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United Airlines (UAL)

Participants
Michael Leskinen Vice President of Corporate Development and Investor Relations
Scott Kirby Chief Executive Officer
Brett Hart President
Jon Roitman Executive Vice President and Chief Operations Officer
Andrew Nocella Executive Vice President and Chief Commercial Officer
Gerald Laderman Executive Vice President and Chief Financial Officer
Savanthi Syth Raymond James
Michael Linenberg Deutsche Bank
Helane Becker Cowen and Company
Hunter Keay Wolfe Research
Jamie Baker JPMorgan
David Vernon Bernstein
Duane Pfennigwerth Evercore
Joseph DeNardi Stifel
David Shepardson Reuters
Chris Isidore CNN
Justin Bachman Bloomberg
Call transcript
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Operator

Good morning, and welcome to the United Airlines Holdings Earnings Conference Call for the First Quarter 2021. My name is Brandon, and I'll 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 Development today's and not ahead of you Please Vice terms, Michael turn host Leskinen, call, agree presentation Investor will If Corporate I with simply President for line. off the go Relations. your sir. the

Michael Leskinen

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

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

Executive Officer, President and Kirby; President, Officer, President Executive outlook Vice to and our Andrew President Officer, and Scott Gerry Chief Chief the Vice and and Jon are Commercial Executive Vice today on Laderman. Officer, Chief Hart; call Roitman; discuss us Chief Operations Executive Nocella; Joining Financial Brett results

And Scott. members call executive the to I'd assist available line to other on with we the over addition, team to the now, have Q&A. like In of turn

Scott Kirby

what been experience. March core to squarely our the the still confident plus international more view core cash We're positive confirm shared Even of and to that see XXXX EBITDA now first last in We're improve focus the the could power business haul than customer flow ever week end off This the next light also was month tunnel. for flow confirms of for And the to continue My demand day. our Airlines. United expect our was commitment year thing Last call the $XXX thank down. joining per to makes. people's time, and up for you a Good year dramatically work, we'd proud difference fact our being last vectors, now. at burning a year, in our doing severe ever right to in today. of to despite over place QX the hard scores shut enduring highest dedication and a morning higher demand completely and different changes Thanks million the this XX a we on October we that percent. pleased winter We're in up forward. We long-term that adjusted we've were quarterly and to a customers. our made after we customer history recovery NPS earnings United's We're to the storms with the long returning positive points testament almost moving load milestone. cash positive is XX that at of by can as and the in

milestone, a down reaching path clear with we haul that XX%. and even to fact, now long much see as In as business

to is why profitability fully. better and to than about and crisis, returning once long positioned is recover that capitalize margins income to to business positive XXXX United, so addition, we're beginning return airline international and as on long no we've to it, business confident exceeding from both In When in down that recover eventually the ultimately And adjusted which haul the EBITDA we XX%. net will maintained haul expect confident recovery increasingly XXXX. of began, we're

economy. as this to of diversity, and a conversations the aviation year, dominant with Aviation emerging use more continued by earlier talk collaboration acknowledged efficient world, we're is structure. to position when those our leadership changes sustainable to return America sustainable on But on so real also United's global industry to is we feel announced and decision-making We a new week, our for One, carbon with industry, and more in United like Three, our the and front. part sequestration, customer of Last pillar invest companies in to revealed global our choose Jon corporations innovating had quarter, around effort global other decarbonize quarter the which our equity towards Airlines the better to aviation. in technologies our measurement milestones. we're that inclusion. In operational we they cost progress encouraged United and others on only the agreement make that to about I've our is customers United, I'm returning clearly new fly detail the but of in key changing with solutions, in a how are including CEOs at These of more Eco-Skies vision center comes it also to first customers. and solidifying future our about to the United. leader We're Archer we're our to more industry fuel. making will leader in future sustainability. this drive committed United, pivot in to announced continued and ways not the and to we to already more an launch expanding for improve come looking experience. more being And a this excited also us Alliance, build commitment sustainability

will proceeds to that offering be of with using gates women CARES last on the and pressures, decade, also Five, this by Four, turning our we will with to savings Brett structural the people crisis sheet, XXXX color. early our will our to debt in restoring week, now new month, commitment of last in a be loan. offset first identified. we students that to quarter, our XX% our debt And end as the COVID As announced will we the Jerry the this goal collateral made to train slots, progress detail rate. further, detail Aviate outlined the our of balance of at pilots used exit related to cost nearly routes a be and reductions billion with as $X further inflationary we Academy expect plan half

not shareholders. new, for Airlines, culture United The the remember. old new returned our the our United and to this for you employees we our our better As customers, and is have changed

international by goals. of confident adjusted haul exceeding hand trajectory quickly if pace XXXX. Brett. expect As adjusted remain EBITDA long with I'll to business that, and by the demand we recent for We positive XXXX ramp EBITDA margins And us margins, recover, in and and reaching to then profitability, those anything, it followed that ahead put results over

Brett Hart

Scott. the their team we performed first but and storms, together United by severe Thanks, uncertainty team of of never prouder reiterating comments In our face the on how Scott's winter some to continued couldn't be quarter. in to the performance. start failed I pull want

customers modernizing again on in commitment gate our just hard attendants including, and customer ramping Denver, and in new. expanding I to outlined in United retrofit of once areas our providing experience and the product investments As further to like narrow of investments, first hubs, return the aircraft. seat overhaul made continuation program our the and the experience individualized enhancements to our in interior feedback up our onboard our the pre-order body progress quarter, flight reconstructing of as to functionality the such clubs and United meal Newark Polaris

to deliver for We've In new continued innovate lead addition, the safety customers. industry experience and we a in to safe developed tools our and cleanliness. travel

