United Airlines (UAL)

Michael Leskinen Head-IR
Oscar Munoz CEO
Scott Kirby President
Andrew Nocella EVP and Chief Commercial Officer
Gerry Laderman EVP and CFO
Greg Hart EVP and COO
Jamie Baker J.P. Morgan
Hunter Keay Wolfe Research
Andrew Didora Bank of America Merrill Lynch
Kevin Crissey Citigroup
Jose Caiado Credit Suisse
Michael Linenberg Deutsche Bank
Brandon Oglenski Barclays
Catherine O'Brien Goldman Sachs
Duane Pfennigwerth Evercore ISI
Helane Becker Cowen and Company
David Vernon Bernstein Research
David Koenig The Associated Press
Micah Maidenberg Wall Street Journal
Justin Bachman Bloomberg
Tracy Rucinski Reuters
Leslie Josephs CNBC
Call transcript
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Good morning, and welcome to United Continental Holdings Earnings Conference Call for the Fourth Quarter and Full Year 2018. My name is Brandon, and I will be your conference facilitator today.

Following the initial remarks from management, we will open the lines for questions. [Operator Instructions] This call is being recorded and is copyrighted. Please note that no portion of the call may be recorded, transcribed or rebroadcast without the company's permission.

consent recording your this implies participation to of our call. Your

to these do now drop over Relations. today's Please not of you sir. Managing terms, Michael turn host Leskinen, call, agree presentation go will If Investor I with simply Director for line. off the ahead, your the

Michael Leskinen

earnings everyone, and we Yesterday, issued earnings release Thank morning, to fourth call. and you, Brandon. quarter conference United's investor update. separate welcome Good and full-year XXXX our

call. actual materially refer non-GAAP currently more to and issued the ir.united.com. filed financial forward-looking Additionally, accompanying could measures. of statements presentation release a the contain United represent All call, the this a company's Airlines the company. Number this may we on for other and earnings of expectations. at with current three factors. documents call Please accompany are based factors website and we of expectations performance. All upon Information concerning during description remarks available and are discuss morning the of presentation current this and reports differ or conference results the these cause to these will several Form XX-K, United by our information to release, our to available yesterday's events Continental investor Also, our update, which our Holdings forward during looking SEC thorough statements, course financial beliefs made in from future

copies at are measures, release, end on earnings reconciliation of refer For of measures non-GAAP tables presentation, website. the available update comparable of these the which and our investor please directly to to the most GAAP our

results Oscar Commercial President, and Chief in Executive President Scott Munoz; Executive are Chief Financial and here Chief outlook Chicago President and Joining and Laderman. Vice Gerry Officer, to Nocella; Kirby; Vice discuss Andrew Executive Officer, our us Officer,

to Oscar. turn the team call to And Q&A. have like addition, I'd to the we of members over room now, In in available other the with assist

Oscar Munoz

Mike, forth today. doubt, you, laid for difference and joining us year makes. Thank of that growth our out No ago we all strategy remember, a a us what year Well, over thank multi-year you a strong, team, promises, when work those matters series to XXXX to for proud United XX,XXX promises promise. over our in of is a and incredible got because set fulfilling I'm not say proof, concrete what that

questions XXXX, we that growth. increasing there remember supply, would our now You'll on we continued have. when announced initially few and Street higher while possible, And we in our deliver believed this revenue plan unit of said Wall was many we a are simultaneously

that United talked we've about created not this As think strategy growth is equal this proved we that year. uniquely is I all and capacity

XXX has the four PRASM last is to points approximately We industry outpace quarters, expected turn each the of basis to industry our or fact, by and XXXX. in in the X. Slide to likely is In outpace

the You'll better, to and adjusted our share XXXX per EPS also for between $X.XX get remember we'll i.e., $X.XX we said that and have increase and we we year. are $X.XX expected

to down We on laser CASMex a flat X%. with year focused also discipline, said full be goal we cost would

CASMex again promise, for have with industry that year. We the to on a down delivered the lead expecting X.X%

we We strategy growth our a smart from our focus also ensure said detract operations great on commitment we'd that wouldn't that and running toward have.

In rate completion last fact, our more the we in flew highest ever achieved than and year, passengers history.

much very XXXX. proud is we in and the more to employees. all thank work progress And significant are So, no we our be of doubt done made there I

disruptions, our on our facts that not, that this of government shutdown, the economic walk through to potential make? will to we've of becomes what do sources point, Now year making to attention point. very as of an concerning, close Scott look headlines course, detected next same much we other are So we instability. you are the ahead the we trade while XXXX, difference this impact question, particular paying read will We and the numbers.

and course, we we our watching particular, will Of control, we stay the focused meantime, the can on serve in keep in customers. the we way just priorities that will

to putting than more ever, and So, This will customer we're innovations continue that that, United's to everything center at our switching the improvements reshape them all experience a we series customers, on to we of believe we focused and do. we'll image. continue year of to out of roll

customer-friendly new that airline routes, the designed of are will make customers introduce We boosted our choose new United to aircraft a fly. series by to

few your moment. entrepreneurial fostering the useful information the at carriers the real-time to examples the to a XX,XXX are has This your new but we're These our app coupled better, of United that the next reimagined employees making the United. to our success solve also of whole a be culture, we advantage from the app. problems download customers customer core better able the completely useful that over we to of Just one of information putting commitment already resulted our it in our are just and deep will to used without It's by features version number efforts downloaded devices company-wide week, be add digital US a to losing continue take our service here your culture have mobile essential information with communicate We'll amongst fingertips love. at will four and level. new standard that principles, to of even

