9.1% Pre-tax Margin achieved ahead of schedule in Q4

United climbed to a leading industry position in Q4 2022 with a pre-tax margin that exceeded 2019.

United made changes to its staff and resources to strengthen operations. They also invested in technology and infrastructure to help them recover quickly from winter storm Elliott.

United Next progress continues to fuel confidence in the company’s ability to meet its 2023 financial performance targets

CHICAGO, Jan. 17, 2023 /PRNewswire/ – United Airlines (UAL), today announced fourth-quarter financial results and full-year 2022 financial performance. The adjusted operating margin exceeded the expectations of the company¹ Guidance in the fourth quarter reporting an 11.1% operating margin; 11.2% on an adjusted basis¹. The company also reported a 9.1% GAAP margin and 9.0% adjusted margin¹It met its 2023 goal ahead of schedule. Comparing to fourth quarter 2019, the company increased operating revenue by 14%, and TRASM by 26% (total revenue per seat mile) by 26%. The company is confident in the 2023 United Next adjusted post-tax margin¹ Target of 9%

United was able swiftly to recover from major irregular operations in December, as a result winter storm Elliott. During the important holiday travel days Between December 21 and 26,A little over 36% of United flights were affected by severe weather. However, 91% of United customers arrived at their destination within four hours of their scheduled arrival. With its ability to recover from severe weather events, the company attributes significant investments in its people, technology, and infrastructure over recent years.

“Thanks to the United team who, last month managed to get through one of my worst weather events in a career to deliver for such a large number of our customers, and get them back for the holidays,” stated United Airlines CEO. Scott Kirby. “Our dedicated team used state-of the-art tools to prepare for bad weather, care for our customers, and quickly recover after it had passed. Over the last three years, United has made critical investments in tools, infrastructure and our people – all of which are essential investments in our future. This is why we have a significant head start and we are poised to accelerate in 2023 when our United Next strategy becomes reality.

Fourth-Quarter Financial Results

• Net income $843 million, adjusted net income¹ Of $811 million.

• Capacity fell 9% over the fourth-quarter 2019.

• Total operating income of $12.4 BillionThe fourth-quarter 2019 results were up 14%

• TRASM up 26% in fourth-quarter 2019

• CASM-ex: CASM up 21%¹ Up 11% compared to the fourth-quarter 2019.

• Operating margin of 11.1%; adjusted operating margin¹ Of 11.2%, both up more than 2 pts. Comparable to fourth-quarter 2019

• Pre-tax margin of 9.1%; adjusted pre-tax margin¹ 9.0%, up and approximately 1 pt. Comparable to fourth-quarter 2019

• Average fuel price per gallon $3.54.

Full-Year Financial Results

• Net income $737 Million, adjusted net income¹ Of $831 million.

• 5.2% operating margin, adjusted operating margin¹ 5.5%

• Pre-tax margin of 2.2%; adjusted pre-tax margin¹ 2.5%

• Ending available liquidity² Of $18.2 Billions.

Here are the Key Highlights

• An announcement was made about the largest widebody order ever placed by a U.S. carrier in aviation history: 100 Boeing 787 Dreamliners. There are also options to purchase another 100. In addition to adding 100 new Boeing 737 MAX planes, 44 options were exercised and 56 firm orders were placed. This historic acquisition marks the next chapter in United Next’s ambitious plan and will help to strengthen the airline’s global leadership for many years.

• Officially opened the United Aviate Academy. This is the only major U.S. airline with a flight training academy. It boasts a historic pilot class of 80% women and people of color.

• Calibrate is an in-house apprenticeship program which will allow the company to diversify its workforce of Aircraft Maintenance Technicians.

• Launched a new, national advertising campaign – “Good Leads The Way” – that tells the story of United’s leadership in areas like customer service, diversity and sustainability, and captures the optimism fueling the airline’s large ambitions at a time of unprecedented demand in air travel.

• Inauguration and expansion of the Flight Training Center. DenverThis facility is already the largest of its kind in the entire world.

• An historic commercial agreement was announced with Emirates. This will improve each airline’s network, and allow customers to access hundreds of destinations worldwide. An announcement was made about a new direct flight between Dubai and Abu Dhabi. Newark/New York Dubai Start in March 2023Subject to government approval

• Appointed by Department of Homeland Security secretary Alejandro MayorkasUnited Chief Executive Officer Scott Kirby As Co-Chair of Homeland Security Advisory Council, I was also the Chairman of Education and Workforce Committee on the Board of Directors of Business Roundtable.

• The Eco-Skies Alliance Summit was hosted. It brought together corporate leaders, senior U.S. officials, and corporate customers for important discussions about sustainable aviation fuel, best practices in reducing carbon emissions from flying, and how to work together on future sustainability solutions.

