt and capital lease obligations rose to $14.392 billion from $11.705 billion, and capital expenditures were $4.0 billion. The company repurchased about 28 million shares for $1.8 billion in 2017 and authorized a new $3.0 billion repurchase program in December 2017. UAL's corporate credit ratings are below investment grade (BB- from S&P, Ba2 from Moody's, BB from Fitch). Management guides to 2018 consolidated ASM growth of 4% to 6%, 2018 gross capital expenditures of $3.6 billion to $3.8 billion, and continued growth in demand for air travel. The filing also notes that a Tax Act provisional estimate produced a $192 million one-time income tax benefit at UAL, and that the company will adopt ASC 606 retrospectively on January 1, 2018, which will reclassify roughly $2.1 billion of ancillary fees from other operating revenue into passenger revenue for 2017.
Feb 22, 2018
2016
United Airlines Holdings Annual Report, Year Ended Dec 31, 2016
United Continental Holdings, Inc. (UAL), the holding company for United Airlines, Inc., reported 2016 operating revenue of $36.56 billion, down from $37.86 billion in 2015, and net income of $2.3 billion, or $6.85 diluted earnings per share, compared with $7.34 billion in 2015. Operating income was $4.34 billion, versus $5.17 billion a year earlier. The decline in revenue was driven mainly by passenger revenue, which fell 4.1% to $31.46 billion, with consolidated PRASM down 5.4% on a competitive domestic fare environment, lower surcharges, a strong U.S. dollar and reduced energy-sector corporate travel. Aircraft fuel expense fell 22.7% to $5.81 billion on lower fuel prices, and the company had no outstanding fuel hedges at year end. The company generated $5.5 billion of operating cash flow and spent $3.2 billion on capital expenditures. It repurchased about 50 million shares for $2.6 billion and had approximately $1.8 billion remaining under its share repurchase program. Unrestricted cash, cash equivalents and short-term investments were $4.4 billion, and total liquidity was $5.8 billion including the revolving credit facility. Debt and capital lease obligations totaled about $11.7 billion, and the company's credit ratings remain below investment grade (BB- from S&P, Ba2 from Moody's, BB from Fitch for UAL). The filing also flags material risks, including labor costs following new contracts with all 11 U.S. employee groups (the company expects about $900 million of additional 2017 costs from these agreements), the Department of Justice antitrust investigation and related class actions over airline capacity, and a $412 million impairment of Newark slots. For 2017, the company expects capacity growth of 1% to 2% and gross capital expenditures of $4.2 billion to $4.4 billion.
Feb 23, 2017
2015
United Airlines Holdings Annual Report, Year Ended Dec 31, 2015
United Continental Holdings, Inc. (UAL) and its wholly-owned subsidiary United Airlines, Inc. filed a combined Form 10-K for fiscal year 2015. UAL reported operating revenue of $37.86 billion, down from $38.90 billion in 2014, and operating income of $5.17 billion versus $2.37 billion. Net income was $7.34 billion, or $19.47 per diluted share, which includes a $3.1 billion income tax benefit from the release of the valuation allowance. Excluding operating and nonoperating special items and reflecting Hedge Program Adjustments, the filing states non-GAAP net income of $4.48 billion, or $11.88 per diluted share. Aircraft fuel expense fell to $7.52 billion from $11.68 billion, with the average price per gallon at $1.94 versus $2.99. Passenger revenue declined 2.9%, driven by a 4.3% decline in consolidated yield, partly offset by a 1.5% increase in traffic. Unrestricted cash, cash equivalents and short-term investments reached $5.2 billion, and the Company ended the year with $6.5 billion of unrestricted liquidity. Debt and capital lease obligations totaled about $11.8 billion, and the Company repurchased $1.2 billion of stock during 2015 under its share repurchase programs, with $2.4 billion remaining under the 2015 Program. The filing identifies several risks: the Company's non-investment-grade credit ratings (BB- from S&P and Fitch, Ba3 from Moody's), its exposure to fuel price volatility, ongoing labor negotiations with unionized groups representing about 80% of employees, and DOJ civil investigative demands and related class action lawsuits concerning airline capacity. The filing also reports an approximately $8.0 billion federal NOL carryforward, and it notes that management expects 2016 consolidated ASMs to grow between 1.5% and 2.5%.
Feb 18, 2016
2014
United Airlines Holdings Annual Report, Year Ended Dec 31, 2014
United Continental Holdings, Inc. (UAL) and its principal subsidiary United Airlines, Inc. filed a combined Form 10-K for fiscal 2014. UAL reported 2014 operating revenue of $38.90 billion, operating income of $2.37 billion, and net income of $1.13 billion, or $2.93 per diluted share, compared with net income of $571 million in 2013. Non-GAAP net income excluding special charges and Economic Hedge Adjustments was $1.97 billion, or $5.06 per diluted share. Aircraft fuel was the largest operating expense at $11.68 billion, or 32% of total operating expenses, with an average price of $2.99 per gallon. The company ended 2014 with $4.4 billion in unrestricted cash, cash equivalents and short-term investments, and $5.7 billion in total unrestricted liquidity including its revolving credit facility. It carried approximately $12.1 billion of debt and capital lease obligations, and its credit ratings were below investment grade (S&P B, Moody's B1, Fitch B). The company repurchased $320 million of stock under a $1 billion program and reported a $2.0 billion capital expenditure program for 2014, with 2015 gross capital expenditures expected at $3.0 to $3.2 billion. The outlook for 2015 calls for consolidated ASMs to grow 1.5% to 2.5%, and Project Quality targets $2 billion in annual cost reductions and $700 million of incremental ancillary revenue by the end of 2017. Key risks include fuel price volatility, the approximately 80% union-represented workforce with several contracts open for amendment, the $9.6 billion federal NOL carryforward subject to Section 382 limitations, and the $4.8 billion valuation allowance against deferred tax assets.
