Portail Aeronautique et Spatial - Annuaire et Agenda Aero et Espace - Actualites aerospatiales - Chroniques aeronautiques de Pierre Sparaco - Evenements aeronautiques - aerospace engineering aerospace jobs aerospace services aerospace company ingenieur aeronautique airbus a 380 global aerospace 2010 aeronautique ecole aeronautique formation aeronautique emploi aeronautique

2Q 2012Passenger Revenue

(millions)

PassengerRevenue vs.

2Q 2011

PRASM vs.2Q 2011

Yield vs.2Q 2011

ASMs vs.

2Q 2011

Domestic

$3,441

0.6%

1.1%

1.3%

(0.5%)

Atlantic

1,589

(1.9%)

2.3%

1.1%

(4.1%)

Pacific

1,257

12.5%

6.6%

4.9%

5.6%

Latin America

657

(3.4%)

(3.4%)

(7.2%)

0.1%

International

$3,503

2.6%

2.6%

0.7%

0.0%

Mainline

$6,944

1.6%

1.8%

1.0%

(0.2%)

Regional

1,824

5.2%

8.5%

5.0%

(3.0%)

Consolidated

$8,768

2.3%

3.0%

1.8%

(0.6%)

UNITED CONTINENTAL HOLDINGS, INC.

STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)

THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2012 AND 2011

Three Months Ended

Six Months Ended

June 30,

%

June 30,

%

(In millions, except per share data)

2012

2011

Increase/ (Decrease)

2012

2011

Increase/ (Decrease)

Operating Revenue:

Passenger:

Mainline

$6,944

$6,836

1.6

$12,898

$12,543

2.8

Regional

1,824

1,734

5.2

3,378

3,144

7.4

Total Passenger Revenue

8,768

8,570

2.3

16,276

15,687

3.8

Cargo

265

316

(16.1)

529

599

(11.7)

Special revenue item (C)

-

107

NM

-

107

NM

Other

906

816

11.0

1,736

1,618

7.3

Total Operating Revenue

9,939

9,809

1.3

18,541

18,011

2.9

Operating Expenses:

Aircraft fuel (A)

3,408

3,227

5.6

6,637

5,899

12.5

Salaries and related costs

2,024

1,916

5.6

3,921

3,722

5.3

Regional capacity purchase (B)

643

615

4.6

1,259

1,188

6.0

Landing fees and other rent

503

502

0.2

972

975

(0.3)

Aircraft maintenance materials and outside repairs

432

444

(2.7)

839

883

(5.0)

Depreciation and amortization

378

385

(1.8)

758

773

(1.9)

Distribution expenses

345

375

(8.0)

682

725

(5.9)

Aircraft rent

251

252

(0.4)

502

505

(0.6)

Special charges (C)

206

146

NM

370

223

NM

Other operating expense

1,174

1,139

3.1

2,297

2,276

0.9

Total Operating Expenses

9,364

9,001

4.0

18,237

17,169

6.2

Operating Income

575

808

(28.8)

304

842

(63.9)

Nonoperating Income (Expense):

Interest expense

(213)

(250)

(14.8)

(429)

(504)

(14.9)

Interest capitalized

9

8

12.5

17

14

21.4

Interest income

7

5

40.0

12

9

33.3

Miscellaneous, net

(38)

(29)

31.0

(11)

(30)

(63.3)

Total Nonoperating Expense

(235)

(266)

(11.7)

(411)

(511)

(19.6)

Income (loss) before income taxes

340

542

(37.3)

(107)

331

NM

Income tax expense (D)

1

4

(75.0)

2

6

(66.7)

Net Income (loss)

$339

$538

(37.0)

$(109)

$325

NM

Earnings (loss) per share, basic

$1.02

$1.63

(37.4)

$(0.33)

$0.98

NM

Earnings (loss) per share, diluted

$0.89

$1.39

(36.0)

$(0.33)

$0.88

NM

Weighted average shares, basic

331

330

0.3

331

329

0.6

Weighted average shares, diluted

393

400

(1.8)

331

383

(13.6)

NM Not meaningful

UNITED CONTINENTAL HOLDINGS, INC.

CONSOLIDATED NOTES (UNAUDITED)

UAL's results of operations include fuel expense for both mainline and regional operations.