Slide moving X. Lastly, to

XXXX, recover of also expense helped that our commitments are you pace year $XX almost EPS year, our us us XXXX. to target EPS Let puts an full $XX to Last commitments me $XX, we are we're year-over-year on to the of In adjusted while in customers, which deliver adjusted and XXX% committed fuel ability adjusted our the in of shareholders. emphasize we ahead $XX of our to delivering increase $X.XX. to on delivering nicely our of to a our achieve EPS delivering to

to over Scott. hand it let me So with that,

Scott Kirby

today. played while customers. United had with support We on-time us great our work best for the most operationally thank and the and of to thanks, the This together in X.X% of them. revenue including center, history is I'd continued load that part in top-tier year-over-year. like and consolidating factor year operation completion drove ever corporate to In to a a growth everyone and our of history. came a of factors. the record all we for number all a team United's our for operation, great hard commitment run record operated everyone result [D-X] XXXX We to call the and entire the financially, frontline Oscar, customers. From performance, passengers flying record a flights a XXXX, Thanks deliver and and on experience the fantastic the joining was

customer to fourth about Andrew in for focus that and talk about quarter As of evidence are margin we will performance PRASM growth and return United. improvement January continuously growth drove operation clear believe strong PRASM last quarter. our our in improving a announced plan with right the the These operational point time the later, steps, our we strategy this the strong is coupled

industry's cost raise EPS at full us last significantly not year. because guidance us but It's XXXX were rose all allowed one-year fuel $XX a $XX gives guidance. for us only we're This confidence adjusted guidance the confident guidance as historical the first guidance, fuel time the year why we United, As in be provide we during of being for the fuel would we historical the that increase revenue. what maintain world This miss another giving volatile EPS that costs, And even to guidance. also annual able and for between PRASM to confidence relationship relationship year. adjusted and multi-year were is give excuse will confident they relationship look that we not gives at unpredictable way, fuel. and XXXX, there to is reality, Set are an but to higher with our most precisely costs know to

discipline Our anywhere we Oil. gives revenue our cost $XX we can $XX or between and confidence meet combined that EPS exceed strategy, XXXX adjusted - that targets us continue continue our to Brent can with

back the there's XXXX. planning in and the the It's But what's first As holidays been the unique, first to opportunity volatility seeing with the a for booking weakness week's the from the as business budget economy Oscar We lot Street entertainment about year. always and customers worth to business full the don't year and because trips. enter travel budgets. in office back we reduce see the the are bookings. Historically, are normally Wall as about the largest outlook. single bookings the corporate is on of we mentioned, concern of week week almost happened react are of health of They coming of inherent concerned a companies the

for and the by the volatility of up data corporate least, week. the our accounts we all for so travel the solid, we're despite bookings As government year reasonably last on But of slightly higher And are demand at The the bookings good despite indicator can first the stock a week forward measured have is based United business forward. change certainly business all large economy. market hindering, Airlines going shutdown, result, world far. yield XX% agencies, remains at health

the strong United, more meeting my the heard customer tell something to but benefits walks harder innovative we're experience. the or you've you proceed But you to about sit nimbler, of at company, from and several to PRASM doing. and talk margin in quantify about In culture. growth shift to I change even improving the that's new started to a changing we're a action-oriented today, us I office to essential earnings and me that short, show times employee and want and last hard driving to a approach faster lot of our I the our Over another our talk call, can't of number it's to We to strategy. growth. someone into outside

to mobile and see technology put industry-leading in to of hands new Gemini, employees. that our develop performance in of able powerful an the the we it You're the app

developing new are in thought ideas speeds teams testing every have wouldn't them day possible. Our literally we and

teams and to all all back we the to new work headcount There's is United. did At process, with deploy. of happening start X% expanding initiatives achieved results those the an last anxiety solutions, as this from experimenting bit that throughout those don't. today. growing that it that the of example, keep of but adding year's despite pulling we initiatives fair of we team, and total kinds kinds great M&A the And announced around quickly budget now this and are asked We a and flat,

budget and goal spending year's M&A further process, took flat. step total this it to For keep a we set a

fund challenge the to positive 'can the team spirit. confident initiatives and had I'm And with do' a new without say that more. growth, to had proud pay dollar leaders spending So, single that raises we embraced target committed new easy do entrepreneurial an isn't in that’s It world. airline it. root, aided are We're will best but our United the by to we making culture taking to hit,

United. focused We difficult and a I world's delivery. plan, happening change and great is to and best competitive by again thank ongoing at United. culture had XXXX, a on to a for potential network for great replicate to new this year and advantage growth the have a the The action-oriented facilitated customer, team few. We coreX, in name lot There's want the just a culture really significant operations,

we're a As $XX and meet fuel $XX in barrel. our $XX that guidance or result, any EPS to we'll $XX price XXXX per confident between for exceed

the fuel in prices one for was it that, XXXX. strategy incredible We're forward an out here looking United. success turn to our With over year, an said Andrew. be ago. and XXXX before, repeating not at to I'll unpredictable year excuse laid we set solid we a As foundation will

Andrew Nocella

Thanks Scott.

revenue Turning into entities our report fourth, PRASM in PRASM positive I'm to continued the Slide growth XX. of and momentum the to the quarter high expectations. All from end up quarter. third X%, with our achieving achieved pleased

outperformance of capacity. performance were PRASM United Congratulations in of There number capacity in all for the revenue in of that achieved We our achieved end XXXX. drove uniquely high quarter. top-tier more guide in we the the our growth. X.X% XXXX, For entire each the PRASM just quarter to initiatives XXXX, PRASM our X.X% outside unit increase a team on United

year-over-year. We have setting a our industry proprietary which delivered competitors improved PRASM employees performance our point record rolled operational our X system, our RF also XXXX. that expectations. leading estimate point Gemini, delivered revenue will has add service, growth management last in about was Our customer PRASM our which and revenue a we of of exceeded and year, an tool out to leapfrogged

PRASM. additional and product other sharpened further about commercial point customers we improvements our strategy to The want, digital good better culture want change into January in they as host of to segmentation the in are we out delivered feel we it. they deliver is and the plan XXXX our Lastly, working contributed environment an our initiatives an product These that when welcome. and about and Scott laid talked Overall, head innovation where XXXX. we change

Now away were overall across of on regions for increased each once details Domestic all outpacing leading Domestic our the about PRASM Slide the quarter, XX%. XXXX. capacity of X% again X.X% X.X% in year-over-year quarter revenues the and top improved some year-over-year, Corporate XX. line in growth strong for regions.

continue and We departure, last of our while booking this on tickets closer shift further generally booked out year lower-yielding dependence to higher worked business well to reduce yielding in. profile from share booked increasing strategy. Gemini successfully our implementing tickets

XXXX continues accelerates this as to industry. practice, the relative and RM Our enter posture we