Feb 20, 2015
2013
United Airlines Holdings Annual Report, Year Ended Dec 31, 2013
United Continental Holdings, Inc. and United Airlines, Inc. filed a combined Form 10-K for the year ended December 31, 2013. The company reported operating revenue of $38.28 billion, operating income of $1.25 billion and net income of $571 million, compared with a net loss of $723 million in 2012. Excluding special charges, net income was $1.08 billion, versus $589 million in 2012. Special charges totaled $520 million in 2013, mainly merger and integration-related costs of $205 million and labor agreement costs of $127 million. Unrestricted cash, cash equivalents and short-term investments were $5.1 billion at year-end, down from $6.5 billion, and debt and capital lease obligations were about $12.4 billion, including $1.5 billion due within twelve months. The company's credit ratings remain below investment grade (UAL rated B by S&P, B2 by Moody's and B by Fitch). Management highlighted several 2014 developments: a plan to reduce flying from Cleveland by around 60% in stages starting in April, a project to cut annual costs by $2 billion and add $700 million in ancillary revenue by the end of 2017, and expected 2014 gross capital expenditures of $2.9 billion to $3.1 billion. The filing also flags that new FAA pilot flight and duty rules and a shortage of regional pilots are forcing a reduction in regional partner flying. Fuel is the largest operating expense at 34% of total operating expense, and the company had hedged about 24% of its projected 2014 fuel requirements. The company disclosed an $11 billion federal net operating loss carryforward and a valuation allowance of $3.8 billion against deferred tax assets, which would reduce income tax expense if reversed. Approximately 80% of its roughly 87,000 employees are represented by unions, and several labor groups remain in negotiations for amended agreements.
Feb 20, 2014
2012
United Airlines Holdings Annual Report, Year Ended Dec 31, 2012
United Continental Holdings, Inc. (UAL) reported a net loss of $723 million for fiscal 2012, compared with net income of $840 million in 2011. Excluding special items, net income was $589 million, versus $1.3 billion in 2011. Operating revenue was essentially flat at $37.15 billion, while operating income fell to $39 million from $1.82 billion, reflecting $1.32 billion of special charges, including $739 million of merger and integration-related costs and a $475 million labor agreement charge tied to the pilots' new joint collective bargaining agreement. Aircraft fuel expense rose 6.2% to $13.14 billion, with the average price per gallon increasing to $3.27 from $3.06. Consolidated passenger revenue was roughly flat, increasing about $72 million, or 0.2%, as higher fares offset a 1% decline in passengers. Cargo revenue fell 12.8%. The company ended 2012 with $6.5 billion in unrestricted cash, cash equivalents and short-term investments, down from $7.8 billion, and approximately $13.2 billion of debt and capital lease obligations. Management expects 2013 consolidated capacity to be lower than 2012, expects approximately $2.5 billion of gross capital expenditures, and estimates $1.0 billion to $1.2 billion in annual merger synergies on a run-rate basis once integration is complete. The company's credit ratings are below investment grade (B/B2/B from S&P, Moody's and Fitch).
Feb 25, 2013
2011
United Airlines Holdings Annual Report, Year Ended Dec 31, 2011
United Continental Holdings, Inc. (UAL), together with its wholly-owned subsidiaries United Air Lines, Inc. and Continental Airlines, Inc., filed this combined 10-K for fiscal 2011. UAL reported 2011 operating revenue of $37.11 billion, operating income of $1.82 billion, and net income of $840 million, compared with operating revenue of $23.33 billion, operating income of $976 million, and net income of $253 million in 2010. Excluding special items, net income was $1.32 billion in 2011 versus $942 million in 2010. Unrestricted cash, cash equivalents and short-term investments declined to $7.76 billion from $8.68 billion, and total debt and capital lease obligations were $12.7 billion, with $1.3 billion due within 12 months. The company's credit ratings (S&P B, Moody's B2, Fitch B) remain below investment grade. The filing describes integration progress following the October 1, 2010 Merger, including receipt of a single FAA operating certificate, a planned migration to a single passenger service system in early March 2012, and an expected MileagePlus loyalty program beginning in 2012. Management expects the Merger to deliver $1.0 billion to $1.2 billion in net annual run-rate synergies in 2013, and an estimated $400 million of synergies were realized in 2011. Integration-related cash costs were approximately $450 million in 2011 and are expected to be similar in 2012. Fuel was the largest operating expense at $12.38 billion, with an average price of $3.06 per gallon, and a $1 per barrel change in crude oil price would change annual fuel expense by approximately $95 million. Key risks highlighted include high fuel costs, labor (about 72% of employees are unionized and most contracts are in negotiation), a substantial leverage and covenant structure, pension funding exposure at Continental, the EU Emissions Trading Scheme dispute, and litigation including the Brazil air cargo investigation and claims related to September 11, 2001. The company disclosed no dividends in 2010 or 2011 and no active share repurchase program.
