United Airlines (UAL) today announced that the continued successful implementation of its strategy led to the company delivering two straight quarters of solid pre-tax margin growth – three quarters on an adjusted basis1 – and the highest second-quarter pre-tax income in the airline’s history.2
“Thanks to the outstanding and sustained efforts of 95,000 United team members, United is now consistently delivering results for our customers as well as investors as we raise the mid-point of our full-year 2019 adjusted diluted EPS3 guidance with a new range of $10.50 to $12.00,” said Oscar Munoz, CEO of United Airlines. “By once again delivering strong EPS over the last three months, top-tier results are now the expectation, not the exception for United.”
Reported second-quarter net income of $1.1 billion, diluted earnings per share (EPS) of $4.02, pre-tax earnings of $1.4 billion and pre-tax margin of 11.9 percent, expanding pre-tax margin 4.0 points versus the second quarter of 2018.
Reported second-quarter adjusted net income of $1.1 billion, adjusted diluted EPS of $4.21, adjusted pre-tax earnings of $1.4 billion and adjusted pre-tax margin of 12.4 percent, expanding adjusted pre-tax margin 2.0 points versus the second quarter of 2018.1
Total passenger revenue increased 6.1 percent versus the second quarter of 2018.
Consolidated second-quarter passenger revenue per available seat mile (PRASM) increased 2.5 percent year-over-year.
Consolidated second-quarter unit cost per available seat mile (CASM) decreased 0.4 percent year-over-year.
Consolidated second-quarter CASM, excluding special charges, third-party business expenses, fuel and profit sharing, increased 0.6 percent year-over-year.
Repurchased $536 million of its common shares in the second quarter of 2019, at an average purchase price of $84.07 per share.
On July 15, 2019, the company’s Board of Directors authorized a new $3 billion share repurchase program.
1 Excludes special charges, the mark-to-market impact of financial instruments and imputed interest on certain finance leases. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in the tables accompanying this release.
2 Airline history defined as post-2010 merger.
3Excludes special charges and the mark-to-market impact of financial instruments, the nature of which are not determined at this time, and imputed interest on certain finance leases. Accordingly, UAL is not providing earnings guidance on a GAAP basis.
Second-Quarter 2019 Highlights
United Polaris lounge at San Francisco International Airport voted best business class lounge in the world by the 2019 World Airline Awards from Skytrax.
Introduced ConnectionSaver, a new tool dedicated to improving the experience for customers connecting from one United flight to the next, while ensuring those who have already boarded the aircraft arrive at their destination on time.
Began flight operations at LaGuardia Airport’s new Terminal B Eastern Concourse and opened newest United Club – conveniently located inside security with more than 10,500 square feet with sweeping views of the tarmac.
Awarded the “People’s Voice” Webby Award in the “Business and Finance” category for reimagined mobile app, which debuted earlier this year.
Partnered with luxury skincare line Sunday Riley on new United Polaris amenity kits.
Awarded the Crystal Cabin Award for Inflight Entertainment and Connectivity for new onboard entertainment.
Received IDG’s CIO 100 Award for innovative customer volunteer solicitation program.
Served nearly 43 million passengers, the most ever for United in the second quarter.
Achieved top-tier on-time departures rate performance versus the major U.S. airlines, despite headwinds caused by unusually high weather and ATC delays.
For the second quarter United had the second-best completion factor and the second fewest cancellations among the major U.S. airlines.
Received “Best-of-the-Best” award for commitment to diversity and inclusion by the National LGBT Chamber of Commerce (NGLCC) and the National Business Inclusion Consortium (NBIC), demonstrating the airline’s industry-leading results across all diverse segments and its commitment to building a more diverse economy.
Honored with the “DiversityInc Top 50” designation, lauding the airline’s leadership in promoting diversity through talent development, leadership accountability and a top supplier diversity program.
Expect profit sharing for 2019 to be about 20 percent higher per participating employee year-over-year.
Hosted more than half of the company’s 25,000 flight attendants at 17 separate Backstage 2019 events, which are designed to underscore the important role flight attendants play in delivering great service.
Started 34 new domestic and international routes, including brand-new summer service between New York/Newark and Prague, and the only nonstop service between the United States and Naples, Italy.
Resumed popular seasonal service on 28 routes offering customers more access than ever before to connect to 54 countries around the world on United’s industry-leading global network.