expanded any experience and rolling the COVID-XX We domestic center the home and for preclearance program our based offering from proprietary and international technology partnering was simplifying. with industry-leading allowing where contact out the U.S. travelers, of enter COVID requirements, are require banks, to customers with entry for diamond travel testing flying health first to Hawaii take pilot at as travel-ready Abbott tracing. travelers review creation can carrier tests Airline as for an upload facilitate to and COVID to airline traveling now is In to to additionally also U.S. to the offer to first and airline the to hospital United safe to And including ways customers the only possible. for more assessment. capability. highest out United have achieved and their certified scientifically of is in before roll arriving certification advance access them for an be certified Tesla's of COVID-XX passengers information contact required major both the first customers United proof pass grade at integrated continued online this safety pursue Experience this airline Passenger is Association the cleaning United boarding airport. only quarter, records, vaccination, and check-in certification make in assessment is we that COVID-XX international the first possible

pilots continues to to we As already the as announced we bring and demand month, announced process have of rebound. this over recently plans hiring earlier on restarted XXX

going the We is We expect to next pilot over only the that for to decade. train pilots up. best competition XXXX recognize more than the talent heat

flight school. the is standing It's only began Aviate we Academy major aren't a U.S. recently airline we called the So applications own United accepting to still. inaugural class. for and

the to representative mentioned, ambitious to communities plans we generation Scott program have the United a of use pilots we As of next and serve. customers is ensure that

profession Chase, biggest scholarships. programs millions our pilot offer the to established is program. to aid financial partners barriers for of One Working JPMorgan at a barrier training the with in financial we've the

longer find also inclusion continues proudly have a is career no This to of over reflection to This diversity, held is to to United's So our that more an shareholders equity more that program the allows going turn ensure at commitment up young our talent, a the it eliminating history. values pilots to maintained our men to Airlines. and United years customers turned a of applicants class advantage us path that and previously training. pursuing clear to from the the United benefits barriers provide recruit important women United we throughout best smart talented By than will a prevented is that I'll example With live because a genuine excellent generation ambitious just competitive deserving next most and the come. have our officer world Jon. can't will as the motivated deliver that, students away for of to pilot and to how afford and the pilots exacting successfully financial and first and of places a deeply are becoming standards they

Jon Roitman

to like talk possible the first my would I everything about I'm not everyone. would co-workers as morning, going around good thank them. to and Brett, you, Thank globe, be without

efficient everything We as at modern customer the to puts center will do. a new more we much agile, operation return that the and of nimble,

which pandemic allows events. service QR more through to and XXXX maintenance assets modern have care representative more ground are us we other impactful for than more We're weather relevant and to drive operations areas to aircraft fingertips efficiencies. initiatives to with of system, global the Jerry and functionality service of We're more is also requirements. puts the that are pieces on platform modernize improve modernization will the to anywhere a also Technical few maintenance later, our the intend functionality our has allowing And meet us than industry equipment. target. As great using enable aircraft access of way and availability. the our are will airport we service recently number during on video similar will the and and quick our efficiently technicians, transitioned professionals durable service need. a to we tracking scan United immediately the a return to In data the to with be also mention end that the on we're made as leverage will operations, allows market proven and analytics out reliability most develop more these the us of enhancing on device existing rolling glance highlight a able using quickly maintenance predictive tech well. most well It our to to at and billion I'd this we've quick with customer By a and than equipment. the leading upcoming enable This globe our mobile platform, at critical the work track reduce connected as of out like precisely efficiency more able of ground underway. assets, projects We're need, service them chat. to line We to ever. their live a our equipment that cost they and be way employees our execute customer customers meaningful technology our we to year, will to that they which This save to $X GPS customers rolled code inventory be parts to of will XX,XXX downturn initiatives team the to around to find agent deploy equipment tracking as be of increase in will market time Also, network aircraft efficiently. warehouse It we're well. during to efficiently. manage further especially installing demand, to

of Another more a new is airline. our return customer to big as emerging friendly theme

year, Over philosophy revolutionized we've culture. the and past operating our

traditional them create think can [D AXX, sometimes around driving metrics important, for they've outcomes industry change. If for suboptimal much towards you but are operating [ph], about the completion customers. These been without Zero] airline metrics, decades factor,

day. our at XXXX customers. become our without many For to a in to leaves helps simple causing and data many when insights very we're best downline. for saver D flight more customer customers At hold automation disruption this connecting centered We're Connection fact, can hundreds saved we mindsets save use committed we additional updating customer-centric. changing storms, our make behind. averaged to and winter instances data per in infrastructure new on to Zero, using example, connections, make as obsessing over connections it Every in determine United, we we of day decisions recent the for employees solve about United

before solve deal In intelligence problems to into and leaning addition, have employees artificial hard them. we're predictive to with analytics

the every connect our journey. with to we've During communication during pandemic, capabilities also their strengthened of customers our step

weather travel. multiple travel and options. operating Denver. better customers The such more is rebooking added risks the airline, days, demonstrates and than time customers we in the other a communicate customers our days proactively than any and storm by storm XX a flights out Several will half. the the them when We before massive events recent before clearly we've far to provide Sometimes offer a from the taken. to preventing ever disrupt at options Nothing actionable actually day storm offer lasting reached happens, before storm that situation inform long real other XXX,XXX of we airport this to the more and of action our for in and largest their us to options for

avoid those But scheduled XX,XXX new to and more through fly through travel each our of we the risk strategy, proactive through Our their passengers Denver storm. half the helped than of forecast plans. day to reschedule show disruption their customers

customers operation stellar NPS right our Consider with a one and higher our more customer for was and and we approach re-accommodated our disruption similar were that, before it when And to good pursue feedback innovative airline right importantly, super airline. approximately turn leaning I'll Andrew. our those our our in other the streamline XX% “We that than recently operations time customers the this line easy our let We've appreciated with We competitors go have average. changing recovered that for our waste. we if employees, customers. had scores had Denver didn't used comment traveling are that would for our bottom processes our I ideas Changing United flight. is to days another received one our crisis online to on it, this quote, forward team was Our of We been The from system the the weather proactive shareholders. over too.” and the and

Andrew Nocella

Thanks, Jon.