X.X%. growth, increasing factor PRASM year-over-year. Passenger moderate QX two Following growth points more we X.X very saw years Atlantic of strong, load PRASM was strong of

increase yields. declining that not to was enough large close However, offset

to coach weakness, in a coming Pacific positive Atlantic across Our slower third yield QX, up our PRASM. year for and growth as PRASM was year with show quarter continues over in months. outlook the the PRASM the result, X.X%

business China and Latin sharply PRASM the for see play and QX disputes. We class resulting from watch these inflected demand any for positive, levels January, XXXX, trade increasing of to in demand yet negative in QX reduction X.X% continue to After in fourth quarter. growth performance in have

Latin strong from We weakness and PRASM are Argentina. even optimistic with Brazil continued in about the region,

holiday The is flat anticipate to for to with expected QX. of QX, PRASM basis point ahead, be an year-over-year. be quarter X% Looking XX mid-April an system up Easter we headwind for shift first equal consolidated to tailwind to

As is we change look at we pricing primary the revenue environment, the observed the across Atlantic.

in we believe travel at will we gotten environment. While not look have fundamental we the changed quarter. QX. created said, this in point factors has anything Overall, a we uncertainty enter it shutdown outlook, peak QX as some yield government demand to and X being such, it weaker, That think improve range guided the has and as as other do our we've in revenue

bookings that track. week on indicating continues year business be week domestic first the earlier, to booking of clean were our mentioned for Scott Xth, momentum strong, As the to the January of us

X%. outlook capacity Our XXXX remains for to at X%

target. with We're February. segmentation passenger scheduled upside seen in track. Induction mid-continent Chicago to possible widebody flatbed remain continued Denver seats with strategy The rebank The and has Our Polaris on of be all-aisle with see Denver, our itineraries equipped continues the Houston access jets grown in strategies to three our results more on and for at basic continue the we've grow. economy and year-over-year. even have both all footprint about XX% pleased

closely with basic basic it our product to important to feel we bag sales. relative related and to benefits continue our operational performance pleased is We be We share economy the to differentiate of continue policy. our monitor

times premium average approximately what we economy coach two the segmentation Another planned Plus key of component new intercontinental Premium sales above figures for for. passenger have had our Premium to our seats. strategy fares Plus, is Early fare,

the of late year into a was with first Increase XX% revenues as a ancillary stream limited of XXXX, revenue started class In new in of to for the paid a up in be success. XXXX. fees number sale upgrade year. will well, preferred had we that key seats a Our revenue area also fantastic

waiting for And like the it eligibility check-in. on most to up Gerry. of for set that, picking we're to non-preferred to always, and continue at summary, of seat the free time over either quarter for select we'll first focus a customer with or the passengers a seat As I'd experience. all free have to enhancing turn strong option an In

Gerry Laderman

and XXXX we Investor our full and Good year afternoon morning, Andrew. XXXX released and full-year everyone. our quarter Update. earnings first fourth quarter Thanks Yesterday

those for to refer additional can You details. documents

is For the highlights, XX Slide of XX and financials shows a Slide results. our summary our GAAP adjusted non-GAAP

was Adjusted reported points X.X%, we $X.XX. of ago above quarter, own high higher fourth adjusted a our end per pre-tax the earnings than quarter was fourth expectations. year of up That's the XXX of income share and versus pre-tax XXXX. For nearly and margin adjusted million the basis $XXX XX%

higher per share of is income was guidance. XXXX. above $X.X end reported which the This pre-tax result margin year, and the XX% our earnings $X.XX, of a was is high fantastic billion and adjusted X.X%. we For full adjusted pre-tax than Adjusted

proud we is first all that full-year strategy total are and quarter growth our XXXX. and results, they believe the working. provide quarter these of the XX We for evidence and our our shows for cost forecast and XXXX powerful Slide unit fourth full-year

Non-fuel unit midpoint expectations in the going fourth better quarter a into XX. decreased to basis, Turning the our Slide X.X% the costs on of than quarter. year-over-year

practices, improved benefit asset costs. maintenance lower and to continued from ownership smarter utilization, We aircraft

running the full again, leading. better costs continue to, a lot plan a initiatives of prerequisite growth, we We XXXX, efficient unit had our remain both that to opportunities. industry believe of to and is an to non-fuel from year to and and the new to take For airline manage expect cost our year we quarter to advantages discipline first XXXX we in and or this flat same expect benefit

For the to Airbus maintenance also and schedule a less as worth the running across fewer operation allows such reliability more for improved benefit that more recovery over types, Greater example, our retirement begin well these side continue we AXXXs as from for cost reliable buffers oldest operation. exit generally, efficient for optimizing benefit costs Boeing time, aircraft. to we XXX, planning, system. and on irregular from as noting and It's we related the aircraft allowing certain as will

$XXX our we $XX. shares an price in in of average at quarter fourth on Slide repurchased As million you common the stock see of XX,

of of of view shares as continue average trade to with billion shares $X.XX I expect full opportunistic price year, at share our below repurchased be share. intrinsic per will our value. Over our repurchases $XX about our the we we an

month aircraft, with this our XX four expected and During double and we highly plan. December, for we support more MAX is finalized aircraft large an support older advantage additional the fuel and next aircraft, XXX-XXXER initiatives come. our additional these efficient cost efficient of routes capacity to for for smaller delivering two December, beginning premium will during deliveries year. gauge unit next aircraft These the these year to us domestically aircraft of demand Boeing and the with aircraft of in allow order month are Boeing larger aircraft ordered for be have year. CASMex delivering The and to two cabins. of Also that These digits replace XXX years

Our at adjusted XXXX opportunistic CapEx expectations. We continually and our earlier not above of both purchases aircraft on the costs $X.X in return to our spend billion, approximately strong fleet. ended to our ownership aircraft had difference of $X spend, for is used were largely work off-lease, billion aircraft and this we upgauge which This we plan. originally maximize cash as our with flow and Even free update invested incremental however, capital year. due for