Announced the only nonstop service from the United States to Cape Town, South Africa, and announced a second daily nonstop service between San Francisco and Hong Kong.
Launched ninth daily nonstop flight between the United States and Germany from its hub at Denver International Airport, becoming the only U.S. airline connecting Denver to Frankfurt nonstop.
Tentatively granted a total of four daily nonstop flights to Tokyo Haneda Airport from United’s hubs at Newark Liberty International Airport, Chicago O’Hare International Airport, Washington Dulles International Airport and Los Angeles International Airport.
Unveiled 2019 college football flying schedule, adding around 10,000 seats between its hubs and popular game destinations and, for the first time, adding several point-to-point flights enabling fans to fly nonstop from one college town to another.
Entered into a new alliance agreement with New Delhi-based airline Vistara – further expanding the airline’s global route network to more than 20 destinations throughout India and expected to begin in the fall.
Unveiled next paint design, which brings a refreshed look to its fleet, serving as a visual representation of the airline’s ongoing brand evolution while staying true to the history it has developed over the past 93 years of proudly serving customers around the world.
Took delivery of two Boeing 787-10 aircraft, two used Airbus A319 aircraft, and seven Embraer E175 aircraft operated by our regional partners.
Signed agreement to purchase 19 used Boeing 737-700 aircraft with deliveries expected beginning in December.
Community and Environment
Made history with the departure of the “Flight for the Planet,” the most eco-friendly commercial flight of its kind in the history of aviation, becoming the first known airline to demonstrate all of the following key actions on a single commercial flight: utilization of sustainable aviation biofuel, zero cabin waste efforts, carbon offsetting, and operational efficiencies.
Became the first public company to be inducted into Pride Live’s Stonewall Ambassador program in recognition of the airline’s commitment to LGBTQ+ equality.
Reached a milestone of 1 million meals packed for charity partner Rise Against Hunger, a global nonprofit, working to end hunger by providing food and life-changing aid to the world’s most vulnerable and creating a global commitment to mobilize critical resources.
Renewed contract with Boston-based World Energy, agreeing to purchase up to 10 million gallons of cost-competitive, commercial-scale, sustainable aviation biofuel over the next two years.
Revealed the two winning designs for Her Art Here, a first-of-its-kind contest designed to find and uplift underrepresented women artists by providing a chance to have their work painted on a canvas like no other – a United Airlines aircraft. The painted aircraft will begin flying in the fall.
Announced new and exciting opportunities to help customers celebrate Pride Month through MileagePlus Exclusives benefiting United charity partner The Trevor Project.
Top Copyright Photo: United Airlines Boeing 737-824 SSWL N37267 (msn 31586) YYZ (TMK Photography). Image: 946672.
The new service will directly connect Belgium to Pointe-à-Pitre in Guadeloupe and to Fort-de-France in Martinique with two flights per week starting on December 7, 2019.
With a departure from Brussels Charleroi Airport in the late morning, the schedule offers maximum comfort to passengers coming from Belgium, but also from France, the Grand Duchy of Luxembourg, the Netherlands and west of Germany. In addition, Brussels Charleroi Airport is an easily accessible airport, that offers passengers a speedy and efficient terminal processing from parking until boarding of the aircraft.
The flights will be operated with Airbus A340-300 aircrafts configured in three classes layout.
Air Belgium chose Guadeloupe and Martinique – two islands offering guaranteed sunny weather, the discovery of a warm and welcoming population, preserved nature and high-quality local gastronomy and products. Basically, the assurance of a complete change of scenery without leaving Europe.
Top Copyright Photo: Air Belgium (2nd) Airbus A340-313 OO-ABA (msn 835) LHR (SPA). Image: 943919.
In other news, Ryanair also announced its first ever flights from Beirut Airport, its newest airport and its first Lebanese airport, with a new three times weekly route to Paphos, Cyprus commencing in October, as part of its Winter 2019 schedule.
There a very few Boeing 737-200s still in airline passenger service. Now there is one less.
On Friday, July 12 2019, the last Boeing 737-200 revenue flight of DAP Mineral Airways (Aerovías DAP subsidiary) was operated. The pictured CC-AAG (msn 23608) (above) flew a round trip between Santiago (SCL) and the northern city of El Salvador (Ricardo García Posada airfield, SCES).
The other two Boeing 737-200s were CC-ABD (msn 22736) and CC-CTK (msn 22402), that have been out of service for a few months. Sources from the company said CC-AAG will be flown to its new owner in Alaska, while the remaining 737s are to be scrapped.
