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United Airlines (UAL)

Participants
Michael Leskinen VP, Corporate Development & IR
Oscar Munoz CEO & Director
Scott Kirby President
Gerald Laderman EVP & CFO
Andrew Nocella EVP & Chief Commercial Officer
Jamie Baker JPMorgan Chase & Co.
Duane Pfennigwerth Evercore ISI
Myles Walton UBS Investment Bank
Hunter Keay Wolfe Research
Darryl Genovesi Vertical Research Partners
Joseph DeNardi Stifel, Nicolaus & Company
Savanthi Syth Raymond James & Associates
Call transcript
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Operator

Good morning, and welcome to United Airlines Holdings' Earnings Conference Call for the First Quarter 2020. My name's Brandon, and I'll be your conference facilitator today. [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

these do drop not you terms, agree If with simply line. off the

I Relations. Please over presentation ahead, sir. call, President turn host go Corporate now of Investor today's Vice Michael to and Development for Leskinen, will your the

Michael Leskinen

cause current Form XX-K the Thank Good website yesterday's performance. to which release, Airlines is or based to and on the our morning, for a information made and All welcome Quarter events release, company. in available United's First remarks these earnings expectations. our statements thorough you, United differ Earnings earnings issued of reports financial Conference other United currently conference upon concerning SEC beliefs represent are Holdings materially factors. and from results contain by Please actual our ir.united.com. this Brandon. Airlines at release Information to statements, description XXXX future factors refer forward-looking expectations our Call. A the with everyone, filed call to forward-looking Yesterday, during could and we the number available more current of company's may and which

several Also, our we during non-GAAP call, the financial will course discuss measures. of

which these release, the is to GAAP measures, available the For our non-GAAP please measures a earnings most on reconciliation refer of end tables of to directly our comparable at website. the

and our Laderman. Scott Joining Gerry and our on Financial Kirby; President us Vice results Executive outlook, Executive Chief Officer, call discuss to Munoz; and today Chief Oscar President, the Officer,

assist on with team the to have Q&A. available In other addition, we of line executive members the

call the And now, I'd like turn over to to Oscar.

Oscar Munoz

joining you all to thanks my and of us for today. Mike, Thanks,

this, forced our think unorthodox, somewhat to joining you us. do appreciate this I While days but of have events us

in regard, And economy response business, labeled United to crisis true aspect of that to life. COVID-XX has impacted, D.C. proven our of crisis, the I exception, do That's CARES and sector our the our the accelerate our in daily only is firmly of United but early has believe put our management believe the to taking help saw clearly in team exceptional. to employees Act. you as response teams vanguard while aggressive and certainly, not our who of financial and nearly every -- As company, protect that in every and outbreak consensus no every this to action health customers a of amongst or to mitigate impact the what the responding policymakers that

under the importantly, employees, and pressure, They've taken actions has grace believe kept use in and less also against to the been exceptional. safe. Though somewhat than flying in been service our our incredible of extraordinary service the care fight flying full nothing is also view. the is our us curtailed, have I of to customers working out our front, we the capabilities our in airline support serve to communities of commitment COVID-XX. of being They

over more items healthcare-related than were Americans flown such XXX and flights supplies more cargo of abroad. Some flights, than more we've than than goods, XX in to repatriation worldwide. as examples, XX,XXX We've of XXX bringing home a million bringing cargo-only destinations food, worldwide, who stranded pounds more variety also operated

we're United why also You can be see proud this of to family. part

which facing time, we Still, X during are uncertainty. there Unfortunately, are are certain. all we of this things

to be when. return. But don't time, some First, at we one Unfortunately, demand travel that know no will No there's ready just point people will again. that it is certain in does. question

the also women customers management crisis of the be the of and early, all in our cases, of most working employees, the taking and the men care just business biased world tackle aviation aggressive other. taking response, of Second, who there would and care who I'm in people the somewhat than with to and, Not out around history is no that mobilize of in each I disruptive but and group the daily, have here, to of members in frontline many United trenches you Airlines. United's industry-leading been know, the have the our clock literally who team been rather

safety our place go Now teams costs, to day. taken, and detail Scott ensure every our raising working cleaning and actions Gerry from will operating and about have into the effective liquidity, to many great we to have procedures expenditures and in slashing customers capital

is at long take close personal be term, points, But team we may issue whatever me note. you building decisions before through plans addressing those a The the looking ahead. difficult let every scenario and for on

but us. all we as have X never you time analysts I you investor United could final or we team thank built want on will of tested being you this of as the crisis. of of United. on who be together many where know speak you the past and call, I everyone serve by foundation I be we all to the these nearly CEO The incredible know, only on As calls, community, all expected the we're and this all often our shareholders now that as And never in here stakeholders, counts in not our -- are with an tested years. this voices has would

in the successor, proud leave will capable taking month. at who greatest together the I'm the action here that that's and what proof shoulder to provide incredibly And what that's and our of strong. to furnace, my over believe end the reins But so to remain I with fundamentals ultimately, be more Scott Kirby, we asset, the they our every share employees take built of

actions go these over Kirby. it to our further CEO, detail future so Scott taking, hand on to to we're I And into want