Feb 22, 2012
2010-A
United Airlines Holdings Annual Report (Amendment), Year Ended Dec 31, 2010
This Amendment No. 1 to the Form 10-K of United Continental Holdings, Inc. (now United Airlines Holdings, Inc.), filed jointly with United Air Lines, Inc. and Continental Airlines, Inc., covers the fiscal year ended December 31, 2010. It was filed to revise Item 9A, Controls and Procedures, to add management's report on internal control over financial reporting for UAL. The filing states that this report was inadvertently omitted from the original 10-K, filed February 22, 2011, in response to an SEC comment. The amendment does not modify or update any other items in the original filing. The revised Item 9A states that UAL's management concluded that disclosure controls and procedures were effective as of December 31, 2010, and that UAL's internal control over financial reporting was effective as of that date under the COSO framework. Ernst & Young LLP issued an opinion to the same effect. The filing also notes that UAL and Continental completed their merger on October 1, 2010, and that the combined company is integrating policies, processes, people, technology and operations, with management continuing to evaluate internal control during that integration. The filing reports that the aggregate market value of UAL common stock held by non-affiliates was $3,451,199,030 as of June 30, 2010, and that 328,550,825 shares of UAL common stock were outstanding as of February 15, 2011. United Air Lines, Inc. and Continental Airlines, Inc. are wholly owned by UAL and use the reduced disclosure format. The amendment includes currently dated CEO and CFO certifications and is signed by Zane C. Rowe, Executive Vice President and Chief Financial Officer, dated October 28, 2011.
Oct 28, 2011
2010
United Airlines Holdings Annual Report, Year Ended Dec 31, 2010
United Continental Holdings, Inc. (UAL), formed by the October 1, 2010 merger of UAL Corporation and Continental Airlines, reported net income of $253 million for 2010, compared with a net loss of $651 million in 2009. Excluding special items, net income was $942 million versus a net loss of $1.1 billion in 2009. Operating revenues rose to $23.23 billion from $16.34 billion, and operating income was $976 million. The filing attributes the improvement primarily to stronger global economic conditions following the 2008 and 2009 recession, with passenger revenue up 43% as higher fares and business traffic recovered. Continental's results were included only from October 1, 2010. Liquidity improved substantially, with unrestricted cash, cash equivalents and short-term investments reaching a record $8.7 billion, up from $3.0 billion, driven by $4.2 billion of cash acquired from Continental and $1.9 billion of operating cash flow. Total debt and capital lease obligations rose to $15.1 billion, and the company remains below investment grade (B/B2/B-). Management expects the merger to deliver $1.0 billion to $1.2 billion in annual run-rate net synergies by 2013, and it cites significant ongoing merger-related charges of $733 million in 2010. Key risks highlighted include covenant compliance under the Amended Credit Facility and senior notes, exposure to fuel prices (a $1 per barrel change affects annual fuel expense by approximately $99 million), unresolved union contract negotiations with ALPA and other groups, an $11.6 billion federal NOL carryforward subject to Section 382 limits, and potential issuance of up to $500 million of 8% Contingent Senior Notes to the PBGC if EBITDAR triggers are met.
Feb 22, 2011
2009
United Airlines Holdings Annual Report, Year Ended Dec 31, 2009
UAL Corporation and its principal subsidiary United Air Lines, Inc. filed this combined annual report for the fiscal year ended December 31, 2009. The company reported an operating loss of $161 million on operating revenues of $16.34 billion in 2009, compared with an operating loss of $4.44 billion on revenues of $20.19 billion in 2008, and a net loss of $651 million, or $(4.32) per share, versus a net loss of $5.40 billion in 2008. Revenue declined as the global recession reduced passenger demand, with passenger revenue at United Airlines falling $3.43 billion, or 22.3%, and yields down 15.4% in the Domestic region. Management cut costs sharply, with aircraft fuel expense falling to $3.41 billion from $7.72 billion, removing 100 aircraft from the fleet and reducing the workforce by about 9,000 positions over 2008 and 2009. Liquidity improved during 2009: the company reported unrestricted cash of more than $1.5 billion generated from stock and debt issuances and aircraft sale-leasebacks, and cash and cash equivalents rose to $3.04 billion at year-end. The company stated it expects its cash flows and available capital to be sufficient for the next twelve months, but it reported total debt and capital lease obligations of $8.9 billion, pledged assets with a net carrying value of $8.0 billion, a corporate credit rating of B- from S&P, and a Caa1 rating from Moody's. The company was in compliance with its Amended Credit Facility covenants at year-end, which require a $1.0 billion minimum unrestricted cash balance and rising fixed charge coverage ratios through 2010. Key risks include fuel price volatility, labor negotiations with all six U.S. unions (contracts became amendable in January 2010), antitrust investigations into air cargo pricing, and the pending open skies agreement with Japan. Subsequent to year-end, the company issued $700 million of Senior Secured and Senior Second Lien Notes in January 2010 and completed EETC refinancings. It also announced an order for 25 Boeing 787-8 Dreamliner aircraft, with a purchase agreement signed in February 2010, and a planned order for 25 Airbus A350 XWB aircraft.