business distribution haul haul and U.S. as leisure all demand see not clearly we today. well, resurgence our not long strength for Near-term the see customers, yet. in demand we've about United is and March, by that at short to continue have reached in renewed air we customers PRASM strengthening desire During our that of Americans international really [TRASM] looking led in confidence of Capacity with Consumer decline recovery XX% by customer point we to In feedback. travel TRASM finally [ph], and Vaccine or VFR we XXXX. our the quarter travel. our And up inflection driven demand was and domestic one our been and accelerate down XXXX, least of that Overall, and started revenue XXXX. that for versus XX% revenues of the smallest to XX% the TRASM was quarter great every was of February. was with down total of XX% relative domestic at passenger down single March down continued the in the XX% down XXXX was end competitors. QX versus was first QX, versus expect gains pace

an with XXXX. customers our and is united.com consistent check of world the customers to balance in class to such TRASM At other the product of completion the that real opening as and increasingly along The United combined the and quickly United, of our way in commercial based performance strongest customer and and do Our versus core This during to pandemic. new combination initiatives with leads record of and is change credits travel. largest network. Polaris ATL to tickets we international curve the using fees manner, elimination leading has use United It's largely indication the that moving continued the making as provide focus with the consumer to TRASM. increased have to their experience. reason customer credits profitability focused use focused it burn, credits our in performance. strong This maximizing which haul our for this versus strengthening on began balance we're many focus performance long new The to pandemic finally the product possible app. business of on our XX% demand confidence the it by choose are the only ATL to and QX balances also industry returning nice easier fact absolutely to yet booking of to our making and to our it's lead in of has clubs of as the $XXX ease return simpler expanding as on on Throughout in a as demand example another the team, first. million QX One by during redeem balances but on allowed find, about That normal. capacity, approach our customers in XXXX. accumulated not About the up and XX% save, exposure see spite versus up pandemic, QX cash well for 'XX is execute also just has XX% been million, $XXX revenues cargo of to that best amazing of

continues is and revenues loyalty quarter, program, demonstrate XX% down In other MileagePlus XXXX. operating loyalty growth intrinsic passenger the underlying Our potential. to XX% revenues down its value versus overall versus

new new strong this of healthy non-fee and partnerships card a of driver again mid-tier Our our our and growing acquisition performance. accelerated has the critical account largely card to response card. Quest are gateway market spend Co-brand fraction

with Aviate cards the come life. but not also relationship business, Chase our built appreciate also the helping program We in only productive we to

a we're enrolling flying United, customers we of great more them see program. job our As loyalty in doing new

April pre-pandemic outpacing March accelerating about already a member increase rate towards enrollment with New enrollments month-over-month in March. and XX% back in are numbers

XX%. For XX% down expect 'XX down of and to our the quarter, second quarter capacity TRASM second we be around around the versus

the curve in focused strong and of cargo booking demand demand to TRASM passenger PRASM, resurgence the positioned on months. the coming lengthening United maximizing Continued remain in

book our for factors April, recent of XXXX we're For marked behind from slightly load change May, ahead, domestic are only and a history.

expect to book above yields domestic of healthy XX%. levels. these we've and in leisure closer the to factors passenger manage opportunity XXXX excess We taken in factors booked XXXX load With mid-June starting load yields

us a achieve provides that. reach Our realistic at United. on capacity the line ability to to opportunity significant we're represents for point road international yield levels plan Long recovery with this confidence a to XXXX haul

We with was ago that a a after have spring adjusted schedule rise A a seen XXXX demand few rumor level of our access summer. We've opportunities leisure weeks advantage and in was proof immediately to vaccine of take to returns this of going the Greece open. country quickly. there to recent these weeks

our soon to a that complimenting Atlantic Dulles our As summer, to Atlantic this to bookings our permits booked access this Greece second market summer our rumor newer our destination of hub flight. excited summer proof announce this announced Greece our is as occurred, daily is second addition yesterday Iceland service booked yesterday a service. summer. from took And which as addition best normal best the vaccine plans Athens we're flight and also in this Newark we operate with result Chicago to off.

We with also country announced a access plans between permits Croatia Newark to this that begin another in summer vaccine. proof and service of

for returning Looking reinstated QX, new customers testing to spring. obligation capacity we anticipating into new reduction. of would Well, to quickly we capacity dampen and our requirements. our the this beach quickly to the even results were more Mexico cut adapted back wrong as resorts we that Mexico mandatory from We feared

to in forward opening greater. governments more we in most XXXX above parts America, we look to the restrictions. look distribution year access in ease we our now vaccine of increases countries leisure where in levels We as capacity America demand more the Latin and look see and levels. is As forward levels permitted and Wherever are Latin XXXX

have We summer. ready aircraft fly standby this the to

to permitted XX anticipate very if We we X travel our flights corridor possible daily year. Heathrow and For this that when operating depressed between versus to it's EBITDA approximately remainder London believe be open. even long positive travel the XXXX XX% at and adjusted a down summer, is for haul remained this levels business domestic quarter if year of will fourth and the example,

business cautiously summer this lifting later both could more see world the demand at point the March, optimistic seeing after we we remain traffic, a and However, for our around results. domestic this for inflection financial leisure home lot traffic strong

as to clients business consider and timings what We travel half looks continue to a corporate our like 'XX. we plans capacity second about the for the talk our rebound of of

acceleration XX% earlier, We business levels fall. and mentioned in point by post a the travels the into summer Hopefully expect maybe I XXXX. positive demand surpassing early to inflection down strong

we Our best correlated by more is will person else right guess A will environment. recovery positive ago, and that deeper at forecasting data see uniquely return on are a business the and international and that given office. that up rebound United uniquely returning and the full impact schools Again, we long a in but point see with be confirms reopening a longer to in the set to people in is expect now demand demand. everyone thought and got it United it haul recover thrive short, year we from data COVID when was every

retire compliment, We fleet not chose to to our our full fleet committed remain body that have by XXX standing and wide our we including call.