Operational Performance

• The fourth quarter saw an 80% on-time arrival performance, which is the highest quarterly performance since 2022.

• United finished first among network carriers for on-time departures and completion at its three largest hubs – DenverO’Hare Houston – for the fourth-quarter and full-year 2022.

• ConnectionSaver saved more than 650,000 connections for United in 2022. This resulted in United having the lowest misconnect rates ever for the fourth and full-year (excluding 2020/2021).

• Inflight Service (Check-In), Club Satisfaction and Inflight Service beat their record for the quarter last quarter. This was their best quarterly performance since the 2020 launch of NPS (Net Promoter Scope) surveys.

Customer Experience

• Up from 67% in 2019, 80% domestic departures were made on dual-cabin aircraft by 2022.

• 43% of our customer surveys contained a compliment about something that a United employee did for them despite the difficult operating conditions caused by winter storm Elliott.

• Debuted free “bag drop shortcut” – a simple way for customers at United’s U.S. hubs to skip the line, check their bag in a minute or less on average, and get to their flight.

• T-Mobile began offering eligible customers in-flight Wi-Fi, streaming and other services on selected domestic and short-haul international routes.

• United and Jaguar North America launched the first gate to gate airport transfer service in America powered by an all electric fleet at Chicago O’Hare International Airport.

• Announced the return to United flight 93, where children’s meals will be served for free.

• United Club Fly was opened^SMA new club concept for an American airline: Denver International Airport

• Opening of the United Club^SM Newark Liberty International Airport is located in a 30,000-square foot space that offers travelers modern design, enhanced amenities and culinary choices.

• Debuted new custom amenity kits for United Polaris® from Away ahead of summer travel.

• United introduced new Impossible Foods-based menu options as part its efforts to include more vegetarian and vegan options in its culinary offerings, amid growing demand.

Network

• Announced the 2023 summer schedule that includes adding new service to three cities – Malaga, Spain; Stockholm, Sweden Dubai, United Arab Emirates – United will be the No. 1 airline to Europe, Africa, India The Middle East Next summer will see service to 37 cities. That’s more destinations than all the other U.S. airlines combined.

• Virgin Australia launched a new alliance partnership, which began year-round, continuous service between San Francisco Brisbane, Australia And became the largest airline between The United States Australia.

• Service offered non-stop, year-round service from Washington, D.C.?, and Cape Town, South Africa Expanded to offer non-stop year-round service between New York/Newark Cape Town, South Africa.

• The airline has expanded its codeshare agreement. Star Alliance Singapore Airlines is a member of the Singapore Airlines Alliance, making it easier to fly to more cities. The United States, Southeast Asia Other destinations around the Asia-Pacific region.

• Announced joint business agreements with Air Canada and Canada for the Canada–U.S. transborder markets, building on their long-standing alliance. The agreement will offer more flight options and better schedules for customers travelling between the two countries.

Environmental, Social, and Governance

• Over 1,000 employees contributed more than 7,700 hours of volunteer work in the fourth quarter.

• Over 700 donors donated nearly 13 million miles to 40 participating non-profit organizations during United’s Giving Tuesday 2022 campaign. United also matched nearly 2,000,000 miles.

• Over 4,000,000 miles and more were covered during the fourth quarter. $111,000 For Hurricane Fiona relief efforts and Hurricane Ian relief efforts, donations were made

• United was able to transport over 1,000,000 pounds of cargo through both passenger and cargo flights in 2022.

• United Airlines Ventures announced a strategic investor in NEXT Renewable fuels (NEXT), which will acquire a permit to build a biofuel refinery in Port Westward. OregonWith production expected to start in 2026,

• Announced $15 million Eve Air Mobility is looking to raise funds and purchase 200 four-seat electric aircraft. There are also options to buy 200 additional. Expect the first deliveries in 2026.

• Launched United for Business Blueprint™, a new platform that will allow corporate customers to fully customize their business travel program contracts with United.

• United Airlines Ventures, Oxy Low Carbon Ventures, and Cemvita Factory announced a collaboration to commercialize sustainable aviation fuel. The new process that uses carbon dioxide and synthetic bacteria is a breakthrough.

• United has announced a strategic equity stake in Natron Energy (a battery manufacturer) which could help it electrify its airport equipment like pushback tractor and operations at the gate.

• U.S. President Joe Biden United President Brett Hart To the Board of Advisors on Historically Black Colleges and Universities.

• Along with the PGA TOUR it announced that 51 golf teams at historically black colleges and universities will receive more than half a millimillion dollars in grants to support travel and recruiting for tournaments and other activities.