For taking currently we mentioned, and order existing XXXX. with other aircraft aircraft additional along I spending investments, into opportunistic XXXX, $X.X orders, anticipate aircraft high-value of used for purchases adjusted billion in continued account, firm CapEx the approximately

quarter. a includes of capacity, including first of summary provide expectation Slide provided this XX, we on for the pre-tax of price Finally, margin - adjusted the adjusted for year-over-year. first on cost XXX projected our summary full-year fuel an Also XX and the improvement range, a guidance. current The implies on of revenue a of between X.X%. and Implying adjusted margin range an quarter Slide X.X% points basis XXXX at midpoint basis guidance, range our

to of that EPS this our We guidance year. will adjusted are confident we deliver $XX $XX

wide today forecasting to low and to $XX, spirit, this range the been we're extremely EPS as is bottom macro settle. wide guidance from fuel of high range As few to of for that year manage has prices not exceed you line our committing about numerous $XX In a as very deliver What confident jet volatile that know, last where results the fuel or adjusted nimbly business to over scenarios per airline our as are frankly of we within in ability months run fuel barrel. and barrel prices. all of environment. our $XX fuel to $XX as We're per meet we in

questions, take Wednesday, results. our we full-year released we Before XXXX last traffic and December

these forward, monthly will Moving issuing no traffic longer results. we be

from With targets, As we focus believe Mike earnings over I we to to progress the monthly to are steady will deliver. we the begin Q&A. turn on our long-term distractions expect that, updates it unnecessary

Michael Leskinen

Thank you, Gerry.

then will from we limit a the follow First, Brandon, please one take questions to describe question to needed and the will media. up we questions procedure question. from yourself analyst Please one community, question. take if ask the


Instructions] have Jamie [Operator And J.P. go ahead. from Morgan, Please we Baker.

Jamie Baker

raise to this the quick of I that WX underlying and understand already share this obviously But cost into to comp month? like you what in to XXXX XX The X% I this? us that's better I forward pilot expense? for terms as question drives next want start has month year with don't I'd in incremental Gerry. necessarily can a just with on Form effective look we dollars have effect trust estimates. of or pilot component gone

Gerry Laderman

Jamie, up detail just you with can a we that's later. follow

Jamie Baker

to be color? the sense. more actually makes is But if more I underperforming markets that presumably of the RASM, going a coming the across the number to the speed considerable adding those reality Second, on growth, than weak ask network. which mean, there I've component, in were portends think last has focus The RASM into forward or with quickly already of about much understandably markets. mid-continent I potentially to the have growth that I when most been of imagine RASM handles ramped and which any also most the of cut, think how cutting is, year, called going got I the this stuff. that the network of stuff that, which underperformers a positive Is suggests indicative is impact what was the year's quantify, you've new way other? had unprofitable what, Any reason the

Andrew Nocella

I agree. I'm sure not

I and rid there's our while I routes, I XX and potential underperforming is is the not for approximately a pipeline our lot there's list we think say other which And come. for of XXXX, - at we of there's online. would the of I a I'll initiatives just Jamie, was ideas system, whole few think the I a that year, financially, a that were of come then or way XXXX to The changes it XXXX get we I examples that initiative look for XQ. - what turned really just did apply Gemini didn't on we suppose. few more think get last early - of And have RM fully sold until

So, we baseline will on Denver bank In to that we numbers. hub the to wide-body number think XX not XXth, is aisle another going our XXXX, go departures all-access We're to Polaris February that, have of XX. the tailwinds there from And rebank seats. jets from XX that's will continue get that in come. for

pre X tidbit example, flights by number of XX%. The cut am the we've other,

Dallas, am our it X Phase will the have XXXX. than our amazingly for change Last fall XX that aircraft For enough, RASMs transfer, New as XX aircraft X the almost XXXX, about flights those we am now. and X% we're of to are of York about in around that flights. of be points transfer doing from X right that moved talked margin aircraft greater that flying point XX all is for and speak We've I

That's in XXXX company, added growth that last flights from the hubs. this our example, better bank we in-bank is we of about year XXXX much better these XXXX, of of flights Singapore and XX% flights flights. in year. than did versus that, have capacity perform from better even well. to to add expect hubs than full in That's line of We'll new mid-continent those our Sydney XX%, the X% continue our catchment But in for two RASM. and obviously area all they worked have to new 'XX, are We that going number this

is, It's for We from fill up We're host we there going Airlines. co-brand continue and us. is our Premium Plus. York continue to to point into think Francisco. of going to San premium not fuel are we RASM that card. as to growing growth. They're cabins to New United XXXX We're important going go grow about whole initiatives LA really all to a are The our

fact, In many all as growth we them go at about of are not forward.


have From Hunter go Please Keay. we Wolfe Research, ahead.

Hunter Keay

Hey, for of is Scott. will How results issues? the have the impacted guys tone this with think strong financial momentum more of and been the the pilots, I business negotiations run these probably some pace Scott. on complicated you too these showing of the particularly or

Scott Kirby

the other on first, of tone create to it's So said. that. everyone good Andrew everything that to tables. doesn't background there. actually with of partners. But call up after answer a look, question the certainly afraid I'm go kind, want the from to I, results stop - It for after hurt getting Hard deals contracts a good whether getting done, doing

good We're with good discussions there. having the run about ICAO. - are We talking details having I'm

We there. looking But good that going tone get are the good our confident good help done to that And for good competitive have We're the and of everything. company. relations we're results of deals we're forward unions. all to with people getting our for

Hunter Keay

did the what how market in Scott, airline also, values you also then five years learn And about airline last how stocks the capital investors and value deployment?