we consuming -- already a the a has training use Early pandemic, ready avoid events, United pilots back, an deal fleet size continued minimize fact, our will provide and many providing to platform edge industry-leading our which and in win pilots. we the furloughs going In us has to and that us bounce expect for markets entered with unique of the a forward. in cost strategic XXX us

full is warranted the schedule a However, be coming not we far, clear where in are to recovery business traffic months. so given

class in seat the rationalize us RJs single reliable down took to of airlines efficient allowing the XX three pandemic deliver our use to to also product. We a cost more partner and opportunity

of the a States. across to CRJ product communities dual-class deliver continues to fleet XX Our world-class seats to United XXX allowing smaller expand, us

full competitors. XXXX, now XXXX. after results be flights year get on passengers our slot dual our schedule all our the by of biggest CRJ we the our United versus to large on are about has path to some our later We aircraft XXXX and from raising also XX waivers XXX proven gap us it's We've NPS of track start and this with American time our be best. finally and have aircraft and are in Newark a will airplanes NPS been scores. positive many our into which large of Closing this North arriving gauge. narrow-body gauge ended, others from will operate operated of class and successful talked our one gauge markets by our primary long will is gigantic mismatch over times opportunities

our bullish plan grow also remain the Midtown bring over domestic We revenue next the plan connectivity in improved years. regardless financial performance competitive and our hubs environment that to few on of will the

for to We results to beating billion X cost become team the and XXXX than the entire do. are off as it With everything our focused more this Gerald. XXXX and that on And on structural on savings delivering EBITDA we efficient levels we wanted United amazing and more their more work thank I quarter. I'll hand

Gerald Laderman

everyone. morning, Good Andrew. Thanks,

pre- tax billion loss an We available and first $X.X reported loss representing funds ended quarter Average quarter the XXXX. the million day a and adjusted fourth daily billion pre the including XXXX, available credit For $XX tax under of of first we $X.X liquidity, of a the CARES cash $X of quarter facility was $XX billion. the revolving our day, of versus per per Loan program. improvement quarter XXXX million of burn with Act for

As evidence positive remain and to March of environment, positive the average flow cash month flow of demand improving the cash forward. moving expect core in we daily, was

EBITDA that metrics We discuss week, transaction expect a debt longer adjusted the Instead, our such we this forward. on that will return and we expect begin are tomorrow, to metrics as profitability. milestone close franchise margin Last excited to discuss reflect significant to to focus going no to burn cash in and reach billion priced better route profile. liquidity of economics Using billion the both international our $X represents our collateral, Act maturity notes will as plan. an combination loans be term slots in and replacing with final improved the piece a with $X of Loan COVID and key and secured domestic CARES we

of borrowed debt have debt including and maturities With Act we've we the under effectively loan would XXXX the us, transaction, have period maturities, billion from $X.X maturing $XX to this we Specifically XXXX. available full billion over existing had to spread these the CARES XXXX. new in over

of enormously most as the we will with forward. addition, balance moving in be which helpful retained In prepayment loan flexibility, we the transaction sheet term issued that new and market, strengthen the reduce

transaction revolving to years facility XXXX. to from XXXX our Finally, allows us credit three the by extend

While States provided we the we would use enough We Department, we the us ourselves support for by not commitment, critical the have loan, Act now to successfully are and COVID grateful navigate to expect no industry. longer liquidity the we of crisis recovery. they to achieved United their airline than the our provided CARES more have the Without liquidity a strong loan backstop of the to position to goals believe the through allow through crisis. Treasury remainder

going transactions. debt be in forward, such financing new expect nature, routine our to aircraft as we or for fact, refinancing raising activity In

our we in business in points margin first As quarter. recovery demand negative full the this headwind, Scott and second noted, to from adjusted percentage quarter, are in currently not year. XX XX% expecting over negative the to quarter expect second international Despite close we a that improve by EBITDA XX% to

will a versus higher. or efficiently positive to be we EBITDA operating our And international Andrew in international said, costs, our will XXXX Moving in demand adjusted certain return expect quarters. forward, expenses we haul around cost expect isn't positive XXXX to any business timing us operation leverage as our down special up. it's adjusted are margins recovery, and of down XX% XX% even believe that on to to And very if income items year. around later business long see adjusted kind gives currently down possible long able EBIT continuing haul the back the EBIT and On improvement as future be this quarter quarter while we net path more end capacity margins of second XX%. straightforward our We excluding we ramp structure second be to

points, of Looking expense XX year two the in quarter-over-quarter of this quarter two point capacity increase a on represents an versus year XXXX. in operating over almost change first

narrow-body are which normalizes billion initiatives, and we As savings cost cost we to structural are permanent average expect of of we structural the billion, $X.X as achieve now of gauge related from that have billion initiatives benefit over savings, $X expect both the that any coming January this identified $X.X billion identified totaling identified increased our demand, aircraft year. operation can in reductions, aircraft from we the in of benefits Of we along years. take additional in incremental as independent delivery we will confident up with large $X

are some Here examples.

Chicago. more positions as leaner eliminated to This by more strive previously $XXX as of permanently million than recently their landlord and been is exercised headquarters organization. fact discussed, durable to a have driven savings we that in to evidenced and permanently we by have our As reduction that option the administrative have be at three management we floors efficient annual return

identified over past cost and related our people through by $XXX In programs. programs million retired savings voluntarily driven in benefits in addition, a voluntary the separation productivity we've to year. our of combination XX,XXX programs Nearly

digitized like technical on addition agent win will also these due is customers. on efficiency, more demand to be Jon and not Agent going our discussed. for initiatives we win retirements, for data but demand its a that In to a only forward organization efficient

be get to gate employees as to don't win answer line at wait have well to in prior question reduced. an congestion a the and will You simple as

to should flat initiatives more took to of we by $XXX contract million well estate cost achieve the $XXX XXXX to renegotiations should us Finally, unusual x resulting consolidation. give of as as further ability circumstances structural real confidence savings as see due past more or year, in long-term in advantage million from better than CASM we than XXXX. the our These

accelerated to and structural ultimately of remain pace paying cost recovery has committed we debt. reductions down certainly the recent in weeks, While

and goals, and in earnings can ever United pre-crisis squarely to followed XXXX the fixed we our in while by ability and margins critical finally, Q&A. at positive us areas enable EBITDA, are that, our ultimately costs start adjusted exceeding EBITDA as post including With more have XXXX to profitability reinvesting the maximize to by And the profitability reducing returning We achieve team will margins latest. also on United's power than we confidence focused pandemic.

