United Airlines (UAL)

Kristina Munoz Director of Investor Relations
Mike Leskinen Vice President Corporate Development and Investor Relations
Scott Kirby Chief Executive Officer
Brett Hart President
Andrew Nocella Executive Vice President and Chief Commercial Officer
Gerry Laderman Executive Vice President and Chief Financial Officer
Savanthi Syth Raymond James
Andrew Didora Bank of America
Jamie Baker JPMorgan
Catherine O'Brien Goldman Sachs
Sheila Kahyaoglu Jefferies
Hunter Keay Wolfe Research
Helane Becker Cowen and Company
Duane Pfennigwerth Evercore
Myles Walton UBS
David Vernon Bernstein
Joseph DeNardi Stifel
Justin Bachman Bloomberg
Call transcript
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Good morning, and welcome to United Airlines Holdings Earnings Conference Call for the Second 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 Please today's go not Investor you Director terms, Kristina turn host Munoz, call, agree presentation ahead. will If Relations. I with simply of for line. off the your the

Kristina Munoz

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

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

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

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

Scott Kirby

today. it Thank Thanks, our about back all and to personally, to that through New our the morning, United United hearing traveling. anecdote out for back last and in road of during to many and been great Next and you Kristina. talking to care great and the really the of us Airlines be the United it's after each was truly in customers now also change York. person how all anecdote people joining And crisis at everyone, at is other that to quarter, they're It to be great event see of for take thanks Good month on all customers they customer experience the to did Airlines. you doing and employees for

recently, most take a about Before I issue talked really the among address moment airline variant. I thought I'd to begin, investors the Delta

the candidly no to has quicker posed been As you'll which from data. week. airline But to on confront acknowledge hard challenges however, Since more XXXX, that impact hear to bookings, worked has COVID-XX. haven't of all is no continue airline to we our by risks and backwards today, stronger and them stronger been at get early any willing that United. And flexibility. We've just looking than operational protect every seen course, [indiscernible] aggressively importantly,

competitors outcome evidence why couple death think illness that That The all months. COVID-XX. as of the same continued of risk the schedule we part haven't it's is we the death. and That's group most and cancellation severe last disease, challenges highly in is that fact, over have In our of logical vaccinated who's against that likely still unabated. had face protected most the said, mass our the recovery largely continues demand from and serious someone the an likely overwhelming outcome unvaccinated ramped because elevated we faced hospitalization is

shrinking unvaccinated. the percentage of for Airlines that of surveys But hospital XX% the groups. United vaccinated. wind our among minority about And of you're were XXx if are members that to over that unvaccinated says at most customer vulnerable reporting people, smaller in more a our general you're MileagePlus smaller likely implies and recent fact, fully unvaccinated and for hospitalizations up In are revealed even for June also which specifically, XX% also the already an the population the end of COVID,

deaths continuing the has and that's to political also reopening dimension I’d the so, a as outcome And to doubts rise lot shutting the that continues to or that rise, case and expect we while a still hospitalizations nearly rates below harder predict. on peak leads logical the that track. remain much the given they will vaccination well acknowledge not and down will it reopening to

outcome But it's pullback a a even so temporary, around data probability does be happen. will like science lower it have that and possible if given temporary regardless, And reopening. we'll in vaccines, it the seems the

now Turning hoped we provide we where in briefly in than and the the internationally, science yet to support the And pattern to an had summarize results. the case stick I isn't Europe to business and demand reopened. including domestically. our see Europe, the same faster happen will data are Andrew expect and demand right borders and see same detail opening borders hockey and to lot exact time I'd now, more demonstrated back we've that the say Gerry going point. vaccination safety at rates, when that was the U.S. new and every some level do, we open similar similar is a already both and And leisure increase demand robust travel, expect even stand of domestically, while recovering seen and we the and of to air variance U.S. things

This Gerry lower shared target in XXXX the are And we on United which XXXX, we flying, X% in than as track we CASM event X% Today, to our XXXX lower month. long-term. we that the means and detail, trends robust with the exits, transforming United lower back confident of last travel light our upgauging near at that’s targets. our to and the we're XXXX customers at profitability, will see the to product on financial right assuming just end tunnel. opportunity We're by expect the Next the the on the front, as We're in so will return experience. x our remain exiting demand to XXXs XXXX our be onboard improving and our we XXXX grounded tunnel. for we're why and in unique don't air see On hub, CASM decommoditizing is cost focused deliver significantly

get there's the United others. will back also more exit still hill have climb, benefit our As and tailwinds some we margins. to to But that to pre-COVID upcoming than steep exceed then important a tunnel, we

network widebody aircraft means to stands the capture ready hub retire large that carriers not alone coastal we're pent-up our haul demand First, and long decision, our travel. which international among to for

by our score experience. along is employees an the also United and XXX year-over-year of up influx new part XX incredible new a an U.S. It XXXX of And as innovate the And creating margin course, opportunity I'm customers, travel to our retrofit era our narrowbody our also midst with that employees. with future post quarter Second, nearly new United rocketed airline. aircraft hubs while of our in innovation and and XX pandemic to improvement a in any shareholders driven accelerate of And the the This experience was of pandemic, the incredible confidence unprecedented of also team Next points in in driving service customers can increased really we largest we performance customer-centric of makes the means fueled to year-over-year, did by fleet will the 'XX. better. Power NPS with JD in culture our I'll proud United improvements for mid-con era saw United existing will our in global Even from team. and usher and it customers second that, survey transform upgauge the turn our work connectivity of the the investments Brett. that point

Brett Hart

to Thanks, worked not the over positive half entire United income congratulating this United of return to milestone a towards teams pre-tax start more Scott. year be family want our expected the second for profitability on could adjusted and this year. I proud. in achieving of by

