Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 17, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Fiscal Period Focus | Q2 | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-06033 | |
Entity Registrant Name | United Airlines Holdings, Inc. | |
Entity Central Index Key | 0000100517 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-2675207 | |
Entity Address, Address Line One | 233 South Wacker Drive, | |
Entity Address, City or Town | Chicago, | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60606 | |
City Area Code | (872) | |
Local Phone Number | 825-4000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, | |
Trading Symbol | UAL | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 290,983,657 | |
United Airlines, Inc. | ||
Entity Information [Line Items] | ||
Entity File Number | 001-10323 | |
Entity Registrant Name | United Airlines, Inc. | |
Entity Central Index Key | 0000319687 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 74-2099724 | |
Entity Address, Address Line One | 233 South Wacker Drive, | |
Entity Address, City or Town | Chicago, | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60606 | |
City Area Code | (872) | |
Local Phone Number | 825-4000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,000 |
Statements of Consolidated Oper
Statements of Consolidated Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Operating revenue: | |||||
Operating revenue | $ 1,475 | $ 11,402 | $ 9,454 | $ 20,991 | |
Operating expense: | |||||
Salaries and related costs | 2,170 | 3,057 | 5,125 | 5,930 | |
Aircraft fuel | 240 | 2,385 | 1,966 | 4,408 | |
Regional capacity purchase | 388 | 715 | 1,125 | 1,403 | |
Landing fees and other rent | 429 | 660 | 1,052 | 1,248 | |
Depreciation and amortization | 618 | 560 | 1,233 | 1,107 | |
Aircraft maintenance materials and outside repairs | 110 | 421 | 544 | 829 | |
Distribution expenses | 31 | 442 | 326 | 802 | |
Aircraft rent | 47 | 73 | 97 | 154 | |
Special charges (credit) | (1,449) | 71 | (1,386) | 89 | |
Other operating expenses | 528 | 1,546 | 1,981 | 3,054 | |
Total operating expenses | 3,112 | 9,930 | 12,063 | 19,024 | |
Operating income (loss) | (1,637) | 1,472 | (2,609) | 1,967 | |
Nonoperating income (expense): | |||||
Interest expense | (196) | (191) | (367) | (379) | |
Interest capitalized | 17 | 21 | 38 | 43 | |
Interest income | 11 | 38 | 37 | 67 | |
Unrealized gains (losses) on investments, net | 9 | 34 | (310) | 51 | |
Miscellaneous, net | (207) | (20) | (906) | (28) | |
Total nonoperating expense, net | (366) | (118) | (1,508) | (246) | |
Income (loss) before income taxes | (2,003) | 1,354 | (4,117) | 1,721 | |
Income tax expense (benefit) | (376) | 302 | (786) | 377 | |
Net income (loss) | $ (1,627) | $ 1,052 | $ (3,331) | $ 1,344 | |
Earnings (loss) per share, basic (in dollars per share) | $ (5.79) | $ 4.03 | $ (12.59) | $ 5.09 | |
Earnings (loss) per share, diluted (in dollars per share) | $ (5.79) | $ 4.02 | $ (12.59) | $ 5.07 | |
United Airlines, Inc. | |||||
Operating revenue: | |||||
Operating revenue | $ 1,475 | $ 11,402 | $ 9,454 | $ 20,991 | |
Operating expense: | |||||
Salaries and related costs | 2,170 | 3,057 | 5,125 | 5,930 | |
Aircraft fuel | 240 | 2,385 | 1,966 | 4,408 | |
Regional capacity purchase | 388 | 715 | 1,125 | 1,403 | |
Landing fees and other rent | 429 | 660 | 1,052 | 1,248 | |
Depreciation and amortization | 618 | 560 | 1,233 | 1,107 | |
Aircraft maintenance materials and outside repairs | 110 | 421 | 544 | 829 | |
Distribution expenses | 31 | 442 | 326 | 802 | |
Aircraft rent | 47 | 73 | 97 | 154 | |
Special charges (credit) | (1,449) | 71 | (1,386) | 89 | |
Other operating expenses | 527 | 1,546 | 1,980 | 3,053 | |
Total operating expenses | 3,111 | 9,930 | 12,062 | 19,023 | |
Operating income (loss) | (1,636) | 1,472 | (2,608) | 1,968 | |
Nonoperating income (expense): | |||||
Interest expense | (196) | (191) | (367) | (379) | |
Interest capitalized | 17 | 21 | 38 | 43 | |
Interest income | 11 | 38 | 37 | 67 | |
Unrealized gains (losses) on investments, net | 9 | 34 | (310) | 51 | |
Miscellaneous, net | (208) | (20) | (906) | (28) | |
Total nonoperating expense, net | (367) | (118) | (1,508) | (246) | |
Income (loss) before income taxes | (2,003) | 1,354 | (4,116) | 1,722 | |
Income tax expense (benefit) | (377) | 302 | (786) | 377 | |
Net income (loss) | (1,626) | 1,052 | (3,330) | 1,345 | [1] |
Passenger revenue | |||||
Operating revenue: | |||||
Operating revenue | 681 | 10,486 | 7,746 | 19,211 | |
Passenger revenue | United Airlines, Inc. | |||||
Operating revenue: | |||||
Operating revenue | 681 | 10,486 | 7,746 | 19,211 | |
Cargo | |||||
Operating revenue: | |||||
Operating revenue | 402 | 295 | 666 | 581 | |
Cargo | United Airlines, Inc. | |||||
Operating revenue: | |||||
Operating revenue | 402 | 295 | 666 | 581 | |
Other operating revenue | |||||
Operating revenue: | |||||
Operating revenue | 392 | 621 | 1,042 | 1,199 | |
Other operating revenue | United Airlines, Inc. | |||||
Operating revenue: | |||||
Operating revenue | $ 392 | $ 621 | $ 1,042 | $ 1,199 | |
[1] | Transition adjustment due to the adoption of Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses . See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information. |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Net income (loss) | $ (1,627) | $ 1,052 | $ (3,331) | $ 1,344 | |
Other comprehensive income (loss), net of tax: | |||||
Employee benefit plans | (501) | (17) | (542) | (10) | |
Investments and other | 13 | 3 | 1 | 6 | |
Total other comprehensive income (loss), net of tax | (488) | (14) | (541) | (4) | |
Total comprehensive income (loss), net | (2,115) | 1,038 | (3,872) | 1,340 | |
United Airlines, Inc. | |||||
Net income (loss) | (1,626) | 1,052 | (3,330) | 1,345 | [1] |
Other comprehensive income (loss), net of tax: | |||||
Employee benefit plans | (501) | (17) | (542) | (10) | |
Investments and other | 13 | 3 | 1 | 6 | |
Total other comprehensive income (loss), net of tax | (488) | (14) | (541) | (4) | |
Total comprehensive income (loss), net | $ (2,114) | $ 1,038 | $ (3,871) | $ 1,341 | |
[1] | Transition adjustment due to the adoption of Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses . See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information. |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | |
Current assets: | |||
Cash and cash equivalents | $ 6,505 | $ 2,762 | |
Short-term investments | 958 | 2,182 | |
Receivables, less allowance for credit losses (2020 — $11; 2019 — $9) | 857 | 1,364 | |
Aircraft fuel, spare parts and supplies, less obsolescence allowance (2020 — $464; 2019 — $425) | 955 | 1,072 | |
Prepaid expenses and other | 766 | 814 | |
Total current assets | 10,041 | 8,194 | |
Operating property and equipment: | |||
Flight equipment | 37,339 | 35,421 | |
Other property and equipment | 8,350 | 7,926 | |
Purchase deposits for flight equipment | 1,624 | 1,360 | |
Total operating property and equipment | 47,313 | 44,707 | |
Less — Accumulated depreciation and amortization | (15,578) | (14,537) | |
Total operating property and equipment, net | 31,735 | 30,170 | |
Operating lease right-of-use assets | 4,738 | 4,758 | |
Other assets: | |||
Goodwill | 4,523 | 4,523 | |
Intangibles, less accumulated amortization (2020 — $1,467; 2019 — $1,440) | 2,852 | 3,009 | |
Restricted cash | 73 | 106 | |
Notes receivable, less allowance for credit losses (2020 — $553) | 141 | 671 | |
Investments in affiliates and other, net | 798 | 1,180 | |
Total other assets | 8,387 | 9,489 | |
Total assets | 54,901 | 52,611 | |
Current liabilities: | |||
Advance ticket sales | 4,950 | 4,819 | |
Accounts payable | 1,725 | 2,703 | |
Frequent flyer deferred revenue | 840 | 2,440 | |
Accrued salaries and benefits | 1,669 | 2,271 | |
Current maturities of long-term debt | 4,454 | 1,407 | |
Current maturities of finance leases | 93 | 46 | |
Current maturities of operating leases | 598 | 686 | |
Payroll Support Program deferred credit | 1,508 | 0 | |
Other | 558 | 566 | |
Total current liabilities | 16,395 | 14,938 | |
Long-term debt | 14,318 | 13,145 | |
Long-term obligations under finance leases | 316 | 220 | |
Long-term obligations under operating leases | 5,113 | 4,946 | |
Other liabilities and deferred credits: | |||
Frequent flyer deferred revenue | 4,830 | 2,836 | |
Postretirement benefit liability | 957 | 789 | |
Pension liability | 2,221 | 1,446 | |
Deferred income taxes | 804 | 1,736 | |
Other | 1,430 | 1,024 | |
Total other liabilities and deferred credits | 10,242 | 7,831 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred stock | 0 | 0 | |
Common stock | 3 | 3 | |
Additional capital invested | 7,307 | 6,129 | |
Retained earnings | 6,365 | 9,716 | |
Stock held in treasury, at cost | (3,899) | (3,599) | |
Accumulated other comprehensive loss | (1,259) | (718) | |
Total stockholders' equity | 8,517 | 11,531 | [1] |
Total liabilities and stockholders' equity | 54,901 | 52,611 | |
United Airlines, Inc. | |||
Current assets: | |||
Cash and cash equivalents | 6,505 | 2,756 | |
Short-term investments | 958 | 2,182 | |
Receivables, less allowance for credit losses (2020 — $11; 2019 — $9) | 857 | 1,364 | |
Aircraft fuel, spare parts and supplies, less obsolescence allowance (2020 — $464; 2019 — $425) | 955 | 1,072 | |
Prepaid expenses and other | 766 | 814 | |
Total current assets | 10,041 | 8,188 | |
Operating property and equipment: | |||
Flight equipment | 37,339 | 35,421 | |
Other property and equipment | 8,350 | 7,926 | |
Purchase deposits for flight equipment | 1,624 | 1,360 | |
Total operating property and equipment | 47,313 | 44,707 | |
Less — Accumulated depreciation and amortization | (15,578) | (14,537) | |
Total operating property and equipment, net | 31,735 | 30,170 | |
Operating lease right-of-use assets | 4,738 | 4,758 | |
Other assets: | |||
Goodwill | 4,523 | 4,523 | |
Intangibles, less accumulated amortization (2020 — $1,467; 2019 — $1,440) | 2,852 | 3,009 | |
Restricted cash | 73 | 106 | |
Notes receivable, less allowance for credit losses (2020 — $553) | 141 | 671 | |
Investments in affiliates and other, net | 798 | 1,180 | |
Total other assets | 8,387 | 9,489 | |
Total assets | 54,901 | 52,605 | |
Current liabilities: | |||
Advance ticket sales | 4,950 | 4,819 | |
Accounts payable | 1,725 | 2,703 | |
Frequent flyer deferred revenue | 840 | 2,440 | |
Accrued salaries and benefits | 1,669 | 2,271 | |
Current maturities of long-term debt | 4,454 | 1,407 | |
Current maturities of finance leases | 93 | 46 | |
Current maturities of operating leases | 598 | 686 | |
Payroll Support Program deferred credit | 1,508 | 0 | |
Other | 562 | 571 | |
Total current liabilities | 16,399 | 14,943 | |
Long-term debt | 14,318 | 13,145 | |
Long-term obligations under finance leases | 316 | 220 | |
Long-term obligations under operating leases | 5,113 | 4,946 | |
Other liabilities and deferred credits: | |||
Frequent flyer deferred revenue | 4,830 | 2,836 | |
Postretirement benefit liability | 957 | 789 | |
Pension liability | 2,221 | 1,446 | |
Deferred income taxes | 832 | 1,763 | |
Other | 1,430 | 1,025 | |
Total other liabilities and deferred credits | 10,270 | 7,859 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Common stock | 0 | 0 | |
Additional capital invested | 30 | 0 | |
Retained earnings | 8,676 | 12,353 | |
Accumulated other comprehensive loss | (1,259) | (718) | |
Receivable from related parties | 1,038 | (143) | |
Total stockholders' equity | 8,485 | 11,492 | |
Total liabilities and stockholders' equity | $ 54,901 | $ 52,605 | |
[1] | Transition adjustment due to the adoption of Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses . See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information. |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Allowance for credit losses | $ 11 | $ 9 |
Obsolescence allowance for aircraft fuel, spare parts and supplies | 464 | 425 |
Accumulated amortization on intangibles | 1,467 | $ 1,440 |
Allowance for credit losses on notes receivable | $ 553 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common shares, outstanding (in shares) | 290,982,216 | 251,216,381 |
United Airlines, Inc. | ||
Allowance for credit losses | $ 11 | $ 9 |
Obsolescence allowance for aircraft fuel, spare parts and supplies | 464 | 425 |
Accumulated amortization on intangibles | 1,467 | $ 1,440 |
Allowance for credit losses on notes receivable | $ 553 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, authorized (in shares) | 1,000 | 1,000 |
Common shares, issued (in shares) | 1,000 | 1,000 |
Common shares, outstanding (in shares) | 1,000 | 1,000 |
Condensed Statements of Consoli
Condensed Statements of Consolidated Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | ||
Cash Flows from Operating Activities: | |||
Net cash provided (used) by operating activities | $ (67) | $ 4,625 | |
Cash Flows from Investing Activities: | |||
Capital expenditures, net of returns of purchase deposits on flight equipment | (1,998) | (2,467) | |
Purchases of short-term and other investments | (550) | (1,443) | |
Proceeds from sale of short-term and other investments | 1,774 | 1,484 | |
Other, net | 14 | (10) | |
Net cash used in investing activities | (760) | (2,436) | |
Cash Flows from Financing Activities: | |||
Proceeds from issuance of short-term debt | 2,750 | 0 | |
Proceeds from issuance of long-term debt | 1,669 | 996 | |
Proceeds from equity issuance | 1,135 | 0 | |
Payments of long-term debt | (523) | (473) | |
Repurchases of common stock | (353) | (1,062) | |
Principal payments under finance leases | (41) | (63) | |
Capitalized financing costs | (48) | (30) | |
Other, net | (18) | (30) | |
Net cash provided (used) in financing activities | 4,571 | (662) | |
Net increase in cash, cash equivalents and restricted cash | 3,744 | 1,527 | |
Cash, cash equivalents and restricted cash at beginning of the period | 2,868 | 1,799 | |
Cash, cash equivalents and restricted cash at end of the period | [1] | 6,612 | 3,326 |
Investing and Financing Activities Not Affecting Cash: | |||
Property and equipment acquired through the issuance of debt | 327 | 220 | |
Property and equipment acquired through other financial liabilities | 280 | 0 | |
Lease modifications and lease conversions | 470 | 36 | |
Right-of-use assets acquired through operating leases | 48 | 99 | |
Property and equipment acquired through finance leases | 19 | 8 | |
United Airlines, Inc. | |||
Cash Flows from Operating Activities: | |||
Net cash provided (used) by operating activities | (78) | 4,596 | |
Cash Flows from Investing Activities: | |||
Capital expenditures, net of returns of purchase deposits on flight equipment | (1,998) | (2,467) | |
Purchases of short-term and other investments | (550) | (1,443) | |
Proceeds from sale of short-term and other investments | 1,774 | 1,484 | |
Other, net | 14 | (10) | |
Net cash used in investing activities | (760) | (2,436) | |
Cash Flows from Financing Activities: | |||
Proceeds from issuance of short-term debt | 2,750 | 0 | |
Proceeds from issuance of long-term debt | 1,669 | 996 | |
Proceeds from equity issuance | 1,135 | 0 | |
Payments of long-term debt | (523) | (473) | |
Dividend to UAL | (353) | (1,062) | |
Principal payments under finance leases | (41) | (63) | |
Capitalized financing costs | (48) | (30) | |
Other, net | (1) | (1) | |
Net cash provided (used) in financing activities | 4,588 | (633) | |
Net increase in cash, cash equivalents and restricted cash | 3,750 | 1,527 | |
Cash, cash equivalents and restricted cash at beginning of the period | 2,862 | 1,793 | |
Cash, cash equivalents and restricted cash at end of the period | [2] | 6,612 | 3,320 |
Investing and Financing Activities Not Affecting Cash: | |||
Property and equipment acquired through the issuance of debt | 327 | 220 | |
Property and equipment acquired through other financial liabilities | 280 | 0 | |
Lease modifications and lease conversions | 470 | 36 | |
Right-of-use assets acquired through operating leases | 48 | 99 | |
Property and equipment acquired through finance leases | $ 19 | $ 8 | |
[1] | The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheet: Cash and cash equivalents $ 6,505 $ 3,221 Restricted cash (included in Prepaid expenses and other) 34 — Restricted cash 73 105 Total cash, cash equivalents and restricted cash $ 6,612 $ 3,326 | ||
[2] | The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheet: Cash and cash equivalents $ 6,505 $ 3,215 Restricted cash (included in Prepaid expenses and other) 34 — Restricted cash 73 105 Total cash, cash equivalents and restricted cash $ 6,612 $ 3,320 |
Condensed Statements of Conso_2
Condensed Statements of Consolidated Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | ||
Reconciliation of cash, cash equivalents and restricted cash: | |||||
Cash and cash equivalents | $ 6,505 | $ 2,762 | $ 3,221 | ||
Restricted cash (included in Prepaid expenses and other) | 34 | 0 | |||
Restricted cash | 73 | 106 | 105 | ||
Total cash, cash equivalents and restricted cash | 6,612 | [1] | 2,868 | 3,326 | [1] |
United Airlines, Inc. | |||||
Reconciliation of cash, cash equivalents and restricted cash: | |||||
Cash and cash equivalents | 6,505 | 2,756 | 3,215 | ||
Restricted cash (included in Prepaid expenses and other) | 34 | 0 | |||
Restricted cash | 73 | 106 | 105 | ||
Total cash, cash equivalents and restricted cash | $ 6,612 | [2] | $ 2,862 | $ 3,320 | [2] |
[1] | The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheet: Cash and cash equivalents $ 6,505 $ 3,221 Restricted cash (included in Prepaid expenses and other) 34 — Restricted cash 73 105 Total cash, cash equivalents and restricted cash $ 6,612 $ 3,326 | ||||
[2] | The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheet: Cash and cash equivalents $ 6,505 $ 3,215 Restricted cash (included in Prepaid expenses and other) 34 — Restricted cash 73 105 Total cash, cash equivalents and restricted cash $ 6,612 $ 3,320 |
Statements of Consolidated Stoc
Statements of Consolidated Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | United Airlines, Inc. | Adoption of New Accounting Standard | [2] | Adoption of New Accounting StandardUnited Airlines, Inc. | [1] | Common Stock | Additional Capital Invested | Additional Capital InvestedUnited Airlines, Inc. | Treasury Stock | Retained Earnings | Retained EarningsUnited Airlines, Inc. | Retained EarningsAdoption of New Accounting Standard | [2] | Retained EarningsAdoption of New Accounting StandardUnited Airlines, Inc. | [1] | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)United Airlines, Inc. | Receivable from Related Parties, NetUnited Airlines, Inc. | ||||