(A)

Three Months Ended

Six Months Ended

June 30,

%

June 30,

%

(In millions, except per gallon)

2012

2011

Increase/ (Decrease)

2012

2011

Increase/ (Decrease)

Total mainline fuel expense

$2,798

$2,568

9.0

$5,427

$4,704

15.4

Regional fuel expense

610

659

(7.4)

1,210

1,195

1.3

Consolidated fuel expense

3,408

3,227

5.6

6,637

5,899

12.5

Exclude gain (loss) on fuel hedge settlements

(38)

278

NM

(69)

432

NM

Consolidated fuel expense excluding hedge impacts

$3,370

$3,505

(3.9)

$6,568

$6,331

3.7

Mainline fuel consumption (gallons)

849

853

(0.5)

1,639

1,638

0.1

Mainline average jet fuel price per gallon (cents)

329.6

301.1

9.5

331.1

287.2

15.3

Mainline average jet fuel price per gallon excluding fuel hedge impacts (cents)

325.1

333.6

(2.5)

326.9

313.6

4.2

Regional fuel consumption (gallons)

186

190

(2.1)

363

365

(0.5)

Regional average jet fuel price per gallon (cents)

328.0

346.8

(5.4)

333.3

327.4

1.8

Consolidated consumption (gallons)

1,035

1,043

(0.8)

2,002

2,003

-

Consolidated average jet fuel price per gallon (cents)

329.3

309.4

6.4

331.5

294.5

12.6

Consolidated average jet fuel price per gallon excluding fuel hedge impacts (cents)

325.6

336.0

(3.1)

328.1

316.1

3.8

(B)

UAL has contractual relationships with various regional carriers to provide regional jet and turboprop service branded as United Express. Under these agreements, UAL pays the regional carriers contractually agreed fees for crew expenses, maintenance expenses and other costs of operating these flights. These costs include aircraft rent of $169 million and $342 million for the three months and six months ended June 30, 2012, respectively, of which $117 million and $52 million is included in regional capacity purchase expense and aircraft rentals, respectively, for the three months ended June 30, 2012 and $238 million and $104 million is included in regional capacity purchase expense and aircraft rentals, respectively, for the six months ended June 30, 2012 in our Statements of Consolidated Operations.

UNITED CONTINENTAL HOLDINGS, INC.

CONSOLIDATED NOTES (UNAUDITED)

(C)

Special items include the following:

Three Months Ended

Six Months Ended

June 30,

June 30,

(In millions)

2012

2011

2012

2011

Revenue - Chase co-branded marketing agreement modification

$ -

$107

$ -

$107

Integration-related costs

137

145

271

224

Voluntary severance and benefits

76

-

125

-

(Gains) losses on sales of assets and other special charges, net

(7)

1

(26)

(1)

Total special charges

206

146

370

223

Total special items

206

39

370

116

Income tax benefit

-

-

(2)

-

Special items, net of tax

$206

$39

$368

$116

2012 - Special items

Integration-related costs: Include compensation costs related to systems integration and training, costs to repaint aircraft and other branding activities, costs to write-off or accelerate depreciation on systems and facilities that are no longer used or planned to be used for significantly shorter periods, relocation costs for employees and severance primarily associated with administrative headcount reductions. In addition, on June 30, 2012 UAL became obligated under an indenture to issue to the Pension Benefit Guaranty Corporation, no later than Feb. 14, 2013, $62.5 million aggregate principal amount of 8% Contingent Senior Unsecured Notes. UAL recorded a liability of approximately $48 million for the fair value of that obligation. The company classified the liability as an integration-related cost since the financial results of UAL, excluding Continental's results, would not have resulted in a financial triggering event under the 8% Notes indenture.

Voluntary severance and benefits: In the first quarter of 2012, the company recorded $49 million associated with two voluntary employee programs. In one program, approximately 400 mechanics offered to retire early in exchange for a cash severance payment that was based on the number of years of service the employee had accumulated. The other program is a voluntary company-offered leave of absence that approximately 1,800 flight attendants accepted, which allows for continued medical coverage during the leave of absence period. In the second quarter of 2012, The company recorded $76 million associated with a voluntary severance program. Approximately 1,300 flight attendants volunteered to retire early in exchange for a cash severance payment that was based on the number of years of service each employee had accumulated.

Gains on sales of assets and other special charges, net: In the first quarter of 2012, the company sold six aircraft and its interest in a crew hotel in Hawaii. The company also recorded an impairment charge on an intangible asset related to certain take-off and landing slots to reflect the discontinuance of one of the frequencies on an international route. The company also made adjustments to legal reserves. In the second quarter of 2012, the company sold three aircraft, realizing a net gain of $7 million.