• Announced a new collaboration between OneTen and a coalition dedicated to upskilling, recruiting, and advancing Black talent in family-sustaining careers over 10 years.

• United Airlines Ventures announced that it had entered into a commercial agreement to deal with Dimensional Energy. This investment is another step in United’s goal to be 100% green and achieve net-zero greenhouse gases emissions by 2050. It does not rely on traditional carbon offsets.

• Signed the first U.S.-based agreement with Neste to buy sustainable aviation fuel from overseas.

• More than 42 million miles $400,000 Donated to World Central Kitchen and Airlink by Americares for their support Ukraine United’s customers have offered assistance with relief efforts, along with 5 million additional miles $100,000 United.

• For the seventh consecutive year, the top score was 100% on the 2022 Disability Equality Index. The workplace was also recognized as “Best Place To Work” for Disability Inclusion.

• More than 100 volunteers participated in United’s 2nd Annual Sept. of Service. Over 1,600 United employees volunteered 6,500 hours.

• First airline to donate flights for Operation Fly Formula. Kendamil formula was free of charge transported from Heathrow Airport. London Washington Dulles hub.

Earnings Call

UAL will host a conference phone call to discuss fourth quarter and full-year 2022 results as well its financial and operational outlooks for the first quarter of 2023 and beyond. Wednesday, January 18, 2008, at CT at 9:30 AM/10:30 a.m. ET. The conference call can be listened to live on ir.united.com. You can replay the conference call within 24 hours and archive it on the website for up to three months.

Outlook

This press release should be viewed in conjunction with the Investor Update, which was issued in connection to this quarterly earnings announcement. It provides additional information about the company’s business outlook, including certain financial and operational guidance. The Investor Update can be found at ir.united.com. During the quarterly earnings conference call, management will also discuss some business outlook items.

As described in this press statement, the company’s business outlook is subjected to risks and uncertainties. Please refer to the section entitled “Cautionary Statement Concerning Forward-Looking statements.”

About United

United shares a common purpose: “Connecting People.” Uniting the world From the U.S. hubs Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco Washington, D.C.United Airlines has the largest international route network of all North American airlines. United is returning customers’ favourite destinations and adding new ones to its quest for becoming the best airline in the world. Visit this page to learn more about joining the United team. www.united.com/careers More information on the company can be found at www.united.com. United Airlines Holdings, Inc., parent company of United Airlines, Inc., can be traded on the Nasdaq using the symbol “UAL”.

Website Information

Our corporate website regularly posts important information and news about United. www.united.com, and our investor relation website, ir.united.com. Our investor relations website serves as a primary channel for communicating key information to our investors. It includes information about the timing of future investor conference and earnings calls, press release dates, and information about financial performance, reports filed and furnished with the U.S. Securities and Exchange Commission. Information on corporate governance and details relating to our annual meeting. Our investor relations website may be used to disclose material, non-public information or comply with Regulation FD’s disclosure obligations. Social media channels may be used to communicate with investors and the general public about our company or other matters. These communications could also be considered to be material information. This document does not include any information found on or accessible through our website or social media channels.

Cautionary Statement regarding Forward-Looking statements:
This press release, together with the Investor Update and attached attachments, contains certain “forward looking statements” within Section 27A of Securities Act of 1933, as modified, and Section 21E of Securities Exchange Act of 1934. These statements include statements regarding, among other things: the potential impact of the COVID-19 pandemic on macroeconomic factors, steps that the company plans to take to address it, goals, plans and projections concerning the company’s financial results, market position, fleet, capacity, product development, ESG targets, business strategy, ESG targets, ESG and ESG-targets, ESG and company’s. These forward-looking statements are based upon historical performance, current expectations, forecasts, and projections about future financial results, goal, plans and commitments, strategies, and objectives. There are inherent risks, assumptions, and uncertainties that can be affected by external or internal factors, as well as those that are beyond the company’s control. They could result in the company’s financial position, results of operations, market position, capacity, fleet, product development, ESG targets and business strategy, and could differ materially from the statements. However, forward-looking statements do not always include terms such as “could”, “would”, “will”, “may,”” “would,”,” will,”,”will,”,”will,”,”will,”,”will,”,”may,” plans,” anticipates,” forecasts,”,”indicates,” remains,” believes,” estimates,” projects,” guidance,” outlook,” goals,” targets,” pledges,” commitments, “dedicated,” and other terms and phrases that have similar meanings and expressions. All statements other than statements that refer to historical facts are forward-looking statements.