Scott Kirby

going question. be that's to a Boy, tough

Hunter Keay

handle. can You

Scott Kirby

day First, the the at to I have not, are or most. whether are the and matter what it results what I end matter are think, of I results learned going think

with on quarter this any hit we giving our We to We there or long speed speed there We them raise expand speed think a giving And we're do in to that of that quarter promise, margin beyond going growth hope Brent guidance. here, excuses, between that going we're of in to sit price at as do ultimately But that earnings feel tried about three nothing trying we it's not we're PRASM for talk some hope really I look we to bumps today to year about things. points doing sir" to we not an is your works. happen. that difference was good and when that I not are announced year. We that credibility, quarter, enough $XX on exactly PRASM, that's bumps. the government Oscar $XX to year points able proving importance awful lot things proof the often a had significant there's be as are credibility on a us difference we say what think we year. for allows dramatic today drive going growth. going almost going delivering saying focus We that's to are last that There's to said and any to mentality three even matter. when just credibility the here that fuel numbers. by from when this spent going mean, we've an bumps and Oil. time We Andrew overcome about plan be trying we're growth guidance is to years become given is quarter. know of those "no and the we're that had continue ago, you confident, time be growth. Today, things guidance best talked shutdown one here despite United barrel And to of a important. those on also a that says, on And on a as come. is and when that investor can't perspective, you to I The term, will that be hitting we efforts,

committed long year, only delivering earth credibility have know as not I We to, speed before don't every we as grows as earnings a keep get And multiple. what our but I our hit stock from have for long moving to multiple numbers. even higher hit growing commitments, flexibility more as said earnings, and that people if we means bumps, we as But higher we and believe we adjust confidence. will higher keep price a we on that and we industry that get will are heaven to resiliency, as


Didora. From of go have Bank we America, Andrew ahead. Please

Andrew Didora

around is rate. I the guess, growth my question first

just end XQ of year? higher global at growth, to towards 'XX. start end is X% is end. off the to of in X% the the the of be your high this XQ why reiterated slowing high way guess, I in plan this. prudent You the slightly backdrop is economic growth kind to going

Andrew Nocella

range for is look growth high doing and XXXX things really end said, then a And There is right our we plan. the are company. we've already note. this factors driving we're than RASM widened and on our a the about now as lot Scott We high that there we But we at out good and still note more RASM, think of feel how definitely risk on are a

And as other so all those United initiatives point. are and think, to I important this just at unique,

direction in excited and we the year. about so deliver we’ve that can the for promise and And talked go to believe we're on results

Andrew Didora

more 'XX focused that like I more is still guess, of flying. just at growth part domestic much the as seems still big you on looking closely, based bit it a around through the a just head little regional schedules, strategy, your

how of can you maybe continue mainline? a are this think think, your and terms inning regional you can to sense kind give what mid-continent in long you So, outperform doled of out growth of you do us where

Andrew Nocella

think way look them. We at be like. We're done, But runway the very there. we adjust and they it point, things I this and going like more well quarter-by-quarter, obviously, we're do. as to needed. going have said, they take to it's To don't

offer. in We are undersized still level relatively of our we connectivity

schedules, see you'll nimble that. and going, we'll been bullish But that very of And where quality be to have we if we've working where hard I so improving and we're we think are and the and more change. just we're the at of on

Andrew Didora

last quickly, just then question. one And

month. beginning you would next done opportunity you've of rebanking mid the what that Denver rebanking in How mentioned relative to You Chicago? rank and kind Houston Thanks.

Andrew Nocella

Sure. of banks down a maybe bit It's connectivity. which similar, number more. worth our We're increasing by one, is taking little the

time - will XX We or the at same ground have average aircraft on XX. aircraft XX on the versus

we example them changes to flights of day as more are optimistic Chicago in and a So, the better, schedule are we're making that well. it. being But early about places for better are good other there rebank tweak that. the those We Houston make and and pretty the the said,

those this bank of making place we a to So, long mid-continent we again, to the things think or mine hub And going we not not entirely have go. are about all growth. sizes strategy. to difference And when necessarily way departs changing our continue is about are growth,

working lot of a there's So, we what are different on. dimensions


Please have we go Crissey. Kevin Citigroup, From ahead.

Kevin Crissey

put Maybe and see whether the I'm initiatives benefit and it's the over a variances had than to from from like more of see easy trying comparisons XXXX for look I versus 'XX. you versus regional should variances see and the strong your as When XXXX. - we you dollar 'XX in we that regional perspective, when place you understand Basically, the at also how comps well, strategy strategy what and having very Andrew. XXXX which effect performance, revenue was

Andrew Nocella

I XXXX to particular, quarter, I'm to not it I, easy for not think in attribute the attribute fourth really comps. fought well to I'm going going and easy we it in to comps.

we happy think of I quarter are and about and a we fourth out the had it. we hit reasonable it really setup park in

forward go initiatives. the As we of a year, we to host have whole next

are We is increase out that break worth. nature say, one there the of piece. initiatives the to didn't plenty initiatives just talk but way, of and It's by of and we going there is about lower that the do each what them is margin plenty RASM. And not

range have and still our widened to the is And more laid so team the to into which as we deliver out. that But we we the guide. is lead RASM bit really and go believe targets we uncertainty, feel are initiatives why EPS bullish little this that year this of there Mike going the of

Kevin Crissey

could you If again? Maybe was differently. could a that did one do network XXXX? thing in at done look aspect have beneficial to strategy I little would maybe What had XXXX, this of only you if most one say, you I pick which your in you

Andrew Nocella

a great fundamental at are But and I hard same time, it's we question more connectivity. in did it's aircraft think things. just the on ground, because guy to a many so answer asking the network You and that is

in is that to look more importantly that forward we it XXXX. awfully So do and

went United showed because grew capacity RASM, more give didn't up when days cut that The other days. United for on increased had, reduce fact this And example lot It our that our is in muscle average years did year that say to in our we passed, actually And the theory, I'll capacity on RASM. RASM a in under because than we uniquely those And days bone, off-peak the that's RASM. is, cuts results from it. lowered RASM. actually off-peak best to way

our favorite that taking XXXX faster RASM don't company's year. the than them do did as days, we in the my should increasing is of off-peak days we XXXX. these things off-peak was So, one those the schedules we normal had an that throughout of again I for have was in growing have can But normal. as to All faster many that year. than always returns exciting and average if competitors average know achievement

Kevin Crissey

that better quick or a And on that maybe for numbers slide year, and directionality one supposed question scale? Gerry. to downer? the a Gerry, costs Is indicate for is the is just drawn little QX the that flatter, similar assuming in to

Michael Leskinen

scale. Mike. your out. ruler get this Kevin, is the Do not not It's


Please Joe from we ahead. go And Caiado. have Credit Suisse,

Jose Caiado

Gerry. for Andrew and question First

earlier and Andrew's Just on from rebank. your expectations Denver following the up on question

to results previously I'm you'd February. guidance. embedded your just that driving expectation improved you start think late I in expected Denver is in that PRASM said, if starting wondering in QX

