{"id":304349,"date":"2019-07-23T06:00:52","date_gmt":"2019-07-22T20:00:52","guid":{"rendered":"https:\/\/www.saipantribune.com\/?p=304349"},"modified":"2019-07-23T06:00:52","modified_gmt":"2019-07-22T20:00:52","slug":"ua-achieves-highest-q2-pre-tax-income-in-company-history","status":"publish","type":"post","link":"https:\/\/www.saipantribune.com\/index.php\/ua-achieves-highest-q2-pre-tax-income-in-company-history\/","title":{"rendered":"UA achieves highest Q2 pre-tax income in company history"},"content":{"rendered":"

CHICAGO<\/strong>\u2014United Airlines (UAL) announced that the continued successful implementation of its strategy led to the company delivering two straight quarters of solid pre-tax margin growth\u2014three quarters on an adjusted basis\u2014and the highest second-quarter pre-tax income in the airline\u2019s history.<\/p>\n

\u201cThanks to the outstanding and sustained efforts of 95,000 United team members, United is now consistently delivering results for our customers as well as investors as we raise the mid-point of our full- year 2019 adjusted diluted EPS3 guidance with a new range of $10.50 to $12.00,\u201d said Oscar Munoz, CEO of United Airlines. \u201cBy once again delivering strong EPS over the last three months, top-tier results are now the expectation, not the exception for United.\u201d<\/p>\n

\u2022 Reported second-quarter net income of $1.1 billion, diluted earnings per share (EPS) of $4.02, pre-tax earnings of $1.4 billion and pre-tax margin of 11.9 percent, expanding pre-tax margin 4.0 points versus the second quarter of 2018.<\/p>\n

\u2022 Reported second-quarter adjusted net income of $1.1 billion, adjusted diluted EPS of $4.21, adjusted pre-tax earnings of $1.4 billion and adjusted pre-tax margin of 12.4 percent, expanding adjusted pre-tax margin 2.0 points versus the second quarter of 2018.1<\/p>\n

\u2022 Total passenger revenue increased 6.1 percent versus the second quarter of 2018.<\/p>\n

\u2022 Consolidated second-quarter passenger revenue per available seat mile (PRASM) increased 2.5 percent year-over-year.<\/p>\n

\u2022 Consolidated second-quarter unit cost per available seat mile (CASM) decreased 0.4 percent year-over-year.<\/p>\n

\u2022 Consolidated second-quarter CASM, excluding special charges, third-party business expenses, fuel and profit sharing, increased 0.6 percent year-over-year.<\/p>\n

\u2022 Repurchased $536 million of its common shares in the second quarter of 2019, at an average Exhibit 99.1 purchase price of $84.07 per share.<\/p>\n

\u2022 On July 15, 2019, the company\u2019s Board of Directors authorized a new $3 billion share repurchase program.<\/p>\n

1 Excludes special charges, the mark-to-market impact of financial instruments and imputed interest on certain finance leases. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in the tables accompanying this release.<\/p>\n

2 Airline history defined as post-2010 merger.<\/p>\n

3Excludes special charges and the mark-to-market impact of financial instruments, the nature of which are not determined at this time, and imputed interest on certain finance leases. Accordingly, UAL is not providing earnings guidance on a GAAP basis.<\/p>\n

For more information on UAL\u2019s third-quarter and full-year 2019 guidance, please visit ir.united.com for the company\u2019s investor update.<\/p>\n

Second-Quarter 2019 Highlights<\/p>\n

Customer experience<\/strong>
\n\u2022 United Polaris lounge at San Francisco International Airport voted best business class lounge in the world by the 2019 World Airline Awards from Skytrax.<\/p>\n

\u2022 Introduced ConnectionSaver, a new tool dedicated to improving the experience for customers connecting from one United flight to the next, while ensuring those who have already boarded the aircraft arrive at their destination on time.<\/p>\n

\u2022 Began flight operations at LaGuardia Airport\u2019s new Terminal B Eastern Concourse and opened newest United Club\u2014conveniently located inside security with more than 10,500 square feet with sweeping views of the tarmac.<\/p>\n

\u2022 Awarded the \u201cPeople\u2019s Voice\u201d Webby Award in the \u201cBusiness and Finance\u201d category for reimagined mobile app, which debuted earlier this year.<\/p>\n

\u2022 Partnered with luxury skincare line Sunday Riley on new United Polaris amenity kits.<\/p>\n

\u2022 Awarded the Crystal Cabin Award for Inflight Entertainment and Connectivity for new onboard entertainment.<\/p>\n

\u2022 Received IDG\u2019s CIO 100 Award for innovative customer volunteer solicitation program.<\/p>\n