Feb 26, 2010
2008
United Airlines Holdings Annual Report, Year Ended Dec 31, 2008
UAL Corporation and its principal subsidiary United Air Lines, Inc. filed this combined Form 10-K for 2008 reporting a net loss of $5.3 billion ($5,348 million) on operating revenues of $20.19 billion, compared with net income of $403 million in 2007. The loss was driven primarily by fuel costs: mainline fuel expense rose to $7.72 billion from $5.00 billion, with the average price per gallon increasing to 353.9 cents from 218.3 cents, and fuel hedge losses exceeded $1.1 billion. The company also recorded $2.6 billion of asset impairments, including a $2.28 billion goodwill write-off, and $1.5 billion of cash and short-term investments declined to $2.0 billion of unrestricted cash at year-end. Management is responding with capacity cuts (mainline domestic capacity down 14% in Q4 2008), permanent removal of 100 aircraft including the entire B737 fleet, elimination of the Ted leisure product, a reduction of roughly 9,000 positions in 2008 and 2009, and a planned strategic alliance with Continental Airlines. Liquidity actions included about $1.9 billion of unrestricted cash generated through financing, credit card and co-brand amendments, and sale-leasebacks. The filing flags material risks: the Amended Credit Facility requires a $1.0 billion minimum unrestricted cash balance and fixed charge coverage ratio testing beginning in the second quarter of 2009, credit card processor reserve requirements could rise if cash falls, and the company holds below-investment-grade credit ratings. The filing also discloses pending antitrust investigations into air cargo surcharges, labor agreements becoming amendable in January 2010, and September 11 litigation where the aviation defendants' exposure is capped at insurance coverage. Management concluded internal control over financial reporting was effective as of December 31, 2008, and Deloitte & Touche LLP issued an unqualified audit opinion dated March 2, 2009.
Mar 2, 2009
2007
United Airlines Holdings Annual Report, Year Ended Dec 31, 2007
UAL Corporation, the holding company for United Air Lines, Inc., reported 2007 operating revenues of $20.14 billion and net income of $403 million, compared with net income of $22.9 billion in 2006 that was driven almost entirely by reorganization income from emergence from Chapter 11 on February 1, 2006. Earnings from operations rose to $1.04 billion in 2007 from $447 million on a combined 2006 basis, and operating cash flow improved to $2.1 billion. The filing attributes the improvement to higher revenues, cost control and special items, while Mainline fuel expense rose to $5.0 billion as the average price per gallon increased to $2.18 from $2.11. The company reduced balance-sheet debt by about $2.3 billion during 2007, including $1.5 billion of credit facility repayments, and ended the year with cash, restricted cash and short-term investments of $4.3 billion. A $2.15 per share special distribution totaling about $257 million was paid in January 2008. United also announced a five-year plan with more than 250 initiatives, is evaluating possible sales of its MRO and Mileage Plus businesses, and is refitting 97 international aircraft with lie-flat business seats. The filing also flags significant risks. Its credit ratings are below investment grade (S&P B, Moody's B2), it has pledged most of its assets as collateral, and it faces a pending European Commission air cargo cartel investigation with no reserve recorded. Unresolved bankruptcy claims and September 11 litigation remain open, and all six U.S. labor agreements become amendable in January 2010.
Feb 29, 2008
2006
United Airlines Holdings Annual Report, Year Ended Dec 31, 2006
UAL Corporation, the holding company for United Air Lines, Inc., filed this Form 10-K for 2006 after emerging from Chapter 11 bankruptcy on February 1, 2006. The company reports that its restructuring has made United competitive with network airline peers. Operating income was $499 million for the eleven months ended December 31, 2006 (Successor Company), and the combined 2006 period showed earnings from operations of $447 million, compared with operating losses of $219 million in 2005 and $854 million in 2004. Net income for the Successor period was $25 million, while the one-month Predecessor period reported net income of $22.85 billion, driven by reorganization items tied to the bankruptcy discharge. Fuel remained the largest expense, with mainline fuel expense of $4.46 billion for the Successor period, and the average price per gallon rose to $2.11 in 2006 from $1.79 in 2005. The balance sheet changed substantially after emergence. Total assets were $25.37 billion at December 31, 2006, and long-term debt including current portion was $10.6 billion, largely driven by the $3.0 billion Credit Facility and newly issued notes. In February 2007 the company prepaid $972 million of Credit Facility debt and amended the facility to a $2.055 billion commitment, which management expects to save approximately $70 million in net interest expense annually. The company held $5.0 billion of total cash, restricted cash and short-term investments at year-end. Management disclosed a material weakness in internal control over income tax accounting, which Deloitte & Touche described as an adverse opinion on internal control effectiveness. Key risks include continued high fuel costs, intense competition from low-cost carriers (about 82% of United's domestic revenue is exposed to LCC competition), unresolved bankruptcy claims and litigation (including pension plan termination appeals and an air cargo and passenger pricing antitrust investigation), and a high level of fixed obligations. The company also notes that its net operating loss carryforward of approximately $2.7 billion is subject to limitation if an ownership change occurs under Section 382.
Mar 16, 2007
2005
United Airlines Holdings Annual Report, Year Ended Dec 31, 2005
UAL Corporation, now United Airlines Holdings, Inc., filed this 10-K for fiscal 2005 while still operating as a Debtor-in-Possession. The company emerged from Chapter 11 on February 1, 2006, after filing for bankruptcy on December 9, 2002. For 2005 it reported an operating loss of $219 million and a net loss of $21.2 billion, or $182.29 per share, driven mainly by $20.6 billion in reorganization expenses. Mainline fuel expense rose to $4.03 billion, with the average price per gallon increasing to $1.79 from $1.25 in 2004. Operating revenues grew to $17.38 billion, and passenger load factor improved to 81.4% from 79.2%. The post-emergence capital structure is central for investors. The company obtained a Credit Facility of up to $3.0 billion, with $2.45 billion drawn at exit and $350 million added later, and it has issued convertible preferred stock, convertible notes and senior unsecured notes to creditors, employees and the PBGC. New common stock began trading on NASDAQ as UAUA on February 2, 2006, with up to 125 million shares issued under the plan. Unsecured claims are now estimated at $28 to $31 billion, against a plan range of $22 to $35 billion, and fresh start accounting will materially change asset and liability values from February 1, 2006 onward, so historical results will not be comparable. Several matters remain open and could materially affect results. These include the termination of the Pilot Defined Benefit Plan, municipal bond disputes at DEN and LAX, Section 1110 aircraft restructurings, the Public Debt Group litigation, and two appeals of the plan confirmation order. The company's credit ratings are below investment grade, with S&P at B and Moody's at B2.