During enhancements customers result of customers and within first the industry app. a home leading schedule results quarter, States. test its to our to through allow to to have United an travel antigen safer the the continued the convenient customers. collaboration verified United for negative flight board experience make our use our self-administer use international and to the tests we to our tests Abbotts United more directly COVID-XX We to center kind ready app already rapid the enable test announced May, new In and app verified made COVID-XX second work to travel recently to platform a and

our international U.S. to travel initiatives customers. position leading make to uniquely working we're us convenient open, to us continue airline as further for the travel facilitate to as borders the in possible make international ready return and international a As These

launched to from we again. Federal recently U.S. the In tourists allowing progress our on Shot the feel vaccinated working effectively get planes government optimistic creatively recent European We and get people encourage addition, to requirements. for all our U.S. and Croatia, Spain, ultimately to to among with countries Fly” to “Your destination back in sweepstakes, look we France accepting for tourist customers Greece, and began vaccine such have coming Italy, enter testing the forward the travelers the various summer months. more Countries And season. Iceland, options as

regarding international well open up industry are us international the surges and We seen to greater as travel the outlook loosened Andrew gives ease travel. Biden even continue as support we've restrictions. confidence further once encourage for will to travel to countries international bipartisan to administration long-term demand the detail restrictions the appreciate

to on all leisure airline remain the economies we domestic local side, domestic to surge have removed transformation On focused restrictions currently fly. the choose that the We are United's seeing. in travel states reopened customers enabling travel be and

feedback customer of already aircraft, and we Wi-Fi have new eliminated fees, connection the like technology all over aircraft saver, change in connections the saved improving our order with adding friendly second innovating We're with will entertainment customer which XXX,XXX quarter. and We experience. improve our

focal continues Washington point to a from DC News United. for be

industry Infrastructure sustainable our the advancing support also and economy, backbone admissions. and control air aviation efforts investments our to fuel be needed important today are the resilient system to to meet infrastructure tomorrow. our reduce sustainable infrastructure. and nation's and of make traffic bipartisan encouraged needs is modernizing in the that robust, aviation We must We it investments by is nation's of

partners other in to on highlights to pounds Throughout we our remain we XXX,XXX help COVID-XX than the enable to to we quarter, of prices to efforts decarbonisation, distinction to fundraising the hold sustainable partnerships sustainable the customers supplies the In be to our to for United continue proud partners. cover including United, we our a effort initiatives, U.S. more region. India. aviation our range multiple by the goals advance those At donate initiatives fuel medical network. announced new critical transport a carrier support These launched United partner The impacted and to We States. serve and agriculture. expanded a global sustainable with to-date additionally of India. the across communities. quarter, group sustainable Moving within only

overture, quarter, aircraft we announced Supersonic sustainable a for run also to XXX% fuel. with Boom order new on During large optimized first the commercial the aviation the

to aircraft under to our to the multi-pronged this has United Airlines forward without our Andrew. lead also end We more latest ventures industry relying XXX continues that with miles I with on customers the United we that, aircraft decade. commitment over developing will startup to this it emissions up approach our Hartville traditional And offsets. And to before turn announced to by in electric by investment fly XXXX, front. potential gas space, come to the to on an of XXX% an look reducing greenhouse a

Andrew Nocella

today by the Brett. thanking off in the Thanks, team business. commercial to I'm best going start

the The the will ago. revenue on for for outlook moment XX positive in Our about XXXX, us Gerry a generally over an that much XX of of year. talk the and months bit. something to profitable the to combined and the half results a second and and adjusted PRASM is efforts improved outlook imagine agility yield for just TRASM today, hard this announcing last allowing half And basis second financial months just led pre-tax

pandemic's of and business realistic on the impact view was Our industry sometimes our questioned.

recovery hoped guide realistic However, be capacity I'm comes the business combined the across point for next. to us from day keys the strong We'll and real assessment pleased let a we corresponding one today with would facts what what facts our and not segments. us entire report to for demand all way to demand, a prepared of

an to environment clearer term, higher As Scott margins in only long-term profitability have capacity. out path we're tunnel, of we even with said, coming the now in path a a not domestic but the elevated to near industry

down pleased quarter our performance was the in XX% XXXX. were During second TRASM the TRASM we crisis, with versus our and

headwinds guidance, consistent business yields ahead with was expectations. three our these Our mid-quarter being faster face headwinds still our We back fully with not but original to performance in updated demand borders expected ultimately demand, long of well for months ago. improved the half, traffic and but significant closed QX than haul we International transition business will second tail. largely expect just and

adjust is transport one amounts to network and differentiator to others. cargo our global ability proudest a Our of record our clear of accomplishments versus

cargo these we increasing, In $XXX flights for demand highest year. million only cargo this XXXX. of ever, the XXX% the cargo put yields of generated for a XXXX to quarter With of strong although now cargo fact, will haul our passenger remainder XQ up remainder during continue quarter united revenue revenues, long most from the in see we

we a bounce to across plan the the XXXX. carefully half and During planned for of execute crisis, divisions back second also collaborated

Our a that summer capacity measured phase-in plan of continued capacity.