Andrew Nocella

and February, Yes. XXth yes. yes. Yes and

Jose Caiado

your not like? Houston to is learned maybe little better? little based a be And a that lessons Or Chicago of again you it then sounds potential for but bit assuming better expectation that bit and off it in

Andrew Nocella

and I before a a we great made baseline change Well, this had is be trying clear. we're mean, hub hub, that to from improve Denver each to very

Denver for were a decrease we of Particularly passengers. during the bank. flights out is and connectivity. our local in early fewer increase a in different the departures number one based number middle hub So, in for It's increase am of day, the each pre has each dramatic of it's on am exactly number Denver the dramatic doing. it's X:XX of what our

and we we that on specific revenue So, Denver. the do we're what make sure we not create guidance to guidance. reflected going to But the make give as number plan are for attempt an revenue working for the in a year is QX, that for

Jose Caiado

Gerry. more And for then just one

Just given the going have accounting new right is what on lease forward? you updated of for balance moving sheet, think and the pieces range view leverage an do you company the standards the

Gerry Laderman

our we very have spend six, debt in range. capitalized into where the the sheet I a said lot of manageable balance that position a before, As I work think including in over We load getting we're years, last today, leases. seven, our it's

assets. unencumbered of billion $X have We

is We'll more in finance historically. about anticipate I great have most wouldn't way than the it is say be schedule. been new We shape. of our Everything deliveries. amortization another. one I very continue sheet I that balance much lease or little aircraft manageable attractive would expect to dead. those market would a getting moving to it's

the on, debt amortizing. So, there there. debt new a could But as be we've comes mix got

going range comfortable balance our the of state in the it's is to we're and So, sheet. it stay very with


Linenberg. Please Michael have ahead. we Bank, Deutsche From go

Michael Linenberg

Have you DC presence your market? guys put given in impact out an just estimate the for shutdown, the of the

Scott Kirby

a largest No, exposure. have do We we haven't.

biggest is said, now be. DC. know it's going for to it's to hard a us we But right impact in what We have or presence what as the

And is now range we'll not all know going over, back what But Maybe to the really go. a don't on try wider uncertainty. to reflect did how also that to was. gave it's to the We right and a after quarter try look what it's it. going see impact pin long number we we're when

Michael Linenberg

Gerry. And then just a question to

lease that the a And I question statement, accounting to decline was cut sizable actually Just So, amortization accounting. tied a got aircraft sort phenomenon? excuse at in and - there you adjustment, sheet rents, lease the balance just on two-part sure that is that was - me, to sense bit. income don't depreciation is there move XXXX that just I even have a wasn't toward looking and a if you my the make of the yet in

Gerry Laderman

expense - and we lease for have in costs mid-life into So lease factored some many aircraft the to buying from expense XX% to ownership going in the of due expense depreciation, is the Particularly in numbers. our rent CASM largely reduction cases, XX% appreciation expense is reduces off-lease. cases. aircraft, rent basically Switching to from by is initiative terrific

that is next that seeing is you'll drop And there why significant lease then rent that's accounting expense. So, in - year. start


ahead. Please have go And from Barclays, Oglenski. we Brandon

Brandon Oglenski

mean So I much of midpoint of fuel RASM outcome think at listen, a full-year don't flat I and the current to for guidance be analyst take too like curve, the something year. I a the but your look here, I if implies that nerdy

throughout unit is to guys that revenues wanted something ask, momentum on year? get Are in looking plans? So, to the I the just you

Scott Kirby

At we we tell of that and you a prices. what is rule we're because and away fuel RASM. have or think on between end Brandon, EPS a where we'd and shouldn't encourage we RASM fuel we in you to were fuel we another that exceed That's to we we're prices, changes say commitment tried number to $XX is you price to number to our we what today move going today going number And to getting trying fuel and $XX not guidance range point intentionally that's guidance down to nerdy to we're really to a we've do any can on $XX wide hit you EPS meet or from hit, a to try at Because everything constantly we range way that said, to be an can try some will of say pin saying. $XX. range. we above a But up think that fuel analyst. hit

Brandon Oglenski

too sense correct that on there's And I incorrect? the also focus get margin? is think I that or a higher Or

Scott Kirby

That is correct.

Brandon Oglenski

Okay. one… last And the


we Please ahead. Sachs, Goldman O'Brien. From have go Catherine

Catherine O'Brien

for similar you like pretty two about this that points so more year long But last of your a routes point capacity to couple also So, is on had on a one haul drives the growth looks year. you schedule it far, Hawaii. of Based capacity question maybe year. last have from complexion

to helpful. RASM tougher facing up hubs? your we'll of some do comp Any you've should from, some be So generated seen you Or at point? as it think color more your be capacity think easing positive given really do issues year? stands that's start you now, XXXX, trends, of And there performance would for this expect the we

Scott Kirby

would XXXX. RASM, of of that Hawaii a moving the There's in a grow margin did results brought pieces that lot here, and we have And averages. in the down while like lot case, we

for reduce we're Hawaii But XXXX. RASM I an be have of, fact less example the growth year-over-year. Catherine, margin. think, going that's United will dramatically And to Airlines And ultimately in for a is tailwind there So, around so will the but that, take many doing pieces And in are that they again, extent things that moving moving the on boost RASM, away that things do we're front. also RASM we're that things margin.

the XX% to Another fall older good efficient is RASM less or by our those the will XX%. XXX-XXs to less. on is Atlantic. aircraft. expect I example fall replace XXX-XX our flying by on And aircraft across our also percentage those going But CASM some aircraft

answers your hopefully question. So, that

pieces. number is an just of I think moving incredible there

Catherine O'Brien

some into - enough a guideposts if variability that on do want maybe just I more question unquote, think quote we you or built you keep public. a sure offer new your pilot a could to makes outlook? sense. not that you on just pilot any in then pilot first new a could see could quick CASMex. better, contract CASM XXXX could deal? that CASM be potential is flat contract inflation got you second, assuming how the or And or Have you But do can't obviously, impact to new there. CASM we negotiate I shouldn't be I that And in one That if know we ask