Scott Kirby

carrying the we're are We're people and Oscar, essential nation the of an United we're serving job you, to of critical Thank for be people amazing you traveling to the reasons. right unprecedented thank now doing Many they're challenges despite facing. the proud Airlines incredible service. as the for

technician, appreciate as service farmworkers, clerk, on we rely to are planners, caterers, workers, our weeks, the grocery how we've agent, several much delivery customers. proud now workers, how last healthcare our also workers. to store course, pilots load and, better our attendants, store the understands of and economy flight Over dispatchers country and a drivers just customer better router, come country, important ramp I'm

While to of in circumstances, fly fewer who we're couldn't flying these May, XX% Without flights extraordinary very expected, people we at now. commitment factors. than professionalism load in people we low the need travel flying and and the our

free influx uniting urgently home trying patients. proud about to other normal see of we're treat environment, get of a In volunteered connecting have professionals to For people the communities it's In charge, are critically simply to to world. loved a customer one. and example, say we've that flown, we to an COVID-XX medical of hundreds struggling ill who to travel a cases,

In important even a of to because traveling are may less world distancing of travel. social more the who people now But it's that seem most actually relevant. need

us a airline by and an coronavirus I turning and time customer begin, came to the current the that return to brought Under success, of I what and a growth brought amazing did together also strong saw all financial us He a and say performance, the as means. together operational to really He United a to in we to to the around job team. united Airlines. preparing Before the a to his on want employees difficult huge United you renewed people of leadership, address thank Oscar. focus show being

X I be a much look having of better to celebration I'm in-person and been Personally, together thank as give that and conference these that Chairman. that that and Oscar be forward Oscar time I'll when multiple forward the doing Sheltering effective mentor he our is I've able to person true had for Executive kind we me family last to certain all Oscar. of so speak I moves friend has entire I the on United a our for the feedback. locations constructive and richly always Oscar a planned honor calls in CEO time yous off continuing from for he years to we during not and that a home been together. the Oscar when know for and count on had for get say send relationship from to look can deserves. working we'll

use protocol, collectively systems to ensure the for all to to of smallest built the the find I'd the to spread out travel we've and is they're then always will critical experience have cleanliness important, is more but U.S. to the that as serve to work been United minimize also response risk at us our been find even the now system, industry Safety potential data back of well the and regard. to engineer virus. even The safety safe. the it decades. we leader But ways safety airlines crisis. top priority has as Turning this an we seek in say

aggressively of there's literally airline our us industry world role record taking have. that that the in executives And consistent world. make we known ever the and industry We for agree one the don't is together we that airlines DNA. that has It's None United, learning. safety I've we're practices track at have compete compete to we this safety. the proud kind the but thing all no I'm while on of safest best the in share leadership on, but yet, all of customers, answers the work in on

customers in help scan modified boarding customers and to our own a United, all We're Thus plan far, airports, and masks time social have to their back they if at have customers, at tickets prior We're however, masks don't to soon. front. with providing to them boarding customers to require to wear already boarding distancing. process boarding fewer to we've from

kiosks expanding boarding We're tape they of and touch attendants tags, flight for a to and break customers. at this for rearranging checks promoting a multiple for and the work personal safety to at our bag floor and airport ticket beginning prior employees by counters distancing. will to manpower assist airports, which we're We're screen need utilizing of with scanning employee function. installing X-foot as our reallocated We're people gate have cleaning social our eliminate temperature locations. cleaning and touch distancing marking enhanced testing your We're We've to checked and rooms increase other protocols to the promote panels the pass. combination plexiglass signage printing rule,

all disinfect cleaning terms. On spraying utilizing once spraying aircraft board now least on We're day. interiors. electrostatic using are to that at flights enhanced aircraft We're and we've international all aircraft inbound the per currently all aircraft, we protocols

between by We each on jump to board seat other. flight in social single from We've and locations seats middle to removes material minimize have use promote personal distancing more brought to and the and spraying safe common be so and We've attendant implemented feel members expect our seat flight streamlined back. meals every mid-June. service adjusted contact beverage crew space

encourage guard So we've pilots, to themselves part the all their first flight major health and airline require to added deck for of and added announcements masks to onboard kits the safe gloves to customers wear wipes. attendants on we PURELL our to board, U.S. include and We're be which flight cleaning others.