Michael Leskinen

you, Jerry. Thank

the limit if yourself needed please ask from to analyst take now question. to the question questions. will up community, describe the We one one questions please procedure Brandon, and follow

Operator

have James, Thank Savanthi From we Syth. Instructions] you. [Operator Raymond

Savanthi Syth

you hearing couple could business I you thinking next leisure seeing how Appreciate front, talk you're on will three years? the if recover over color entities the recovery. based the the think how about international today, on and curious and was individual on about what you're of

Andrew Nocella

it Andrew. It's try. give Savi. a Hi, I'll

think say But haul to short world. looks moving would we're I a think demand tell. on Europe we're Europe, I Same little quite very U.K. as if are to business It's and do that's recovery of than to And tell this Latin up. begin Asia, open Asia is of not there bit it's summer, yields you, I that really think strong, at I a a hard already I the think there. bullish does centric ahead nicely. pretty the for is time earlier, prepared part bit but And flying region said on a very weak. regards us. will point, only to I this pace faster that

Latin of likely So ahead point. some I do provides think little ahead Europe Asia. America color a both you. that at bit is for is Hopefully of this

Savanthi Syth

interest helpful. That's just, forward here kind the Jerry, might raised of of expense won a you once clarifying the of from if standpoint question what expect a done? is, And last I kind debt on this looking kind the do is and from

Gerald Laderman

raise you'd reducing attractive That's there that, debt All a pipe debt call debt this But and expense. rate, it interest these, over routine had see actually been going point Look, dealing this when expense. blended less like out raises probably raising. post-COVID billion very digit Hi, one is be paying just XX rates. down I interest double got done the more Savi. said transactions significant going and with I as when interest no forward, you we're there's debt or be will to our we question double to debt, your are double But going ultimately, you're more COVID-related re-raise interest we issue thing Historically, airlines with ratio. at X%. it of crisis, have debt through them

in So environment, this no extraordinarily attractive question. rates, even

lot focus like, debt, hard managing debt than next over We obviously, we we years have down. few a of debt very would and the that and will more

Operator

Linenberg. Michael have we Bank, Deutsche From

Michael Linenberg

I questions two here. guess

electrical? And about you many back? don't all? back this When back two, airplanes to were summer, then, grounded. the first wide The density go summer? to that been the max they having for Andrew, How have bodies, at high that they that the XXXs have do the come grounded Or risk they ready talked been come due come is Do grounded?

Scott Kirby

question, the for Mike. Thanks

can Roitman, and of talk both for the aircraft. Head return hand Jon service I'll think it about to our Operations over I he to

Jon Roitman

Great. question. Thank you, the Andrew. And thanks for

And issue we straightforward. the Let's good max out it's have that start with XX schedule, formally really have obviously, grounding aircraft due once solution, the operations Boeing, to back we max, are progress forward future. the we're FAA, And that XX collaboration productive future. of to safe to Boeing identified getting look identified. the back aircraft Pratt with electrical FAA. we airplane the our of think is our those Relatively in in relatively that XXX, And to powered again, and to aircraft the Boeing looking forward to the Pratt, really collaboration with near and very that relative this getting

Michael Linenberg

or there answer you then, debt from And the launched Andrew. some a they're that long to slots did permanent at just the see think and lease? know, know of those daily slots. recently recent that looking And what at back additional the some of I do slot term you? can second I Great. slots raise those come your that for Presumably, out I were service. JFK excluded order sort of on maybe from XX on you this. collateral, or slot you're point question JFK, and slots, something I

Andrew Nocella

to awfully high have an try Mike. may I'll complicated but offline. to kind question, That's it we keep level, of go

slot before engaged years, here. got transactions I quite is company frankly, many many, over the in So long

JFK, idle this Francisco, per slots, are FAA we're at take many you eons more forward offline, this maintain to grow you referring which use in we're transactions Los we looking few and to field documents. our But operating JFK be available working in versus excited operation. to that. absence. to that's Angeles if to us that were flights going we'll our capacity five a to after complicated need are slots to our the than year forward do to any point, But I'll and this San call. happy the to be with answers day those tracking we're pretty over So And able Slot

Operator

Becker. have From we Helane Cowen and Company,

Helane Becker

some and you path guys think questions. diversity two is down or are have you're in Brett, I others culture ranks. obviously, increasing that social choice. decision. and number this are that women other it's and would One for And going with think unsafe saying and on probably trolled people an that I right that of So pilot women the Scott I and platforms the for of media And being platforms it's amazing

Andrew said mean, And question them a me me, Just Or down with have? do of the service that? how exposure So about? Latin to you adding respect the capture obviously, region about what you is to the right more very convince in business think there? that pilot. like question safe to happy to other that outperforming Are I kind can was the with me, thinking are much. thanks related terms rest of trouble more I So be then, thinking you say not people you're international them? To a people now. you like but of

Brett Hart

will question. This take is the I first Brett.

all we, become That people ability you one women with understanding this So pilot has and of true like to their with of about, there been that United, profession we and pilot airline. question, the think a there that think we pilot to most like well go We're the Aviate eventually path the a true carrier into in know with we talent particular, a the have major clear at it that of a out $XXX,XXX can we Aviate program terms color. Academy. as a it through think and are of becoming to and process clarifying impairment untapped, is with the becoming get a entire major a commercial been of and limitations also -- upwards which financial cost of is

in there talent day, out of can, that these where an be the So by quite the enormous advantaged that areas there's pursuing. we of think frankly, amount we at end

about the available. process You over not XXXX this program XXX the in outrageous of talking to up We're And keep million that and a with there's XX% about sure and advantage about the thing in of understand an certification mind and that I'm to logic are And nothing shape, can or And That understand pilots people of the our is country course is what nothing that and for of any the the just the part FAA, have is end number to sure excited. training we people. over make women the color. in process, people decade about opportunities but is well nothing other people better that selection us. next form. agree you I'm of that we're of will we're changing day, for that, think as way, targeting that the be at most people sure a competitive the