Balance (in shares) at Dec. 31, 2018 | 269,900,000 | ||||||||||||||||||||||
Balance at Dec. 31, 2018 | $ 10,042 | $ 10,004 | $ 3 | $ 6,120 | $ 598 | $ (1,993) | $ 6,715 | $ 10,319 | $ (803) | $ (803) | $ (110) | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Net income (loss) | 1,344 | 1,345 | [1] | 1,344 | 1,345 | [1] | |||||||||||||||||
Other comprehensive income (loss) | (4) | (4) | (4) | (4) | |||||||||||||||||||
Dividend to UAL | (1,063) | (629) | (434) | ||||||||||||||||||||
Stock settled share-based compensation | 31 | 31 | 31 | 31 | |||||||||||||||||||
Repurchases of common stock (in shares) | (12,700,000) | ||||||||||||||||||||||
Repurchases of common stock | (1,063) | (1,063) | |||||||||||||||||||||
Net treasury stock issued for share-based awards (in shares) | 500,000 | ||||||||||||||||||||||
Net treasury stock issued for share-based awards | (30) | (55) | 34 | (9) | |||||||||||||||||||
Other | (31) | 0 | 0 | (31) | |||||||||||||||||||
Balance (in shares) at Jun. 30, 2019 | 257,700,000 | ||||||||||||||||||||||
Balance at Jun. 30, 2019 | 10,320 | 10,282 | $ 3 | 6,096 | 0 | (3,022) | 8,050 | 11,230 | (807) | (807) | (141) | ||||||||||||
Balance (in shares) at Dec. 31, 2018 | 269,900,000 | ||||||||||||||||||||||
Balance at Dec. 31, 2018 | $ 10,042 | $ 10,004 | $ 3 | 6,120 | 598 | (1,993) | 6,715 | 10,319 | (803) | (803) | (110) | ||||||||||||
Balance (in shares) at Dec. 31, 2019 | 251,216,381 | 1,000 | 251,200,000 | [2] | |||||||||||||||||||
Balance at Dec. 31, 2019 | $ 11,531 | [2] | $ 11,492 | $ (17) | $ (17) | $ 3 | 6,129 | 0 | (3,599) | 9,716 | 12,353 | $ (17) | $ (17) | (718) | (718) | (143) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | |||||||||||||||||||||
Balance (in shares) at Mar. 31, 2019 | 264,300,000 | ||||||||||||||||||||||
Balance at Mar. 31, 2019 | $ 9,802 | $ 9,763 | $ 3 | 6,080 | 84 | (2,487) | 6,999 | 10,612 | (793) | (793) | (140) | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Net income (loss) | 1,052 | 1,052 | 1,052 | 1,052 | |||||||||||||||||||
Other comprehensive income (loss) | (14) | (14) | (14) | (14) | |||||||||||||||||||
Dividend to UAL | (536) | (102) | (434) | ||||||||||||||||||||
Stock settled share-based compensation | 17 | 17 | 17 | 17 | |||||||||||||||||||
Repurchases of common stock (in shares) | (6,600,000) | ||||||||||||||||||||||
Repurchases of common stock | (536) | (536) | |||||||||||||||||||||
Net treasury stock issued for share-based awards (in shares) | 0 | ||||||||||||||||||||||
Net treasury stock issued for share-based awards | (1) | (1) | 1 | (1) | |||||||||||||||||||
Other | 0 | 1 | (1) | ||||||||||||||||||||
Balance (in shares) at Jun. 30, 2019 | 257,700,000 | ||||||||||||||||||||||
Balance at Jun. 30, 2019 | $ 10,320 | $ 10,282 | $ 3 | 6,096 | 0 | (3,022) | 8,050 | 11,230 | (807) | (807) | (141) | ||||||||||||
Balance (in shares) at Dec. 31, 2019 | 251,216,381 | 1,000 | 251,200,000 | [2] | |||||||||||||||||||
Balance at Dec. 31, 2019 | $ 11,531 | [2] | $ 11,492 | $ (17) | $ (17) | $ 3 | 6,129 | 0 | (3,599) | 9,716 | 12,353 | $ (17) | $ (17) | (718) | (718) | (143) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Net income (loss) | (3,331) | (3,330) | (3,331) | (3,330) | |||||||||||||||||||
Other comprehensive income (loss) | (541) | (541) | (541) | (541) | |||||||||||||||||||
Dividend to UAL | (342) | (12) | (330) | ||||||||||||||||||||
Stock settled share-based compensation | 42 | 42 | 42 | 42 | |||||||||||||||||||
Repurchases of common stock (in shares) | (4,400,000) | ||||||||||||||||||||||
Repurchases of common stock | (342) | (342) | |||||||||||||||||||||
Sale of common stock (in shares) | 43,700,000 | ||||||||||||||||||||||
Sale of common stock | 1,135 | 1,135 | |||||||||||||||||||||
Warrants issued | 57 | 57 | |||||||||||||||||||||
Net treasury stock issued for share-based awards (in shares) | 500,000 | ||||||||||||||||||||||
Net treasury stock issued for share-based awards | $ (17) | (56) | 42 | (3) | |||||||||||||||||||
Other | $ 1,181 | 1,181 | |||||||||||||||||||||
Balance (in shares) at Jun. 30, 2020 | 290,982,216 | 1,000 | 291,000,000 | ||||||||||||||||||||
Balance at Jun. 30, 2020 | $ 8,517 | $ 8,485 | $ 3 | 7,307 | 30 | (3,899) | 6,365 | 8,676 | (1,259) | (1,259) | 1,038 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||||||||||||||||||
Balance (in shares) at Mar. 31, 2020 | 247,300,000 | ||||||||||||||||||||||
Balance at Mar. 31, 2020 | $ 9,418 | 9,380 | $ 3 | 6,096 | 10 | (3,901) | 7,991 | 10,302 | (771) | (771) | (161) | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Net income (loss) | (1,627) | (1,626) | (1,627) | (1,626) | |||||||||||||||||||
Other comprehensive income (loss) | (488) | (488) | (488) | (488) | |||||||||||||||||||
Stock settled share-based compensation | 20 | 20 | 20 | 20 | |||||||||||||||||||
Sale of common stock (in shares) | 43,700,000 | ||||||||||||||||||||||
Sale of common stock | 1,135 | 1,135 | |||||||||||||||||||||
Warrants issued | 57 | 57 | |||||||||||||||||||||
Net treasury stock issued for share-based awards (in shares) | 0 | ||||||||||||||||||||||
Net treasury stock issued for share-based awards | $ 2 | (1) | 2 | 1 | |||||||||||||||||||
Other | $ 1,199 | 1,199 | |||||||||||||||||||||
Balance (in shares) at Jun. 30, 2020 | 290,982,216 | 1,000 | 291,000,000 | ||||||||||||||||||||
Balance at Jun. 30, 2020 | $ 8,517 | $ 8,485 | $ 3 | $ 7,307 | $ 30 | $ (3,899) | $ 6,365 | $ 8,676 | $ (1,259) | $ (1,259) | $ 1,038 | ||||||||||||
[1] | Transition adjustment due to the adoption of Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses . See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information. | ||||||||||||||||||||||
[2] | Transition adjustment due to the adoption of Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses . See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information. |
Combined Notes to the Financial
Combined Notes to the Financial Statements (Unaudited) | 6 Months Ended |
Jun. 30, 2020 | |
Unusual or Infrequent Items, or Both [Abstract] | |
COMBINED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | COMBINED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) United Airlines Holdings, Inc. (together with its consolidated subsidiaries, "UAL" or the "Company") is a holding company and its principal, wholly-owned subsidiary is United Airlines, Inc. (together with its consolidated subsidiaries, "United"). This Quarterly Report on Form 10-Q is a combined report of UAL and United, including their respective consolidated financial statements. As UAL consolidates United for financial statement purposes, disclosures that relate to activities of United also apply to UAL, unless otherwise noted. United's operating revenues and operating expenses comprise nearly 100% of UAL's revenues and operating expenses. In addition, United comprises approximately the entire balance of UAL's assets, liabilities and operating cash flows. When appropriate, UAL and United are named specifically for their individual contractual obligations and related disclosures and any significant differences between the operations and results of UAL and United are separately disclosed and explained. We sometimes use the words "we," "our," "us," and the "Company" in this report for disclosures that relate to all of UAL and United. The UAL and United unaudited condensed consolidated financial statements shown here have been prepared as required by the U.S. Securities and Exchange Commission (the "SEC"). Some information and footnote disclosures normally included in financial statements that comply with accounting principles generally accepted in the United States ("GAAP") have been condensed or omitted as permitted by the SEC. The financial statements include all adjustments, including normal recurring adjustments and other adjustments, which are considered necessary for a fair presentation of the Company's financial position and results of operations. The UAL and United financial statements should be read together with the information included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (the "2019 Form 10-K"). The Company's quarterly financial data is subject to seasonal fluctuations. Historically its second and third quarter financial results have reflected higher travel demand, and were better than its first and fourth quarter financial results; however, see Part I, Item 2 of this report for additional discussion regarding trends associated with the matters discussed in the " Recent Developments" section below. Recent Developments In December 2019, a novel strain of coronavirus ("COVID-19") was reported in Wuhan, China, and the World Health Organization subsequently declared COVID-19 a "pandemic." As a result of COVID-19, the U.S. government declared a national emergency, the U.S. Department of State issued numerous travel advisories, including a global Level 4 "do not travel" advisory advising U.S. citizens to avoid all international travel, and the U.S. government has implemented a number of travel-related protocols, including enhanced screenings and mandatory 14-day quarantines. Many foreign and U.S. state and local governments have instituted similar measures and declared states of emergency. In the United States and other locations around the world, throughout the first half of 2020, people were instructed to stay home or "shelter in place" and public events, such as conferences, sporting events and concerts, have been canceled, attractions, including theme parks and museums, have been closed, cruise lines have suspended operations and schools and businesses are operating with remote attendance, among other actions. In addition, governments, non-governmental organizations and entities in the private sector have issued non-binding advisories or recommendations regarding air travel or other social distancing measures, including limitations on the number of persons that should be present at public gatherings. While "shelter in place" restrictions and similar advisories and recommendations have been reduced or otherwise eased in certain circumstances, this varies by jurisdiction and organization. In addition, numerous jurisdictions have imposed or reinstated more severe restrictions as a result of the continued spread of COVID-19 or resurgences in the severity of COVID-19 in certain locations, including travel restrictions, mandatory self-quarantine requirements and other enhanced COVID-19-related screening measures that may apply to our personnel and/or the traveling public. The Company began experiencing a significant decline in international and domestic demand related to COVID-19 during the first quarter of 2020 . The decline in demand caused a material deterioration in our revenues in the first half of 2020 , resulting in a net loss of $3.3 billion for that period. Although during the second quarter of 2020 the Company experienced modest, but steady improvement in demand, the Company has since experienced reduced demand and increased cancellations to destinations experiencing increases in COVID-19 cases and/or new quarantine requirements imposed in certain jurisdictions or other restrictions on travel. As a result, the full extent of the ongoing impact of COVID-19 on the Company's longer-term operational and financial performance will depend on future developments, many of which are outside of our control, and all of which are highly uncertain and cannot be predicted; however, the Company currently expects our results of operations for full-year 2020 to be materially impacted and that we will incur a net loss for the full-year 2020 . In response to decreased demand, the Company cut, relative to 2019 capacity, approximately 88% of its scheduled capacity for the second quarter of 2020 . The Company expects scheduled capacity to be down approximately 65% year-over-year in the third quarter of 2020 . The Company also expects its scheduled capacity in the fourth quarter of 2020 to be generally consistent with the third quarter of 2020 . The Company plans to continue to proactively evaluate and cancel flights on a rolling 60 -day basis until it sees signs of a recovery in demand. The Company expects demand to remain suppressed until a widely accepted treatment and/or vaccine for COVID-19 is available. In addition, the Company does not currently expect the recovery from COVID-19 to follow a linear path. The Company has taken a number of actions in response to the decreased demand for air travel. In addition to the schedule reductions discussed above, the Company has: • reduced its planned capital expenditures and reduced operating expenditures for the remainder of 2020 and 2021 (including by postponing projects deemed non-critical to the Company's operations); • terminated its share repurchase program; • as of July 2, 2020 , issued or entered into approximately $10.0 billion ( $3.0 billion through June 30, 2020 ) in secured notes, secured term loan facilities and new aircraft financings, including $6.8 billion of senior secured notes and a secured term loan facility (the "MileagePlus Financing") secured by substantially all of the assets of Mileage Plus Holdings, LLC, a direct wholly-owned subsidiary of United ("MPH"), and Mileage Plus Intellectual Property Assets, Ltd., an indirect wholly-owned subsidiary of MPH ("MIPA"); • raised approximately $1.1 billion in cash proceeds in an underwritten public offering of UAL common stock; • entered into an equity distribution agreement relating to the issuance and sale, from time to time, of up to 28 million shares of UAL common stock; • borrowed, on July 2, 2020 , $1.0 billion under the $2.0 billion revolving credit facility of the Amended and Restated Credit and Guaranty Agreement (the "Revolving Credit Agreement"); • entered into an agreement to finance certain aircraft currently subject to purchase agreements through a sale and leaseback transaction; • elected to defer the payment of $78 million in payroll taxes incurred through June 30, 2020 , as provided by the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), until 2021 and 2022 ; • temporarily grounded certain of its mainline fleet; and • taken a number of actions to reduce employee-related costs, including, among other items, the Company's Chief Executive Officer and President waived 100% of their respective base salaries through 2020 , other officers temporarily waived a portion of their base salaries, the Company's non-employee directors waived 100% of their cash compensation for the second and third quarters of 2020 , the Company suspended merit salary increases and implemented a temporary four-day work week for management and administrative employees and the Company offered voluntary unpaid leaves of absence. On July 8, 2020 , in order to comply with various labor regulations in certain jurisdictions, including pursuant to the Worker Adjustment and Retraining Notification Act, United informed approximately 36,000 U.S.-based employees, either directly or through a union representative, of plans to implement a workforce reduction at their work locations. These notices are part of the Company's strategic realignment of its business and new organizational structure as a result of the impacts of the COVID-19 pandemic on the Company's operations and cost structure. The Company expects that these actions will take effect on or after October 1, 2020 and may continue through the end of 2020 . The Company continues to focus on reducing expenses and managing its liquidity. We expect to continue to modify our cost management structure, liquidity-raising efforts and capacity as the timing of demand recovery becomes more certain. On March 27, 2020 , the President of the United States signed the CARES Act into law. The CARES Act is intended to respond to the COVID-19 pandemic and its impact on the economy, public health, state and local governments, individuals, and businesses. The CARES Act also provides supplemental appropriations for federal agencies to respond to the COVID-19 pandemic. On April 20, 2020 , United entered into a Payroll Support Program Agreement (the "PSP Agreement") with the U.S. Treasury Department providing the Company with total funding of approximately $5.0 billion pursuant to the Payroll Support Program under the CARES Act. These funds will be used to pay for the salaries and benefits of United employees. Approximately $3.5 billion of the $5.0 billion will be a direct grant and approximately $1.5 billion will be in the form of a 10 -year senior unsecured promissory note (the "PSP Note"). As of June 30, 2020 , the Company has received approximately $4.5 billion of the expected $5.0 billion through the Payroll Support Program under the CARES Act. The approximately $500 million remaining balance is expected to be received by the end of July 2020 . As of June 30, 2020 , the Company recorded $1.6 billion in grant income as Special charges (credit) and recorded $1.5 billion as Payroll Support Program deferred credit. The Company also recorded $57 million in warrants issued to the U.S. Treasury Department, within stockholder's equity, in connection with the PSP Note. See Note 3 to the financial statements included in Part I, Item 1 for additional information related to these warrants. In connection with entering into the PSP Agreement, during the second quarter, UAL issued the PSP Note to the U.S. Treasury Department evidencing senior unsecured indebtedness of UAL of approximately $1.3 billion . The principal amount of the PSP Note will increase in an amount equal to 30% of any disbursement made by the U.S. Treasury Department to United under the PSP Agreement after June 30, 2020 . The PSP Note is guaranteed by United and will mature ten years after the initial issuance on April 20, 2030 . If any subsidiary of UAL (other than United) guarantees other unsecured indebtedness of UAL with a principal balance in excess of a specified amount, or if certain subsidiaries are formed or acquired , then such subsidiary shall be required to guarantee the obligations of UAL under the PSP Note. UAL may, at its option, prepay the PSP Note, at any time, and from time to time, at par. UAL is required to prepay the PSP Note upon the occurrence of certain change of control triggering events. The PSP Note does not require any amortization and is to be repaid in full on the maturity date. Under the PSP Agreement, the Company and its business are subject to certain restrictions, including, but not limited to, restrictions on the payment of dividends and the ability to repurchase UAL's equity securities, requirements to maintain certain levels of scheduled service, requirements to maintain U.S. employment levels through September 30, 2020 and certain limitations on executive compensation. On April 17, 2020 , the Company submitted an application to the Loan Program under the CARES Act. Under the Loan Program, the Company expects to have the ability, through March 26, 2021 , to borrow up to approximately $4.5 billion from the U.S. Treasury Department for a term of up to five years . The Company continues to work with the U.S. Treasury Department on the CARES Act Loan Program loan, and it is the Company's expectation that, if the Company takes the loan, it will use available slots, gates and routes collateral. The Company believes it has sufficient slots, gates and routes collateral available to meet the collateral coverage that may be required for the full $4.5 billion available to the Company under the Loan Program. In connection with any borrowings under the Loan Program, the Company and its business will be subject to certain restrictions, including, but not limited to, certain of the restrictions described above with respect to the PSP Agreement. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