Scott Kirby

mind pilots contract. the embedded receiving the CASM guidance in X% our current in keep this under increase that So, is year the

in that's out include increases. the was guidance, when that new what contract year to a committed number. to impact of With we multi-year the our put last respect CASM labor we this would So


we From Pfennigwerth. Evercore, Please go have ahead. Duane

Duane Pfennigwerth

Congrats on the margin expansion.

that is figure? the corporate bookings XX% federal being your about last would you commentary And included government volume guess federal is government? Your the percentage week, up from of sort of in what

Scott Kirby

cut Yes, him off But got wasn't before operator Brandon it to Brandon. answer, want off. cut It included. who we the intentional, I to or apologize is

includes in, want of to do. So back all if get please It you our bookings.

have reflective And even it's contract. are government our government. number on meet that So the in government can't what's flying all what did, I I government. the or is. partners we exactly tell exact the business you But percentage it or others because with could we don't not tell of includes of to if you contractors

a the wouldn't So meaningful be anyway. But XX% is number everything.

includes week. shutdown of the least government first it at So impact for that

Duane Pfennigwerth

my just versus then about domestic contrast just level you broad high with follow if mainline, the 'XX. brush, year, The could that taking And four wonder just international, to this Thanks questions. regional talk up. I a and maybe versus for for at six

Scott Kirby

our think this Domestic is hub strategy. similar At mid-continent focused profile. a we're Sure. point, on I

there. to And the not will what little the lower add of We numbers. very to a I'm the bit two international, similar will be it's a we from offset domestic than higher obviously international be lower can But I any in that. continue higher and more And average. bit And the to sure little again, did XXXX.


have go we ahead. Cowen, from Please And Helane Becker.

Helane Becker

in I there. your hearts it So, were guess the the out in place that turns end, right

to about have growth not good of locations. that and that generating it's will in might maybe are talking New you're to you less year, LA that because in be add that this each the impactful talk you Can impactful York that traffic than the what opportunities - San revenue growth mid-con, You still growth? Francisco, about

Oscar Munoz

what you're in asking sure did and say, XXXX we your I would our plan? I our role bits correctly, our gateways heard for question. If the not I'm Helane, understood for pieces coastal play

Helane Becker

focused yet mid-con and still San as in add you I been because capacity in seen Exactly, Franc because opportunities have well. LA your and New markets you have York, on growth has those

could parse difference you maybe two. out just the So, between the

losing voice I'm my here. Sorry,

Scott Kirby

is spoken we really margin And significant a about hubs lot all our in most hubs. strategy, I'd hub have the say gap mid-continent clearly we because our mid-content Well, our do the love issue exactly - long-term and gateways are are I our doing. to unprecedented us will potential. pressing that that's more and address and they really But say they for what coastal really we're are

we is to new Francisco, York. New and out New service think are to Aviv really is Naples I to this of we've Australia out advantage as and Francisco. San and of a our great grown Having I'm the about Dallas Tel gateway announced Dallas, Prague San year excited single and we've And the announced hub service York Asia New them, India And in so, And new amazing. and City out on York of East premier that Coast well.

those lot it problem in margin and our short want we a we we we to are well run, in gap mid-continent to we're there. we to and do January our in last as on And have working. But our long way. I So, mine and unique say we think hubs ability But that will footprint we over for being. run, to over that I in see continue to on our do time mid-continent international long want respects. unprecedented. recognize to many more to run, pretty do United's the that doing hubs a hubs that we it's focus activity that and fix And the want cited it the the close United is think you'll It's


have Brandon on ahead, line. we back And Please Barclays, from Oglenski go sir.

Brandon Oglenski

I I rejected appreciate. time. all get But the

So, this is not me. for there

Scott Kirby

we are didn't to. sorry. mean Well, We

Brandon Oglenski

year your was I ask on with a question last plug variation call. the has that's how the strategy to of small about talked United guess, lot to the I Look, aircraft into going couple does on a times But you these of the to asked back saw been majority year I additions. capacity going But your from we last fleet schedule, come and flying is at this look it communities if additions regional look year. mainline like

this does strategy than head now just into how incrementally more with you that were risks connectivity about can fit up that in maybe carriers to head the So, increased you going does talk and you're 'XX? maybe low-fare

Andrew Nocella

way in deployment that regional regional all that not markets. I and our was mainline This describe jets that optimal is Andrew. we flew The is jets would of

us do And to us often allow what think the regional aircraft the mainline will into feeder see is that aircraft. So, I have redeploy markets. regional XXXX more a markets in catchment you'll make mainline sure that

market, makes changes dramatically our the our It cost as So, profile much more competitiveness. I it or structure client dramatically big those, the does, think, don't profitable. you I can unit of think lowers in and imagine that

in So, it's right the aircraft about right getting markets. the

fleet I exact same. front think is have approximately numbers the don't me. Our jet the I of in size,

I So, aircraft right. that And as go what you are more really more deploy how and think matters. changes you'll see through XXXX. is we But the we


go And from Please Bernstein, we have ahead. David Vernon.

David Vernon

under connectivity little a the you the hub out rationale So, laid Scott, strategy. year ago a for

is a and margin much not you point identified gap us give at have get You to some date, whether XX mid-continent the it's those of feasible let mid-con guys I'm that gap the how in not about differences XX% gap. might sure closed geographic hubs you way parity? that kind there sort that actually to to hubs for get not of the to a United. sense if Can of or all closing

Scott Kirby

try we We I'm from performance head, would we of initiatives half part actually that but it probably on where year-over-year And point. that about doing the just points I talk average beat continue that on the is to, haven't the the margin about. updated and some will other of is probably today that of analysis. half United point at this couple basis math growth guess, I say But at in I'd hundred least, strategy. to talked at a We my to relative by kinds all that from last year margin industry

a I are, runway we'll competitors probably the a where would room our ballpark much lot get gap closed That So, of so ultimately, the at there's go indicator that lot that how least, to that's we are. tell far. think of you and left in and of margins to of good a

David Vernon

not whether be like that right first were sort made or impact you some work it of changes that, that a way? sort think network of there network changes of impactful might an - to diminishing does some than it later if the Is more of