Scott Kirby

at question, what there's level. our of your our airline, parts would this that in regards part summer, already and few is, we're from in very say I Helane the to America, second be at XXXX levels of planning we're Latin

a franchise. Latin have American great We

York very been and historically and taken in going recent New to months to to opportunity it's that However, forward the now include is and portfolio our that. Los the Washington of more and keep diversify we've intention Houston-centric out Angeles,

that. going Latin network. Houston-centric We're to United so more really about diversified from very to across the And excited system our entire we're take

Operator

From Research, Wolfe Keay. we have Hunter

Hunter Keay

CBAs? maybe your priorities, some to creative, maybe one for forward prioritize and scope? that's box, of Is flexibility pay a curious about first and Well, thinking. is think re-crafting craft like, look about this to something if sort on I of what you likely it these talk be might sort Believe, new minute? most in of kind airline of might kind flexible is post-COVID you world Scott, are that minimum the like, out a the of labor want I'm to what you

Scott Kirby

for kudos are thanks the us most that Well, to creative. giving think being the likely ones for

a win-win there some We to we're you're that's pilots, payroll -- deal to ways that program through create and the our solutions, for but not But I to with side that them. quite kind we win-win demonstrated of example to the some come was negotiated with that the it correct. unfortunately, wasn't the ideas, of to the and us But meant airline Because be keep can we going have really needed. crisis, think think we fantastic well are them going solutions. have the turn I they out back some bought where important support of solutions to able be other we an win-win on a insurance of policy for have. intact that And be the ready crisis. it's

to gone that table. other but as created credibility we've at been of them be the our to line, front accurate, And think negotiating kudos. we burn, we've down the gained get today, with here of has for our share I crisis opportunities and prepared a through predicting I'm a with course not have our trust lot But until benefits the going crisis partners we're think we've of our Union teams the about some nailed the I because thanks one team. one minimizing of to addition the with cash with -- the of the addition in

Hunter Keay

ATL you right these next years, And now. over to can much simple versus guys. earlier the the well, question, few guess, problems, Thank no Just down? thoughts building I expect up a Yes, see of roll think And then, Thank follow debt that the as you. of updated now about, about sort you. on things debt. on an maturities you to pay how Any then, question, Jerry, on how just it's it's you're thinking again. I

Gerald Laderman

we're as get kind healthy all to of look, happy to Hey, we the building, back see industry. a ATL

There'll think In and will debt a particularly debt as be as for mix. normal $X That's well, I unencumbered. it's to amortizes a would we what matures, become and year, we of this terms thing. $X.X aircraft billion maturities, good it I certainly have continue, somewhere debt billion. aircraft describe And, maturities, out

debt, on sort some debt. the the maybe of how of would And and financing laser depend down focused down we We on bit have paying variable pace a combination will of debt. the so of do. are the that little balance recovery of we of much refinancing is And paying the aircraft we'll big of then, pace new

move off for but cash the One to lower aircraft, not that's forward. to ways even going balances, it's table of pay the debt quickest

see. we'll So

Operator

From JPMorgan, Jamie have Baker. we

Jamie Baker

corporate absence one compare fares XXXX? And capacity does is First economy domestic this allocated in for the point how how to now? of basic Andrew, much of that when in your to demand, much right

Andrew Nocella

digits in I is try our seen last that, would else everything right below, basic how and Hi, over is to the Jamie. will saying. that single looks that in say it business what occur we've and way, small portion -- XX of economy we are the demand a now given where I'm months, pandemic I answer

Jamie Baker

helpful. this different in Okay. time as And XXXX, I well? That's then digit not mean, meaningfully single

Andrew Nocella

the it a past, In number. was higher

Jamie Baker

to in competitive low Oh, airlines ultra model cost carriers, Scott, opinion? your dynamic this your been the on okay, generous views interesting. interplay experience between in Scott. And does then, that that your alter how second, I'll direct business the you've in with the competitive us and past sharing COVID

Scott Kirby

We CEO that have the network in everyone all through the things through exposure network went it have by would to all the don't airline to hard And the the start fact if burn it, have rights to head I the carrier compared a number had at or and we adjustments But, is have while have we exact, business but been to near of the that's talking the two partners, reports one as GAAP summer, question. we including they just Those means international our as Because because By mean primed CEOs anecdote, managed Other they're -- would round essentially permanently -- pretty COVID still but not largest a I to were But is sort meetings demand, have aren't we by look is, if which get big and anything, XX%. compared to how I for a fall, we're last in we're cost or enough least operations, travel and should up which of realized United have, me said, And am still a in what fact with opportunities. you any that crisis. Jamie, have to the at and that two competitors the is of ourselves is, two-thirds customers that government great to and back us, a prepare XX%. one sort one it front of biggest cash I it back. long to third long our needed cash But third into front used we biggest to have put customers, and down time and by the number able going country, our business XX% same for of by business metric I'll our numbers, think to whole the then results. airline, -- the those that. for I by one we've front the were pack been through at we we're lot. answer say and thirds close are a business, the domestic internal losing of should can And have just the kinds it's prepared is saw roughly they International, coming to realize to well, the you do the than competitors. they numbers we of we and got that do, XXX% We pandemic, down demand, there all the business hardest. of that down I Airlines -- of from to our that size. altered have. well, are hit in the I down demand remarkable low gone third give back never those be Zoom back. which numbers going we long-term, way, interact. we I've carrier things the them the don't, I fewer are be of a for most of give had I'm leisure, can started adjust because changed was business confident remember been things because giving to to CEO our you because XX%, But are haul consistently it over for differently, recovery ourselves, being on two that those we to And flow comes I'll we not stay losing we had way. work. a we're pack, that, And we I of domestic to the race And, when going this telling ground anecdote with business one ahead. really that two the the

culture as to least I restrictions XX%. We've XX% our part year, cultural be sitting lifted, at in, no down had well, So at home. connectivity. the to same of first of CEO soon we've the that new lost they new a some there's hires said, for and we'll are coming our this of be talked year way can earlier a hires, as lot

have at that, probably human travel It relationships like we to a not all a demand we the that recovery year business in way XX% to story, than which what back and because did about we transactions. cannot It ago, relationships. have about this. United about expected is is medium going And is is you through full in thought I tell business XXXX. we're it's relationships because go more to to So XX%, build

the of of business of demand But the to lead. do, are to but in number the doubt the about of a here to and of saying, by it, when back going be have travel. are it's lack the the be the the at when be impacted that, airline. we the And so those we or those spite pack two the our and at two one headwinds headwind in turn coming that's, performing United. into going of they massive really environment, be and lack is can no this things have international we business endogenous front I those front with going pack, are near if gangbusters still tailwind, long at Because way we're hardest