RECENTLY ISSUED ACCOUNTING STANDARDS | RECENTLY ISSUED ACCOUNTING STANDARDS The Company adopted Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses ("ASU 2016-13") effective January 1, 2020. ASU 2016-13 replaces the incurred loss methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. For trade receivables, loans and held-to-maturity debt securities, entities are required to estimate lifetime expected credit losses. For available-for-sale debt securities, entities are required to recognize an allowance for credit losses rather than a reduction to the carrying value of the asset. The Company recorded a $17 million cumulative-effect adjustment, net of related income taxes, to its retained earnings balance on January 1, 2020 as a result of this adoption. See Notes 7, 8, 9 and 11 to the financial statements included in Part I, Item 1 for additional disclosures about the impact of ASU 2016-13 on the six months ended June 30, 2020 results. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Revenue by Geography. The table below presents the Company's operating revenue by principal geographic region (as defined by the U.S. Department of Transportation) (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Domestic (U.S. and Canada) $ 925 $ 7,087 $ 6,003 $ 12,962 Atlantic 219 2,066 1,434 3,524 Pacific 258 1,306 1,064 2,587 Latin America 73 943 953 1,918 Total $ 1,475 $ 11,402 $ 9,454 $ 20,991 Advance Ticket Sales. All tickets sold at any given point of time have travel dates extending up to 12 months. The Company defers amounts related to future travel in its Advance ticket sales liability account. The Company's Advance ticket sales liability also includes credits issued to customers on electronic travel certificates ("ETCs") and future flight credits ("FFCs"), primarily for ticket cancellations, which can be applied towards a purchase of a new ticket. In April 2020, due to the COVID-19 pandemic, the Company extended the expiration dates of ETCs from 12 months from the date of issuance to 24 months from the date of issuance and extended the expiration of FFCs, for tickets issued between May 1, 2019 and March 31, 2020, to 24 months from the original issue date. As of June 30, 2020 , the Company's Advance ticket sales liability included $3.0 billion related to these credits and approximately 93% of these credits have expiration dates extending beyond 12 months . However, given the uncertainty of travel demand caused by COVID-19, the Company is unable to estimate the amount of the ETCs and FFCs that will be used within the next 12 months and has classified the entire amount of the Advanced ticket liability in current liabilities even though some of the ETCs and FFCs could be used after the next 12 months. Also, the Company is unable to estimate the December 31, 2019 Advance ticket sales that will be recognized in revenue in 2020 due to the higher than historical refunds and exchanges into ETCs or FFCs. The Company continues to use its historical experience and most recent trends and program changes to estimate its breakage. The Company will continue to update its breakage estimates as future information is received. In the three and six months ended June 30, 2020 , the Company recognized approximately $0.5 billion and $2.8 billion , respectively, and in the three and six months ended June 30, 2019 , the Company recognized approximately $3.9 billion and $3.2 billion , respectively, of passenger revenue for tickets that were included in Advance ticket sales at the beginning of those periods. Ancillary Fees. The Company charges fees, separately from ticket sales, for certain ancillary services that are directly related to passengers' travel, such as ticket change fees, baggage fees, inflight amenities fees, and other ticket-related fees. These ancillary fees are part of the travel performance obligation and, as such, are recognized as passenger revenue when the travel occurs. The Company recorded $66 million and $542 million of ancillary fees within passenger revenue in the three and six months ended June 30, 2020 , respectively. The Company recorded $636 million and $1.2 billion of ancillary fees within passenger revenue in the three and six months ended June 30, 2019 , respectively. Frequent Flyer Accounting. The table below presents a roll forward of Frequent flyer deferred revenue (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Total Frequent flyer deferred revenue - beginning balance $ 5,488 $ 5,138 $ 5,276 $ 5,005 Total miles awarded 228 682 787 1,289 Travel miles redeemed (Passenger revenue) (34 ) (589 ) (356 ) (1,027 ) Non-travel miles redeemed (Other operating revenue) (12 ) (33 ) (37 ) (69 ) Total Frequent flyer deferred revenue - ending balance $ 5,670 $ 5,198 $ 5,670 $ 5,198 In the three and six months ended June 30, 2020 , the Company recognized, in Other operating revenue, $339 million and $869 million , respectively, related to the marketing, advertising, non-travel miles redeemed (net of related costs) and other travel-related benefits of the mileage revenue associated with our various partner agreements including, but not limited to, our JPMorgan Chase Bank, N.A. ("Chase") co-brand agreement. The Company recognized $499 million and $972 million , respectively, in the three and six months ended June 30, 2019, related to those revenues. In the first quarter of 2020, the Company entered into a Third Amended and Restated Co-Branded Card Marketing Services Agreement (as amended from time to time, the "Co-Brand Agreement") with Chase. The Co-Brand Agreement extended the term of the agreement into 2029 and modified certain other terms, resulting in a different allocation among the separately identifiable performance obligations. The portion related to the MileagePlus miles awarded of the total amounts received from our various partner agreements is deferred and presented in the table above as an increase to the frequent flyer liability. We determine the current portion of our frequent flyer liability based on expected redemptions in the next 12 months. Given the uncertainty in travel demand caused by COVID-19, we currently estimate a greater percentage of award redemptions will occur beyond 12 months, however this estimate may change as travel demand and award redemptions become clearer in future periods. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE The computations of UAL's basic and diluted earnings (loss) per share are set forth below (in millions, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Earnings (loss) available to common stockholders $ (1,627 ) $ 1,052 $ (3,331 ) $ 1,344 Basic weighted-average shares outstanding 280.7 260.8 264.6 263.9 Effect of employee stock awards and warrants (a) — 0.8 — 1.0 Diluted weighted-average shares outstanding 280.7 261.6 264.6 264.9 Earnings (loss) per share, basic $ (5.79 ) $ 4.03 $ (12.59 ) $ 5.09 Earnings (loss) per share, diluted $ (5.79 ) $ 4.02 $ (12.59 ) $ 5.07 (a) Antidilutive common stock equivalents excluded from the diluted per share calculation are not material. On April 20, 2020, UAL entered into a warrant agreement with the U.S. Treasury Department, pursuant to which UAL agreed to issue to the U.S. Treasury Department warrants to purchase up to approximately 4.6 million shares of common stock, pro rata in conjunction with the initial issuance of, and increases to, the principal amount outstanding under the PSP Note (the "PSP Warrants"). Through June 30, 2020, UAL issued PSP Warrants to purchase up to approximately 4.2 million shares of common stock, with such warrants accounted for as equity instruments. The PSP Warrants have a strike price of $31.50 per share (which was the closing price of UAL's common stock on The Nasdaq Stock Market on April 9, 2020). The PSP Warrants will expire five years after issuance, and are exercisable either through net share settlement, in cash or in shares of UAL common stock, at UAL's option. The PSP Warrants contain customary anti-dilution provisions and registration rights and are freely transferable. Pursuant to the terms of the PSP Warrants, PSP Warrant holders do not have any voting rights. The relative fair value of the PSP Warrants is recorded within stockholder's equity and as a discount reducing the CARES Act grant credit. If the Company borrows any amounts under the CARES Act Loan Program, UAL expects to issue to the U.S. Treasury Department additional warrants to purchase shares of UAL common stock. For example, if the Company borrows the full amount currently available of $4.5 billion, the Company would issue warrants to purchase approximately 14.2 million shares of UAL common stock at a strike price of $31.50 per share (which was the closing price of UAL's common stock on The Nasdaq Stock Market on April 9, 2020), on the same terms as the PSP Warrants. If the Company borrows less than the full amount, the amount of warrants issued is expected to be reduced by a proportional amount. On April 21, 2020, UAL entered into an underwriting agreement (the "Underwriting Agreement") with Morgan Stanley & Co. LLC and Barclays Capital Inc. (collectively, the "Underwriters"), relating to the issuance and sale by UAL of 39,250,000 shares of its common stock, par value $0.01 per share, at a price to the public of $26.50 per share. Pursuant to the Underwriting Agreement, UAL granted the Underwriters a 30 -day option to purchase up to an additional 3,925,000 shares of UAL common stock on the same terms, and such option was exercised in full, resulting in total proceeds of approximately $1.1 billion . On June 15, 2020, UAL entered into an equity distribution agreement (the "Distribution Agreement") with Citigroup Global Markets Inc., BofA Securities, Inc. and J.P. Morgan Securities LLC (collectively, the "Managers"), relating to the issuance and sale from time to time by UAL (the "ATM Offering"), through the Managers, of up to 28,000,000 shares of UAL's common stock, par value $0.01 per share (the "Shares"). Sales of the Shares, if any, under the Distribution Agreement may be made in any transactions that are deemed to be "at the market offerings" as defined in Rule 415 under the Securities Act of 1933, as amended. Under the terms of the Distribution Agreement, UAL may also sell Shares to any Manager, as principal for its own account, at a price agreed upon at the time of sale. If UAL sells Shares to a Manager as principal, UAL will enter into a separate agreement with such Manager. As of June 30, 2020 , 0.5 million shares were sold in the ATM Offering at an average price of $41.05 per share, with proceeds totaling approximately $22 million |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The tables below present the components of the Company's accumulated other comprehensive income (loss), net of tax ("AOCI") (in millions): Pension and Other Postretirement Liabilities Investments and Other Deferred Taxes Total Balance at March 31, 2020 $ (613 ) $ (14 ) $ (144 ) $ (771 ) Changes in value (721 ) 17 156 (548 ) Amounts reclassified to earnings 77 (a) — (17 ) 60 Balance at June 30, 2020 $ (1,257 ) $ 3 $ (5 ) $ (1,259 ) Balance at December 31, 2019 $ (560 ) $ 2 $ (160 ) $ (718 ) Changes in value (770 ) 1 171 (598 ) Amounts reclassified to earnings 73 (a) — (16 ) 57 Balance at June 30, 2020 $ (1,257 ) $ 3 $ (5 ) $ (1,259 ) Balance at March 31, 2019 $ (654 ) $ 1 $ (140 ) $ (793 ) Changes in value (29 ) 2 7 (20 ) Amounts reclassified to earnings 8 (a) — (2 ) 6 Balance at June 30, 2019 $ (675 ) $ 3 $ (135 ) $ (807 ) Balance at December 31, 2018 $ (663 ) $ (4 ) $ (136 ) $ (803 ) Changes in value (24 ) 7 4 (13 ) Amounts reclassified to earnings 12 (a) — (3 ) 9 Balance at June 30, 2019 $ (675 ) $ 3 $ (135 ) $ (807 ) (a) This AOCI component is included in the computation of net periodic pension and other postretirement costs (See Note 6 to the financial statements included in Part I, Item 1 for additional information). |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company's effective tax rates for the three and six months ended June 30, 2020 were 18.8% and 19.1% , respectively. The effective tax rates for the three and six months ended June 30, 2019 were 22.3% and 21.9% , respectively. The provision for income taxes is based on the estimated annual effective tax rate which represents a blend of federal, state and foreign taxes and includes the impact of certain nondeductible items and the impact of a change in the Company's mix of domestic and foreign earnings (losses). The effective tax rates for the three and six months ended June 30, 2020 were impacted by $64 million and $130 million , respectively, of valuation allowance related to unrealized capital losses. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2020 | |
Employee-related Liabilities [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Defined Benefit Pension and Other Postretirement Benefit Plans. The Company's net periodic benefit cost includes the following components for the three months ended June 30 (in millions): Pension Benefits Other Postretirement Benefits Affected Line Item 2020 2019 2020 2019 Service cost $ 53 $ 46 $ 3 $ 3 Salaries and related costs Interest cost 56 57 7 14 Miscellaneous, net Expected return on plan assets (91 ) (73 ) (1 ) (1 ) Miscellaneous, net Amortization of unrecognized (gain) loss 37 29 (11 ) (15 ) Miscellaneous, net Amortization of prior service credit — — (31 ) (9 ) Miscellaneous, net Settlement loss 11 3 — — Miscellaneous, net Settlement loss - VSPs (defined below) 71 — — — Miscellaneous, net Special termination benefit - VSPs 35 — 125 — Miscellaneous, net Total $ 172 $ 62 $ 92 $ (8 ) The Company's net periodic benefit cost includes the following components for the six months ended June 30 (in millions): Pension Benefits Other Postretirement Benefits Affected Line Item 2020 2019 2020 2019 Service cost $ 107 $ 92 $ 5 $ 5 Salaries and related costs Interest cost 112 114 14 29 Miscellaneous, net Expected return on plan assets (182 ) (145 ) (1 ) (1 ) Miscellaneous, net Amortization of unrecognized (gain) loss 72 58 (22 ) (30 ) Miscellaneous, net Amortization of prior service credit — — (62 ) (19 ) Miscellaneous, net Settlement loss 14 3 — — Miscellaneous, net Settlement loss - VSPs (defined below) 71 — — — Miscellaneous, net Special termination benefit - VSPs 35 — 125 — Miscellaneous, net Total $ 229 $ 122 $ 59 $ (16 ) Given the impacts of the COVID-19 pandemic, the Company does not plan to make any contributions in 2020 to its two primary defined benefit pension plans, one covering certain pilot employees and another covering certain U.S. non-pilot employees. The Company does not have any minimum required contributions for 2020. During the second quarter of 2020 , the Company offered voluntary separation programs ("VSPs") to its U.S. based front line employees, excluding pilots, and management and administrative employees. The Company offered its eligible front-line employees, based on employee group, age and completed years of service, special termination benefits in the form of additional years of pension service and additional subsidies for retiree medical costs. As a result, the Company recorded, in the second quarter of 2020 , $35 million and $125 million , respectively, for those additional benefits. Also, the Company recognized a $71 million settlement loss related to the defined benefit pension plan covering certain U.S. non-pilot employees. As a result of the VSPs, the Company remeasured both its defined pension plan and its retiree medical benefit program liabilities using discount rates of 3.24% and 2.73% , respectively. As a result of the remeasurements, the projected benefit obligation of the defined pension plan increased by $655 million and the retiree medical benefit program obligation increased by $65 million , with an offset to Accumulated other comprehensive loss for both plans. The Company expects additional employee reductions in the second half of the year and, as a result, expects to record additional settlement and special termination benefits. Share-Based Compensation. In the six months ended June 30, 2020 , UAL granted share-based compensation awards pursuant to the United Continental Holdings, Inc. 2017 Incentive Compensation Plan. These share-based compensation awards included 2.4 million restricted stock units ("RSUs"), consisting of 2.1 million time-vested RSUs and 0.3 million performance-based RSUs. The time-vested RSUs vest pro-rata, typically on February 28th of each year, over a three -year period from the date of grant. The amount of performance-based RSUs vest upon the achievement of established goals based on the Company's absolute pre-tax margin performance as well as a customer metric based on the Company's relative quarterly average of net promoter scores as compared to a group of industry peers, both of which are measured for the three-year performance period ending December 31, 2022 . RSUs are generally equity awards settled in stock for domestic employees and liability awards settled in cash for international employees. The cash payments are based on the 20 -day average closing price of UAL common stock immediately prior to the vesting date. The table below presents information related to share-based compensation (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Share-based compensation expense $ 24 $ 21 $ 42 $ 37 June 30, 2020 December 31, 2019 Unrecognized share-based compensation $ 135 $ 77 |