Mar 31, 2006
2004-A
United Airlines Holdings Annual Report (Amendment), Year Ended Dec 31, 2004
UAL Corporation, now United Airlines Holdings, Inc., filed this Form 10-K/A (Amendment No. 1) for fiscal year 2004. The amendment was filed solely to re-file the Report of Independent Registered Public Accounting Firm under Items 8 and 9A and Exhibit 23, because the original March 16, 2005 filing inadvertently omitted Deloitte & Touche LLP's name and conformed signature. The financial statements themselves are the company's 2004 results as a debtor-in-possession under Chapter 11, which it filed on December 9, 2002. For 2004, operating revenues were $16.39 billion, operating expenses were $17.25 billion, and the loss from operations was $854 million. Net loss was $1.72 billion, or $15.25 per share, compared with a net loss of $2.81 billion in 2003. Reorganization items, net, were $611 million. Deloitte's report includes an explanatory paragraph on the Chapter 11 filing and substantial doubt about the company's ability to continue as a going concern. The filing states that management expects to file a plan of reorganization providing for emergence later in 2005, and that UAL's presently outstanding equity securities will have no value and will be canceled under any plan the company proposes. At December 31, 2004, total assets were $20.71 billion and liabilities subject to compromise were $16.04 billion. Stockholders' deficit was $7.68 billion. Cash and cash equivalents were $1.22 billion. The DIP Financing was modified effective February 22, 2005, extending its maturity to September 30, 2005. Approximately 13,000 proofs of claim totaling $57 billion remained on file with the Bankruptcy Court as of December 31, 2004.
Mar 17, 2005
2004
United Airlines Holdings Annual Report, Year Ended Dec 31, 2004
UAL Corporation, now United Airlines Holdings, Inc., filed this 2004 annual report while operating as a debtor-in-possession under Chapter 11 after filing voluntary petitions on December 9, 2002. The company reported 2004 operating revenues of $16.39 billion, an operating loss of $854 million, and a net loss of $1.72 billion, or $(15.25) per share, compared with a net loss of $2.81 billion in 2003. Operating cash flow fell to $99 million in 2004. The auditor's report includes a going-concern paragraph, and the company states that its outstanding equity securities are expected to have no value and be canceled under any plan of reorganization. Management expects to file a plan providing for emergence from bankruptcy later in 2005, but says that is not assured. The restructuring centers on cutting costs by about $2 billion annually by fiscal 2007, including roughly $725 million of average annual labor savings that the company is pursuing through Section 1113 modifications of collective bargaining agreements, plus the termination of defined benefit pension plans. The Bankruptcy Court approved amended agreements with several unions in January 2005, and interim pay reductions were ordered for the IAM and AMFA groups. The company also reports that the ATSB denied its application for a federal loan guarantee in June 2004, so it must obtain non-guaranteed exit financing. The DIP Financing outstanding was $863 million at year-end 2004, and the Pension Benefit Guaranty Corporation has filed complaints seeking involuntary termination of several pension plans. On the operating side, the company reports a 10% increase in consolidated operating revenues, a passenger load factor of 79.2%, and a fuel cost of $2.94 billion, up $871 million from 2003. The filing states it plans to reduce the mainline fleet to 455 aircraft in the first half of 2005 and to expand the Ted low-fare service from 47 to 56 aircraft. Claims filed in the bankruptcy total approximately $57 billion across about 13,000 remaining proofs of claim, which the company states far exceed its estimate of ultimate liability.
Mar 16, 2005
2003
United Airlines Holdings Annual Report, Year Ended Dec 31, 2003
UAL Corporation, the holding company for United Air Lines, Inc., reported a 2003 net loss of $2.81 billion ($27.36 per share) on operating revenues of $13.72 billion, compared with a net loss of $3.21 billion ($53.55 per share) on revenues of $14.29 billion in 2002. The company has operated as a debtor-in-possession under Chapter 11 since filing on December 9, 2002. The filing states that UAL's presently outstanding equity securities are expected to be canceled under any plan of reorganization, and it urges caution regarding any investment in UAL securities. The financial statements do not purport to reflect the consequences of the bankruptcy, and the auditor's report raises substantial doubt about the company's ability to continue as a going concern. Management says it is working to emerge from Chapter 11 in the first half of 2004, but that timing depends on confirmation of a plan of reorganization. The company's exclusive period to file a plan expires April 7, 2004. Key pending items include a $1.6 billion federal loan guarantee application to the Air Transportation Stabilization Board (which had not yet been decided as of the filing date), a $2.0 billion exit financing commitment from JP Morgan Chase and Citicorp, and the company's estimate that it could be required to contribute approximately $4.1 billion to its qualified defined benefit pension plan trusts by the end of 2008. Operationally, the filing reports that 2003 passenger load factor rose to 76.5% from 73.5%, and unit cost fell to 10.52 cents from 11.37 cents. Labor agreements ratified in 2003 are expected to yield approximately $2.5 billion in average annual labor savings by 2005, and business transformation initiatives are expected to deliver $1.4 billion in profit improvements in 2004. Ted, a new low-fare carrier, began flying in February 2004.