expect capacity versus we be in around QX, QX. the XX% QX system to flowing XXXX versus up XX% For about capacity or of

domestic down XX% versus up XXXX, XX% which XX% has in QX. and for versus pre down travel down of capacity currently about over sharply levels. was versus QX to versus pandemic most expect about inflected We is QX June XXXX XX% be Business

inflection second, in demand the summer the in expect points end beginning January. budget and cycle two of more first new We at business the

to the business XX% be the to XX% XXXX. expect third by to demand versus end We about down improve quarter of

would 'XX. likely for over are we around that this earlier summer, you to conference positive United be traffic we higher rate. domestic matched still with to That yield plan some year. recovery. return International yields that expect talked but both yield, slower business relative slightly indicate now the of right really ourselves yields give On also To last XX% is negative XXXX. on ahead the travel domestic still international customers running perspective is in to XX% now, an XXXX. higher business of in call, including half be and fact are recovering, up to today the quarter as QX load due is color yields anticipated also demand Overall, very have about case. We from at travel, RM domestic slower survey book the That recent up factors second that well. to set of a our Our from to be this we

and expect we XX% to QX, down relative within XX% by international back and the travel in even For bounce XXXX versus does capacity differ down be region region to cabin on restrictions. QX. The demand by considerably depending

is back MileagePlus While to business [superior] awards and access with to we've special used down, our via members better upgrades. seats incentives onboard demand get [ph]

the XXXX border slowest our reduced already and includes compensate meantime, Asia service be be least Africa at is first flying. a new In COVID continues likely normal was we the India and to network Asia. schedule to Asian the to there impacted be number until region to for largest of by to to who recover, see will restrictions, global

schedule this summer back up. European ramping Our quickly is

entering on travelers with entering that Europeans However, in be we a on prior including resuming countries it'll restrictions the continued and key from the the schedule. U.S. normal spring U.S. to XXXX U.K., of Europe, anticipate from

restrictions. across to have be border season the summer XXXX, pent-up Atlantic potential factors to to demand XXXX, the of our points our with easing Atlantic XX summer lower the ever, add expect we than We think we around be XX% and load in has that best XXXX

in open. changes continue that We as for believe flying to united we continue to tailwind structural borders long global create haul see will

XXXX narrow to schedule in recent widebody aircraft versus to expect which our summer XXXX, only. the focused of why aircraft jets available was order XX body is on incremental have We

to or they premier haul to members global also Many rapidly Croatia, our XXXX research members planned operate for yet. haven't are simply the on of demand. on great of United, of program for premier maintain to our that of positive. our continue will our have us the business with premier one flown increasing shows more up mission. we returning program XX%. which have Of quarters that cards, level credit focused ago active to members long Overall, are MileagePlus already our to members We an the have of flight. of Year-to-date, tend XXXX begin a three XXX top just Premier expect members in optimal among weeks that largely the few flying for booked a our on be spend TRASM our to to fleet, we sign not this QX be a markets top than opened plane engagement yet, fliers used type service that fly

Our card programs Chase co-brand are thriving.

done. seat lower amenities new plan or in United importantly, sales plus not number bins. in our commercial passenger United the about account unit more to leg of every or such engage XXX XX-seat amenities strategies, first quality I a our acceleration time to replace increase grow increasing exceed Next allow the scheduled class, increasing jets comfort, onboard customer about Most increasing also time have costs many at while XXXX. is and planes, simply Our and seats, our domestic at and modern as close and of many built a figures. these seatback economy with pre-pandemic extra with few by reducing spend is product our of to Next now moments retention amenities. our lowering the hubs, Most plan fuel it's June accounts mid-con and seat as It's but metrics to overhead today XX% and want profits, XXXX as focus our United XXXX depth short talking strategies. to just and density gaps June all to larger importantly, efficient others CRJs same our of room Next. is we by entertainment reducing United AXXXs,

to will by aligned next our segment our while products fair by competitiveness XX% and XXXX as an like with versus will Gerry bright the customers to and come of superior amazing I'll counts team product. North but We're low difference. to an of and for And financial of hubs. outlook results plan efforts excited United offering XXXX. the and also our fact, side our potential revenue their With first, tunnel it seat increase our Gerry? other network, competitors, made allow about to I'd talk the well. cost premium for United Together we've in with and this over amazing the a that's turn In future. course, differentiate entire QX. decommoditize per out for that, put departure and QX he'll America United for thank us maintain

Gerry Laderman

morning, everyone. Good Andrew. Thanks,

For of quarter million the We of of and billion. a an loss adjusted $X.X second pre-tax XXXX. reported pre-tax $XXX loss

second month with Our margin line adjusted with down EBITDA June. of margin guidance, our the quarter our positive for the prior X% a EBITDA XX.X% for in ended adjusted

the than guidance. XX% provided worse expenses fuel quarter fuel of to higher quarter Our guidance prior the prices, was anticipated for what is slightly compared adjusted XXXX, which as attributable XX%. down greater operating to quarter versus we second second difference The we entire second ended when of down though consumption,

and other came giving our All long-term costs confidence achieve of we ability our us near-term as targets. to continuing in our cost expected, in

expect July. of continues demand income the to adjusted improve, positive generate environment month to as in the noted, we previously As pre-tax

function demand business we said haul fully year. to we is that And to another and expectations. as we Despite return. adjusted pre-tax both improvement to our international this positive the quarter international well In for are fully before prior third anticipated demand have quarter generate not return once we income fourth long being business pleased expect profitability expected and and step recovered, occur fact,

outlook our be gauge CASM while and where of XX% fleet mix, This we expect with x short same the to in less our with XX%, on x flying approximately Turning domestic currently our international are we the points current CASM To more combined to down created are number XXX put headwind grounding versus perspective, period stage down power quarter flying XX% we with X domestic in incremental XXXX. temporary flights same simply x may and because length network our the capacity not aircraft. of an of be versus the prep capacity up XX% costs, CASM our lower third lower of given widebody to haul XXXX. versus XXXX, has

Our additionally investments cost flying, as training and such outlook includes maintenance future for necessary costs.

in from embedded early this plan. also On billion savings $X the our positive cost the structural is side, outlook success

expect of Next we to network the our XXXX We back better reverts our once implementation plan, achieve to will true represent United cost level with performance begins full initiatives. cost CASM x be and the and reshaped capacity our when our

won't x planning we share We are XXXX XXXX. that be than CASM today, details XXXX that currently in our lower and process feel will our we confident