once that crisis, to not when emphasize I'll hope this end the Nobody Turning Since and again and very strategy. life return knows proactively begin normal. financial is to will of our we've to reacted aggressively. situation. a the beginning will

count that situation equity decisions, react hesitate continuing. those to hard prudent. are the decision won't continue evolves nimbly We plan can You raise to like to on our decisions as when make to and

anyone decline has was Since anything for air late in proven demand February, than travel be to publicly projecting. the worse

to bearish to least more bearish our depth in weren't believe however, of than us what bit Accepting the to little this challenging early, ahead us enough reality prepared nearly the While this were at be we the hindsight, duration survive crisis. period of we to as aviation. tsunami of both in a allowed and as new the get history most anyone, and expectations even

the we reductions, to raise. we began concluded virus drastically any CapEx cut, share worldwide, capacity news was Over and to for we we to days, virus suspended to over accelerated hadn't to planning weekend respond program OpEx impact the XX% a U.S. the the that that line that spread point, with on to a spread first the that in really reduce repurchase XX, the became or domestic XXXX, the demand beginning Italy. coronavirus following weekend but read capacity and airline by and in likely of the had large seen our February At work capital for beginning reducing European

the essentially as direst deteriorated start head a us scenario. our gave that of new rapidly All well even environment XXX%. are Net bookings now demand beyond down

So near-term yes, that signs mean recovery bottomed, seeing we and meaningful demand that does it's of yet. any but aren't

some evidence see look term, pent-up But longer of demand. as we we

For is example, at rhythms But searches travel become those of real again. time were last on daily than many actually we don't virus turn the and to for into contained year higher XXXX this sufficiently spring our website expect year. routine are break or life they travel until of bookings the this

For of this able been and and we've the X, The with our involuntary helps and first few $X.X $X.X only CARES employees. crisis billion covered furloughs of partially. approximately pay only Act of cuts at salaries of months consists of for the Act that, only to temporarily even demand people. with benefits avoid but expenses, our grant The in United billion eligible which and CARES portion

work on for are already having and our tens number with with XX,XXX We've far, contracted in done employees. in to large also outsourced are a leave everything the pay that previously able reductions and on been and therefore, on even to the task. our as CARES payroll people power over hours they voluntary impact people We've Such expenses. further working. hours, own thus reduction at and eliminating our using take-home rely near-term voluntary in airport of But the programs sacrificing, United people to reduce Act, the reduce programs thousands of

And start And crisis. days that more months lightly. takes unfortunately, on ahead, not of this will that's anyone employees and team something impact feel financial in direct the the management our our of to

it Our plan we is we down stay until And begin schedule see level that demand at recover. XX%. to for to

actions actions. be their cuts livelihood. endure as furloughs, avoid will decisions are to for rates if crisis people decisions promise immediate more hours, We have on well end care remains that take reductions about this a and a made of September, employees deeply diminished American a that our in or pay on lightly. involuntary of difficult as simply the to some we families October involuntary X, other and We provides and furloughs implementing we'll won't These the these United demand our painful that the not to able U.S. impact include and who on that's until keep. rely on to company taxpayers an But to the significantly further as people paycheck without and promise we will

our is But overriding the goal long term. on focused

and cannot because We demand the future the will are is of not here is airline ensure is United have risk to rebound to the recovered. We virus simply short-term long-term and that jobs once the just really decisions and contained the supports United hard.

finance Thank the including over Turning raising for done job April. and to we've balance raised billion, as sheet. financing you March to Gerry the $X liquidity the in team and they've amazing aircraft

the rebound be to economy quickly Senate to the the made and virus for like been of to bipartisan both for administration, is and available the critical We will I'd they general. country when House the aisle the has Additionally, to continue the sides the ability Act on in the support to believe airlines CARES that and defeated. to thank

$XX by our the crisis can have recovery. in $XX the following that per will actions implementing it The currently expense entered million because $XX day of these average a more or second some believe down or expect net except our burn passenger not able all employee categories, wages. of to We've would huge the we naive for been accurately the even course million We burn to expenses. quarter, we've be X reduce in we detail. this predict with forecast about cash nonemployee But anyone matter, day. cash the a in all reductions burn revenue. to is essentially to reduced to to to taken million describe second axe Gerry per an about we cash As quarter, on

however, say worst continue X mean for year we for of possibly the hope for therefore the for When the we're the planning And and plan best, XXXX. we at into to passenger revenue the really net it. rest and essentially environment

than better with the planning hope We're in and certainly May that We million are starting available approximately $X.X But projecting we are it's possibility. that. for liquidity.