Forward-looking statements can also contain conditional statements. These statements identify uncertainties or trends, discuss possible future effects on known trends and uncertainties, or indicate that it is impossible to predict, guarantee, or assure the future effects or uncertainty. This release contains forward-looking statements that are based on information at the time of publication. Except as required by law or regulation, we are not obliged to publicly revise or update any forward-looking statements.

Actual results may differ from those in forward-looking statements because of a number of factors. These include the adverse effects of the COVID-19 global epidemic on our business, operating result, financial condition, liquidity and execution risks. Changes in our network strategy or other factors that could affect our ability to order aircraft, modify or terminate orders or enter into orders with less favorable aircraft orders. Failure to successfully manage our portfolio and to receive expected benefits and returns; failure to properly manage acquisitions, divestitures investments, joint ventures, and any other portfolio; our dependence on certain parts; disruptions The United States Globally (including inflationary pressures); reliance upon third-party service suppliers and the impact on these parties to perform as anticipated; extended disruptions or disruptions of service at major airports and space, facility, and infrastructure constraints at our hubs and other airports; geopolitical conflicts, terrorist attacks, security events; any damage done to our reputation and brand image; our reliance in technology and automated systems for our business; the monetary, operational and financial costs of compliance with extensive government regulation; current and future litigation and regulatory actions or fail to the terms; and any settlement, order, or agreement; and costs, as well as well as well as well as well as well as well as well as well as they are. Russia–Ukraine military conflict); 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 financial and other covenants governing our debt, including our MileagePlus® financing agreements; the impacts of the proposed phaseout of the London Interbank offer rates; restrictions on our ability to use net operating loss carryforwards, and certain tax attributes, to offset future U.S. federal tax income; our failures to realize the full value our intangible assets and our long-lived assets; fluctuations in our common stock price; the effects of seasonality, weather and other factors related to the airline industry; increased insurance costs or inadequate coverage; and other uncertainties and risks set forth in Part 1A, Item 1A. Risk factors, in our Annual Report on Form 10K for the year ended December 31, 2021As well as the other risks and uncertainties described from time to time by the U.S. Securities and Exchange Commission.

These factors could have an impact on our ability to achieve the goals set forth in forward-looking statements. It is impossible for investors to identify or predict all of these factors. Investors should be aware that this list is not a comprehensive statement of all risks and uncertainties. This release contains forward-looking projections that are based on assumptions regarding the severity and duration of the COVID-19 Pandemic, when the return to a more stable environment will occur, customer behavior changes, and the return of demand for air travel (collectively, the “Recovery Process”) The COVID-19 pandemic, and the responses taken to it, may continue to have an impact on many aspects of our business and operating results, financial condition, liquidity, and other factors. These include labor shortages (including reduced staffing and associated impacts on the company’s flight schedules, reputation, and facility closures and associated costs and disruptions to company’s operations and those of its business partners, decreased travel demand, consumer spending, lower operating costs, supply chain disruptions and logistics constraints, volatility of the price of our securities and our ability to access to capital markets, and volatility in the world economy. If the Recovery Process is different than what we expected, the COVID-19 pandemic could have a significant impact on our business. Actual results may differ materially from projections and expectations. Our internal projections and expectations are subject to regular changes throughout the year and each quarter. It is not unusual for these projections or expectations to change. Therefore, it is important that we understand that our expectations, beliefs, and projections may change. We monitor the future demand and book trends regularly and adjust our capacity as necessary. Therefore, actual flown capacity might differ from current flight schedules or estimates.

Non-GAAP Financial Information:
Financial results and guidance are discussed by the company when financial measures are not in compliance with U.S. Generally Accepted Accounting Principles. These non-GAAP financial metrics are used to supplement the financial information presented in this press statement. They are calculated and presented according to GAAP. Non-GAAP financial metrics include adjusted operating margin, CASMex (which excludes special charge (credits), fuel expense, third-party expenses, and impact of fuel expense), adjusted pretax margin, which is pre-tax marginal excluding operating and non-operating special charges, net) or adjusted net income. These exclusions or adjustments typically include one or several of the following characteristics: they are highly variable, hard to project, uncommon in nature, significant to the results for a specific period, not indicative of past or forthcoming operating results, These items were excluded by the company because they are not relevant to the company’s ordinary business operations nor reflect the company’s underlying business performance.

Non-GAAP financial measurements are not calculated in accordance to GAAP. They should not be considered as an alternative to or superior to the GAAP financial measures. We urge investors to carefully review all of our financial statements and publicly-filed financial reports and not to rely solely on any one financial measure.

For a description and reconciliation of historical non-GAAP financial measurements to the GAAP most comparable GAAP financial measure, please refer to the tables that accompany this release.

-tables attached-