We CASM outlook x target expect XXXX. term in in long that XXXX substantial X% our XXXX, progress demonstrates XXXX versus our hitting towards down down and X% of

for the our to to existing are cost announced addition added recent aircraft, XXX new XXX aircraft on enabled United targets In narrowbody them book, order provide order. order our when structural with our firm which Next reductions, narrowbody by

community, MAX Xs remainder of X XX and of for XX XX this the XXXX We expect through XXX the XX, in XX MAX in NEOs end XX through MAX X, XXXX. MAX and aircraft And financing X of AXXX these MAX you the includes XX year X, XXXX. those of to this MAX XXX be delivered in XX aircraft and

to job currently some delivery year. the towards aircraft, aircrafts are milestone the days This Boeing's pandemic. fourth talking CapEx family adjusted third this the slip both losses. Gone to assumes and expected quarters aircrafts closing, worked the empty that and profitability the year. of for our regarding related recent entire $X.X next With may we year, XXX-XX expectation about billion. pre-tax this the a of cash all XXX, into represent delays burn and adjusted has In of expenditures X, for beginning CapEx the capital run announcement in in year United these later of Regarding it is full take about scheduled delivering for possible we

fully path We that, plan. I'll power earnings achievements have And with and us be over hand the now and to it maximize on shifted United the that Kristina customers the prepared Airlines our crisis fly. throughout focus airline plan to execute to believe to choose long-term the for our the We towards our start Next fully to both United Q&A.

Kristina Munoz

Thank you, Gerry.

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


[Operator And from Thanks, Kristina. Instructions] Raymond James, we have Syth. Savanthi

Savanthi Syth

guide both factors revenue driving strong to is XQ XQ peers. for in your and wondering, Your very was of and are assumptions one relative that what business compared that to and demand I recovery? are you what building strength

Andrew Nocella

example, more tailwind a a to of us those hubs, of during leisure great crisis, for which which We particular, the were that, it our during about say this, over in to flip in coastal the say forward, again, goes last our little really QX And, said year. goes for think the an Newark pandemic, of traffic And really I communities are those in community -- now, is to the see a those lot I this than that so demand I’d hubs and United have hubs in down. I out particular opportunity provide few What calls hubs lot color, significant for country. and conference suffered see. guide domestic going business really including is when and kind around acceleration are small mid-cons think, that mid-con more of headwinds, and going small to

to what up it seeing And there. performing of hub. bit our color be really best in QX more Newark on a So little was one revenue we're give we our you worst expect to

come. So there's more a to lot

headwinds really there'll of I'm the think I significant I these crisis. crisis during so we were think just and as the because out come this, tailwinds about excited be

Savanthi Syth

seasonality a it you maybe But just similarly towards airlines. leisure follow to, better normalize lot tilting as other network? at or EFR lately, seems just if mix capacity of change markets those a kind Andrew new not understand job of what here an did wondering, things like trying opportunity some up also of the and on the remain really just just there's to to of

Andrew Nocella

those sure thank markets And vote scheduling Excellent I'm as folks We it. think we To continue least did, question. so you capacity and at I the will this say, towards has tilt more of do would there. confidence our year. during the towards ASMs the for to rest helped more recovery. markets, better did us we crisis. really of And so do of extend, than leisure-oriented leisure-oriented tilting I this appreciate for during others. our And that the

I think others. forecast will than revenue better be our

network. keep that had pretty intend of Florida, footprint we're that. others were so was leisure do proud particular, United for And results United going We QX led forward to And that in could a bigger these be been. in better. markets to undersized. undersizing trail seasonally we're and a this We're going we historically of hopeful airline and this And than the build going to crisis, in period these player the leisure-oriented rebuild bigger have to the side we time in QX the other that on rebuild markets we're


we Andrew And from Bank Didora. of have America,

Andrew Didora

that Andrew follow maybe curve you now into the can today in have Just you Maybe about terms how of back of to in revenues revenue normal XQ any periods? April? maybe color already how percentage your changed booking of XQ revenues. compares question And can is more of booked outlook talk of really give a right as compared Savi's now are in to I over sort anticipated us a and has course of there on XQ, kind what XQ would on lot your to terms assume the visibility

Andrew Nocella

which see. great to is to Sure, to return everything is normal, starting

really have I'd about we now, and into, books. XX% about but And less September our the in revenue business we feel really is And on very have bullish traffic right of August. we So good. July August say as QX visibility visibility looks I good in that for quite obviously, think still particular, returned.

So view. returning the from exactly point is particularly are quickly yet, overall, isn't booking things curve there but to domestic getting normal. of normal it The

is XX% positive domestic care So for hopefully the and your months we in takes the quarter. expect But about booked add that entity that three all for again, of I'll PRASM do also question.

Andrew Didora

helpful. XQ And X the the in Got it. out in here [over stage That's engaged impact differentials point] then, you CASM called Gerry, from [ph].

As as TRASM we similar think about that well. as on impact a

Gerry Laderman

all stats. gauge, and Stage Yes. those obviously impact

to So TRASM. on some impact there going as well is be

Andrew Nocella

aircrafts is to Movers. of the those will point Hawaii we capacity large view add. we hub. XXX grounded And There hub used faced -- are is for capacity domestic are and dilemma a from I the that

And without an well flying And so network. now, it part incredibly below be our saying in strong goes we're that we right where like Hawaii Hawaii. to is of

where our And would to I we our like are the absorbed really those on don't clog done in appropriate off are, to are because seats we it way so in them. the of the that they simple hubs just system load still have continental and we very have between then, factors the enough we extra the over within with passengers States charts, are the think hub-to-hub have missions, well domestically, describe gauge is number flow And even missing. Hawaii, would United we disappointed,

Hawaii also system. unlock they important aircraft domestic So a want better And to back. more aircraft those are through they we right really and connecting But we our our least traffic at those now lot unlock, in really CASM. think results

So hopefully as think that TRASM. as gives as impacts it to color we you well how CASM


And JPMorgan, we Baker. have Jamie from

Jamie Baker

a so. the every things York I to seem a in the you couple XX follow a weeks to at Scott, So kind up happen industry of to asked question bad noticed event I of that or New years ago,

– the relates So probably as the guide, follow here it to it like we're clear. in looks Anyhow, the XXXX up

Scott Kirby

glad full have Definitely to perspective.