of to about loan. we level grant would the remaining liquidity that of Act the CARES exit the liquidity receive expect raises, first to QX this today. mean have most same $X.X XQ, we billion of phase we any the During expect counting with additional Not and of

approximately if liquidity. forecast billion a we $X.X to with assuming per environment, of which financings, rate option $XX to For would a additional expect And and X that, no would X over XQ we Act essentially can case, passenger at continuing into liquidity even billion XQ, $X net in our minimum continue fall. ourselves loan, million which the and won't to expect the cash end burn a the we $XX we revenue get and with CARES hope avail project day, our to revenue below billion we have heading we take therefore be

have with loyalty largest, Beyond could longer. passenger which demand still based recovery the used scenario additional be essentially financing you X. numbers are lasts shared just even program that, the All X I've demand no we for unencumbered a on environment the remains assets and there's if with being where the

just forecasting environment that, If I'll of that we emphasize it course, better accordingly. demand, are a that we possibility. for we demand aren't as than adjust the to plan preparing is X but

the this career, unprecedented the of human course, challenging of taken has, COVID-XX has call, not toll. just most of time my today's cost the subject been also which financial this crisis, profound closing, because In professional a of of is

families many in thank of that continues again, they're for once about and reached I already are serving change I've about health customers, bravery they're Every whom but those met, never me want who their their the day, passionate to employees our their scared I United environment every day. that financial me with tell correspond an to employees, to hardships and facing. out

control bring through quote, the but their hell, everything through within be that each quickly and and through going care this going." now, of defeated, going we other to to as we we of We get customers this the know and power our take will virus hell keep or does the All to to or other as Winston mind "When We doing ultimately happen, of when possible. may can't how right are side. get Churchill control people fast are you're but United know what to hell can, will

guide we and cleaning we that to team, believe have our objectives serve, even scheduled every But aircraft, for all interest our collective procedures the customers, communities our we shareholders. the including we from clear these decisions our objectives management a changes conducting As painful X make, best yes, of new decision reflect and like the employees, furloughs. stakeholders,

jobs In bounce the near working demand to on fully airline the United we're the to term, high-quality returned. when supports withstand we're long-term quickly United crisis back are and strengthening return. the focused when is demand that to it to over And here position starts so the

I'll to And with over that, it turn Gerry.

Gerald Laderman

to Thanks, on of today. Scott, and thanks the all you line

quarter of adjusted of on of loss reported basis. net billion, we net XXXX, an For $X.X a a the loss million $XXX first

track, disrupted as those quickly this as the keeping quarter, COVID-XX What a around since the began everyone For was travel XXXX. quarter as of spread you lives of well of the the deteriorated of first world. as of first the quarterly loss United strong

will come or growth like As and aren't unit and There when cost my relevant EPS simply an today. a not earnings Such today matter. metrics day a comments will metrics year-over-year typical will call. result, for comparisons margin be revenue

ability start term, While and We the worked the will financial decline, aggressively measures in, storm and Asia down revenue sufficient year. unprecedented. truly and was of to most. saw shocks many expectations kicks the rest costs liquidity February how this declining near multiple minimizing we times, as matter precipitously downturns through compared and this the cut the Therefore, at starting be and in of By preserve We our to across that really revenues weather XX% until then the believe is the us are nimbly world. April, for of have some and industry, and recovery in measured in by our burn of in significant us cash our cash. maintaining financial

May, first we in revolver. billion about Addressing the $X.X liquidity, $X.X we ended available in under of $X billion the we with have start And liquidity, our quarter approximately including billion month liquidity. as

on started focus Our liquidity early.

as quick a spread As worldwide Scott became the to of network. we as would apparent cut took facing the it flying mentioned, soon we virus, action that across be

decisive began unpaid also at to hours, voluntary effort We leaves our We and business. action the take and employees every capital and over spend. and eliminated spending, in part noncritical our both projects of discretionary XX,XXX minimize business reductions the all operating had expenses take to look started to deemed all stopped to

$X.X the addition, we adjusted total expenditures reduced In billion approximately capital a planned for billion. our to year $X.X by below projected

such XXX actions have are taken are that you can environment. stopping specific hand on number this continuing Some we we underway. one count the estate Today, projects include real projects of over in

For at United saving O'Hare, and we Club $XX work example, Newark million. an projects Dulles, stopped estimated on

over $XXX We spending XXX initiatives, an onboard driving drives on in reduced projected savings. We than savings. $XX our offering, simplified expected which also million in technology-enabled million product more

vendor on by addition volume-related vendors. work we reducing vendor and hours approximately employees certain decreasing, efficiencies usually United of $XX having In million airport take performed temporarily identified service of the to from elimination estimated spend services,

also expected million of promotional spend, savings. We about reduced which $XX in results

thoughtful and of of stone just unturned are leave in reduce through These efforts examples going process minimize our we few cash to are the burn. a expense no the to

fuel quarter to expenses versus reduced and in $X.X in lower reduction and the plan. our prices quarter lower with operating XX% together actions, an over capital these expect billion original over expenditures We second drive in in flying, the

the for financing. cash number activity benefit quarter. not cash Importantly, million $XX payroll aircraft government is new support excludes burn expect and we that to This raising the of program between the daily average capital to related and $XX second million our burn

by receive that the similar of the a program, we to At assuming burn, we have expect today. liquidity second end another the this quarter we cash end of at support under to level level and $X billion expect of receive payroll that June we

over $X that in Turning enhancement activities. beginning have including liquidity transaction the billion approximately started secured We additional first in our February X Since offering, that term and of closed our exercise and $XXX $X which March. common funding, secured financings. aircraft our includes $X.X underwriters we billion of the yesterday. billion March, to recent million option new closed late through early overallotment the from Also facilities process of stock loan from

into XX major entered a provide of leasing were agreement we aircraft company, this delivered for a to lease in be Additionally, an with aircraft Boeing scheduled year, financing subsidiary that Aviation, including to BOC aircraft delivered April. XXX-X to us from X