Scott Kirby

down. Andrew hub Well, it quadratic kind way a on of turned add works I'll But a you is, grow let it's this. curve when to the upside

growing you which growing, are you're margins fast. exponential as connectivity, So, driving drive

drives up. So airplane the in, comes margins next it

strong out. the and You a margins kind then I you're flatten think And route, At mature to the point, and drives exponential the which get and to of know place, where you hub of adding you in But mature connectivity, if that it's really you kind has realize that you're, margins start smaller margins. flights you you've that that margins growing mid-continent gotten XXX,XXX particularly of start And next hub, part that the you've start down. gotten still you flight as to growing hubs. at and day next curve, connectivity. to first you growth we're It when keep a a point means you at a to hub drive the out. in growing to smaller the growth hub to a start that and flatten get early


portion our Thank investor today. call you. analyst Ladies the concludes of gentlemen, and this and

have take will Koenig. from Instructions] now David media. the ahead. [Operator from And Please We questions we Associated go The Press,

David Koenig

are they XX% new from maybe is much repeat I existing year this old for more bookings. a customers? away of - your customers from in to how guess, is trying is competitors? Scott. just spending the are including increase understand customers, or just business your of I did I'm they XX% than getting How mean, much some taking that it ago,

Scott Kirby

I some sure new I'm customers. is short the are sure lot Look, more of know them we answer. customers. XX% them have are don't old bookings. I'm a of

strong watchful you it Delta the And see that hasn't as gloom I morning, out yesterday actually, share that think coming performing road. it hear, that happened happen, have Yes, that. lens that be strong yet. bad if you businesses listened suspect they're and watch to business think this are talked are they're But and people in waiting the of better worried, CNBC in with I you think, well I to is could the to but what I suspect something - agree say all a to nervous way competitors just economy and you And about people is that travelling and for right aren't - and would better all just as come demand our despite doom about you than performing pretty economy well. the now, I that really to even on through enough opposed is confidence to just think getting some and bookings. the is still the businesses thing. pass.

this So, is just overall strong demand.

David Koenig

government or too size didn't. estimate that the Did And shutdown, Delta direct number put hard is effects? a the and to indirect consider the on you you

Scott Kirby

Look, it's to gets on just done. in to hard And have can And right to them. say, to get are earnings focus.. and trying bumps estimate and feel want It speed our figure to the to as we way. best our commitments how through get that the ourselves now overcome and the like we out focused we is on delivering thrown power quantify we're way going starting to to that's

spend time trying lot to a of didn't quantify. really we So


ahead. we Maidenberg. have And from Micah Wall Street Please go Journal,

Micah Maidenberg

widespread many How TSA have where seeing missed you just flights any how how or are screening, can United long secondly, them in then line? of the much are delays because you And quantify customs problems? is And overall, passengers way rebooking there United? cost

Greg Hart

their we We've of having line that if make that. the is around had the And much, hasn't flights. what's just Greg. those terms an we being for to is what all really would haven't Typically, issues customers. happen and pockets impacted happened that hold people flights of do is we system, issue we're staffing impact in haven't to not able This it really waits seen but seen

seen covering staffing TSA good of they've shortages. for job has done a So some the when pretty it

Micah Maidenberg

United Has to TSA? any Delta its talked deployed of employees yesterday. assist about that

Greg Hart

who have with employees haven't customers. things help We other do do TSA But the used our management partners not. and that. us to with of We help we our that the line own have some processing


Justin Bachman. go Okay. And have we Please Bloomberg, from ahead.

Justin Bachman

this the weighed on XX the with future. ALPHA the to of wanted be of Scott. of or given urgency terms your pilots talks the might flying got the sort question the the and This Oscar deal done? them year, in the about ask I raise, in state of X% level urgency on for that for that What's against thoughts idea on getting that EXXXs seats a

Scott Kirby

with conversations we them. to continue constructive Look,

table. have going good succeeding are at we're together We relationship and and negotiations to leave we but the good that partnership, a


Please And Tracy Rucinski. have from go we Reuters, ahead.

Tracy Rucinski

bit a of wanted to your I about as more aircraft well. little regional use ask

You mentioned costs your gone year? deploy they Regional not optimal. attract that having last wasn't mainland up more markets year, to have very in pilots. part them added into pay Have these costs the factored are clearly this in use because decision to to

Scott Kirby

flying aircraft evolves mix is our This time. strategy, that are don't. and are want still make historically markets We over regional mainline fleet a This markets. we that a didn't is long-term just that and right short-haul flying in and to our process to catchment have smallest aircraft we do sure in the mainline

XX you'll routes cities. in between ago. right the execute to particular, thing to way that's what see years two that on we're it. at think right So, right the to It's it. major going jets, to is fewer thing continue do. And and That's to regional right thing look do was flying do do to today, I are the seat hub on It the

Tracy Rucinski

pilots give you an can Path And update pilot for on Okay. and generally Program shortages? on Career your

Greg Hart

that's program Hey. This with a of us as got our mainline. the working program regional in a matriculation is those a we're for and the number to place It's at with eventually really well hiring to happy We've as Greg. results. facilitate well partners partners


we go ahead.. And Please have Josephs. from CNBC, Leslie

Leslie Josephs

in happens or been there given guys corporate recession and a prepared class business premium travel have you're a high-paying slowdown a You and of Thanks. a how seating, guys adding is economic for such slowdown are customers? if in lot just What Polaris. you just on general, focus putting that

Scott Kirby

a as watch that an an said actions has we we sheet. and we nimble think where Leslie, we quick airline culture we call, several taking built more need We've created to. fleet. the if about a can built resilience and flexibility with be it, lot of data got Gerry this we in about, data, closely. watch strong our incredible We've airline, balance more talked times flexibility the in very the We even as

airline in world well. that things for change so performing in we've And the worse, the running we and pretty the and that, or to the feel for well good the ability got the nimbly keep better event respond

Leslie Josephs

there in quick what you've being the is Are a slowdown nimble, look slowdown there like a anything specifics color if and anything could mentioned - any - you that of airline and is if like any there there is with, toyed demand?

Scott Kirby

talk Certainly nothing about would we that publicly.


it Thank for you. And we Mike will back now Leskinen closing to turn remarks.

Michael Leskinen

for all reaching the media I out be call And contact to relations Please to any you questions. joining media very today. the analysts. for will Thank Thanks much.


joining. And for concludes gentlemen, today's this and you. call. ladies Thank Thank you

disconnect. You may now