Jamie Baker

targets. you these So financial have

of hit You in bump. targets? the sacrifice delivery protect the some the just sort CapEx the you priority the do Or history, Basically, can speed and you Or do understand book order it if a there? adjust targets order Do you have sacred? trying your to a largest the we financial better pull to aircraft lever is schedule? is

Scott Kirby

Well, Gerry I actually let will start.

Gerry Laderman

we based enough adjust at that certainly said, event, the able to book would be we dictate. flexibility to what as Jamie, order Yes, on macro the XXXX, in starting have environment in

later we the as make can years we it. decision a that's approach of So

Scott Kirby

-- we I is true we created target. that think committed are also add that a certainly to record we've want just track I to and And it

requires sure we'll make achieving targets target XXXX to those And the in another, and we're to or We're achieve make that that way going committed targets achieve we and have targets. XXXX out We plan to there. if adjustments one targets. those adjustments our

Gerry Laderman

about not know, those And that one of replacing as us with things nice out, yes, aircraft with as and gauge the aging, aircraft, Jamie, helps helps well doing are those anything which you as us this simply fleet that order some has targets. our

Jamie Baker

of There $X.XX question. bit you then, gallon that's Okay, efficiency, fuel the huge a second to looking modeling a the change a at just wasn't just Thank helpful. first per in both. And in But from little international with of fourth guidance, give quarter. you have well I more happen an mean, consumption some us improvement. on quarter turning as can current you a to bit the quarter, it. if quarter

Gerry Laderman

definition you regional back as of with revert number keep -- I now, just flying the a to normal the will and the a -- efficiency. help mix by in proportion come right give a can higher fuel but back that become Jamie, precise widebodies mind given


O'Brien. we Sachs, Catherine have Goldman From

Catherine O'Brien

are tailwinds ramp today that into as Thanks. So that should the next called of XXXX. move XXXX we cost, any of to unit and what the about we outside there some maybe up fourth cost levels from be just I down quarter impact? the we move more gauge of on out color should XXX that, headwinds about? know, think thinking we capacity, on are in size X-point one And as other grounding. or the impact abating But the you outside from being year,

Gerry Laderman

actually the of structural ramp length the cost back saving. tailwind is up think reverting aside stage the most I gauge and kind from significant of

that as want those you now, we'll first XX% model to savings more right you for the mid-year. up some And year. in our this color XXXX give right then finalize if ramping you something early numbers quarter, XXX% But could to year, half rest of by of we model that about let's say So in the 'XX. are starting in now,

the So the most as I think we normalize significant business. that's of, probably can tailwind

Catherine O'Brien

you Okay, that, time announcement, noted then when it and Andrew, back you on we hit. I the Chase then, believe and for extension the some And great, a XXXX, maybe of more cash In one drive you that's really annual million in the February details to about at were get entered COVID helpful. got into, XXX throwing increase XXXX. to

flow one guessing or to-date hit to color you P&L really pandemic that Thanks. don't some on for timeframe -- and up. year of expect I'm that. portion we So getting how didn't trend maybe the next uplift, the a But over your what the ramp I give through remember two? you you've hit that pause and us seen can you

Andrew Nocella

we recently, greater Yes. seen XXXX. pandemic, our by are Definitely or to have although, has been equal numbers everything are interrupted now where the than

was everything here So do and about and we're on with coming I just with think products, relationship our in working we're all real creative our But new agreement card is up the spend and and With value our of it's pretty cards financials now. in And that. the putting real, historic there impacted good Chase our we already. incredibly effective right the new the that's excited ideas, the then this Chase we're growth is fueling out cards. with new number in

So we're put there. will course. pandemic, what we which the the exact when I that's relationship say gone interrupted hear. the timeline to targets the has we're the hit is great was faith to like as me It have answer clearly well, But you'd out but not back on by that don't happen. to maybe that that would question going every gives I to


From Jefferies, look Sheila to we have Kahyaoglu.

Sheila Kahyaoglu

additions color a capacity international more capacity bit like below and you are faster around little coming I your around Can seems of mix maybe What CASM the rate. hub. back assumptions and XXXX? it are at and XXXX x domestic? coastal provide maybe, maybe So a appreciate And

Gerry Laderman

give will But you, higher we So it course. XXXX. given more do just precise give it's we'll size I the we stands early to fleet, as you still you tell XXXX guidance, little the today, capacity but the be normal than capacity of the a to course normal expect in can that numbers in the

Andrew Nocella

me with along shock jets think growth summer. growth what international see for year, have our about transatlantic than available, wouldn't the faster incremental next with that domestic that like is to I widebody market look we the we it next going expectation

Sheila Kahyaoglu

remarks, guess you picture, that your of the on you're I that in kept big carriers have Yes. somewhat on widebodies the to that note, prepared one your going. international related side, mentioned

So supply/demand as we're how you that and supply/demand XXXX? as picture through might plays look that? think do you domestically, more increase are expanding fleet attractive guys their seeing think doubling engage, to as positioned carriers is But out or low-cost fleet picture How you international the comes United substantially, are their what back. do with

Andrew Nocella

talked we go details I'll Well, the just our about United to I thoughtfully back all where next plan, think there.

in profitability we unique many in capacity relative importantly, are of absolutely domestic our few are working of those to competitors that our gauge. most to connectivity, industry, factors really where for along, depth, our we And our make next course, we our the schedule, drive really build years elevated years. ways the next sure everybody We think over going customer few with expect our to growth and focus over

make a and United few targets from ago, laid a customer good way York a perspective here. really perspective feel out we this, a that out meet it at together we've minutes laid can in cost here in just we he to Scott that a that the and we've weeks So a to ago sure revenue identified and articulated manage New few