Operations<\/strong>
\n\u2022 Served nearly 43 million passengers, the most ever for United in the second quarter.<\/p>\n

\u2022 Achieved top-tier on-time departures rate performance versus the major U.S. airlines, despite headwinds caused by unusually high weather and ATC delays.<\/p>\n

\u2022 For the second quarter United had the second-best completion factor and the second fewest cancellations among the major U.S. airlines.<\/p>\n

Employees<\/strong>
\n\u2022 Received \u201cBest-of-the-Best\u201d award for commitment to diversity and inclusion by the National LGBT Chamber of Commerce (NGLCC) and the National Business Inclusion Consortium (NBIC), demonstrating the airline\u2019s industry-leading results across all diverse segments and its commitment to building a more diverse economy.<\/p>\n

\u2022 Honored with the \u201cDiversityInc Top 50\u201d designation, lauding the airline\u2019s leadership in promoting diversity through talent development, leadership accountability and a top supplier diversity program.<\/p>\n

\u2022 Expect profit sharing for 2019 to be about 20 percent higher per participating employee year-over- year.<\/p>\n

\u2022 Hosted more than half of the company\u2019s 25,000 flight attendants at 17 separate Backstage 2019 events, which are designed to underscore the important role flight attendants play in delivering great service.<\/p>\n

Network<\/strong>
\n\u2022 Started 34 new domestic and international routes, including brand-new summer service between New York\/Newark and Prague, and the only nonstop service between the United States and Naples, Italy.<\/p>\n

\u2022 Resumed popular seasonal service on 28 routes offering customers more access than ever before to connect to 54 countries around the world on United\u2019s industry-leading global network.<\/p>\n

\u2022 Announced the only nonstop service from the United States to Cape Town, South Africa, and announced a second daily nonstop service between San Francisco and Hong Kong.<\/p>\n

\u2022 Launched ninth daily nonstop flight between the United States and Germany from its hub at Denver International Airport, becoming the only U.S. airline connecting Denver to Frankfurt nonstop.<\/p>\n

\u2022 Tentatively granted a total of four daily nonstop flights to Tokyo Haneda Airport from United\u2019s hubs at Newark Liberty International Airport, Chicago O\u2019Hare International Airport, Washington Dulles International Airport and Los Angeles International Airport.<\/p>\n

\u2022 Unveiled 2019 college football flying schedule, adding around 10,000 seats between its hubs and popular game destinations and, for the first time, adding several point-to-point flights enabling fans to fly nonstop from one college town to another.<\/p>\n

\u2022 Entered into a new alliance agreement with New Delhi-based airline Vistara – further expanding the airline\u2019s global route network to more than 20 destinations throughout India and expected to begin in the fall.<\/p>\n

Fleet<\/strong>
\n\u2022 Unveiled next paint design, which brings a refreshed look to its fleet, serving as a visual representation of the airline\u2019s ongoing brand evolution while staying true to the history it has developed over the past 93 years of proudly serving customers around the world.<\/p>\n

\u2022 Took delivery of two Boeing 787-10 aircraft, two used Airbus A319 aircraft, and seven Embraer E175 aircraft operated by our regional partners.<\/p>\n

\u2022 Signed agreement to purchase 19 used Boeing 737-700 aircraft with deliveries expected beginning in December.<\/p>\n

Community and Environment<\/strong>
\n\u2022 Made history with the departure of the \u201cFlight for the Planet,\u201d the most eco-friendly commercial flight of its kind in the history of aviation, becoming the first known airline to demonstrate all of the following key actions on a single commercial flight: utilization of sustainable aviation biofuel, zero cabin waste efforts, carbon offsetting, and operational efficiencies.<\/p>\n

\u2022 Became the first public company to be inducted into Pride Live\u2019s Stonewall Ambassador program in recognition of the airline\u2019s commitment to LGBTQ+ equality.<\/p>\n

\u2022 Reached a milestone of 1 million meals packed for charity partner Rise Against Hunger, a global nonprofit, working to end hunger by providing food and life-changing aid to the world\u2019s most vulnerable and creating a global commitment to mobilize critical resources.<\/p>\n

\u2022 Renewed contract with Boston-based World Energy, agreeing to purchase up to 10 million gallons of cost-competitive, commercial-scale, sustainable aviation biofuel over the next two years.<\/p>\n

\u2022 Revealed the two winning designs for Her Art Here, a first-of-its-kind contest designed to find and uplift underrepresented women artists by providing a chance to have their work painted on a canvas like no other – a United Airlines aircraft. The painted aircraft will begin flying in the fall.<\/p>\n

\u2022 Announced new and exciting opportunities to help customers celebrate Pride Month through MileagePlus Exclusives benefiting United charity partner The Trevor Project. (PR)<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

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