BRW Term Loan
BRW Term Loan | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
BRW Term Loan | BRW TERM LOAN BRW Term Loan. In November 2018, United, as lender, entered into a Term Loan Agreement (the "BRW Term Loan Agreement") with, among others, BRW Aviation Holding LLC and BRW Aviation LLC ("BRW"), as guarantor and borrower, respectively. BRW Aviation Holding LLC and BRW are affiliates of Synergy Aerospace Corporation ("Synergy"), and BRW is the majority shareholder of Avianca Holdings S.A. ("AVH"). Pursuant to the BRW Term Loan Agreement, United provided to BRW a $456 million term loan (the "BRW Term Loan"), secured by a pledge of BRW's equity, as well as BRW's 516 million common shares of AVH (which are eligible to be converted into the same number of preferred shares, which may be deposited with the depositary for AVH's American Depositary Receipts ("ADRs"), the class of AVH securities that trades on the New York Stock Exchange (the "NYSE"), in exchange for 64.5 million ADRs) (such shares and equity, collectively, the "BRW Loan Collateral"). BRW is currently in default under the BRW Term Loan Agreement. In order to protect the value of its collateral, on May 24, 2019, United began to exercise certain remedies available to it under the terms of the BRW Term Loan Agreement and related documents. In connection with the delivery by United of a notice of default to BRW, Kingsland Holdings Limited ("Kingsland"), AVH's largest minority shareholder, was granted, in accordance with the agreements related to the BRW Term Loan Agreement, authority to manage BRW, which remains the majority shareholder of AVH. Kingsland then continued with the foreclosure process, which was expected to result in a judicially supervised sale of the BRW Loan Collateral. However, upon the filing by AVH and certain of its affiliates of voluntary reorganization proceedings under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York on May 10, 2020 (the "AVH Reorganization Proceedings"), the New York state court judge presiding over the foreclosure proceedings agreed to stay those proceedings until later this year. In the first quarter of 2020 , United recorded a full credit loss allowance against the $515 million carrying value of the BRW Term Loan and related receivables. United recorded the allowance based on United's assessment of AVH's financial uncertainty due to its high level of leverage and the fact that the airline had ceased operations due to the COVID-19 pandemic. The credit loss allowance was recorded as part of Nonoperating income (expense): Miscellaneous, net on the Company's statements of consolidated operations. During the second quarter of 2020, AVH filed the AVH Reorganization Proceedings and, accordingly, United maintains a full loss reserve against the BRW Term Loan and related receivables. In connection with funding the BRW Term Loan Agreement, the Company entered into certain other agreements with Kingsland. See Note 9 to the financial statements included in Part I, Item I for additional information regarding our obligations to Kingsland and their interrelationship with the BRW Term Loan Agreement. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS The table below presents disclosures about the financial assets and liabilities measured at fair value on a recurring basis in UAL's financial statements (in millions): June 30, 2020 December 31, 2019 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 6,505 $ 6,505 $ — $ — $ 2,762 $ 2,762 $ — $ — Short-term investments: Corporate debt 558 — 558 — 1,045 — 1,045 — Asset-backed securities 309 — 309 — 690 — 690 — U.S. government and agency notes 81 — 81 — 124 — 124 — Certificates of deposit placed through an account registry service ("CDARS") — — — — 35 — 35 — Other fixed-income securities 10 — 10 — 95 — 95 — Other investments measured at net asset value ("NAV") — — — — 193 — — — Restricted cash 107 107 — — 106 106 — — Long-term investments: Equity securities 101 101 — — 385 385 — — AVH Derivative Assets — — — — 24 — — 24 Other assets 16 — — 16 — — — — Available-for-sale investment maturities - The short-term investments shown in the table above are classified as available-for-sale, with the exception of investments measured at NAV. As of June 30, 2020 , asset-backed securities have remaining maturities of less than one year to approximately 14 years and corporate debt securities have remaining maturities of three years or less. U.S. government and agency notes have maturities of approximately two years or less and other fixed-income securities have maturities of less than one year . Restricted cash - Restricted cash primarily includes collateral for letters of credit and collateral associated with facility leases and other insurance-related obligations. Equity securities - Equity securities represent United's investment in Azul Linhas Aéreas Brasileiras S.A. ("Azul"), consisting of a preferred equity stake of approximately 8% (approximately 2% of the total capital stock of Azul). The Company recorded $9 million of gains and $284 million of losses, respectively, during the three and six months ended June 30, 2020 . The Company recorded $38 million and $52 million in gains, respectively, during the three and six months ended June 30, 2019 for changes to the fair market value of its equity investment in Azul in Unrealized gains (losses) on investments, net in the Company's statements of consolidated operations. The carrying value of our investment in Azul was $101 million at June 30, 2020 . AVH Derivative Assets - As part of the BRW Loan Agreement and related agreements with Kingsland, United obtained AVH share call options, AVH share appreciation rights and an AVH share-based upside sharing agreement (collectively, the "AVH Derivative Assets"). The AVH Derivative Assets are recorded at fair value as Other assets on the Company's balance sheet and are included in the table above. The Company recorded $24 million in losses during the six months ended June 30, 2020 and recorded $4 million and $1 million in losses, respectively, during the three and six months ended June 30, 2019 , in the fair value of the AVH Derivative Assets in Unrealized gains (losses) on investments, net in the Company's statements of consolidated operations. Investments presented in the table above have the same fair value as their carrying value. Other fair value information. The table below presents the carrying values and estimated fair values of financial instruments not presented in the tables above (in millions). Carrying amounts include any related discounts, premiums and issuance costs: June 30, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Long-term debt $ 18,772 $ 16,906 $ — $ 13,032 $ 3,874 $ 14,552 $ 15,203 $ — $ 11,398 $ 3,805 Fair value of the financial instruments included in the tables above was determined as follows: Description Fair Value Methodology Cash and cash equivalents The carrying amounts approximate fair value because of the short-term maturity of these assets. Short-term investments, other than Other investments measured at NAV, Equity securities and Restricted cash Fair value is based on (a) the trading prices of the investment or similar instruments, (b) an income approach, which uses valuation techniques to convert future amounts into a single present amount based on current market expectations about those future amounts when observable trading prices are not available, or (c) broker quotes obtained by third-party valuation services. Other investments measured at NAV In accordance with the relevant accounting standards, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. The investments measured using NAV are shares of mutual funds that invest in fixed-income instruments including bonds, debt securities, and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities. AVH Derivative Assets Fair values are calculated using a Monte Carlo simulation approach. Unobservable inputs include expected volatility, expected dividend yield and control and acquisition premiums. Long-term debt Fair values were based on either market prices or the discounted amount of future cash flows using our current incremental rate of borrowing for similar liabilities or assets. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments. As of June 30, 2020 , United had firm commitments and options to purchase aircraft from The Boeing Company ("Boeing"), Airbus S.A.S. ("Airbus") and Embraer S.A. ("Embraer") as presented in the table below: Scheduled Aircraft Deliveries Aircraft Type Number of Firm Last Six Months of 2020 2021 2022 After 2022 Airbus A321XLR 50 — — — 50 Airbus A350 45 — — — 45 Boeing 737 MAX 171 16 24 — 131 Boeing 787 16 8 8 — — Embraer E175 20 16 4 — — (a) United also has options and purchase rights for additional aircraft. Th e aircraft listed in the table above are scheduled for delivery through 2030 . To the extent the Company and the aircraft manufacturers with whom the Company has existing orders for new aircraft agree to modify the contracts governing those orders, the amount and timing of the Company's future capital commitments could change. The Company may assign the purchase obligation for each of the 20 Embraer E175 aircraft to one of its regional partners at the time of such aircraft's delivery, subject to certain conditions. Following the Federal Aviation Administration ("FAA") order issued on March 13, 2019 prohibiting the operation of Boeing 737 MAX series aircraft by U.S. certificated operators ("FAA Order"), Boeing suspended deliveries of new Boeing 737 MAX aircraft. As a result, scheduled deliveries of Boeing 737 MAX series aircraft have been delayed, and the Company expects these delays to continue. The extent of the delay to the scheduled deliveries of new Boeing 737 MAX aircraft is expected to be impacted by the length of time the FAA Order remains in place, Boeing's production rate and the pace at which Boeing can deliver aircraft following the lifting of the FAA Order, among other factors, and these factors have been and could continue to be significantly impacted by the COVID-19 pandemic. United also has agreements to purchase 20 used Airbus A319 aircraft with expected delivery dates through 2022 and 13 used Boeing 737-700 aircraft with expected delivery dates through 2021 . On April 17, 2020, United entered into an agreement with BOC Aviation (USA) Corporation ("BOCA"), a subsidiary of BOC Aviation Limited , to finance through a sale and leaseback transaction six new Boeing model 787-9 aircraft and 16 new Boeing model 737-9 MAX aircraft subject to purchase agreements between United and Boeing. In connection with delivery of each aircraft from Boeing, United will assign its right to purchase such aircraft to BOCA, and simultaneous with BOCA's purchase from Boeing, United will enter into a long-term lease for such aircraft with BOCA. Two Boeing model 787-9 aircraft were delivered in the second quarter of 2020 under this transaction (and each is presently subject to a long-term lease from BOCA to United), and the remaining 20 aircraft are scheduled to be delivered through the end of 2020. Upon delivery, the Company will account for those aircraft which have a repurchase option at a price other than fair value as part of Flight equipment on the Company's balance sheet and the related obligation as Other liabilities (current and noncurrent) since they do not qualify for sale recognition. The remaining aircraft in this transaction that qualify for sale recognition will be recorded as Operating lease right-of-use assets and lease liabilities on the Company's balance sheet after recognition of related gains or losses on such sale. In March 2020, the Company entered into a confidential settlement with Boeing with respect to compensation for financial damages incurred in 2019 due to the grounding of the Boeing 737 MAX aircraft. In June 2020, the Company entered into an amended and restated confidential agreement with Boeing which provides for the settlement of additional items related to aircraft delivery and updates the scheduled delivery for substantially all undelivered Boeing 737 MAX aircraft. The compensation to the Company under the amended and restated settlement agreement is in the form of credit memos to be issued at future dates upon the satisfaction of certain conditions related to aircraft deliveries. The Company plans to account for this settlement as a reduction to the cost basis of future firm order Boeing 737 MAX aircraft deliveries and previously-delivered Boeing 737 MAX aircraft, which is expected to reduce future depreciation expense associated with these aircraft. The table below summarizes United's commitments as of June 30, 2020 , which include aircraft and related spare engines, aircraft improvements and all non-aircraft capital commitments (in billions): Last six months of 2020 $ 1.8 2021 3.5 2022 1.3 2023 2.7 2024 1.7 After 2024 13.9 $ 24.9 Regional CPAs. The table below summarizes the Company's expected future payments through the end of the terms of our capacity purchase agreements ("CPAs"), excluding aircraft ownership costs and variable pass-through costs such as fuel and landing fees, among others. Our future commitments under our CPAs are dependent on numerous variables, and are, therefore, difficult to predict. We have set forth below estimates based on our current assumptions of our anticipated level of flight activity or at any contractual minimum utilization levels if applicable, whichever is higher. Based on these assumptions as of June 30, 2020 , our future payments through the end of the terms of our CPAs are presented in the table below (in billions): Last six months of 2020 $ 0.9 2021 2.3 2022 2.3 2023 1.7 2024 1.6 After 2024 4.5 $ 13.3 Guarantees. As of June 30, 2020 , United is the guarantor of approximately $1.9 billion in aggregate principal amount of tax-exempt special facilities revenue bonds and interest thereon. These bonds, issued by various airport municipalities, are payable solely from rentals paid under long-term agreements with the respective governing bodies. The leasing arrangements associated with these obligations are accounted for as operating leases recognized on the Company's balance sheet with the associated expense recorded on a straight-line basis over the expected lease term. All of these bonds are due between 2023 and 2038 . In connection with funding the BRW Term Loan Agreement, the Company entered into an agreement with Kingsland pursuant to which, in return for Kingsland's pledge of its 144.8 million common shares of AVH (which are eligible to be converted into the same number of preferred shares, which may be deposited with the depositary for AVH's ADRs, the class of AVH securities that trades on the NYSE, in exchange for 18.1 million ADRs) and its consent to BRW's pledge of its AVH common shares to United under the BRW Term Loan Agreement and related agreements, United (1) granted to Kingsland the right to put its AVH common shares to United at market price on the fifth anniversary of the BRW Term Loan Agreement or upon certain sales of AVH common shares owned by BRW, including upon a foreclosure of United's security interest or any completed liquidation or dissolution of AVH, and (2) guaranteed BRW's obligation to pay Kingsland the difference (which amount, if paid by United, will increase the BRW Term Loan by such amount) if the market price of AVH common shares on the fifth anniversary, or upon any such sale, as applicable, is less than $12 per ADR on the NYSE, for an aggregate maximum possible combined put payment and guarantee amount on the fifth anniversary of $217 million . In 2018, the Company recorded a liability of $31 million for its guarantee to loan additional funds to BRW if required. Any such additional loans to BRW would be collateralized by BRW's AVH shares and other collateral. Due to AVH's financial uncertainty due to its high level of leverage and the fact that the airline had ceased operations due to the COVID-19 pandemic, in March 2020, the Company recorded the full amount under this guarantee with a charge to income of $182 million as part of Nonoperating income (expense): Miscellaneous, net on the Company's statements of consolidated operations. As of June 30, 2020 , United is the guarantor of $126 million of aircraft mortgage debt issued by one of United's regional carriers. The aircraft mortgage debt is subject to similar increased cost provisions as described below for the Company's debt, and the Company would potentially be responsible for those costs under the guarantees. Increased Cost Provisions. In United's financing transactions that include loans in which United is the borrower, United typically agrees to reimburse lenders for any reduced returns with respect to the loans due to any change in capital requirements and, in the case of loans with respect to which the interest rate is based on the London Interbank Offered Rate ("LIBOR"), for certain other increased costs that the lenders incur in carrying these loans as a result of any change in law, subject, in most cases, to obligations of the lenders to take certain limited steps to mitigate the requirement for, or the amount of, such increased costs. At June 30, 2020 , the Company had $7.6 billion of floating rate debt with remaining terms of up to 12 years that are subject to these increased cost provisions. In several financing transactions involving loans or leases from non-U.S. entities, with remaining terms of up to 12 years and an aggregate balance of $7.4 billion , the Company bears the risk of any change in tax laws that would subject loan or lease payments thereunder to non-U.S. entities to withholding taxes, subject to customary exclusions. Labor Negotiations. As of June 30, 2020 , the Company had approximately 91,800 employees, of whom approximately 85% were represented by various U.S. labor organizations and approximately 22% were on voluntary unpaid leaves of absence. On February 1, 2019, the collective bargaining agreement with the Air Line Pilots Association ("ALPA"), the labor union representing United's pilots, became amendable. The Company and ALPA are in negotiations for an amended agreement. The Company and UNITE HERE, the labor union representing United's Catering Operations employees, started negotiations for a first collective bargaining agreement in March 2019. The collective bargaining agreement with the International Brotherhood of Teamsters ("IBT") contains provisions that require the Company to align contract terms with other airlines' workgroups under certain conditions, and a review of these terms is expected to occur in December 2020. Credit Card Processing Agreements. The Company has agreements with financial institutions that process customer credit card transactions for the sale of air travel and other services. Under certain of the Company's credit card processing agreements, the financial institutions in certain circumstances have the right to require that the Company maintain a reserve equal to a portion of advance ticket sales that has been processed by that financial institution, but for which the Company has not yet provided the air transportation. Such financial institutions may require cash or other collateral reserves to be established or withholding of payments related to receivables to be collected, including if the Company does not maintain certain minimum levels of unrestricted cash, cash equivalents and short-term investments. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT As of June 30, 2020 , United had its entire capacity of $2.0 billion available under the revolving credit facility of the Revolving Credit Agreement. To maximize United's flexibility under a debt incurrence covenant contained in two of United's financings, on July 2, 2020 , United took the proactive step of borrowing $1.0 billion under the Revolving Credit Agreement, which leaves $1.0 billion available for borrowing under such agreement by United at any time until April 1, 2022 . Borrowings under the revolving credit facility bear interest at a variable rate equal to LIBOR (but not less than 0% per annum), plus a margin of 2.25% per annum, or (at United's election) another rate based on certain market interest rates, plus a margin of 1.25% per annum. EETCs . In September 2019, United created enhanced equipment trust certificate ("EETC") pass-through trusts, each of which issued pass-through certificates. The proceeds from the issuance of the pass-through certificates are used to purchase equipment notes issued by United and secured by its aircraft financed with the proceeds of such notes. The Company records the debt obligation upon issuance of the equipment notes rather than upon the initial issuance of the pass-through certificates. The pass-through certificates represent fractional undivided interests in the respective pass-through trusts and are not obligations of United. The payment obligations under the equipment notes are those of United. Proceeds received from the sale of pass-through certificates are initially held by a depositary in escrow for the benefit of the certificate holders until United issues equipment notes to the trust, which purchases such notes with a portion of the escrowed funds. These escrowed funds are not guaranteed by United and are not reported as debt on our consolidated balance sheet because the proceeds held by the depositary are not United's assets. Certain details of the pass-through trusts with proceeds received from issuance of debt in 2020 are as follows (in millions, except stated interest rate): EETC Issuance Date Class Face Amount Stated interest rate Total proceeds received from issuance of debt during 2020 Total debt recorded as of June 30, 2020 September 2019 AA $ 702 2.70% $ 189 $ 702 September 2019 A 287 2.90% 77 287 September 2019 B 232 3.50% 62 232 $ 1,221 $ 328 $ 1,221 Used Aircraft Facility. On March 9, 2020 , the Company entered into a Term Loan Credit and Guaranty Agreement (the "Used Aircraft Credit Agreement"), among United, as borrower, UAL, as parent and guarantor, the subsidiaries of UAL other than United party thereto from time to time, as guarantors, the lenders party thereto from time to time and JPMorgan Chase Bank, N.A., as administrative agent. The obligations of United under the Used Aircraft Credit Agreement are secured by liens on certain aircraft of United and certain related assets. United borrowed the full amount of $2 billion under the Used Aircraft Credit Agreement (the "Used Aircraft Facility"). The principal amount of the Used Aircraft Facility must be repaid in a single installment on the maturity date on March 8, 2021 . Borrowings under the Used Aircraft Credit Agreement bear interest at a variable rate equal to LIBOR (but not less than 1% per annum), plus a margin of 2.00% , 2.25% or 2.50% per annum, or (at United's election) another rate based on certain market interest rates, plus a margin of 1.00% , 1.25% or 1.50% per annum, in each case, with such incremental increase to the margin occurring at 180 days and 270 days , as applicable. The Used Aircraft Credit Agreement includes covenants that restrict the Company's ability to, among other things, make investments and to pay dividends on, or to repurchase, UAL common stock. In addition, the Used Aircraft Credit Agreement requires the Company to maintain unrestricted cash and cash equivalents and unused commitments available under all revolving credit facilities aggregating not less than $2.0 billion and to maintain a minimum ratio of appraised value of collateral to outstanding obligations under the Used Aircraft Credit Agreement of 1.60 to 1. If the Company does not meet the minimum collateral coverage ratio when required, it must either provide additional collateral to secure its obligations under the Used Aircraft Credit Agreement or repay the loans under the Used Aircraft Credit Agreement (or both) to the extent necessary to maintain compliance with the collateral coverage ratio. Spare Parts Facility. On March 20, 2020 , the Company entered into a Term Loan Credit and Guaranty Agreement (the "Spare Parts Credit Agreement"), among United, as borrower, UAL, as parent and guarantor, the subsidiaries of UAL other than United party thereto from time to time, as guarantors, the lenders party thereto from time to time and Goldman Sachs Bank USA, as administrative agent. The obligations of United under the Spare Parts Credit Agreement are secured by liens on certain spare parts of United and certain related assets. United borrowed the full amount of $500 million under the Spare Parts Credit Agreement (the "Spare Parts Facility"). The principal amount of the Spare Parts Facility must be repaid in a single installment on the maturity date on March 22, 2021 . Borrowings under the Spare Parts Credit Agreement bear interest at a variable rate equal to LIBOR (but not less than 1% per annum), plus a margin of 2.75% , 3.00% , 3.25% or 3.50% per annum, or (at United's election) another rate based on certain market interest rates, plus a margin of 1.75% , 2.00% , 2.25% or 2.50% per annum, in each case, with such incremental increase to the margin occurring at 90 days , 180 days and 270 days , as applicable. The Spare Parts Credit Agreement includes covenants that restrict the Company's ability to, among other things, make investments and to pay dividends on, or to repurchase, UAL common stock. In addition, the Spare Parts Credit Agreement requires the Company to maintain unrestricted cash and cash equivalents and unused commitments available under all revolving credit facilities aggregating not less than $2.0 billion and to maintain a minimum ratio of appraised value of collateral to outstanding obligations under the Spare Parts Credit Agreement of 1.80 to 1 or, if certain types of spare parts are used in calculating such collateral coverage ratio, 2.00 to 1. If the Company does not meet the minimum collateral coverage ratio when required, it must either provide additional collateral to secure its obligations under the Spare Parts Credit Agreement or repay the loans under the Spare Parts Credit Agreement (or both) to the extent necessary to maintain compliance with the collateral coverage ratio. Spare Engines Facility. On April 7, 2020 , the Company entered into a Term Loan Credit and Guaranty Agreement (the "Spare Engines Credit Agreement"), among United, as borrower, UAL, as parent and guarantor, the subsidiaries of UAL other than United party thereto from time to time, as guarantors, the lenders party thereto from time to time and Bank of America, N.A., as administrative agent. The obligations of United under the Spare Engines Credit Agreement are secured by liens on certain spare engines of United and certain related assets. United borrowed the full amount of $250 million under the Spare Engines Credit Agreement (the "Spare Engines Facility"). The principal amount of the Spare Engines Facility must be repaid in a single installment on the maturity date on April 6, 2021 . Borrowings under the Spare Engines Credit Agreement bear interest at a variable rate equal to LIBOR (but not less than 1% per annum), plus a margin of 3.00% , 3.25% or 3.50% per annum, or (at United's election) another rate based on certain market interest rates, plus a margin of 2.00% , 2.25% or 2.50% per annum, in each case, with such incremental increase to the margin occurring at 180 days and 270 days , as applicable. The Spare Engines Credit Agreement includes covenants that restrict the Company's ability to, among other things, make investments and to pay dividends on, or to repurchase, UAL common stock. In addition, the Spare Engines Credit Agreement requires the Company to maintain unrestricted cash and cash equivalents and unused commitments available under all revolving credit facilities aggregating not less than $2.0 billion and to maintain a minimum ratio of appraised value of collateral to outstanding obligations under the Spare Engines Credit Agreement of 1.40 to 1. If the Company does not meet the minimum collateral coverage ratio when required, it must either provide additional collateral to secure its obligations under the Spare Engines Credit Agreement or repay the loans under the Spare Engines Credit Agreement (or both) to the extent necessary to maintain compliance with the collateral coverage ratio. PSP Note. During the second quarter of 2020, pursuant to the PSP Agreement and in connection with the U.S. Treasury Department providing the Company with total funding of approximately $5.0 billion under the Payroll Support Program of the CARES Act , UAL issued a promissory note to the U.S. Treasury Department evidencing senior unsecured indebtedness of UAL of approximately $1.3 billion . The principal amount of the PSP Note will increase in an amount equal to 30% of any disbursement made by the U.S. Treasury Department to United under the PSP Agreement after June 30, 2020 . The remaining disbursement is expected by the end of July 2020. The aggregate principal amount of the PSP Note after all disbursements will be approximately $1.5 billion . The PSP Note is guaranteed by United and will mature ten years after the initial issuance on April 20, 2030 . If any subsidiary of UAL (other than United) guarantees other unsecured indebtedness of UAL with a principal balance in excess of a specified amount, or if certain subsidiaries are formed or acquired , then such subsidiary shall be required to guarantee the obligations of UAL under the PSP Note. UAL may, at its option, prepay the PSP Note, at any time, and from time to time, at par. UAL is required to prepay the PSP Note upon the occurrence of certain change of control triggering events. The PSP Note does not require any amortization and is to be repaid in full on the maturity date. Interest on the PSP Note is payable semi-annually in arrears on the last business day of March and September of each year beginning on September 30, 2020 at a rate of 1.00% in years one through five , and at the Secured Overnight Financing Rate (SOFR) plus 2% in years six through ten . MileagePlus Financing. On July 2, 2020 , MPH and MIPA (the "Issuers") issued $3.8 billion aggregate principal amount of their 6.50% Senior Secured Notes due 2027 (the "Notes"). The Notes have a fixed annual interest rate of 6.50% , which will be paid in cash, quarterly in arrears on March 20, June 20, September 20 and December 20 of each year, beginning on September 21, 2020 (each a "Payment Date"). Concurrently with the issuance of the Notes, the Issuers entered into a credit agreement (the "Credit Agreement") that provides for a term loan facility in an aggregate principal amount of up to $3.0 billion (the "Term Loan Facility"). On July 2, 2020 , the Issuers borrowed $3.0 billion in aggregate principal amount under the Term Loan Facility. Loans outstanding under the Term Loan Facility will bear interest at a variable rate equal to LIBOR (but not less than 1.0% per annum), plus a margin of 5.25% per annum, payable on each Payment Date. The principal on the Notes and the Term Loan Facility will be repaid in quarterly installments on each Payment Date, beginning on September 20, 2022 . The scheduled maturity date of the Notes and of the Term Loan Facility is June 20, 2027 . The Issuers lent the proceeds of the Notes and of the Term Loan Facility to United, after depositing a portion of such proceeds in reserve accounts to cover future interest payments. The Notes and the loans under the Term Loan Facility are guaranteed by UAL, United and certain other subsidiaries of UAL. Bridge Loan. On June 30, 2020 , the Company entered into a $200 million Term Loan Credit and Guaranty Agreement (the "Bridge Loan"), among United, as borrower, UAL, as parent and guarantor, and Barclays Bank PLC, as administrative agent. The obligations of United under the Bridge Loan are secured by liens on certain routes of United between cities in the U.S. and Europe, South America, and Mexico. United borrowed the full amount of the Bridge Loan on July 1, 2020 . The principal amount of the Bridge Loan must be repaid in a single installment on the maturity date of September 29, 2020 . Borrowings under the Bridge Loan bear interest at a variable rate equal to LIBOR (but not less than 1.00% per annum) plus 1.75% per annum or (at United's election) another rate based on certain market interest rates, plus a margin of 0.75% per annum. Several of the Company's debt agreements contain covenants that, among other things, restrict the ability of the Company and its subsidiaries to incur additional indebtedness. As of June 30, 2020 , UAL and United were in compliance with their respective debt covenants. The table below presents the Company's contractual principal payments (not including debt discount or debt issuance costs and any debt entered into after the balance sheet date) at June 30, 2020 under then-outstanding long-term debt agreements (in millions): Last six months of 2020 $ 898 2021 4,298 2022 1,807 2023 857 2024 3,164 After 2024 7,934 $ 18,958 |
Special Charges (Credit)
Special Charges (Credit) | 6 Months Ended |
Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | |
SPECIAL CHARGES (CREDIT) | SPECIAL CHARGES (CREDIT) For the three and six months ended June 30, special charges (credit), special termination benefits and pension settlement losses, unrealized gains and losses on investments and certain credit losses in the statements of consolidated operations consisted of the following (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 CARES Act grant $ (1,589 ) $ — $ (1,589 ) $ — Impairment of assets 80 61 130 69 Severance and benefit costs 63 6 63 12 (Gains) losses on sale of assets and other special charges (3 ) 4 10 8 Total operating special charges (credit) (1,449 ) 71 (1,386 ) 89 Nonoperating special termination benefits and settlement losses 231 — 231 — Nonoperating unrealized (gains) losses on investments (9 ) (34 ) 310 (51 ) Nonoperating credit loss on BRW Term Loan and related guarantee — — 697 — Total nonoperating special charges (credit) and unrealized (gains) losses on investments 222 (34 ) 1,238 (51 ) Total operating and nonoperating special charges (credit) and unrealized (gains) losses on investments (1,227 ) 37 (148 ) 38 Income tax expense (benefit), net of valuation allowance 241 (8 ) 227 (8 ) Total operating and nonoperating special charges (credit) and unrealized (gains) losses on investments, net of income taxes $ (986 ) $ 29 $ 79 $ 30 2020 CARES Act grant. During the three and six months ended June 30, 2020 , the Company received approximately $4.5 billion in funding pursuant to the Payroll Support Program under the CARES Act, which consists of $3.2 billion in a grant and $1.3 billion in an unsecured loan. The Company recorded $57 million in warrants issued to the U.S. Treasury Department, within stockholder's equity, as an offset to the grant proceeds. As of June 30, 2020 , we recognized $1.6 billion of the grant as a credit to Special charges (credit) with the remaining $1.5 billion recorded as Payroll Support Program deferred credit on our balance sheet. We expect to recognize the remainder of the grant proceeds, including additional proceeds expected in July 2020 , from the Payroll Support Program as Special charge (credit) by the end of 2020 as the salaries and wages the grant is intended to offset are incurred. Impairment of assets. United assesses its goodwill and intangible assets for potential impairment on an annual basis as of October 1, and on an interim basis if there are indicators that an impairment of goodwill or the intangible assets may have occurred. In the first quarter of 2020, the Company evaluated its goodwill and intangible assets for possible impairments due to the impact of the COVID-19 pandemic on UAL's market capitalization and cash flow projections. For goodwill and certain of its intangible assets, including the Company's China routes, London-Heathrow slots, alliances and the United trade name and logo, the Company performed a quantitative assessment which involved determining the fair value of the asset and comparing that amount to the asset's carrying value and, in the case of goodwill, comparing the Company's fair value to its carrying value. For all other intangible assets, the Company performed a qualitative assessment of whether it was more likely than not that an impairment had occurred. To determine fair value, the Company used discounted cash flow methods appropriate for each asset. Key inputs into the models included forecasted capacity, revenues, fuel costs, other operating costs and an overall discount rate. The assumptions used for future projections include that demand will remain suppressed for the remainder of 2020 and likely into 2021. These assumptions are inherently