Keay. Research, From have we Hunter Wolfe

Hunter Keay

for just that this ratchet down think pricing our power should industry? you Do investors, permanent for Scott, expectations

Scott Kirby


Hunter Keay

the did why Why the not on market to now down I'm track lower I price hard sense, when XX% just price. be that that to going record is works makes the pretty forever, a to performance, can multiples such with puts decision see mean, pricing to when and but it pushing for and be deflate It's they're And CASM. it's yield to the you're outrun it able that that is not? it so this industries suggesting industry push clear clear was look right sure satisfying what price. he with

Scott Kirby

the with I look XXXX, And we in I a had XXXX. respect a that. recognize First, record disagree question. But you've premise track pretty perspective got good the of

improvement. degree to a is in it of large was the report grew working think is the by pointed I with This we your continuation XX%. research a out strategies EPS well,

that on travel I focused getting air we're and think really choice. customer decommoditizing

confident our XXXX what travel targets confident growth. this So of the we're XXXX, it's is and going you market disinflating, for particularly shareholders. with more best do that take plan about in working. like I ability that percentage think of you be our It than to is are combined we I'm But and that, without mix the the do the when conservative arguably It domestically report. seems decommoditize revenues, going research look like XXXX evidence the your think XXXX, even was good far for was that term to I the can that's I'm going our ultimately to our international to that used.

Hunter Keay

that XXXX, appreciate disrespectful to conversation. you A question below Gerry. Okay. you, the to with ‘XX are in Yes, if modeling Scott. assume be Should to and quick the us going ‘XX want the we help above too, thanks that? for I out you, don't have for or here. be I SWB time, I'd is CASM willing

Kristina Munoz

I'll follow Hunter. up with you offline

Gerry Laderman

get numbers. we'll those No, to Sorry.


Helane and Cowen Becker. Company, From we have

Helane Becker

question. a of kind So different

have open to you're the just you an recovery And entering are you talk know with contract to contract you so the I XXXX about XXXX. have that again? pilots. You don't about negotiations as agree to know think agreement differentials, able But should Can ramp about it's And your letter the whether those I we when how occurs. or thinking again? that up

Brett Hart

hand pilots of we points them. agreement, company. for or really the the pandemic, of in I'm a can, as work one specifics we've throughout with the for discussing end I of the And to premise reaching don't get question. obviously, an the be -- But in overall appreciate I appreciate at will into hand or or that your good pilots, and the calls. had negotiations you But agreements discussions our the public also our on earnings sure work underlying that are think we confident out part with the get we, question our the working day, do relationship of that of timeframe for we

Helane Becker

you. Thank helpful. that's well, Okay,

other think improvements talking question about able efficiency, you're we deficiencies? through we should How working mark as think there next or minus about in know, some X.X we'll XXXX how us it, to to? the the years? about and like is, Are Andrew think that give don't about, Or Gerry? beyond I the you every Just guidance be just that going those quarter to for is we number X% should

Gerry Laderman

And we savings the I Helane savings numbers. and earlier, heart expect I XXX% by mind will to guidance. said billion as of continue of those in airline. that's you cost as And those to that next grow saving. the continue structural the will include in of provide will then, $X we grow really summer, continue the structural Keep know, would

our through continuing CASM years. guidance out few next come it'll So, over the


Evercore From ISI, Pfennigwerth. have we Duane

Duane Pfennigwerth

haul flights maybe think no sort do function you Just no maybe your if back. more we this And a passenger capacity And, but couple from in you back. a said coming just capacity just I more think cargo total, me total? I on of freighters, is that. dedicated expand freighters. about in demand more But assume think you How Andrew, your on cargo. about longer could cargo of coming

Andrew Nocella

correct. Sure,

cargo going be stand. able flights, by not reason we're yields that is in aircraft currently more to disappointed only deployed that, given The the for do be obviously markets. are can where to We passenger better

are we'd The markets both. markets, passenger are exactly they would continue optimal do missions are we grounded would XX aircraft but If those otherwise also flexibility to on had. not less of cargo, clearly because ability front that we the do than have just cargo cargo many means XXXs program have they're However, not our this optimal have flying, those we markets.

the off already That being amount quarter gotten and cargo we good this significant our we different look got these back all think we're when another going it's we've passenger air, be as planes to available going then it's in really in the and forecasts start. we fly properly great think QX still of a So really said, accounted is to in have to we capacity cargo for put and flights. at in to

our for marked there there. half but see better And So I starting it we really a those don't this cargo are on in all obviously can than cargo when remaining But year. we're feel details, it's footprint -- hopefully we'll planning. the starting really numbers and goes. little are you few know we all But we on a cargo tell the currently of today in very where change ago -- is weeks bullish a do

Duane Pfennigwerth

to I super is United Scope? upgauge with frequency, is That's maybe you're update period commentary beyond from my less on are be thinking that the longer lack to would or about where of still Scope. maybe you many something that about the maybe think helpful. Scope makes the it seaters. around talked have big investor a a forecast recent have in offered, just implies up of term XX follow that a obviously Main frequency there lot sense. about XX something optimal. And high kind XX should seaters just you talked think, But for Line, markets in going be that think past, I to And XX seater a How we interpreting fully