Mar 2, 2004
2002-A
United Airlines Holdings Annual Report (Amendment), Year Ended Dec 31, 2002
This amended annual report (Form 10-K/A, Amendment No. 1) from UAL Corporation for the fiscal year ended December 31, 2002 was filed on July 15, 2003 to add additional executive officer information to Items 10 and 12. It does not contain financial statements, operating results, or a business discussion. The filing is limited to Part III governance and ownership disclosures. The amendment lists the directors, including Glenn F. Tilton, Chairman, President and Chief Executive Officer since September 2002, and the executive officers, including Frederic F. Brace, Executive Vice President and Chief Financial Officer. It also reports equity compensation plan data as of December 31, 2002: 14,463,918 securities to be issued upon exercise of outstanding options, warrants and rights, with a weighted-average exercise price of $33.69, and 14,092,616 securities remaining available for future issuance. Ownership disclosures show State Street Bank and Trust Company, as ESOP trustee, holding 17,583,559 shares of common stock, or 14.45% of the class, as of March 17, 2003. Directors and executive officers as a group beneficially owned 1,411,809 common shares, or 1.2%, as of the same date. The filing also reports the aggregate market value of non-affiliate voting stock as $78,613,064 as of June 30, 2003, with 99,870,590 common shares outstanding.
Jul 15, 2003
2003
United Airlines Holdings Annual Report, Year Ended Mar 28, 2003
UAL Corporation, now United Airlines Holdings, Inc., filed this Form 10-K on March 28, 2003, after its subsidiary United Air Lines, Inc. and 26 other subsidiaries filed voluntary Chapter 11 petitions on December 9, 2002. The filing reports a 2002 net loss of $3.2 billion ($53.55 per share) on operating revenues of $14.29 billion, compared with a net loss of $2.1 billion in 2001. Total assets were $23.66 billion at year-end, and liabilities subject to compromise were $13.83 billion. The financial statements are prepared on a going-concern basis, but the auditors state that substantial doubt exists about the company's ability to continue as a going concern. The company says it expects to file a plan of reorganization that provides for emergence as a going concern, but there is no assurance of confirmation. The exclusivity period was extended to October 2003. The company operates under $1.5 billion of debtor-in-possession financing, with covenants tied to EBITDAR and a $300 million minimum unrestricted cash balance. The filing describes a plan for transformation that targets labor and non-labor cost reductions and a low-cost offering. The company has reached a tentative agreement with the Air Line Pilots Association on a restructured contract, which the filing says would reduce pay and benefits by an average of approximately $1.1 billion per year, and has filed a motion to reject its other collective bargaining agreements under Section 1113(c). The company also did not make certain municipal bond debt service payments due March 1, 2003, and does not intend to make payments due on or after April 1, 2003. The NYSE has initiated delisting procedures, with the last expected trading day on April 2, 2003. For investors, the filing emphasizes that existing common stock and other securities may be restructured in a way that substantially reduces or eliminates remaining value, and it urges caution with respect to such investments.
Mar 28, 2003
2001-A
United Airlines Holdings Annual Report (Amendment), Year Ended May 9, 2001
This Form 10-K/A (Amendment No. 1) from UAL Corporation for the fiscal year ended December 31, 2000 restates basic earnings per share retroactively under EITF Topic D-95 and replaces Exhibit 10.6. It reports operating revenues of $19.35 billion in 2000, up from $18.03 billion in 1999, but earnings from operations fell to $654 million from $1.39 billion. Net earnings were $50 million in 2000, compared with $1.24 billion in 1999, after a $209 million net-of-tax cumulative effect charge from the adoption of SAB 101 for Mileage Plus partner revenue. Restated basic earnings per share were $0.04 for 2000 versus $10.96 for 1999 (previously reported as $0.08 and $21.20). Fuel expense rose to $2.51 billion from $1.78 billion. Balance sheet growth was driven by financing: cash and cash equivalents increased to $1.68 billion from $310 million, and long-term debt rose to $4.69 billion from $2.65 billion, including $2.0 billion of enhanced equipment trust certificates issued in 2000 and additional special facility bonds. Stockholders' equity was $5.19 billion at year-end 2000, essentially flat versus $5.15 billion a year earlier. Commitments for aircraft and equipment purchases were approximately $4.7 billion after advance payments, with an estimated $2.5 billion to be spent in 2001. The amendment is limited to the financial statements and the exhibit index. Its primary investor relevance is the restated per-share figures, which reflect the impact of participating ESOP preferred stock on the share count. Diluted earnings per share were unchanged at $0.04 for 2000, and the auditor's report is dated May 9, 2001 for the EPS restatement note.
May 9, 2001
2001
United Airlines Holdings Annual Report, Year Ended Mar 15, 2001
UAL Corporation, the holding company for United Air Lines, Inc., reported 2000 operating revenues of $19.35 billion, up from $18.03 billion in 1999, but earnings collapsed. Net earnings were $50 million, or $0.04 per diluted share, compared with $1.235 billion ($9.94 per diluted share) in 1999. Earnings from operations fell to $654 million from $1.391 billion. The results include a $209 million after-tax cumulative effect of an accounting change related to Mileage Plus revenue recognition, a $6 million extraordinary loss on debt extinguishment, a $61 million pre-tax investment impairment on Priceline.com warrants, and a $109 million pre-tax gain on the sale of GetThere.com stock. The filing attributes the 2000 shortfall to operational disruptions, with a revenue impact estimated at $700 to $750 million, and to rising costs, including a 40% increase in the average price per gallon of jet fuel. The company is pursuing its acquisition of US Airways in an all-cash transaction valued at $4.3 billion, which it expects to close in the second quarter of 2001, subject to regulatory clearance. UAL expects to incur roughly $4.5 billion in additional indebtedness to finance the deal. A January 2001 agreement with AMR Corporation provides for American Airlines to pay up to $1.2 billion in cash for gates, slots and up to 86 aircraft. Management stated that first-quarter 2001 results will be substantially below the First Call consensus of a $2.82 loss per share, and that full-year 2001 performance is expected to fall below plan because of softer revenues. Labor issues also remain significant: roughly 80% of United's employees are unionized, and contracts with the IAM became amendable in July 2000 and remain under negotiation. At December 31, 2000, UAL had cash and short-term investments of $2.3 billion and long-term debt of $4.69 billion, with a working capital deficit of $2.0 billion. The company initiated a $1.25 annual dividend ($0.3125 per quarter) during 2000. Governance remains shaped by the 1994 employee ownership recapitalization, under which ESOP-related voting preferred stock carries about 55% of the vote on most matters.