uncertain as they relate to future events and circumstances. In the second quarter of 2020, the Company again quantitatively assessed its goodwill and China routes using the methodologies described above. There was not a need to quantitatively assess the other intangible assets for impairment. In light of the ongoing impact of the COVID-19 pandemic on both the U.S. and global economies, the significant, sustained impact on the demand for travel and government policies that restrict air travel, the exact timing of the recovery from the COVID-19 pandemic, and the speed at which such recovery could occur, continues to remain uncertain and could result in additional impairment charges in the future. We expect to continue to modify our cost management structure, liquidity-raising efforts and capacity as the timing of demand recovery becomes more certain. As a result of the impairment assessments, the Company determined that its China routes fair value was less than its carrying value as of March 31, 2020 and June 30, 2020 . Accordingly, during the three and six months ended June 30, 2020 , the Company recorded impairment charges of $80 million and $130 million , respectively, for its China routes which was primarily caused by the COVID-19 pandemic and the Company's subsequent suspension of flights to China. The Company's China routes are subject to usage requirements imposed by the U.S. and Chinese governments. For the summer 2020 season, both governments have issued relief from their frequency and slot usage requirements. The Company, therefore, has been able to reduce its mainland China service without violating the governments' rules. The Company is advocating for a continuation of this relief through the winter 2020/2021 season. The additional impairment in the second quarter of 2020 was the result of a further delay in the expected return of full capacity to the China markets. As of June 30, 2020 , the fair value of the China routes was approximately $1.0 billion . No other impairments were recorded. In the first quarter of 2020, in response to decreased demand caused by the COVID-19 pandemic, the Company temporarily grounded certain of its mainline fleet, and those aircraft continue to be temporarily grounded. In the first quarter of 2020, as required under relevant accounting standards, United performed forecasted cash flow analyses and determined that the carrying value of the tested fleets is recoverable from future cash flows expected to be generated by those fleets. To determine whether impairments exist for active and temporarily parked aircraft, we group assets at the fleet-type level. To the extent we make decisions to permanently ground any of our fleet, or our estimates of future cash flows generated by our fleet change, we may be required to record impairment charges in future periods. There were no new impairment indicators related to the temporarily-grounded aircraft in the second quarter of 2020. Severance and benefit costs . During the three and six months ended June 30, 2020 , the Company recorded $63 million related to pay continuation and benefits provided to employees that chose to voluntarily separate from the Company. Nonoperating special termination benefits and settlement losses. During the three and six months ended June 30, 2020 , the Company recorded $231 million of settlement losses related to the Company's primary defined benefit pension plans covering certain U.S. non-pilot employees, and special termination benefits offered under voluntary separation programs to certain front-line U.S. based employees participating in the non-pilot defined benefit pension plan and postretirement medical programs. See Note 6 to the financial statements included in Part I, Item 1 for additional information. Nonoperating unrealized gains (losses) on investments, net. During the three and six months ended June 30, 2020 , the Company recorded gains of $9 million and losses of $310 million , respectively. The six months ended June 30, 2020 losses were primarily due to $284 million decrease in the market value of its investment in Azul and $24 million for the decrease in fair value of the AVH Derivative Assets. Nonoperating credit loss on BRW Term Loan and related guarantee. During the six months ended June 30, 2020 , the Company recorded a $697 million expected credit loss allowance for the BRW Term Loan and related guarantee. United recorded the allowance based on United's assessment of AVH's financial uncertainty due to its high level of leverage and the fact that the airline had ceased operations due to the COVID-19 pandemic. BRW's equity and BRW's holdings of AVH equity are secured as a pledge under the BRW Term Loan, which is currently in default. 2019 Impairment of assets. During the three months ended June 30, 2019 , the Company recorded a $47 million impairment for aircraft engines removed from operations, a $6 million charge for the early termination of several regional aircraft finance leases and $8 million in other miscellaneous impairments. During the six months ended June 30, 2019 , in addition to the charges described above, the Company recorded an $8 million fair value adjustment for aircraft purchased off lease. Severance and benefit costs . During the three and six months ended June 30, 2019 , the Company recorded management severance of $6 million and $10 million , respectively. During the six months ended June 30, 2019 , the Company recorded $2 million of severance and benefit costs related to a voluntary early-out program for its technicians and related employees represented by the International Brotherhood of Teamsters (the "IBT"). In the first quarter of 2017, approximately 1,000 technicians and related employees elected to voluntarily separate from the Company and received a severance payment, with a maximum value of $100,000 per participant, based on years of service, with retirement dates through early 2019. Nonoperating unrealized gains (losses) on investments, net. During the three and six months ended June 30, 2019 , the Company recorded gains of $38 million and $52 million , respectively, for the change in market value of its investment in Azul. Also, during the three and six months ended June 30, 2019 , the Company recorded losses of $4 million and $1 million , respectively, for the change in fair value of the AVH Derivative Assets. For equity investments and derivative assets subject to MTM accounting, the Company records gains and losses as part of Nonoperating income (expense): Miscellaneous, net in its statements of consolidated operations. |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Standards | The Company adopted Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses ("ASU 2016-13") effective January 1, 2020. ASU 2016-13 replaces the incurred loss methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. For trade receivables, loans and held-to-maturity debt securities, entities are required to estimate lifetime expected credit losses. For available-for-sale debt securities, entities are required to recognize an allowance for credit losses rather than a reduction to the carrying value of the asset. The Company recorded a $17 million cumulative-effect adjustment, net of related income taxes, to its retained earnings balance on January 1, 2020 as a result of this adoption. See Notes 7, 8, 9 and 11 to the financial statements included in Part I, Item 1 for additional disclosures about the impact of ASU 2016-13 on the six months ended June 30, 2020 results. |
Fair Value of Financial Instruments | Fair value of the financial instruments included in the tables above was determined as follows: Description Fair Value Methodology Cash and cash equivalents The carrying amounts approximate fair value because of the short-term maturity of these assets. Short-term investments, other than Other investments measured at NAV, Equity securities and Restricted cash Fair value is based on (a) the trading prices of the investment or similar instruments, (b) an income approach, which uses valuation techniques to convert future amounts into a single present amount based on current market expectations about those future amounts when observable trading prices are not available, or (c) broker quotes obtained by third-party valuation services. Other investments measured at NAV In accordance with the relevant accounting standards, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. The investments measured using NAV are shares of mutual funds that invest in fixed-income instruments including bonds, debt securities, and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities. AVH Derivative Assets Fair values are calculated using a Monte Carlo simulation approach. Unobservable inputs include expected volatility, expected dividend yield and control and acquisition premiums. Long-term debt Fair values were based on either market prices or the discounted amount of future cash flows using our current incremental rate of borrowing for similar liabilities or assets. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Operating Revenue by Geographic Region | The table below presents the Company's operating revenue by principal geographic region (as defined by the U.S. Department of Transportation) (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Domestic (U.S. and Canada) $ 925 $ 7,087 $ 6,003 $ 12,962 Atlantic 219 2,066 1,434 3,524 Pacific 258 1,306 1,064 2,587 Latin America 73 943 953 1,918 Total $ 1,475 $ 11,402 $ 9,454 $ 20,991 |
Roll Forward of Frequent Flyer Deferred Revenue | The table below presents a roll forward of Frequent flyer deferred revenue (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Total Frequent flyer deferred revenue - beginning balance $ 5,488 $ 5,138 $ 5,276 $ 5,005 Total miles awarded 228 682 787 1,289 Travel miles redeemed (Passenger revenue) (34 ) (589 ) (356 ) (1,027 ) Non-travel miles redeemed (Other operating revenue) (12 ) (33 ) (37 ) (69 ) Total Frequent flyer deferred revenue - ending balance $ 5,670 $ 5,198 $ 5,670 $ 5,198 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The computations of UAL's basic and diluted earnings (loss) per share are set forth below (in millions, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Earnings (loss) available to common stockholders $ (1,627 ) $ 1,052 $ (3,331 ) $ 1,344 Basic weighted-average shares outstanding 280.7 260.8 264.6 263.9 Effect of employee stock awards and warrants (a) — 0.8 — 1.0 Diluted weighted-average shares outstanding 280.7 261.6 264.6 264.9 Earnings (loss) per share, basic $ (5.79 ) $ 4.03 $ (12.59 ) $ 5.09 Earnings (loss) per share, diluted $ (5.79 ) $ 4.02 $ (12.59 ) $ 5.07 (a) Antidilutive common stock equivalents excluded from the diluted per share calculation are not material. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income, Net of Tax | The tables below present the components of the Company's accumulated other comprehensive income (loss), net of tax ("AOCI") (in millions): Pension and Other Postretirement Liabilities Investments and Other Deferred Taxes Total Balance at March 31, 2020 $ (613 ) $ (14 ) $ (144 ) $ (771 ) Changes in value (721 ) 17 156 (548 ) Amounts reclassified to earnings 77 (a) — (17 ) 60 Balance at June 30, 2020 $ (1,257 ) $ 3 $ (5 ) $ (1,259 ) Balance at December 31, 2019 $ (560 ) $ 2 $ (160 ) $ (718 ) Changes in value (770 ) 1 171 (598 ) Amounts reclassified to earnings 73 (a) — (16 ) 57 Balance at June 30, 2020 $ (1,257 ) $ 3 $ (5 ) $ (1,259 ) Balance at March 31, 2019 $ (654 ) $ 1 $ (140 ) $ (793 ) Changes in value (29 ) 2 7 (20 ) Amounts reclassified to earnings 8 (a) — (2 ) 6 Balance at June 30, 2019 $ (675 ) $ 3 $ (135 ) $ (807 ) Balance at December 31, 2018 $ (663 ) $ (4 ) $ (136 ) $ (803 ) Changes in value (24 ) 7 4 (13 ) Amounts reclassified to earnings 12 (a) — (3 ) 9 Balance at June 30, 2019 $ (675 ) $ 3 $ (135 ) $ (807 ) (a) This AOCI component is included in the computation of net periodic pension and other postretirement costs (See Note 6 to the financial statements included in Part I, Item 1 for additional information). |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Employee-related Liabilities [Abstract] | |
Components of Net Periodic Benefit Cost | The Company's net periodic benefit cost includes the following components for the three months ended June 30 (in millions): Pension Benefits Other Postretirement Benefits Affected Line Item 2020 2019 2020 2019 Service cost $ 53 $ 46 $ 3 $ 3 Salaries and related costs Interest cost 56 57 7 14 Miscellaneous, net Expected return on plan assets (91 ) (73 ) (1 ) (1 ) Miscellaneous, net Amortization of unrecognized (gain) loss 37 29 (11 ) (15 ) Miscellaneous, net Amortization of prior service credit — — (31 ) (9 ) Miscellaneous, net Settlement loss 11 3 — — Miscellaneous, net Settlement loss - VSPs (defined below) 71 — — — Miscellaneous, net Special termination benefit - VSPs 35 — 125 — Miscellaneous, net Total $ 172 $ 62 $ 92 $ (8 ) The Company's net periodic benefit cost includes the following components for the six months ended June 30 (in millions): Pension Benefits Other Postretirement Benefits Affected Line Item 2020 2019 2020 2019 Service cost $ 107 $ 92 $ 5 $ 5 Salaries and related costs Interest cost 112 114 14 29 Miscellaneous, net Expected return on plan assets (182 ) (145 ) (1 ) (1 ) Miscellaneous, net Amortization of unrecognized (gain) loss 72 58 (22 ) (30 ) Miscellaneous, net Amortization of prior service credit — — (62 ) (19 ) Miscellaneous, net Settlement loss 14 3 — — Miscellaneous, net Settlement loss - VSPs (defined below) 71 — — — Miscellaneous, net Special termination benefit - VSPs 35 — 125 — Miscellaneous, net Total $ 229 $ 122 $ 59 $ (16 ) |
Information Related to Share-Based Compensation | The table below presents information related to share-based compensation (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Share-based compensation expense $ 24 $ 21 $ 42 $ 37 June 30, 2020 December 31, 2019 Unrecognized share-based compensation $ 135 $ 77 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The table below presents disclosures about the financial assets and liabilities measured at fair value on a recurring basis in UAL's financial statements (in millions): June 30, 2020 December 31, 2019 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 6,505 $ 6,505 $ — $ — $ 2,762 $ 2,762 $ — $ — Short-term investments: Corporate debt 558 — 558 — 1,045 — 1,045 — Asset-backed securities 309 — 309 — 690 — 690 — U.S. government and agency notes 81 — 81 — 124 — 124 — Certificates of deposit placed through an account registry service ("CDARS") — — — — 35 — 35 — Other fixed-income securities 10 — 10 — 95 — 95 — Other investments measured at net asset value ("NAV") — — — — 193 — — — Restricted cash 107 107 — — 106 106 — — Long-term investments: Equity securities 101 101 — — 385 385 — — AVH Derivative Assets — — — — 24 — — 24 Other assets 16 — — 16 — — — — |
Carrying Values and Estimated Fair Values of Financial Instruments | The table below presents the carrying values and estimated fair values of financial instruments not presented in the tables above (in millions). Carrying amounts include any related discounts, premiums and issuance costs: June 30, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Long-term debt $ 18,772 $ 16,906 $ — $ 13,032 $ 3,874 $ 14,552 $ 15,203 $ — $ 11,398 $ 3,805 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Firm Commitments and Options to Purchase Aircraft | As of June 30, 2020 , United had firm commitments and options to purchase aircraft from The Boeing Company ("Boeing"), Airbus S.A.S. ("Airbus") and Embraer S.A. ("Embraer") as presented in the table below: Scheduled Aircraft Deliveries Aircraft Type Number of Firm Last Six Months of 2020 2021 2022 After 2022 Airbus A321XLR 50 — — — 50 Airbus A350 45 — — — 45 Boeing 737 MAX 171 16 24 — 131 Boeing 787 16 8 8 — — Embraer E175 20 16 4 — — (a) United also has options and purchase rights for additional aircraft. |
Summary of Commitments | The table below summarizes United's commitments as of June 30, 2020 , which include aircraft and related spare engines, aircraft improvements and all non-aircraft capital commitments (in billions): Last six months of 2020 $ 1.8 2021 3.5 2022 1.3 2023 2.7 2024 1.7 After 2024 13.9 $ 24.9 June 30, 2020 , our future payments through the end of the terms of our CPAs are presented in the table below (in billions): Last six months of 2020 $ 0.9 2021 2.3 2022 2.3 2023 1.7 2024 1.6 After 2024 4.5 $ 13.3 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Details of Pass Through Trusts | Certain details of the pass-through trusts with proceeds received from issuance of debt in 2020 are as follows (in millions, except stated interest rate): EETC Issuance Date Class Face Amount Stated interest rate Total proceeds received from issuance of debt during 2020 Total debt recorded as of June 30, 2020 September 2019 AA $ 702 2.70% $ 189 $ 702 September 2019 A 287 2.90% 77 287 September 2019 B 232 3.50% 62 232 $ 1,221 $ 328 $ 1,221 |
Contractual Principal Payments under Long-Term Debt Agreements | The table below presents the Company's contractual principal payments (not including debt discount or debt issuance costs and any debt entered into after the balance sheet date) at June 30, 2020 under then-outstanding long-term debt agreements (in millions): Last six months of 2020 $ 898 2021 4,298 2022 1,807 2023 857 2024 3,164 After 2024 7,934 $ 18,958 |
Special Charges (Credit) (Table
Special Charges (Credit) (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Components of Special Charges | For the three and six months ended June 30, special charges (credit), special termination benefits and pension settlement losses, unrealized gains and losses on investments and certain credit losses in the statements of consolidated operations consisted of the following (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 CARES Act grant $ (1,589 ) $ — $ (1,589 ) $ — Impairment of assets 80 61 130 69 Severance and benefit costs 63 6 63 12 (Gains) losses on sale of assets and other special charges (3 ) 4 10 8 Total operating special charges (credit) (1,449 ) 71 (1,386 ) 89 Nonoperating special termination benefits and settlement losses 231 — 231 — Nonoperating unrealized (gains) losses on investments (9 ) (34 ) 310 (51 ) Nonoperating credit loss on BRW Term Loan and related guarantee — — 697 — Total nonoperating special charges (credit) and unrealized (gains) losses on investments 222 (34 ) 1,238 (51 ) Total operating and nonoperating special charges (credit) and unrealized (gains) losses on investments (1,227 ) 37 (148 ) 38 Income tax expense (benefit), net of valuation allowance 241 (8 ) 227 (8 ) Total operating and nonoperating special charges (credit) and unrealized (gains) losses on investments, net of income taxes $ (986 ) $ 29 $ 79 $ 30 |