Andrew Nocella

a out. or There's that all MAX cascade the induct seat the not we when the clear, a down. AXXX starts replacing at [ph] be To it's XX, it goes way XX NEO, CRJ [route] an top

vision. So to Next new go often the XX seater XX, routes today to United will route XX, in

we sure, XXX% just still the economics described, a of different but than maybe are So not that do that. will you little I'm bit so

depth, said, also the gauge, which going communities, going increase to we're to or to laid and this next It intention in smaller we to detail. plan. great and out As service grow either scheduled right we think to our communities that at size hubs not fleet really is we've and it's not our And being scheduled by smaller in reduce is the That counts way it. do depth. a look United our

our is a bit hubs again, but most most mid-continent where of the is gauged. Given there's the of stand, hubs, frequency, growth of growth gauged, little where particularly our

answer hopefully So helps question. that the


Walton. Myles From have we UBS,

Myles Walton

of return curious a to high you've risk or a efficiency It's follow of question a using up put around govern But the the assets long-term bit alongside your under go of as your metrics, your income, question metric financial if thought being way to again. sort about to perhaps guys, which a pre-tax schemes margin, I'm pre-tax utilization? capital answer on incentive invested efficiency

Gerry Laderman

return of of of our those want we actually make We rule kind is making at look thumb investments. the justify investments to on always mid-teens kind and to

that's things. always to ultimately, So I look part the at But think, of day, pre-tax, is equation. way of end best the the at the do

we're it of just go that on components look do returns but into we investments other all at The making.

Myles Walton

[indiscernible] in is pre-tax just But income scheme, Okay. the governing metric? form the not

Gerry Laderman

do. that one expect the reflects just it's we how think I to

Mike Leskinen

even XXX a older Hey, think return replacing new some would aircraft. capital. that you Myles, mid-teen just MAX invested Mike if Leskinen. is getting you about of look technology, I that with this into add on scenario, you're aircraft in Even the

cost so invested and ROICs the on margin, are capital, pre-tax ahead well are it gating average And the of but weighted item, hurdle. of return we driving capital our a is


David From Bernstein, we have Vernon.

David Vernon

a this talk So kind bit to have kind for talk talk much Next if to the if in strategy. also, can might the higher having the how you earned relative strategy. a Scott, couple basis, exposed will. should is how you about we limiting that earn out can of whether that, this how you you whether a that buzzword, of see maybe you of way just about this implement about United about upside I'm without a of actually premium think and this is about just how departure. I you get might on wanted competition about years about changing a be decommoditizing could investors on there's much is a that level put next is you to that inventory revenue the low-cost day-to-day market little seats the in a over also And if so, wondering And revenue think priced you if here if just pushback at that travel, a high to the little since

Scott Kirby

and can want. Well, on Andrew I'll start add you if

product. customers air the quality care and point do hard do to on a decommoditizing it about today. quantification about about care put But I On travel. think It's precise

talk and get or just people and customers If to you watch airplanes on flying. airplanes

strategy. the that room two conclusion. U.S. airline There's certainly at a us in States. the to of think country, And, frankly, in inescapable biggest two the for be There's think and one the on hubs to that seven our is of this successful. are. least markets was the an decade in I United it market embarked premium travel in ago where pursue hubs the because largest our for opportunity I quite It's us United that most has, happen

And there I us think for so there's this strategy. more for upside to than pursue is anyone

turns that faster And how revenue it's some rest premium quantify but to sure the that [RASM] the not don't of lead because terms for United. a into for will as work we so, stronger is confident than growth it in of that [ph] I or to do, easy industry, know of that much the results

Andrew Nocella

to for is had able United under that the no thing seaters were monetize And premium way, competitors just correct which And long. as underrepresented those category really and big to demand. class was we do change just it of is on We number prior aircraft XX it wrong competitors progress we And the the only XXX, indexed products with and simply dual our being aircraft, that class day a premium add flying introduction all, and would I board single function correct wrong We it. already into premium with great all by The going to quickly. product step cities down. no approximately lot our And seats. of at see have CRJ take flying hubs it against XX that, in premium to that with is to a we're our pandemic on the up saw seats. the really we're premium this XXX seat, we going


Joseph have we Stifel, DeNardi. From

Joseph DeNardi

see the yourselves side? on CapEx? billion you think? you Scott X in you in CapEx year need below And widebody or delivery that, does do an that talk When When Gerry, getting about what address to can based then start the on you with order? needs do do

Gerry Laderman

Andrew, odd, aircraft, over Actually, who ask I'm about But aircraft. we've mind, widebody widebody keep that. to in we few XX, years, me for always aircraft, we wants talked haven't taken Andrews and of lot at some the last a have retired looking

the you focus can the come of And can depends Andrew his right so I on is team Andrew and recovery speed on really provide narrowbody. has the that some the really the world. tell now And but it that And throughout color, then both with. opportunities

Andrew Nocella

reiterated large some I just number Yes, took those of but I've Gerry, to pandemic, widebody over I'll right or coming are delivery ordered because saw aircraft what I of that XX the months. a said, online prior add just we we aircraft, the think next

to we'll up XXXX. So to schedule XX summer available the incremental widebody have of for jets

years, So does and that of growth really lot conditions. a possibly provide market depending on a number of for

So carefully. this we'll watch

for tell ago And go pandemic, XXX were I'll carefully kudos that team our great prior more. I thing and of say or particularly these them at said in can lifespan these of keeping widebody a that we're to XXX years XX I'll the second the give few jets. many could maintenance we to thinking, fleet aircraft shape. I The economic weeks is And you looking again, the

us have allow to that optionality. to So

XXX close give do thing longer people on fly experience have we XXX completed And the the older we're interiors optionality customer is, on I'll great tail aircraft a our we to all aircraft, including describing the have And been automatically with ones these to add think last So interiors, we've fleet. entire been assume. retrofitted, completing these just nose to fleet brand then, great, than new the from board. to recently I

arrived. we brand new we have just that, widebodies a lifespan lot to that a with that on inside the So have aircraft have And long lot have the are a think left. of about

to we the extent next we grow. monitor we'll of growth over years. be It but want that we have and so opportunities the few a And lot because to optionality have will

you details than a kind we point that's are from of But where widebody a probably view. that So more wanted. explains lot of