I MAX year. next than aircraft originally XXXX. as scheduled as XX of XX the With the of commitments, are MAX for aircraft which These respect year, all number new less MAX of mentioned, XX committed this aircraft delivery take we ungrounded well is expect another to our if MAX the of by subject MAX aircraft year, aircraft XXX later the lease are this half to financing end of to delivery

aircraft this remainder to the aircraft of reschedule. the expect financially as well Production would delivery X basically all of been also We take aircraft started these XXX-X year. of XXX-XX more impractical year so next to before on have crisis, had X it for as

delivery us. drain we deliveries will will fully unless of for these aircraft a any be since of cash take However, financed, not these not

no have we XXX next Looking beyond year, aircraft order. on additional

delivery XXXX I beyond. in the would scheduled we and we MAX aircraft Assuming just take additional have described, XXX for XX aircraft an MAX

the of with discussing Boeing. these are deliveries timing We

unless do anticipate until of taking aircraft any is I those and not we thing need However, one certain, them.

program. thank implementation quick the I United gears, States Shifting support Department to for Treasury payroll of the want the

a low loan, partially the of We billion commitment but will about our allow only furloughs benefits, keep grant involuntary employees' in cost before and U.S. billion September form and to together avoid XX. program receive to billion which will $X.X this $X under interest $X.X salaries cover of a the our us

the purchase the will at a, of common X.X U.S. Department shares a price Treasury warrants per share. $XX.XX be to million compensation As stock to government, of purchase United receiving

did and approximately to the up about million stock. purchase common loan. shares receive funds, connection X.X we U.S. million receipt United the Treasury did $XXX the April, of billion in of warrants of grant to to we with In those And the of $X.X issue

application has to receive United us to submitted mentioned, previously up $X.X an loan billion. loan which a program, As eligible the under makes government

warrants loan will interest X-year draw be terms under the is issue expect points warrants We we billion on expect would purchase with at loan, and the program. to million expect we XXX on this issued the the warrants common support a same we If to of LIBOR the at issue as secured stock. down prepayable payroll $X.X any borrowed, loan, XX.X If senior United plus basis shares full term time. to

We have program. expect loan to to the borrow to until under September whether decide XX

clear steps decisions, make cash are and, sight occur employees continue recovery ahead, and when above hard to while all, to Looking will line preserve safe. a our sure and no the we at one has and take customers United, have of quick plan to to make

you initiatives, in this efforts to give countless day to liquidity a entire thanks to United environment. special and family worked the finance want I their hours organization and my every on a who building cash for thank have tireless entire the challenging conservation big

in session, people the has comments has he to done begin we United has to is X I change and Oscar that for resulted Scott's about the Oscar over leadership a for echo Before want years. what Oscar fortunes truly United question-and-answer The in brought thank culture the remarkable. of and United and its last

grateful. proves me am the that personal you old and forever gave On opportunity me mentorship Oscar tricks dog for can to want Oscar me. new provides he that, he I to a an the thank I teach note, and for

Q&A. Mike everyone this it back pass to listening for want And to with I I morning. thank will Finally, start that, to the

Michael Leskinen

Thank you, Gerry.

now procedure community. Brandon, Instructions]. [Operator to describe will analyst question. take the ask We a questions please from the

Operator

Jamie [Operator have we from Instructions]. And JPMorgan, Baker.

Jamie Baker

pool for around the us First today and composition? the though, I'm billion. what form. the Gerry. question $XX on pool you loyalty, Can that not size included was of sure in asset its unencumbered Early March, And give an update

Gerald Laderman

over I I actually, And Jamie. March was what in said Sure, back $XX think billion.

are the simulators continue for to others racks plus, there routes and in it. way, secured $XX describe collateral can we we look gates looked billion we Does billion and with liquidity. sort at I billion different at be $X aircraft, know actually, having of So may raise airports collateral to This mileage slot value parts, and it that have asset, in ways other airports. at is to routes would way that and at available that slots excluding includes all not use equipment, the which source and spare apples-to-apples a have as could constrained it less $X this in said around that, of way debt. least we least at look at look another But be, those to additional engines, not restricted and valuable include

Jamie Baker

And quick second question. my before follow-up a

loan loan, that the you the recognize decided I On you negotiations, still you're would government whether you you'll pledge also decided if haven't as is yet approved. have collateral? discussion? what and draw Or But under