Combined Notes to the Financi_2
Combined Notes to the Financial Statements (Unaudited) (Details) employee in Thousands | Jul. 08, 2020employee | Jul. 02, 2020USD ($) | Apr. 20, 2020USD ($) | Apr. 17, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2020 | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jul. 02, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 15, 2020shares | Dec. 31, 2019USD ($) | |
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||
Net income (loss) | $ (1,627,000,000) | $ 1,052,000,000 | $ (3,331,000,000) | $ 1,344,000,000 | |||||||||||
Percent of capacity cut | 88.00% | ||||||||||||||
Rolling cancellation period | 60 days | ||||||||||||||
Proceeds from issuance of long-term debt | $ 1,669,000,000 | 996,000,000 | |||||||||||||
Proceeds from the issuance of common stock | 1,100,000,000 | ||||||||||||||
Payroll taxes deferred under the CARES Act | 78,000,000 | ||||||||||||||
Total funding provided under the Payroll Support Program | $ 5,000,000,000 | $ 5,000,000,000 | $ 5,000,000,000 | $ 5,000,000,000 | 5,000,000,000 | ||||||||||
Funding provided through direct grants under the Payroll Support Program | 3,500,000,000 | ||||||||||||||
Funding provided through loans under the Payroll Support Program | $ 1,500,000,000 | ||||||||||||||
Support funding received | 4,500,000,000 | ||||||||||||||
Portion of grant recognized as a credit to special charges | 1,589,000,000 | 0 | 1,589,000,000 | 0 | |||||||||||
Payroll Support Program deferred credit | 1,508,000,000 | 1,508,000,000 | 1,508,000,000 | 1,508,000,000 | $ 0 | ||||||||||
Remaining balance yet to be received | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | |||||||||||
Forecast | |||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||
Percent of capacity cut | 65.00% | ||||||||||||||
Subsequent Event | Forecast | |||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||
Number of employees notified of plans for workforce reduction | employee | 36,000 | ||||||||||||||
Equity Distribution Agreement | |||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||
Proceeds from the issuance of common stock | 22,000,000 | ||||||||||||||
Number of shares issuable under Equity Distribution Agreement (up to) (in shares) | shares | 28,000,000 | ||||||||||||||
Notes, Secured Term Loans and Aircraft Financing | |||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||
Proceeds from issuance of long-term debt | 3,000,000,000 | ||||||||||||||
Notes, Secured Term Loans and Aircraft Financing | Subsequent Event | |||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||
Proceeds from issuance of long-term debt | $ 10,000,000,000 | ||||||||||||||
Secured Debt and Term Loan | |||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||
Proceeds from issuance of long-term debt | 6,800,000,000 | ||||||||||||||
Secured Debt | |||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||
Expected borrowings | $ 4,500,000,000 | ||||||||||||||
Expected term of debt | 5 years | ||||||||||||||
Secured Debt | PSP Note | |||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||
Face amount | $ 1,300,000,000 | $ 1,300,000,000 | $ 1,300,000,000 | $ 1,300,000,000 | |||||||||||
Unsecured Debt | PSP Note | |||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||
Term of debt | 10 years | 10 years | |||||||||||||
Percent increase in the principal amount based on any disbursement made by the U.S. Treasury Department | 30.00% | 30.00% | 30.00% | 30.00% | |||||||||||
U.S. Department of Treasury Warrants | |||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||
Warrants oustanding | $ 57,000,000 | $ 57,000,000 | $ 57,000,000 | $ 57,000,000 | |||||||||||
CEO and President | |||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||
Voluntary pay reduction | 100.00% | ||||||||||||||
Non-Employee Directors | |||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||
Voluntary pay reduction | 100.00% | ||||||||||||||
United Airlines, Inc. | |||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||
Net income (loss) | (1,626,000,000) | $ 1,052,000,000 | $ (3,330,000,000) | 1,345,000,000 | [1] | ||||||||||
Proceeds from issuance of long-term debt | 1,669,000,000 | $ 996,000,000 | |||||||||||||
Payroll Support Program deferred credit | $ 1,508,000,000 | $ 1,508,000,000 | $ 1,508,000,000 | $ 1,508,000,000 | $ 0 | ||||||||||
Revolving Credit Facility | United Airlines, Inc. | Secured Debt | Subsequent Event | |||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||
Amount available under credit facility | $ 2,000,000,000 | $ 2,000,000,000 | |||||||||||||
LIBOR | Revolving Credit Facility | United Airlines, Inc. | Secured Debt | Subsequent Event | |||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||
Proceeds from lines of credit | $ 1,000,000,000 | ||||||||||||||
[1] | Transition adjustment due to the adoption of Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses . See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information. |
Recently Issued Accounting St_3
Recently Issued Accounting Standards (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Stockholders' equity | $ 8,517 | $ 9,418 | $ 11,531 | [1] | $ 10,320 | $ 9,802 | $ 10,042 | ||
Retained Earnings | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Stockholders' equity | $ 6,365 | $ 7,991 | 9,716 | $ 8,050 | $ 6,999 | $ 6,715 | |||
Adoption of New Accounting Standard | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Stockholders' equity | [1] | (17) | |||||||
Adoption of New Accounting Standard | Retained Earnings | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Stockholders' equity | [1] | $ (17) | $ (17) | ||||||
[1] | Transition adjustment due to the adoption of Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses . See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information. |
Revenue - Operating Revenue by
Revenue - Operating Revenue by Geographic Region (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | $ 1,475 | $ 11,402 | $ 9,454 | $ 20,991 |
Domestic (U.S. and Canada) | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 925 | 7,087 | 6,003 | 12,962 |
Atlantic | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 219 | 2,066 | 1,434 | 3,524 |
Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 258 | 1,306 | 1,064 | 2,587 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | $ 73 | $ 943 | $ 953 | $ 1,918 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | Apr. 01, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Revenue From Contract With Customer [Line Items] | ||||||
Operating revenue | $ 1,475 | $ 11,402 | $ 9,454 | $ 20,991 | ||
Advance Ticket Sales | ||||||
Revenue From Contract With Customer [Line Items] | ||||||
Expiration period for ETCs | 24 months | 12 months | ||||
Expiration period for FFCs | 24 months | |||||
ETC and FFC liabilities | $ 3,000 | $ 3,000 | ||||
Percent of ETCs and FFCs with expiration dates extending beyond 12 months | 93.00% | 93.00% | ||||
Revenue recognized | $ 500 | 3,900 | $ 2,800 | 3,200 | ||
Ancillary Fees | ||||||
Revenue From Contract With Customer [Line Items] | ||||||
Operating revenue | 66 | 636 | 542 | 1,200 | ||
Other Operating Revenue | ||||||
Revenue From Contract With Customer [Line Items] | ||||||
Operating revenue | 392 | 621 | 1,042 | 1,199 | ||
Other Operating Revenue | Chase and Other Partner Agreements | ||||||
Revenue From Contract With Customer [Line Items] | ||||||
Operating revenue | $ 339 | $ 499 | $ 869 | $ 972 |
Revenue - Roll Forward of Frequ
Revenue - Roll Forward of Frequent Flyer Deferred Revenue (Details) - Frequent Flyer - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Frequent Flyer Deferred Revenue [Roll Forward] | ||||
Total Frequent flyer deferred revenue - beginning balance | $ 5,488 | $ 5,138 | $ 5,276 | $ 5,005 |
Total miles awarded | 228 | 682 | 787 | 1,289 |
Travel miles redeemed (Passenger revenue) | (34) | (589) | (356) | (1,027) |
Non-travel miles redeemed (Other operating revenue) | (12) | (33) | (37) | (69) |
Total Frequent flyer deferred revenue - ending balance | $ 5,670 | $ 5,198 | $ 5,670 | $ 5,198 |
Earnings (Loss) Per Share - Com
Earnings (Loss) Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Earnings (loss) available to common stockholders | $ (1,627) | $ 1,052 | $ (3,331) | $ 1,344 |
Basic weighted-average shares outstanding (in shares) | 280.7 | 260.8 | 264.6 | 263.9 |
Effect of employee stock awards and warrants (in shares) | 0 | 0.8 | 0 | 1 |
Diluted weighted-average shares outstanding (in shares) | 280.7 | 261.6 | 264.6 | 264.9 |
Earnings (loss) per share, basic (in dollars per share) | $ (5.79) | $ 4.03 | $ (12.59) | $ 5.09 |
Earnings (loss) per share, diluted (in dollars per share) | $ (5.79) | $ 4.02 | $ (12.59) | $ 5.07 |
Earnings (Loss) Per Share - Nar
Earnings (Loss) Per Share - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 21, 2020 | Jun. 30, 2020 | Jun. 30, 2020 | Jun. 15, 2020 | Apr. 20, 2020 | Dec. 31, 2019 |
Class of Stock [Line Items] | ||||||
Number of warrants issuable under agreement (up to) | 4,600,000 | |||||
Number of securities called by warrants (in shares) | 4,200,000 | 4,200,000 | ||||
Warrant exercise price (in dollars per share) | $ 31.50 | |||||
Warrant term | 5 years | |||||
Available borrowing amount under the CARES Act | $ 4,500 | |||||
Number of warrants issuable if the full amount is borrowed under the CARES Act (in shares) | 14,200,000 | |||||
Par value of common stock (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||
Proceeds from the issuance of common stock | $ 1,100 | |||||
Public Offering | ||||||
Class of Stock [Line Items] | ||||||
Number of shares issued (in shares) | 39,250,000 | |||||
Par value of common stock (in dollars per share) | $ 0.01 | |||||
Sale price (in dollars per share) | $ 26.50 | |||||
Over-Allotment Option | ||||||
Class of Stock [Line Items] | ||||||
Number of shares issued (in shares) | 3,925,000 | |||||
Over-allotment option period | 30 days | |||||
Equity Distribution Agreement | ||||||
Class of Stock [Line Items] | ||||||
Number of shares issued (in shares) | 500,000 | |||||
Sale price (in dollars per share) | $ 41.05 | |||||
Proceeds from the issuance of common stock | $ 22 | |||||
Number of shares issuable under Equity Distribution Agreement (up to) (in shares) | 28,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income, Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Deferred Tax | |||||
Balance | $ (144) | $ (140) | $ (160) | $ (136) | |
Changes in value | 156 | 7 | 171 | 4 | |
Amounts reclassified to earnings | (17) | (2) | (16) | (3) | |
Balance | (5) | (135) | (5) | (135) | |
Net of Tax | |||||
Balance | 9,418 | 9,802 | 11,531 | [1] | 10,042 |
Changes in value | (548) | (20) | (598) | (13) | |
Amounts reclassified to earnings | 60 | 6 | 57 | 9 | |
Balance | 8,517 | 10,320 | 8,517 | 10,320 | |
Pension and Other Postretirement Liabilities | |||||
Before Tax | |||||
Balance | (613) | (654) | (560) | (663) | |
Changes in value | (721) | (29) | (770) | (24) | |
Amounts reclassified to earnings | 77 | 8 | 73 | 12 | |
Balance | (1,257) | (675) | (1,257) | (675) | |
Investments and Other | |||||
Before Tax | |||||
Balance | (14) | 1 | 2 | (4) | |
Changes in value | 17 | 2 | 1 | 7 | |
Amounts reclassified to earnings | 0 | 0 | 0 | 0 | |
Balance | 3 | 3 | 3 | 3 | |
Accumulated Other Comprehensive Income (Loss) | |||||
Net of Tax | |||||
Balance | (771) | (793) | (718) | (803) | |
Balance | $ (1,259) | $ (807) | $ (1,259) | $ (807) | |
[1] | Transition adjustment due to the adoption of Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses . See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 18.80% | 22.30% | 19.10% | 21.90% |
Valuation allowance | $ 64 | $ 130 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 53 | $ 46 | $ 107 | $ 92 |
Interest cost | 56 | 57 | 112 | 114 |
Expected return on plan assets | (91) | (73) | (182) | (145) |
Amortization of unrecognized (gain) loss | 37 | 29 | 72 | 58 |
Amortization of prior service credit | 0 | 0 | 0 | 0 |
Settlement loss | 11 | 3 | 14 | 3 |
Settlement loss - VSPs (defined below) | 71 | 0 | 71 | 0 |
Special termination benefit - VSPs | 35 | 0 | 35 | 0 |
Total | 172 | 62 | 229 | 122 |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 3 | 3 | 5 | 5 |
Interest cost | 7 | 14 | 14 | 29 |
Expected return on plan assets | (1) | (1) | (1) | (1) |
Amortization of unrecognized (gain) loss | (11) | (15) | (22) | (30) |
Amortization of prior service credit | (31) | (9) | (62) | (19) |
Settlement loss | 0 | 0 | 0 | 0 |
Settlement loss - VSPs (defined below) | 0 | 0 | 0 | 0 |
Special termination benefit - VSPs | 125 | 0 | 125 | 0 |
Total | $ 92 | $ (8) | $ 59 | $ (16) |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Employee Benefit Plans [Line Items] | ||||
Number of days used to compute performance period average closing price of restricted stock units | 20 days | |||
RSUs | ||||
Employee Benefit Plans [Line Items] | ||||
Awards granted (in shares) | 2.4 | |||
Vesting period | 3 years | |||
Time-Vested RSUs | ||||
Employee Benefit Plans [Line Items] | ||||
Awards granted (in shares) | 2.1 | |||
Performance-Based RSUs | ||||
Employee Benefit Plans [Line Items] | ||||
Awards granted (in shares) | 0.3 | |||
Pension Benefits | ||||
Employee Benefit Plans [Line Items] | ||||
Special termination benefit | $ (35) | $ 0 | $ (35) | $ 0 |
Settlement loss for VSPs | $ (71) | 0 | $ (71) | 0 |
Discount rate | 3.24% | 3.24% | ||
Increase (decrease) in the projected benefit obligation | $ 655 | |||
Other Postretirement Benefits | ||||
Employee Benefit Plans [Line Items] | ||||
Special termination benefit | $ (125) | 0 | (125) | 0 |
Settlement loss for VSPs | $ 0 | $ 0 | $ 0 | $ 0 |
Discount rate | 2.73% | 2.73% | ||
Increase (decrease) in the projected benefit obligation | $ 65 |
Employee Benefit Plans - Inform
Employee Benefit Plans - Information Related to Share-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Employee-related Liabilities [Abstract] | |||||
Share-based compensation expense | $ 24 | $ 21 | $ 42 | $ 37 | |
Unrecognized share-based compensation | $ 135 | $ 135 | $ 77 |
BRW Term Loan (Details)
BRW Term Loan (Details) - BRW - Term Loan Receivable shares in Millions, adr in Millions | Jan. 01, 2020USD ($) | Nov. 30, 2018USD ($)adrshares |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan amount | $ 456,000,000 | |
Number of shares pledged as collateral (in shares) | shares | 516 | |
Implied value equivalent of shares pledged as collateral (in ADRs) | adr | 64.5 | |
Carrying amount of loan receivable | $ 515,000,000 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Measured on a Recurring Basis - USD ($) $ in Millions | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 6,505 | $ 2,762 | |
Restricted cash | 107 | 106 | |
Equity securities | 101 | 385 | |
AVH Derivative Assets | 0 | 24 | |
Other assets | 16 | 0 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 6,505 | 2,762 | |
Restricted cash | 107 | 106 | |
Equity securities | $ 101 | 385 | |
AVH Derivative Assets | 0 | 0 | |
Other assets | 0 | 0 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 0 | 0 | |
Equity securities | 0 | 0 | |
AVH Derivative Assets | 0 | 0 | |
Other assets | 0 | 0 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 0 | 0 | |
Equity securities | 0 | 0 | |
AVH Derivative Assets | 0 | 24 | |
Other assets | 16 | 0 | |
Corporate debt | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 558 | 1,045 | |
Corporate debt | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 0 | 0 | |
Corporate debt | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 558 | 1,045 | |
Corporate debt | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 0 | 0 | |
Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 309 | 690 | |
Asset-backed securities | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 0 | 0 | |
Asset-backed securities | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 309 | 690 | |
Asset-backed securities | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 0 | 0 | |
U.S. government and agency notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 81 | 124 | |
U.S. government and agency notes | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 0 | 0 | |
U.S. government and agency notes | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 81 | 124 | |
U.S. government and agency notes | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 0 | 0 | |
Certificates of deposit placed through an account registry service (CDARS) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 0 | 35 | |
Certificates of deposit placed through an account registry service (CDARS) | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 0 | 0 | |
Certificates of deposit placed through an account registry service (CDARS) | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 0 | 35 | |
Certificates of deposit placed through an account registry service (CDARS) | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 0 | 0 | |
Other fixed-income securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 10 | 95 | |
Other fixed-income securities | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 0 | 0 | |
Other fixed-income securities | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 10 | 95 | |
Other fixed-income securities | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 0 | 0 | |
Other investments measured at net asset value (NAV) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 0 | 193 | |
Other investments measured at net asset value (NAV) | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 0 | 0 | |
Other investments measured at net asset value (NAV) | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 0 | 0 | |
Other investments measured at net asset value (NAV) | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | $ 0 | $ 0 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Fair Value [Line Items] | ||||
Unrealized gain (loss) on derivative asset | $ (4) | $ (24) | $ (1) | |
Asset-Backed Securities | Minimum | ||||
Fair Value [Line Items] | ||||
Available-for-sale securities remaining maturities | 1 year | |||
Asset-Backed Securities | Maximum | ||||
Fair Value [Line Items] | ||||