Gerry Laderman

back growth, straightforward the financial we it to they just that just justify which that need goes about, add, those, the I'll those we that returns, fairly they demonstrate And do. talked to hit can that analysis targets to

Andrew Nocella

has otherwise And so sending one more a their of this because retention I'll structural think XXX-XXX aircraft The that feel airline done be years, add few next that machines. talking and really are comfort over passenger don't about I they I that gives new I and competitive to the as about we're of flown These costs, trip passionate size the CASM new And think amazing routes earlier, and advantage. that many Croatia could route profitably. point. enabled said the between I this

Joseph DeNardi


XXXX able range still the billion the think, I this or call to then it down to $X come elevated. about So $X back Scott, talked, you billion CapEx, or last before is And call aspirational that doubling an of we should significantly? are do to What kind discount behind EBITDA heard loyalty. haven't you. that. the that? Thank goal that Is on much being like drivers

Scott Kirby

have it's can our that, too, until one one those goal, it's for have to if choose I though, wouldn't going it, not we're this something because this another have announce, meeting we team to announce until it. the something earlier an we're they're me think update. of that announce, those later get morning Well, today to of it, And and you saw something to discount I looking you is going I on we to want. to But do

announcement. on So to activity to not to we're But we are doing, there's of probably a we're until big say it. publicly a lot ready make going anything have

Gerry Laderman

CapEx, to give projections on really it's pay beyond CapEx And too early XXXX.


questions we from Wall media take time. now Journal, Street [Operator Snyder will this the From [ph]. have at Okay. We Instructions] [Ellison

Unidentified Analyst

or part an the you will checking government asking or from agreement of mandate in for tracing, It's travel terms about to mass with to the extending anything that is status? lifting that there those the Regarding restrictions your there have restrictions, lift of administration airlines anything Is conversations vaccine do? contact is eventually.

Scott Kirby

uniquely, back We but confident working input closely we where input safety people and with not from us them, are And people when the sure to we flying, safe, make want this the certainly government. brought those do But are get much United that way from government indicated us, only customers and for haven't confidently, the an to of policies. things which digital forward, has for of the done and conversation a any that they're two-way of team world to for creating our those upload vaccine if job it's it's we've getting safely feel example all advocated willingness amazing in a of already. automated specific requirements, with pretty happening information. a

United world. deal any I requirements think in it's the than easier with world the around airline to on vaccine

administration of open. that So those to to very we're they to forward requirements things. working doing kinds any we're And look get have, it with open back the


from In Justin have Bachman. Bloomberg, we

Justin Bachman

Scott's at the goes to people confident repeat it not continuing back who probably as flying XXXX? any and maybe those confidence XXXX, customers mix may just bit and your who's far the question and people takes are habits in Andrew call seeing flying since are the pandemic this curious, or the rebound. pandemic? turn. Or or another if you of are the showed business about but I'm Delta Thanks. of a of This your about today Scott, have come for is who quite like flown I'm curious today, is even compared people as back during the variant, a top being comment lot the impact on to

Andrew Nocella

still is the we penetration the pretty our from by of from the point seven on a historic premier and what to aircraft see We We that population MileagePlus tell MileagePlus carefully, particularly MileagePlus can below about norms strength or this those view borders premier and or gaining is back of track points. number particularly customers haul. closed are back that and because fly to you while only are they members aren't each generally that And and and global to are particular ones get credit are difficult are and month using again And the cards. more into. more our coming long our flying eight

So from we do see at. the look the returning to we all things normal,

some can the over factors slightly this been no assure I seen you And and which factors crisis We've for levels, gone through now, they show basically no cancellation have would completely them no and show right thing cancellation higher. in as is, other above they're time. The have driven, XXXX are few weeks. headlines last And tell or I change of quite kind we've normal. you

So we don't change. see any

not with tell going recovery, to you good. the now, Of exactly future. course, even is do the saying look But a And in strong negative maintaining look I headlines. just demand can and recovering like I'm happen we things what's right


we Reuters, from have And [indiscernible].

Unidentified Analyst

more call. I pullback. comments a from to scenarios perspective? go be Scott could and also top wanted kinds temporary Can look what of like of Scott's reopening demand you a where and for specific what preparing the that to potential pullback you're at you back the mentioned on

Scott Kirby

what it like. Well, I look don't know would

we've rules with the really recedes into prepared exactly that background, this for managing of ups to and between we're government think we did we that that were deal a is and recommendations, is in downs. that downs back exist had don't the related known to are, going it going knowing unlikely. happen, XXXX. or precisely world that be there's put something we to But unabated. year, the if which downs. team forward I nimbly would and the look continues history not to I continue the be whatever enough I that the really those -- that Because team and and with team which think going new and which been downs be to and But will now the all of we the ups a most to. February largely can't realistically, year together likely I along, has and be I all outcome forecast be. vagaries are what and way logical vaccinated And the think that there's we've is March ups there disbanded, to ups and downs quickly, last there think ups of shutdown time weekend the deal of to of Reacting last going mean, kind some last

Gerry Laderman

need the flexible was financially. pandemic the in to able be learned we things the be to of One

money, we've to off build the direction one also in bank or have So invest to case begun we as we ramp in an other.

Unidentified Analyst

their delaying from reopening for were reports by to a are return office What that hearing There in Apple month. plans? of yesterday, you terms is corporations example, its

Andrew Nocella

summer around again, about in in month down return we're And even in newspaper down up did occurs overall, in right normal business we're may start. on We've in now. or XX% based then, advanced I read only therefore, to this of to we number September, where season bookings And anticipating XX%. the the our a also the travel. think back end in seen already get we come January, in once some anticipating I new September return new to to business as that September. are then when step and normalcy. you're example, and finish Obviously, the budget for XX% October November, where expect for better are And to that the continue now but that


Thank you.

turn now back Kristina will closing We remarks. to it Munoz for

Kristina Munoz

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


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

You may now disconnect.