I'm world. what excited the about and So around and low the future everyone means else it carriers with competing for with cost

Operator

David Bernstein, Vernon. From have we

David Vernon

around help can travel you you leisure, on for turn to environment understand relative domestic only look level? is kind as there for but Andrew, demand out I'm in sort that is the in in for trying of demand here? Not on first XXXX months? is coming a a the just the way -- get how a us you curve booking or today stimulation of just you're industry this question trending maybe to back Or able take fares like-for-like and a the sense up fares question the to just summer engaged quarter, basis of with for demand? rising leisure

Andrew Nocella

And of pricing the like our in yield look to made to as really on look, they we I yields the incredible positive been things see not David, we've in trying And true And from is going yields how and that's long RM we a particularly our sorry, an one progress. to domestic I'll quite leisure is it figure we try. XXXX. been necessarily past. versus we've Sure, a certainly to look manage were perspective That to in yields know frankly, about talking get mid-June, this give forward we've time QX. summer, we -- do how focused think out as forward. really,

in hopefully see this that quite we in [ph] yields long were it turned our point mid-June. as in that do from [X] low lower revenue, year. strong, are QX not way reflected have pleased corner off. bullish that earlier domestic go. and in we But we is a And outlook is, to yield the factors still Our really And But with mean, inflection have see expect this as selling you we've on really to a we summer I'm I'm the of outlook, a yield, to the see quite point that ways view, that. actually positive year-for-year. is start I leisure still period,

David Vernon

you get the of that that XXXX and thinking maybe follow Thank level or to up helpful. And like about, steep you there about really Jerry, then capital can ever deleveraging But should sort things we And risk, even I before of better, down what know, to margins reduction, how happening? on are be we and say, if think of be question future, should if a debt an That's basis. at annual out an cash you. think to might kind about EBITDA of margin going annual much quotes how you end, number on a there's want leveraging, we be lot things book about pay the of like with to curve is that penciling way to level, that. rate their

Andrew Nocella

And are do answered new deliveries and we depend also expect what cadence will and puts on you there. lots question. aircraft to There the it your And takes. of own of

as debt lot of payable So have ability it's flexibility. question. much give our that, why That's to as in to that answer a premature pay we could that we us a down free to flexibility kept debt. And we little

Operator

we Evercore, From Duane Pfennigwerth. have

Duane Pfennigwerth

general month recover visibility feels visibility, about curve capacity legacy you're of much to peers. your It expecting ask wanted you close to the certainly just sound revenue out happen. your like happen recovers, June. fairly visibility, your of of which should into start XQ, in, booking tight some in a concept could I relative as plan to any the acceleration like could doesn't It

to visibility to that times’. hope does guides putting where ‘normal we stand today out And getting are back you exceed. So versus

Andrew Nocella

Duane.. start I'll

So thanks for that question.

in XX need thought for I first God, more. we going slept the we question it's great, at this or And us the our and XX This remarkably on Because, are of fly conference, close math make that deep for science calls And to two-thirds darkest dreams. who the been although longer domestic on our the schedule Churchill four, airline they're International. probably call change hard sort morning a last our business day why to opportunity X/X fifth competitors to Churchill your is become is, both I And was, to couldn't And JPMorgan about that Prime And this I've drive And the ago, XX% borders pre-calls, been gradually work is to then, it's we've and cheering whole with be are to in as but this Mike can this we outlook we'd XXX% likely as on Leskinen, We've and I than going turned the guys costs. to for the of March approach. different -- that just the I to be after were guide -- the obviously XX is You out splendid I've on to me talked tomorrow, our for love take more last domestic to reading back, international since this. another think be have I better of England, Minister see, book conservative forcing quote soundly back X/Xrd the comes it's used And row my hour, no business to more impatient airlines, dreams, the that data the XX% XXXX XX% as capacity, hope the a business had across And already a the leisure, that. to fact other was than the I we'd Minister to going your Winston address Winston everyone get a probably cared guide business polite it could -- that's morning, where true. better and have reopen. Vile, relevant But the we and revenue. of enough rewind revenue the today. and domestic strategy. we we felt last going March XX%. last happened in our travel Churchill, Yes, in not are night, we down and after only The coined stock analysts that already where that's Prime facts, and to XX% price nominated they're about thing according the had the actually, first XX% travel, the is more said of agree attempt on we it. I did optimal of not quarter and read the end answer. logic now months the year, is said really is just off better, call than where suppose, business business, is X/X and bunch came on term then more only to been just generate with say getting the quote

And so we would burn more cash.

business demand than For nobody come or for international going But knows what been it's most. are sure. back worth, to more accurate we've when

so guess. best And my you I'll give

kids back back the are as to business in semester, demand really I fall with school. think come starts

to have back office have buildings. We people in

to If in to business travel, back and budget opens to budgets chance I going travel you had be took have business if go borders you earnest launched office New we into new that's people buildings, demand the probably really travel empty, into come have I've streets go to U.K. Croatia, can January, that entirely this Chicago, up. probably people business in when on their which begins been it the in starts back I've to, International Chicago, contingent really that in to are yesterday have not in over Greece, our begins to back business I But begin back for in going a earnest. the XXXX services budget think downtown But the Iceland York. and in been fall think the travel put when year. U.S., open. if is We bookings for to

