12-Sep-2016 3:42 PM

United Reports August 2016 Operational Performance

Direct News Source

09-Sep-2016

United Airlines (UAL) today reported August 2016 operational results.

UAL's August 2016 consolidated traffic (revenue passenger miles) increased 0.6 percent and consolidated capacity (available seat miles) increased 1.9 percent versus August 2015. UAL's August 2016 consolidated load factor decreased 1.1 points compared to August 2015.

The company continues to expect third-quarter 2016 consolidated passenger unit revenue per available seat mile (PRASM) to decline 5.5 to 7.5 percent compared to the third quarter of 2015. The year-over-year performance is primarily impacted by demand growth not keeping pace with capacity growth, soft close-in yields, competitive actions and travel reductions in the energy sector.

On Aug. 12, 2016, UAL flight attendants ratified a new contract. While there is a modest increase to third-quarter non-fuel expense from this contract, the company still expects it will be within its original third-quarter guidance for consolidated unit cost per available seat mile (CASM) excluding fuel, profit sharing and third-party business expenses. For the full-year 2016, the company now expects CASM excluding fuel, profit sharing and third-party business expenses to increase 2.5 to 3.5 percent compared to the full-year 2015, with the increase versus prior guidance due to the flight attendant agreement.

Preliminary Operational Results

August

Year-to-Date

2016

2015

Change

2016

2015

Change

REVENUE PASSENGER MILES (000)

Domestic

8,981,523

8,743,691

2.7%

63,216,700

62,374,516

1.4%

International

8,824,342

8,875,932

(0.6%)

61,808,996

61,975,792

(0.3%)

Atlantic

3,934,187

4,074,189

(3.4%)

24,403,472

25,534,386

(4.4%)

Pacific

3,170,592

3,053,127

3.8%

22,745,076

22,684,012

0.3%

Latin

1,719,563

1,748,616

(1.7%)

14,660,448

13,757,394

6.6%

Mainline

17,805,865

17,619,623

1.1%

125,025,696

124,350,308

0.5%

Regional

2,137,131

2,212,490

(3.4%)

16,225,701

16,677,867

(2.7%)

Consolidated

19,942,996

19,832,113

0.6%

141,251,397

141,028,175

0.2%

AVAILABLE SEAT MILES (000)

Domestic

10,381,833

9,884,990

5.0%

73,633,033

72,155,335

2.0%

International

10,403,375

10,371,234

0.3%

76,915,174

76,148,047

1.0%

Atlantic

4,826,353

4,762,032

1.4%

32,262,883

32,146,156

0.4%

Pacific

3,599,738

3,563,693

1.0%

27,274,550

27,371,871

(0.4%)

Latin

1,977,284

2,045,509

(3.3%)

17,377,741

16,630,020

4.5%

Mainline

20,785,208

20,256,224

2.6%

150,548,207

148,303,382

1.5%

Regional

2,553,217

2,645,141

(3.5%)

19,459,765

20,061,099

(3.0%)

Consolidated

23,338,425

22,901,365

1.9%

170,007,972

168,364,481

1.0%

PASSENGER LOAD FACTOR

Domestic

86.5%

88.5%

(2.0) pts

85.9%

86.4%

(0.5) pts

International

84.8%

85.6%

(0.8) pts

80.4%

81.4%

(1.0) pt

Atlantic

81.5%

85.6%

(4.1) pts

75.6%

79.4%

(3.8) pts

Pacific

88.1%

85.7%

2.4 pts

83.4%

82.9%

0.5 pts

Latin

87.0%

85.5%

1.5 pts

84.4%

82.7%

1.7 pts

Mainline

85.7%

87.0%

(1.3) pts

83.0%

83.8%

(0.8) pts

Regional

83.7%

83.6%

0.1 pts

83.4%

83.1%

0.3 pts

Consolidated

85.5%

86.6%

(1.1) pts

83.1%

83.8%

(0.7) pts

ONBOARD PASSENGERS (000)

Mainline

9,407

8,958

5.0%

66,997

64,474

3.9%

Regional

3,771

3,916

(3.7%)

28,176

29,426

(4.2%)

Consolidated

13,178

12,874

2.4%

95,173

93,900

1.4%

CARGO REVENUE TON MILES (000)

Total

230,523

211,879

8.8%

1,769,859

1,723,307

2.7%

Note: See Part II, Item 6 Selected Financial Data of the company's Annual Report on Form 10-K for the year ended December 31, 2015 for the definition of these statistics

Third Quarter Preliminary Fuel Costs Per Gallon

Estimated average price per gallon of fuel, including operating cash-settled hedges¹				$1.50 - $1.55
Operating cash-settled hedge loss price per gallon				($0.02)
Estimated average price per gallon of fuel, excluding hedges				$1.48 - $1.53

Estimated average price per gallon of fuel, including operating cash-settled hedges¹				$1.50 - $1.55
Non-operating cash-settled hedge loss price per gallon²				($0.00)
Estimated average price per gallon of fuel, including all cash-settled hedges³				$1.50 - $1.55

¹This price per gallon corresponds to fuel expense in UAL's income statement ²This price per gallon corresponds to the impact of non-operating hedges that appear in non-operating expense in the income statement ³This price per gallon corresponds to the total economic cost of the company's fuel consumption including all cash-settled hedges but does not directly correspond to fuel expense in UAL's income statement

Preliminary Operational Results

	2016	2015	Change
August On-Time Performance⁴	61.9%	61.0%	0.9		pts
August Completion Factor⁵	98.3%	98.2%	0.1		pts

⁴Based on consolidated scheduled flights arriving on or before scheduled arrival time
⁵Consolidated completion percentage