Mar 16, 2001
1998-A
United Airlines Holdings Annual Report (Amendment), Year Ended Dec 31, 1998
UAL Corporation, now United Airlines Holdings, Inc., filed this Form 10-K on April 4, 2000, signed by Douglas A. Hacker, Executive Vice President and Chief Financial Officer. The filing consists of Part III, which incorporates information by reference from the definitive proxy statement for the annual meeting of stockholders, and Part IV, which lists financial statement schedules, exhibits, and Forms 8-K. Item 8 is cross-referenced for the financial statements, and Schedule II (Valuation and Qualifying Accounts) covers the years ended December 31, 1998, 1997 and 1996. The Exhibit Index shows the company's capital structure and agreements, including its Restated Certificate of Incorporation, a 1994 Deposit Agreement, a December 20, 1996 Indenture with The First National Bank of Chicago as Trustee, and 13-1/4% Junior Subordinated Debentures due 2026 issued through UAL Corporation Capital Trust I. The filing states that UAL's indebtedness under any single instrument does not exceed 10% of its consolidated total assets. The index also lists labor-related agreements with the Air Line Pilots Association, International and the International Association of Machinists and Aerospace Workers, along with employee stock ownership plans, executive employment and severance arrangements, and director benefits. A significant portion of the exhibits relates to aircraft purchase agreements with Boeing for 777-200, 757-200 and 747-400 aircraft, several of which were filed with requests for confidential treatment of certain portions. The filing also references a Financial Data Schedule (Exhibit 27), a Computation of Ratio of Earnings to Fixed Charges, and an Annual Report on Form 11-K for the Employees' Stock Purchase Plan. Two Forms 8-K were reported: one dated October 21, 1998, and one dated December 16, 1998, which announced 1999 fully distributed EPS goals and a goal to limit fully distributed unit cost growth in the year 2000.
Apr 4, 2000
1998
United Airlines Holdings Annual Report, Year Ended Dec 31, 1998
UAL Corporation, the holding company for United Air Lines, Inc., reported 1998 operating revenues of $17.56 billion and net earnings of $821 million ($6.83 per share, diluted), down from $949 million ($8.95 per share) in 1997. Earnings from operations rose to $1.478 billion from $1.259 billion in 1997, but results were pulled down by $(222) million of net other expense, driven by $355 million of interest expense and $84 million of foreign exchange losses. The company's ESOP compensation expense was $829 million in 1998 versus $987 million in 1997. On a Fully Distributed basis, which excludes ESOP compensation expense, net income was $1.308 billion ($10.24 per share) for 1998. United carried more than 238,000 passengers per day and flew more than 125 billion revenue passenger miles in 1998, and it operated 577 jet aircraft at year-end. Operating cash flow was $3.194 billion and capital additions were $2.832 billion, while commitments for aircraft and equipment purchases totaled approximately $6.8 billion. The company reported cash and short-term investments of $815 million and a working capital deficit of $2.760 billion. Management forecast 1999 Fully Distributed earnings of $10.00 to $12.00 per share, with an internal goal of $11.00, and noted that the 1994 recapitalization gives employees roughly 55% of the equity and voting interest, with employee ownership at approximately 65.73% at year-end 1998 under the Sunset measurement. The company does not pay common dividends and repurchased $459 million of common stock in 1998, completing a $500 million program in January 1999. Year 2000 remediation is estimated at about $90 million, and the filing states that a Year 2000 failure at the company or its critical business partners could materially affect results. Labor is a significant factor, with about 82% of United's employees represented by unions and several contracts becoming amendable in 2000.
Mar 15, 1999
1997
United Airlines Holdings Annual Report, Year Ended Dec 31, 1997
UAL Corporation, the holding company for United Air Lines, Inc., reported 1997 operating revenues of $17.378 billion, up from $16.362 billion in 1996, and net earnings of $949 million ($8.95 per share diluted), compared with $533 million ($5.06 per share diluted) in 1996. Earnings from operations rose to $1.259 billion from $1.123 billion. Results were helped by a $275 million pre-tax gain and a $103 million gain on the sale of the Apollo Travel Services Partnership interest to Galileo International, and were reduced by ESOP compensation expense of $987 million, up from $685 million. Operating expenses were $16.119 billion. Cash and short-term investments totaled $845 million at year-end, operating cash flow was $2.567 billion, and the working capital deficit was $2.300 billion. Total assets were $15.803 billion. Management expects full-year 1998 system revenues to be lower than originally planned, citing a fall-off in Pacific revenue passenger miles tied to the Asian economic downturn. It projects available seat miles to rise 2.5% and revenue per available seat mile to rise about 1%. Commitments for aircraft and property purchases were about $5.6 billion at year-end, with about $2.6 billion due in 1998. The company also reports a 55% employee ownership interest arising from the 1994 recapitalization, a Year 2000 remediation effort whose total cost it cannot yet estimate, and labor contracts that raise salary costs faster than major competitors through 2000. The filing also covers a revised US-Japan aviation agreement, the Star Alliance formed in 1997, the EU's review of transatlantic alliances, and a 1997 change in travel agency commissions that is expected to save about $100 million annually. The company had 271 owned and 304 leased jet aircraft at year-end 1997.