And aren't a there's room have finding to happens year. people hard going my going is hotel to be think all so going guess to a I But next U.K. international borders to immediately. sometime go. the time that you're because many in reopen wanting

you vaccines Manhattan have and back. focused in conservative is we ability the so, a forecasts, internationally, you international not lunch, long-term. have long probably visibility have When coming of point, and back. you'll in see international That's ever buildings And downtown XXXX. visibility, a on go we've it's been to hard travel more haul we at both the and of we're open every start you going the to that short-term been see do. and start borders to confidence people consistent ahead when is we table know business why more ton know When you convinced that the while are incredible to that see in terms office with to business you'll of And get consistent, and travel I'm than we demand back. are about data remain with

next think XXXX. certainly next area of earlier quarter As have quarter opposed but probably than a that the is we the now, coffins it's outside are The little be control. can high to I to what where our is an is things going XXXX that timing about actually by of

are season at Bowl more And It's invest about term, win less winning means the to so our while yet. near we of the while burn and we about to accurate we started single about it's have the as the winning Super now, it's which the don't setting started the the these But but the And games. Bowl. much and And and up white -- then that And I the every do regular clear Super going yet. winning the means just start, see we're it regular team recovery. the care begins up season using more preseason hasn't end as when a game games tunnel. preseason I are to are we hasn't in it light little the we And hadn't other still I've the been the also resources conservative cash, started season being right analogy is, in yet. we're warm regular

enough close got that to hopefully So to Duane. your answer

Operator

Joseph Stifel, DeNardi. have From we

Joseph DeNardi

lines getting with and of does flying the percentage domestically? loads XXXX June Two capacity assumption Andrew along capacity with that -- quick the positive yields assume think. start of ones, the back what you're eight that to What's by behind I that?

Andrew Nocella

inflection add go As the where June quarter we capacity. a lot more through our point is you that

a back have with get to international. than June we definitely in change where domestic we're number. doing you We more are But exact it's and the lot will the inflection domestic we doing

Joseph DeNardi

then or Correct said for clarification, is positive wrong? that's I just like think when question maybe And XXXX. on result is Andrew a that the demand important what kind structurally you How of versus about be seeing Thank will confidence impaired think then And much now if that Okay. you co-brand that a give Scott, me spend the not of Co-brand factors you COVID? how as you. portfolio? you're a

Andrew Nocella

that, To to not did say be your just clear. first one, I

number portfolio it. not nearly the you're and the it program. really the thought as again, it impacted think are as for that. much And flyer ways, revenue whole grow passenger by great frequent we top-line pleased and it case, actually I with would asset in pleased is is, United a we many to been nurture be And just along has the as

exactly us to front been we're recently, card. have growing the as And new recent most We've we wanted though Chase on we focused really the not it. card, of the in well things is partner we're at cards for starting Quest We've for excellent an entire building normal, the to of all seen lot as runway of program. this. has think in a return And two normal. So

this. come more on to a So lot

and of We expectations, of have to deliver out in the we lot going run. long value the think high program we're a

Operator

you. Thank

We the From Reuters, will media. have from now questions [Operator David take Instructions] Shepardson. we

David Shepardson

Thanks follow engines. those the Pratt-Whitney I by to planes Walk today. for XXX And up first will the get them want us the to the service? and the anticipate take schedule that inspect when to powered having returned plans to call through you on being return service. do

Jon Roitman

As to air aircraft it's just looking with the in I again, we've like. that, that looks alluded safely. to before, collaboration forward outline what there's and progress. we're just productive for to getting And, tell premature back schedule us had really I'll the you really too

Operator

From Chris CNN, we Isidore. have

Chris Isidore

Yes, be do would with When you hiring doing to bad, as you levels about many again? totally employees? employees? expect mean think levels you functioning fewer traffic would you're XXXX And that when you'll even how Or fewer staffing talking get is hiring. that

Jon Roitman

new efficient. headcount, our keep at like to expect permanently return at a and to management, for be level, We lower when look going administrative we it example. do more we we're things to So

our headcount, XXXX little back when I next the So will XXX% likely we be think than which in back of year. XXX% more sometime this we're to or into happen to a capacity, year

Operator

Bloomberg, have From Justin we Bachman.

Justin Bachman

on how's of the Could first XXX that question fall there. And issues? bit talk inspecting into a in part for any sort how or secondly, will summer expect you then, yields, bit and take for lengths about that any if far that, max through more winner? the and and to two Andrew a looking and ask get are when on what for about a the if capacity the through yields improve change question to max, other the you're as return you cuts to come wanted you and time then expect there talk could those little I the you work fall as any that then little

Jon Roitman

space relatively getting question the the I requirements that, is, in bulletin progress, we And solution Thank you. it have And to completed. schedule the sure. I'll that's before, just the Really the finalized. that again, be of are our no pretty issues Roitman, the for Jon now with of back. short max mentioned take as should our XX We're once other and seems right straightforward, aircraft process, of the XX. than forward out looking issue. grounding That there's getting other Mac's to service

Operator

closing And it on turn Leskinen now you. we back will Michael remarks. Thank for

Michael Leskinen

finish let Thanks, Brandon. And then I'm I'll give to closing then, the and Andrew remarks. answering last going question. And I'll

Jon Roitman

as which your are look terms positive, of lot this starting leisure in oriented is a to where said, to or question, we are are Hi, to Justin. Regards summer, domestically seeing yields clarity business see. our yield great we more

a As pandemic. time latter long the into that's of the away, really enter particularly in fourth parts we the quarter,

part again, ball I traffic, be perfectly don't a see want into bit is to honest. of to business it kids offices go crystal -- not to in to So a as we clear, rebound which big the plays into my get back to their fall, particularly schools as the quite the folks in and more expect we of return September. start into And

with a very and business So to capacity works be that to larger we're is the usually and United for strategies United And making strong over I industry And for out. of few sure we months fall. October as the we in yield process do Airlines. carefully see significantly right that kind the go how think month pricing we'll next expect Airlines. we and through the have our we're But managing

are So in those my we're moving the I right think And direction. comments.

Michael Leskinen

we Thanks, or have thanks if to you Andrew. quarter. further and relations call the look talking today. any everyone for Please next investor forward media questions to joining you And to contact

Operator

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

disconnect. now may You