Available-for-sale securities remaining maturities | 14 years | |||
Corporate Debt | Maximum | ||||
Fair Value [Line Items] | ||||
Available-for-sale securities remaining maturities | 3 years | |||
U.S. Government and Agency Notes | ||||
Fair Value [Line Items] | ||||
Available-for-sale securities remaining maturities | 2 years | |||
Other Fixed-Income Securities | ||||
Fair Value [Line Items] | ||||
Available-for-sale securities remaining maturities | 1 year | |||
Azul | ||||
Fair Value [Line Items] | ||||
Equity stake in Azul | 2.00% | 2.00% | ||
Gain (loss) on equity securities | $ 9 | $ 38 | $ (284) | $ 52 |
Carrying value of investment | $ 101 | $ 101 | ||
Azul | Preferred Stock | ||||
Fair Value [Line Items] | ||||
Equity stake in Azul | 8.00% | 8.00% |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements - Carrying Values and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 18,772 | $ 14,552 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 16,906 | 15,203 |
Level 1 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 0 | 0 |
Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 13,032 | 11,398 |
Level 3 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 3,874 | $ 3,805 |
Commitments and Contingencies -
Commitments and Contingencies - Firm Commitments and Options to Purchase Aircraft (Details) | Jun. 30, 2020commitment |
Airbus A321XLR | |
Long-term Purchase Commitment [Line Items] | |
Number of firm commitments | 50 |
Scheduled Aircraft Deliveries | |
Last Six Months of 2020 | 0 |
2021 | 0 |
2022 | 0 |
After 2022 | 50 |
Airbus A350 | |
Long-term Purchase Commitment [Line Items] | |
Number of firm commitments | 45 |
Scheduled Aircraft Deliveries | |
Last Six Months of 2020 | 0 |
2021 | 0 |
2022 | 0 |
After 2022 | 45 |
Boeing 737 MAX | |
Long-term Purchase Commitment [Line Items] | |
Number of firm commitments | 171 |
Scheduled Aircraft Deliveries | |
Last Six Months of 2020 | 16 |
2021 | 24 |
2022 | 0 |
After 2022 | 131 |
Boeing 787 | |
Long-term Purchase Commitment [Line Items] | |
Number of firm commitments | 16 |
Scheduled Aircraft Deliveries | |
Last Six Months of 2020 | 8 |
2021 | 8 |
2022 | 0 |
After 2022 | 0 |
Embraer E175 | |
Long-term Purchase Commitment [Line Items] | |
Number of firm commitments | 20 |
Scheduled Aircraft Deliveries | |
Last Six Months of 2020 | 16 |
2021 | 4 |
2022 | 0 |
After 2022 | 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2020USD ($) | Jun. 30, 2020USD ($)employeecommitmentaircraft | Jun. 30, 2020USD ($)employeecommitmentaircraft | Apr. 17, 2020aircraft | Dec. 31, 2018USD ($) | Nov. 30, 2018USD ($)$ / sharesshares | |
Commitments and Contingencies [Line Items] | ||||||
Remaining term of debt | 12 years | |||||
United Airlines, Inc. | ||||||
Commitments and Contingencies [Line Items] | ||||||
Number of employees | employee | 91,800 | 91,800 | ||||
Percentage of employees represented by various U.S. labor organizations | 85.00% | |||||
Percentage of employees on voluntary unpaid leave of absence | 22.00% | |||||
Kingsland | ||||||
Commitments and Contingencies [Line Items] | ||||||
Number of shares that may be put to United (in shares) | shares | 144.8 | |||||
Number of ADRs that may be put into United (in shares) | shares | 18.1 | |||||
Market price of common stock at fifth anniversary (in dollars per share) | $ / shares | $ 12 | |||||
Aggregate maximum possible combined put payment and guarantee amount | $ 217 | |||||
Liability for the fair value of guarantees | $ 31 | |||||
Additional expense recorded for guarantee | $ 182 | |||||
Tax-Exempt Special Facilities Revenue Bonds | ||||||
Commitments and Contingencies [Line Items] | ||||||
Aggregate principal amount of guarantee | $ 1,900 | $ 1,900 | ||||
Aircraft Mortgage Debt | ||||||
Commitments and Contingencies [Line Items] | ||||||
Aggregate principal amount of guarantee | 126 | 126 | ||||
Floating Rate Debt | ||||||
Commitments and Contingencies [Line Items] | ||||||
Debt | 7,600 | $ 7,600 | ||||
Loans and Leases from Non-U.S. Entities | ||||||
Commitments and Contingencies [Line Items] | ||||||
Remaining term of debt | 12 years | |||||
Aggregate balance | $ 7,400 | $ 7,400 | ||||
Airbus A319 | ||||||
Commitments and Contingencies [Line Items] | ||||||
Number of aircraft committed to purchase | aircraft | 20 | 20 | ||||
Boeing 737-700 | ||||||
Commitments and Contingencies [Line Items] | ||||||
Number of aircraft committed to purchase | aircraft | 13 | 13 | ||||
Boeing 787 | ||||||
Commitments and Contingencies [Line Items] | ||||||
Number of aircraft committed to purchase | commitment | 16 | 16 | ||||
Number of aircraft subject to purchase rights assignment agreement financed through a sale and leaseback transaction | aircraft | 6 | |||||
Number of aircraft delivered in period | aircraft | 2 | |||||
Number of aircraft scheduled to be delivered through the end of the year | aircraft | 20 | 20 | ||||
Boeing 737 MAX | ||||||
Commitments and Contingencies [Line Items] | ||||||
Number of aircraft committed to purchase | commitment | 171 | 171 | ||||
Number of aircraft subject to purchase rights assignment agreement financed through a sale and leaseback transaction | aircraft | 16 | |||||
Embraer E175 | ||||||
Commitments and Contingencies [Line Items] | ||||||
Number of aircraft committed to purchase | commitment | 20 | 20 |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Commitments (Details) $ in Billions | Jun. 30, 2020USD ($) |
Capital Commitments | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Last six months of 2020 | $ 1.8 |
2021 | 3.5 |
2022 | 1.3 |
2023 | 2.7 |
2024 | 1.7 |
After 2024 | 13.9 |
Total commitments | 24.9 |
Regional CPAs | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Last six months of 2020 | 0.9 |
2021 | 2.3 |
2022 | 2.3 |
2023 | 1.7 |
2024 | 1.6 |
After 2024 | 4.5 |
Total commitments | $ 13.3 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jul. 02, 2020USD ($) | Jun. 30, 2020USD ($) | Apr. 20, 2020USD ($) | Apr. 07, 2020USD ($) | Mar. 20, 2020USD ($) | Mar. 09, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) |
Debt Instrument [Line Items] | |||||||||
Proceeds from issuance of long-term debt | $ 1,669,000,000 | $ 996,000,000 | |||||||
Total funding provided under the Payroll Support Program | $ 5,000,000,000 | $ 5,000,000,000 | $ 5,000,000,000 | 5,000,000,000 | |||||
Used Aircraft Facility | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 2,000,000,000 | ||||||||
Variable rate floor | 1.00% | ||||||||
Minimum required unrestricted cash and cash equivalents and unused commitments available | $ 2,000,000,000 | ||||||||
Minimum required ratio of appraised value of collateral to the outstanding obligations | 1.60 | ||||||||
Used Aircraft Facility | Before 180 Days | Secured Debt | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 2.00% | ||||||||
Used Aircraft Facility | Before 180 Days | Secured Debt | Alternative Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 1.00% | ||||||||
Used Aircraft Facility | 180-270 Days | Secured Debt | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 2.25% | ||||||||
Used Aircraft Facility | 180-270 Days | Secured Debt | Alternative Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 1.25% | ||||||||
Used Aircraft Facility | 270 Days and Longer | Secured Debt | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 2.50% | ||||||||
Used Aircraft Facility | 270 Days and Longer | Secured Debt | Alternative Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 1.50% | ||||||||
Spare Parts Facility | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 500,000,000 | ||||||||
Variable rate floor | 1.00% | ||||||||
Minimum required unrestricted cash and cash equivalents and unused commitments available | $ 2,000,000,000 | ||||||||
Minimum required ratio of appraised value of collateral to the outstanding obligations | 1.80 | ||||||||
Minimum required ratio of appraised value of collateral to the outstanding obligations if certain spare parts are used | 2 | ||||||||
Spare Parts Facility | 90-180 Days | Secured Debt | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 2.75% | ||||||||
Spare Parts Facility | 90-180 Days | Secured Debt | Alternative Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 1.75% | ||||||||
Spare Parts Facility | Before 90 Days | Secured Debt | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 3.00% | ||||||||
Spare Parts Facility | Before 90 Days | Secured Debt | Alternative Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 2.00% | ||||||||
Spare Parts Facility | 180-270 Days | Secured Debt | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 3.25% | ||||||||
Spare Parts Facility | 180-270 Days | Secured Debt | Alternative Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 2.25% | ||||||||
Spare Parts Facility | 270 Days and Longer | Secured Debt | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 3.50% | ||||||||
Spare Parts Facility | 270 Days and Longer | Secured Debt | Alternative Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 2.50% | ||||||||
Spare Engines Facility | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 250,000,000 | ||||||||
Variable rate floor | 1.00% | ||||||||
Minimum required unrestricted cash and cash equivalents and unused commitments available | $ 2,000,000,000 | ||||||||
Minimum required ratio of appraised value of collateral to the outstanding obligations | 1.40 | ||||||||
Spare Engines Facility | Before 180 Days | Secured Debt | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 3.00% | ||||||||
Spare Engines Facility | Before 180 Days | Secured Debt | Alternative Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 2.00% | ||||||||
Spare Engines Facility | 180-270 Days | Secured Debt | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 3.25% | ||||||||
Spare Engines Facility | 180-270 Days | Secured Debt | Alternative Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 2.25% | ||||||||
Spare Engines Facility | 270 Days and Longer | Secured Debt | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 3.50% | ||||||||
Spare Engines Facility | 270 Days and Longer | Secured Debt | Alternative Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 2.50% | ||||||||
PSP Note | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 1,300,000,000 | $ 1,300,000,000 | $ 1,300,000,000 | ||||||
PSP Note | Unsecured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent increase in the principal amount based on any disbursement made by the U.S. Treasury Department | 30.00% | 30.00% | 30.00% | ||||||
Aggregate principal amount after all disbursements | $ 1,500,000,000 | $ 1,500,000,000 | $ 1,500,000,000 | ||||||
Term of debt | 10 years | 10 years | |||||||
PSP Note | Years 1 through 5 | Unsecured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 1.00% | 1.00% | 1.00% | ||||||
PSP Note | Years 6 through 10 | Unsecured Debt | SOFR | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 2.00% | ||||||||
6.50% Senior Secured Notes due 2027 | Secured Debt | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 3,800,000,000 | ||||||||
Stated interest rate | 6.50% | ||||||||
Term Loan Facility | Line of Credit | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from issuance of long-term debt | $ 3,000,000,000 | ||||||||
Face amount | $ 3,000,000,000 | ||||||||
Term Loan Facility | Line of Credit | LIBOR | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate floor | 1.00% | ||||||||
Percent spread on variable rate | 5.25% | ||||||||
Bridge Loan | Bridge Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 200,000,000 | $ 200,000,000 | $ 200,000,000 | ||||||
Bridge Loan | Bridge Loan | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate floor | 1.00% | ||||||||
Percent spread on variable rate | 1.75% | ||||||||
Bridge Loan | Bridge Loan | Alternative Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 0.75% | ||||||||
United Airlines, Inc. | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from issuance of long-term debt | $ 1,669,000,000 | $ 996,000,000 | |||||||
Revolving Credit Facility | United Airlines, Inc. | Secured Debt | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount available under credit facility | $ 2,000,000,000 | ||||||||
Available under revolving credit facility | 1,000,000,000 | ||||||||
Revolving Credit Facility | United Airlines, Inc. | Secured Debt | LIBOR | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from lines of credit | $ 1,000,000,000 | ||||||||
Variable rate floor | 0.00% | ||||||||
Percent spread on variable rate | 2.25% | ||||||||
Revolving Credit Facility | United Airlines, Inc. | Secured Debt | Alternative Rate | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent spread on variable rate | 1.25% |
Debt - Details of Pass Through
Debt - Details of Pass Through Trusts (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Debt Instrument [Line Items] | ||
Total proceeds received from issuance of debt | $ 1,669,000,000 | $ 996,000,000 |
United Airlines, Inc. | ||
Debt Instrument [Line Items] | ||
Total proceeds received from issuance of debt | 1,669,000,000 | $ 996,000,000 |
Pass-Through Certificates | United Airlines, Inc. | ||
Debt Instrument [Line Items] | ||
Face Amount | 1,221,000,000 | |
Total proceeds received from issuance of debt | 328,000,000 | |
Total debt recorded | 1,221,000,000 | |
Pass-Through Certificates | Class AA Pass-Through Certificates Issued September 2019 | United Airlines, Inc. | ||
Debt Instrument [Line Items] | ||
Face Amount | $ 702,000,000 | |
Stated interest rate | 2.70% | |
Total proceeds received from issuance of debt | $ 189,000,000 | |
Total debt recorded | 702,000,000 | |
Pass-Through Certificates | Class A Pass-Through Certificates Issued September 2019 | United Airlines, Inc. | ||
Debt Instrument [Line Items] | ||
Face Amount | $ 287,000,000 | |
Stated interest rate | 2.90% | |
Total proceeds received from issuance of debt | $ 77,000,000 | |
Total debt recorded | 287,000,000 | |
Pass-Through Certificates | Class B Pass-Through Certificates Issued September 2019 | United Airlines, Inc. | ||
Debt Instrument [Line Items] | ||
Face Amount | $ 232,000,000 | |
Stated interest rate | 3.50% | |
Total proceeds received from issuance of debt | $ 62,000,000 | |
Total debt recorded | $ 232,000,000 |
Debt - Contractual Principal Pa
Debt - Contractual Principal Payments (Details) - UAL And United $ in Millions | Jun. 30, 2020USD ($) |
Debt Instrument [Line Items] | |
Last six months of 2020 | $ 898 |
2021 | 4,298 |
2022 | 1,807 |
2023 | 857 |
2024 | 3,164 |
After 2024 | 7,934 |
Long-term debt | $ 18,958 |
Special Charges (Credit) - Comp
Special Charges (Credit) - Components of Special Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | ||||
CARES Act grant | $ (1,589) | $ 0 | $ (1,589) | $ 0 |
Impairment of assets | 80 | 61 | 130 | 69 |
Severance and benefit costs | 63 | 6 | 63 | 12 |
(Gains) losses on sale of assets and other special charges | (3) | 4 | 10 | 8 |
Total operating special charges (credit) | (1,449) | 71 | (1,386) | 89 |
Nonoperating special termination benefits and settlement losses | 231 | 0 | 231 | 0 |
Nonoperating unrealized (gains) losses on investments | (9) | (34) | 310 | (51) |
Nonoperating credit loss on BRW Term Loan and related guarantee | 0 | 0 | 697 | 0 |
Total nonoperating special charges (credit) and unrealized (gains) losses on investments | 222 | (34) | 1,238 | (51) |
Total operating and nonoperating special charges (credit) and unrealized (gains) losses on investments | (1,227) | 37 | (148) | 38 |
Income tax expense (benefit), net of valuation allowance | 241 | (8) | 227 | (8) |
Total operating and nonoperating special charges (credit) and unrealized (gains) losses on investments, net of income taxes | $ (986) | $ 29 | $ 79 | $ 30 |
Special Charges (Credit) - Narr
Special Charges (Credit) - Narrative (Details) employee in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2017USD ($)employee | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||
Cash received under the Payroll Support Program | $ 4,500,000,000 | $ 4,500,000,000 | ||||
Cash received from grants | 3,200,000,000 | 3,200,000,000 | ||||
Cash received from the issuance of an unsecured loan | 1,300,000,000 | 1,300,000,000 | ||||
Cash received from the issuance of warrants | 57,000,000 | 57,000,000 | ||||
Portion of grant recognized as a credit to special charges due to COVID-19 | 1,589,000,000 | $ 0 | 1,589,000,000 | $ 0 | ||
Deferred credit | 1,508,000,000 | 1,508,000,000 | $ 0 | |||
Settlement losses | 231,000,000 | 0 | 231,000,000 | 0 | ||
Nonoperating credit loss on BRW Term Loan and related guarantee | 0 | 0 | 697,000,000 | 0 | ||
Nonoperating unrealized losses on investments | (9,000,000) | (34,000,000) | 310,000,000 | (51,000,000) | ||
Charge for the early termination of several regional aircraft finance leases | 6,000,000 | |||||
Other miscellaneous impairments | 8,000,000 | |||||
Loss recorded for the change in fair value of certain derivative assets | 4,000,000 | 1,000,000 | ||||
Fair value adjustment for aircraft purchased off lease | 8,000,000 | |||||
Severance and benefit costs | 63,000,000 | 6,000,000 | 63,000,000 | 12,000,000 | ||
Azul | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Nonoperating unrealized losses on investments | 284,000,000 | |||||
Gain (loss) for the change in fair value of equity investments | 9,000,000 | 38,000,000 | (284,000,000) | 52,000,000 | ||
AVH Derivative Assets | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Nonoperating unrealized losses on investments | 24,000,000 | |||||
Management | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and benefit costs | 6,000,000 | 10,000,000 | ||||
Voluntary Early-Out Program | International Brotherhood of Teamsters | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and benefit costs | $ 2,000,000 | |||||
Number of technicians and related employees that elected to voluntarily separate from the Company | employee | 1 | |||||
Maximum severance payment per employee (up to) | $ 100,000 | |||||
Term Loan Receivable | BRW | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Nonoperating credit loss on BRW Term Loan and related guarantee | 697,000,000 | |||||
Routes | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Fair value of indefinite-lived intangible assets | 1,000,000,000 | 1,000,000,000 | ||||
Impairment of intangible assets | $ 80,000,000 | $ 130,000,000 | ||||
Aircraft Engines [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment for aircraft engines removed from operations | $ 47,000,000 |