United Airlines (UAL) August Traffic Increases 0.6%, ASM Up 1.9%

September 9, 2016 4:17 PM EDT

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United Airlines (NYSE: 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.

Additionally, UAL will hold an investor day in Chicago on Tuesday, Nov. 15, 2016 at 8:00 a.m. CT / 9:00 a.m. ET.

About United

United Airlines and United Express operate more than 4,500 flights a day to 339 airports across five continents. In 2015, United and United Express operated more than 1.5 million flights carrying more than 140 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates more than 720 mainline aircraft, and this year, the airline anticipates taking delivery of 21 new Boeing aircraft, including 737 NGs, 787s and 777s. The airline is a founding member of Star Alliance, which provides service to 192 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the NYSE under the symbol UAL.

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



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