Mar 6, 1998
1994-A2
United Airlines Holdings Annual Report (Amendment), Year Ended Dec 31, 1994
This Form 10-K/A (Amendment No. 2) from UAL Corporation, now United Airlines Holdings, Inc., covers the fiscal year ended December 31, 1994, and was filed on July 11, 1995. The cover page reports 12,378,232 common shares outstanding as of March 1, 1995, and an aggregate market value of voting stock held by non-affiliates of $1,172,997,849 as of the same date. Part III information is to be incorporated by reference from the 1995 proxy statement or added by a later amendment. The filing contains only Part IV, which consists of the exhibit index. The exhibit index documents the company's labor and capital structure. It lists the Amended and Restated Agreement and Plan of Recapitalization of March 25, 1994 among UAL, the Air Line Pilots Association, International, and the International Association of Machinists and Aerospace Workers, along with a waiver dated December 23, 1994 and a third amendment dated March 15, 1995. It also lists the 1994 Employee Stock Ownership Plan, Preferred Stock Purchase Agreements with State Street Bank and Trust Company, and Class I Junior and Class SAM Preferred Stockholders' Agreements. The index also includes aircraft purchase agreements with Boeing (777-200, 747-400, 767-300ER, 757-200, and 737) and Airbus (A320-200), several of which were filed with requests for confidential treatment of certain portions. The cover page identifies registered securities, including common stock, preferred stock purchase rights, depositary shares representing interests in Series B Preferred Stock, and 6-3/8% Convertible Subordinated Debentures due 2025. Many exhibits are marked as previously filed, and the index also lists management compensation plans and employment agreements, including agreements with Gerald Greenwald.
Jul 11, 1995
1994-A
United Airlines Holdings Annual Report (Amendment), Year Ended Dec 31, 1994
UAL Corporation filed this Form 10-K/A (Amendment No. 1) for the fiscal year ended December 31, 1994, primarily to file Part IV exhibits. The amendment does not contain full financial statements or a business discussion; its content is an index of exhibits, several of which are newly filed with this amendment and others incorporated by reference from earlier filings. The filing reports 12,378,232 common shares outstanding as of March 1, 1995, and an aggregate market value of voting stock held by non-affiliates of $1,172,997,849 as of that date. The exhibits newly filed here include a Rights Agreement with First Chicago Trust Company of New York as Rights Agent, a Waiver and Agreement dated December 23, 1994 and a Third Amendment dated March 15, 1995 to the Recapitalization Agreement among UAL, the Air Line Pilots Association, International, and the International Association of Machinists and Aerospace Workers, and a First Refusal Agreement dated July 12, 1994, as amended February 24, 1995. Other newly filed exhibits cover the 1981 Incentive Stock Plan, 1988 Restricted Stock Plan, Incentive Compensation Plan, and 1992 Stock Plan for Outside Directors, all as amended, along with a Financial Data Schedule and an Annual Report on Form 11-K for the Employees' Stock Purchase Plan. Several aircraft purchase letter agreements with Boeing and Airbus are also included, with confidential treatment requested for portions of certain agreements. The amendment also lists a 1995 Directors Plan and an Employment Agreement with Gerald Greenwald as exhibits to the registrant's Form 10-K, indicating those management and compensatory arrangements are relevant to executive compensation disclosure.
May 11, 1995
1994
United Airlines Holdings Annual Report, Year Ended Dec 31, 1994
UAL Corporation, the holding company for United Air Lines, Inc., reported 1994 net earnings of $51 million, or a loss of $0.61 per share after preferred dividends, compared with a 1993 net loss of $50 million ($3.40 per share). Operating revenues rose to $13.95 billion from $13.33 billion, and earnings from operations improved to $521 million from $263 million. Results were affected by $169 million of pretax recapitalization costs and a $26 million after-tax charge for adopting SFAS No. 112. The Company states that the 1994 employee investment transaction and recapitalization put in place a lower cost structure, with the Shuttle by United low-cost short-haul service a key part of its response to low-cost competitors. The recapitalization gave employees, through ESOPs, an approximately 55% equity and voting interest (up to 63% depending on future market value) in exchange for wage concessions and work-rule changes. Holders of old common stock received about $2.1 billion in cash plus 45% of the equity in new common stock. The transaction left the company more highly leveraged: equity decreased by about $1.7 billion and debt increased $741 million at the time of the transaction. Liquidity was $1.532 billion in cash and short-term investments at year end, against a working capital deficit of $1.714 billion. No dividends have been declared on common stock since 1987. The filing also highlights exposure factors that investors should weigh: fuel price sensitivity (each $.01 per gallon change in jet fuel price changes annual fuel costs by about $27 million), a 4.3 cent per gallon federal fuel tax effective October 1, 1995, a purchase commitment of about $3.9 billion for aircraft, principally 34 B777s, and the planned Denver hub relocation and related airport rent increases expected to add about $140 million to 1995 operating expenses.
Mar 8, 1995