Loading...
Docoh

United Airlines (UAL)

United's shared purpose is 'Connecting People. Uniting the World.' The Company is more focused than ever on its commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United and United Express operate approximately 4,900 flights a day to 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 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 788 mainline aircraft and the airline's United Express partners operate 560 regional aircraft. United is a founding member of Star Alliance, which provides service to 195 countries via 26 member airlines.

Company profile

Ticker
UAL
Exchange
Website
CEO
Jeffery Smisek
Employees
Incorporated
Location
Fiscal year end
Former names
CONTINENTAL AIRLINES INC /DE/, CONTINENTAL AIRLINES, INC.
SEC CIK
Subsidiaries
United Airlines, Inc. • Air Wis Services, Inc. • Air Wisconsin, Inc. • Domicile Management Services, Inc. • Air Micronesia, LLC. • CAL Cargo, S.A. de C.V. • CALFINCO Inc. • CALFINCO Caymans Ltd. • Century Casualty Company • Continental Airlines de Mexico, S.A. ...
IRS number
742099724

UAL stock data

Calendar

21 Jul 22
12 Aug 22
31 Dec 22
Quarter (USD) Mar 22 Dec 21 Sep 21 Jun 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 18.72B 18.72B 18.72B 18.72B 18.72B 18.72B
Cash burn (monthly) (no burn) (no burn) 584M 177M (no burn) (no burn)
Cash used (since last report) n/a n/a 2.57B 779.19M n/a n/a
Cash remaining n/a n/a 16.15B 17.94B n/a n/a
Runway (months of cash) n/a n/a 27.7 101.4 n/a n/a

Beta Read what these cash burn values mean

Financial report summary

?
Risks
  • The COVID-19 pandemic has materially and adversely impacted our business, operating results, financial condition and liquidity. The full extent of the impact will depend on future developments and how quickly we can return to more normal operations, among other things. If the impacts from the COVID-19 pandemic extend beyond our assumed timelines, our actual results may vary significantly from our expectations.
  • We may not be successful in executing elements of our strategic operating plan, which may have a material adverse impact on our business, financial results and market capitalization.
  • Failure to effectively manage acquisitions, divestitures, investments, joint ventures and other portfolio actions could adversely impact our operating results. In addition, any businesses or assets that we acquire in the future may underperform.
  • Business, Operational and Industry Risks
  • The Company could experience adverse publicity, harm to its brand, reduced travel demand, potential tort liability and operational restrictions as a result of an accident, catastrophe or incident involving its aircraft or its operations or the aircraft or operations of another airline, which may result in a material adverse effect on the Company's business, operating results or financial condition.
  • The global airline industry is highly competitive and susceptible to price discounting and changes in capacity, which could have a material adverse effect on our business, operating results and financial condition.
  • Substantially all of the Company's aircraft, engines and certain parts are sourced from a limited number of suppliers; therefore, the Company would be materially and adversely affected if it were unable to obtain timely deliveries, additional equipment or support from any of these suppliers.
  • Disruptions to our regional network and United Express flights provided by third-party regional carriers could adversely affect our business, operating results and financial condition.
  • Unfavorable economic and political conditions, in the United States and globally, may have a material adverse effect on our business, operating results and financial condition.
  • The Company's business relies extensively on third-party service providers, including certain technology providers. Failure of these parties to perform as expected, or interruptions in the Company's relationships with these providers or their provision of services to the Company, could have a material adverse effect on the Company's business, operating results and financial condition.
  • Geopolitical conflict, terrorist attacks or security events may adversely affect our business, financial condition and results of operations.
  • Any damage to our reputation or brand image could adversely affect our business or financial results.
  • The Company relies heavily on technology and automated systems to operate its business and any significant failure or disruption of, or failure to effectively integrate and implement, these technologies or systems could materially harm its business.
  • Increasing privacy and data security obligations or a significant data breach may adversely affect the Company's business.
  • Increased use of social media platforms present risks and challenges.
  • Human Capital Management Risks
  • Union disputes, employee strikes or slowdowns, and other labor-related disruptions could adversely affect the Company's operations and could result in increased costs that impair its financial performance.
  • If we are unable to attract, train or retain skilled personnel, including our senior management team or other key employees, our business could be adversely affected.
  • Regulatory, Tax, Litigation and Legal Compliance Risks
  • The airline industry is subject to extensive government regulation, which imposes significant costs and may adversely impact our business, operating results and financial condition.
  • Current or future litigation and regulatory actions, or failure to comply with the terms of any settlement, order or agreement relating to these actions, could have a material adverse impact on the Company.
  • We are subject to many forms of environmental regulation and liability and risks associated with climate change and may incur substantial costs as a result. In addition, failure to achieve or demonstrate progress towards our climate goals may expose us to liability and reputational harm.
  • Market, Liquidity, Accounting and Financial Risks
  • High and/or volatile fuel prices or significant disruptions in the supply of aircraft fuel could have a material adverse impact on the Company's strategic plans, operating results, financial condition and liquidity.
  • The Company has a significant amount of financial leverage from fixed obligations and may seek material amounts of additional financial liquidity in the short-term, and insufficient liquidity may have a material adverse effect on the Company's financial condition and business.
  • Agreements governing our debt include financial and other covenants. Failure to comply with these covenants could result in events of default.
  • The proposed phase out of the London interbank offer rate could have a material adverse effect on us.
  • The Company's ability to use its net operating loss carryforwards and certain other tax attributes to offset future taxable income for U.S. federal income tax purposes may be significantly limited due to various circumstances, including certain possible future transactions involving the sale or issuance of UAL common stock, or if taxable income does not reach sufficient levels.
  • The Company may never realize the full value of its intangible assets or its long-lived assets causing it to record impairments that may negatively affect its financial condition and operating results.
  • The price of our common stock may fluctuate significantly.
  • The Company's operating results fluctuate due to seasonality and other factors associated with the airline industry, many of which are beyond the Company's control.
  • Increases in insurance costs or inadequate insurance coverage may materially and adversely impact our business, operating results and financial condition.
Management Discussion
  • Capacity. Relative to the second quarter of 2019, the Company operated approximately 85% of its capacity for the second quarter of 2022 compared to approximately 54% of its capacity in the second quarter of 2021.
  • Operating revenue. For the second quarter of 2022, operating revenue increased by $0.7 billion, or 6.2%, versus the second quarter of 2019 and increased by $6.6 billion, or 121.4%, versus the second quarter of 2021 due to the ongoing recovery from the COVID-19 pandemic.
  • Operating expense. For the second quarter of 2022, operating expense increased by $1.3 billion, or 13.1%, versus the second quarter of 2019 and by $5.5 billion, or 95.7%, versus the second quarter of 2021 mostly due to a $2.6 billion increase in fuel costs, a $1.1 billion in Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") grant in the prior year period that did not repeat and other increased operating costs from flight activity. We expect fuel costs to remain elevated or increase further throughout 2022.

Content analysis

?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Avg
New words: assert, broader, coincided, counsel, decelerated, differentiate, divested, downturn, escalation, gear, inflationary, intermittent, matter, merit, misleading, ordinary, overflying, phaseout, pretax, resumed, Russia
Removed: entered, flow, March, reduction, remained, subsequent