Gerald Laderman

expect begin I Jamie, those discussions shortly. would

want expect portion aside start to be to some my there will take And some going so collateral this value the put in case and I'm will collateral about we that be I of in of loan. those we discussions But comments I because, shortly. clearly, limited to that described that

Jamie Baker

touchy close the of that it. get it hub going worst, we're And for stands subject. structure. they're yes, Nobody And planning says, out It's to terms competitors their of to current I Memphis. Scott, ever investors were one when a wed insisted comes it. Got Okay. look, in some and as disappointed your

by not avoiding decisions. you're to going said you the tough But airline jeopardize

United's So for post-crisis least than there's it it ask at isn't different if a potential looks today? me to that is reasonable network

Scott Kirby

to try question even I'll broadly. Jamie, more the Well, answer

this, look we when you whether that the actions what airline United going and reduce to -- talk for to safety, going industry, the from virus. is sure, different. the do for think, the And you Airlines I of about emerge taken spread is

we're One so that efforts terms going different, in doing to we we investing in engineer the be through the this, system. how when airline Jojo things we're going technology at United going we the as change Linda that leading, more is of confident of one permanently to are to still And really costs the and things go efficient. emerge, and we're out of of is works is is, I'm efficiency

any be. we We table, on close there in premium everything. call, is each table. that while don't we what mean we sacred maybe the when or everything We cows. look every single on the have team won't our are on no day say other on table, hubs, But travel the -- And thing you is say executive is every maybe plans everything There about to to differences daily like.

make successful that is the United much good would as is United in sure are make pay objective about we employee required decisions sure future. make most customers have survives, responsibility that for that harder route to employees, to shareholders about going as provides people. everything the #X And near-term And the and for good the and my we for Our we people. and to long-haul our jobs in will many do. here to possible the our that has than to hub That possible and make structures we're hard our overriding is networks our and jobs to our are make is decisions later the decisions

Operator

have we Evercore, From Duane Pfennigwerth.

Duane Pfennigwerth

with And taking there? million, get steps to the cash $XX the million into you you're to are you Just $XX take in burn think XQ, how that October and can the to what do low respect the beyond?

Scott Kirby

to going shelf to to a if case, going get approximately, do down the per million do burn get October, for to cash Duane. we we're at already -- pray, -- we we So $XX know $XX day. have million about get what worst -- I'm October, down to If we to are and what describe, we thanks, our But what hope to do. on a we won't I to have plan

from go million in quarter -- X will we $XX again, assumes third million $XX So the the something to that something revenue environment. around a quarter. continuing of south And fourth the in

have we that. we Most to a I I do between difference Because and doing where don't our the recovery decisions, that available we look way third for third our making -- do to quarter to the be nonemployee have would we years that get to quarter and we And hope repeating, extremely from a and that. will is that make expenses we great to secure the is United. we from how fourth that future in sacrifices, responsibility painful quarter are it will that make employees. it have have incredibly don't and employees I've now, hope to years X, already number about is to future make fourth painful keep be be here of already have over United those between if cut right, short-term employees. we in for people X it and I'll at is as that's our said sacrifices. demand make we everyone forecasting for before, the if the because for and to quarter the And have fourth the people? been a we go at to will have difference agony is X the And and sure strong agonize all really because the number And we have bone. now, beyond our do is where and people. But quarter have decisions most I and won't jobs short-term will

$XX together. million the emerge day, United we that, great We burn runway on down we an per cash us side and do obviously to that get and gives will come make long our sure which Airlines, will out extremely a to other

Duane Pfennigwerth

us can $X.X less spending the this where And some the capital today, of us a relative but gave you just Gerry, than you stands to follow-up, tell for XXXX pieces, billion year?

Gerald Laderman

spend exercise we've through reduce tell capital an gone area the you into But year working this next year. that I to That's still continues can on. we're

to any reduced we spend going we numbers going be for capital everything we're this to So to where degree we've hit not get from are as our to increasing year.

Operator

From UBS, have we Myles Walton.

Myles Walton

or scenario, in and I baseline the think Oscar potential and the something year that be in like. for perception the safety they'll spacing fourth but will more realistic was business' beginning recovery? lounges be Scott, the or measures hoping customer scenario, say, like to seat in next sharing How purposes you're in, you perspective impactful recovery and scenario And of putting waiting place, quarter your still your to how recovery pessimistic these space safety your year? a I you you're blocking next? or at of terminal and a the think on Scott, departures do this and end in to of creating into a will place are know, the that be you middle get could impactful do

Oscar Munoz

this Oscar. Myles, is

and at, views well. has that some a on take shot me Let first Scott as

that proven flying. the last, safe. the think have and that safety to entire that procedures and industry. be long the it followed by will goes doing. a trust we How following, We've in that I be of people we're do we're first together all to sort be things all proven will be foremost, the the beyond well they general and situation determinant of going But that can

think I -- demand has how on perspective interesting a Scott an come. good will

Scott, maybe, give you. I'll to So that over

Scott Kirby

Sure, Oscar. will what too to specifically know Look, I early it's think happen.