The Boeing 737-200s were mostly used for charter flights by mining companies, transporting personnel between Santiago and cities in northern Chile, and also carrying soccer/football teams and supporters to neighboring countries.
DAP will continue operating charters with its current fleet of BAe146/Avro RJ.
Top Copyright Photo (all others by the airline): Mineral Airways Boeing 737-247 CC-AAG (msn 23608) SCL (Alvaro Romero). Image: 937199.
Woodys Aeroimages captured a subtle change on Ryanair’s new high capacity Boeing 737-8 MAX 8 airplanes.
Apparently the airline (or Boeing) has made a marketing decision to change the designation from “737 MAX” to an unofficial “737-8200” designation. The 200 refers to the seating capacity of Ryanair’s version.
The type certificate still has the type listed as the Boeing 737-8. MAX 8 is a marketing name developed by Boeing. Given all of bad news, Boeing will probably have to rebrand the type once all fixes are approved and implemented.
The Wall Street Journal is now reporting the type may be grounded into 2020 due to rising safety concerns.
JetBlue Airways today announced the airline is celebrating Bastille Day with seats now on sale to Guadeloupe in the French Caribbean. JetBlue will expand the airline’s leadership position in the Caribbean and Latin America with new service between New York’s John F. Kennedy International Airport (JFK) and Guadeloupe’s Pointe-à-Pitre International Airport (PTP). Roundtrip flights will operate three times per week on Saturdays, Mondays and Wednesdays starting February 1, 2020.
Photo: Guadeloupe Islands.
Seen from above, the two main islands of Guadeloupe form the shape of butterfly wings. On the west side, Basse-Terre is set on a volcano range, topped by La Soufrière at the heart of dense tropical forests. The rainforest-covered mountain range form part of a national park, which includes many hiking trails. To the east, just across the narrow la Rivière Salée, Grande-Terre is set on a vast limestone plateau bordered by perfect beaches, turquoise lagoons which share the coastline with amazing surfing spots and unforgettable landscapes. The smaller, but equally beautiful islands of Marie Galante, Les Saintes and La Désirade are just a short ferry ride from the main islands.
Culturally, the Guadeloupe Islands are bound together by a rich ethnic diversity that characterizes their folklore, language, music and beliefs. A land of many influences — African, European, Indian, American and the Far East — the Guadeloupe archipelago has a multi-faceted identity where Indian rites, African memory and the rule of the 17th century colonists are part of everyday life.
Schedule between New York (JFK) and Pointe-à-Pitre, Guadeloupe (PTP)
On Saturdays, Mondays and Wednesdays Beginning February 1, 2020
JFK – PTP Flight #2205
PTP – JFK Flight #2206
7:00 a.m. – 12:20 p.m.
1:40 p.m. – 5:20 p.m.
JetBlue will operate Guadeloupe service using its Airbus A320 aircraft.
American Airlines remains confident that impending software updates to the Boeing 737 MAX, along with the new training elements Boeing is developing in coordination with our union partners, will lead to recertification of the aircraft this year. We are in continuous contact with the Federal Aviation Administration (FAA), Department of Transportation (DOT), National Transportation Safety Board (NTSB) and other regulatory authorities.
American is extending cancellations for the MAX through November 2. By doing so, our customers and team members can more reliably plan their upcoming travel on American. In total, approximately 115 flights per day will be canceled through November 2.
Our Reservations and Sales teams will continue to work closely with customers who are impacted by these cancellations.
Frequently asked questions
Question: My flight was previously scheduled on a MAX. Will it be canceled?
Answer: Not all flights that were previously scheduled on a MAX will be canceled, as we plan to substitute other aircraft types. In total, approximately 115 flights will be canceled per day.
Question: My flight wasn’t scheduled to be on a MAX. Why has it been canceled?
Answer: A flight that was not scheduled as a MAX flight might be canceled to enable our team to cover a MAX route with a different aircraft. Our goal is to minimize the impact to the smallest number of customers.
Question: How will customers know if they are impacted?
Answer: American’s Reservations team will contact affected customers directly by email or telephone. Customers who booked through a travel agent will be contacted by their agency directly.
Question: My flight was canceled and I don’t want to rebook. Can I get a refund?
Answer: Yes. If a flight is canceled and a customer chooses to not be rebooked, they may request a full refund by visiting aa.com/refunds.