a the month with here will we our just States I but on. in A saw be mask think that airlines, United it's not ago, were the walking society afraid down streets different. if our, almost certain somebody we

I permanent But if return start we're they're different, changes even once know be. to we all those be we how don't will will afraid And normality. to things recover not. and Now

will we're yet what doing. confident opening this industry when are, actually airlines safety. I it taking we're right And are I'm airlines United. But I'm the on get at things, incredible lead part just at doing also leading United. and to encouraged to to airlines already While not what proud of think, in safety. doing I this is other see that alluded exactly my means know for in remarks, airlines. I what of don't am the comes What world I the

aircraft. is we travel sure it to And on so make safe will

demand, to Disneyland in open people to cafes Paris need open. and year The go But for real Disneyland people Disney be to however, love be be I to do some to freedom World to need travel. that to and running. is kids be open are us needs And every have going to before And feel be my and issue about conventions opened. back. it. safe needs museums is going Taking something and

the about So it's effectively. just range can that safety correct, that airlines. to we'll society need before confident normal. airlines will not and do to confidence a broader our I'm of we're return the across going demand portion whole get But of

Myles Walton

that just the clarification fleet And to planning have rationalize one retirements next? you in for Gerry, year, the you're do order this

Gerald Laderman

No.

not a Those on of until decisions we now, in any what's parked. to have aircraft. make And parked those. run going view, the temporarily we're we firm know, lot are, operation, to our needed right you see As

Operator

Hunter we Wolfe From Research, Keay. have

Hunter Keay

of pile just it to plan for focus things Is primary the investors what obviously, the about what's but I it couple say CapEx? this stabilize? care is the the balance the Is your want dig a X know A hear who on to I questions pitch cost out sheet? for driver here to term, play? Scott. would basically near after you long-term debt of of

Scott Kirby

that can I'd will And We cash keep first, question, from is then the recovery. Yes. good end possible. keep -- the we can burn. That's minimize shallow crisis the that start debt begin we hole. we know when don't is And Hunter. a the with and keep we while as it know digging of we What can minimizing the depth do We can as hole. about acknowledging

are the now, right we focused minimizing on cash burn. So

you look at If with just are clearly our leading we're industry. where we numbers the today,

we of a at environment, environment, we'll quarter XXXX, the where I at the and into fourth can hope in look You a the leading there's we think we depth minimizing be, demand But industry a not again, X be even that demand in in hole. even environment. think demand X X

we're step that also We're cash first feet We're be once as be we'll cautious. breakeven, wave. continue the get back going X green and going however, cash back And cautious. to and to see putting work really to shoots. burn we going both to hard down our starts, be false flow to jump to are get the the the to there we not there's first in there recovery be will cautious certainly -- about beginning going possibility to is second to capacity a the because Once with recovery starts,

be coming we're want available, to going had than think, more have the I into clearly crisis. -- cash priorities, more Our will to liquidity we

of dig deep how back to be the our at the come do capital to can be recovery before kind that. then we know down the to is thing reinvesting We our ahead But chance down be of will -- once and hole debt biggest going start out both are shareholder is, #X, ultimately any quickly, begins. to gives when in those #X be cost best high and -- and the now pay happen. pay minimize that'll right us returns of that Next, will the most it'll don't we the or

be can all recovery. -- be And the thing a be This We don't be will there recovery. will is we just look, about will something confident know one is defeated. There virus when.

minimize we're can so better to which taking we burn recovery the set up will begins. for cash And it us actions when today, a

Hunter Keay

but you holdback potentially how you're with recovery. you're curious of a handle about risk going with and how having issue conversations about doesn't I your in matter a that then realize And that? you're again, I'm out but mitigating the booking sort what future are bookings the about the now processors down how shaky people way having when with conversations XXX%, going holdback Great. that travel to -- the with with issue card credit start-up kind bookings processors this of

Gerald Laderman

Gerry. it's Hunter,

level, we've in before if any where our the it our had at And liquidity $X range said So on above you look $X liquidity in. are tests. we've based threshold disclosed for significantly for holdbacks to years, kick actually, as years, of the back even that billion disclosures holdbacks been, billion the on that's our with

have even away we from as thresholds an further those we're that, issue. above so where liquidity levels even And

Operator

From Vertical Darryl have Genovesi. Research Partners, we

Darryl Genovesi

upside the an in color some $XXX provide It liability which working like about quarter, air capital. guys traffic you Could was surprise. on looks grew the million

of I relative trending intra-quarter you where went if bookings QX? to makes you things net And month then for a, X guess way wondering, so how also was assumption I could your of sense? you're cadence any provide And think that by kind a or

Gerald Laderman

the builds year. typically, Sure. It's for the ATL, mind, Gerry. us, Keep through of first in X months

expected February, March, have January, to continue you would it So build. to

Rough saw negative over January we little $XXX was that March, about $XXX million. $XXX that should by which around then in fact, million. January and was have continued But build. In and February, February, numbers, flip million. a

March were March, January we because February, don't up. up than ended normal -- have was, we $X.X in I billion So didn't offset where all while and know, February ended we been should we year it of a where higher in

there the why to the March. would precise it in look significantly have our X quarter. don't net at it's couple burn at of look way off month way ATL of of at you you And smaller bookings, sort second a assumption number understand a than second look we And was that on when we to April, based So smaller kind than can small hundred a a on way, for be quarter, kind a of thought. million increase, April lot yet, but

Darryl Genovesi

kind the relates Can you're aircraft Great. expectations. financing number? delivery that assuming you million it you for or as And us for aircraft? And gave the then rest of what also, year $XX on inflows by understand us delivery quarterly then the the for to in to color CapEx the gains help what million thanks of $XX

Gerald Laderman

last So let me first. with start your question

could whatnot, quarter, that All with the also have you us. numbers inflows includes much to back So they have, does that start, like aircraft. are million those second mind, credits don't for the MAXs we But and this the sale-leaseback aircraft start. financing. for guess some the detail keep some All third what and lease in and if we have when million with too the from we anybody's MAXs all year, probably pay deposits you then It's like provide transaction do well, you we cash $XX and out net in XXXs. $XX Can't finance. give share, to we because into

So as little they bit are a cash on well. positive sale-leaseback,

aircraft not my cash for in So comments, us. said is the a the of drain delivery I as

year. about we for split for should million are. model. you rest year, in of terms think, $XXX through that's, have And the probably At your that's use we of what pretty generally, the CapEx, I the then evenly of non-aircraft where CapEx And least

Operator

Stifel, Joseph DeNardi. From have we

Joseph DeNardi

EBITDA, your ballpark? I terms flow? plus Just A are prepared Is that? appreciate couple the approaching do How it cash are the Scott, asset were, government do free viewing of valuing is programs mileage think it for of the you tone collateral? And doing remarks. questions What how how you of you quality as in you asset? the Gerry. think

Gerald Laderman

that. we're you on Joe, for to rely just going

A more is other do choose have loans aggregate to an And of more have the it against that. the we in probably bucket, the on transaction, liquidity mileage other we programs, serves another have think at way a of also different for will business, the you? But ways. think you together, buckets. than the the bucket. To any in we it. there's a one the You're there. tremendous extent can ways to value asset Look, have as prepaid there's that ways or program. as different and from miles we experts And best there the all different several on government it significant you in as less well. liquidity number extract source of we look the aren't And take have to to of for cap that, value tackling it one ways. one to look value And There extent way, you at loan extract you the are

Joseph DeNardi

this? be smaller the kind question relative and a with behind Okay. a of don't you understand, necessarily standpoint. know Airlines might maybe on looking if I That's just side to that lower and smaller helpful. Luc, dynamic, willing on correspond smaller getting is to spend maybe, And the other smaller call. what guys does I'm you a co-brand United presale they Chase willingness stand a their for Gerry, if just how fleet, then maybe, to from a trying of portfolio he's at

Andrew Nocella

or before, a have which did It's X- found my co-brand airlines, time reduction a material X-year seen in the be in Andrew growing historically, I talking. experience. Having whether on and not and the impact of a I've long have for long, size done this that size, airlines it shrinking or X- that,

I So that expect going too. forward,

a there's in optimistic, medium term. of conditions it based new impact out Obviously, that my experience, world, to previous will not on short the but set there an have the I'm pretty in

Operator

have James, Savi Syth. Raymond From we

Savanthi Syth

follow-up and one Just one for question me.

the once implement, kind demand and On to kind talk that a but pursue are the opportunities get little implement? recovers, have elevated you that, of about could might we you liked strategic that beyond -- kind you would bit question airports or mode of previously, to couldn't survival there looking things be that and congestion like side, given of in you demand

Scott Kirby

lead probably looks be mean, be that I on opportunity look, alluded I some going I helping there and the think her through already the opportunities. are like. work on there's will of restructuring business us to Linda certainly, business. to Savi, team the what

recovery be opportunities. lot the forward actually But to the where looks those what near-term be we like near are what are near how long do. your a this we on focused to As a on more more and we're a with the on you. to lot about and going that focused -- At term question, certain depending others on spend look the how can the day it's We'll the focused more to brainpower -- thinking there long moment, possibilities, term. at lasts the moment, little honest

Operator

to We now time. at speakers no turn for this further our it We'll questions closing. have back

Michael Leskinen

Relations call next talking we Investor Thanks further any if today. you and quarter. contact look to to joining to you questions, have Please for all the forward

Operator

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

now may disconnect. You