2011 - Special items

Special Revenue Item: UAL, United, Continental and Mileage Plus Holdings, LLC, a wholly owned subsidiary of United, executed an Amended and Restated Co-Branded Card Marketing Services Agreement (the Co-Brand Agreement) with Chase Bank USA, N.A. (Chase) in June 2011, through which the company sells mileage credits to Chase and the company's loyalty program members accrue frequent flyer miles for making purchases using credit cards issued by Chase. The Co-Brand Agreement modifies and combines the previously existing co-branded agreements between Chase and each of United and Continental, respectively. As a result of the execution of the Co-Brand Agreement, revenues received as part of this agreement are subject to Accounting Standards Update 2009-13, "Multiple-Deliverable Revenue Arrangements ? a consensus of the FASB Emerging Issues Task Force" (ASU 2009-13), adopted by the company on Jan. 1, 2011, which is applied to all contracts entered into or materially modified after the adoption date of the accounting standard. The application of the new accounting standard to the Co-Brand Agreement, which was determined to be a material modification of the previously existing co-branded agreements, decreases the value of the air transportation deliverables related to the agreement that the company records as deferred revenue (and ultimately Passenger Revenue when redeemed awards are flown) and increases the value of the marketing-related deliverables recorded in Other Revenue at the time these marketing-related deliverables are provided. The provisions of ASU 2009-13 require that existing deferred revenue be adjusted retroactively to reflect the value of the undelivered air transportation deliverables at the date of the contract modification. As a result, the company recorded a retroactive, one-time non-cash income adjustment to revenue of $107 million in the second quarter of 2011.

Integration-related costs: Include costs to terminate certain service contracts that will not be used by the company, costs to write off system assets that are no longer used or planned to be used by the company, and payments to third-party consultants to assist with integration planning and organization design. Integration-related costs also include salary and severance related costs primarily associated with administrative headcount reductions and compensation costs related to the integration.

(D)

No federal income tax expense was recognized related to our pretax income for the three months ended June 30, 2012 and the three and six months ended June 30, 2011 due to the utilization of book net operating loss carry forwards for which no benefit has previously been recognized. We are required to provide a valuation allowance for our deferred tax assets in excess of deferred tax liabilities because UAL concluded that it is more likely than not that such deferred tax assets will ultimately not be realized. As a result, pre-tax losses for the six months ended June 30, 2012 were not reduced by any tax benefits.

UNITED CONTINENTAL HOLDINGS, INC.

STATISTICS

Three Months Ended

Six Months Ended

June 30,

%

June 30,

%

2012

2011

Increase/ (Decrease)

2012

2011

Increase/ (Decrease)

Mainline:

Passengers (thousands)

24,825

25,107

(1.1)

46,734

47,527

(1.7)

Revenue passenger miles (millions)

47,719

47,485

0.5

88,910

88,751

0.2

Available seat miles (millions)

56,351

56,481

(0.2)

108,819

108,858

-

Cargo ton miles (millions)

631

683

(7.6)

1,262

1,369

(7.8)

Passenger load factor:

Mainline

84.7 %

84.1 %

0.6

pts.

81.7 %

81.5 %

0.2

pts.

Domestic

86.5 %

86.7 %

(0.2)

pts.

84.4 %

84.1 %

0.3

pts.

International

82.8 %

81.4 %

1.4

pts.

79.0 %

78.9 %

0.1

pts.

Passenger revenue per available seat mile (cents)

12.32

12.10

1.8

11.85

11.52

2.9

Average yield per revenue passenger mile (cents)

14.55

14.40

1.0

14.51

14.13

2.7

Average fare per passenger

$279.72

$272.27

2.7

$275.99

$263.91

4.6

Cost per available seat mile (CASM) (cents):

CASM (a)

13.65

12.97

5.2

13.73

12.84

6.9

CASM, excluding special charges (b)

13.28

12.71

4.5

13.39

12.64

5.9

CASM, excluding special charges and third-party business expenses (b)

13.18

12.61

4.5

13.27

12.53

5.9

CASM, excluding special charges, third-party business expenses and fuel (b)

8.21

8.06

1.9

8.28

8.21

0.9

CASM, holding fuel rate and profit sharing constant, excluding special charges and third-party business expenses (b)

12.82

12.61

1.7

12.64

12.53

0.9

Average price per gallon of jet fuel (cents) (c)

329.6

301.1

9.5

331.1

287.2

15.3

Average price per gallon of jet fuel excluding fuel hedge impact (cents) (c)

325.1

333.6

(2.5)

326.9

313.6

4.2

Fuel gallons consumed (millions)

849

853

(0.5)

1,639

1,638

0.1

Aircraft in fleet at end of period

699

708

(1.3)

699

708

(1.3)

Average stage length (miles) (d)

1,899

1,820

4.3

1,884

1,806

4.3

Average daily utilization of each aircraft (hours)

11:03

10:58

0.8

10:41

10:44

(0.5)

Regional:

Passengers (thousands)

12,246

11,893

3.0

22,864

22,062

3.6

Revenue passenger miles (millions)

6,772

6,760

0.2

12,688

12,458

1.8

Available seat miles (millions)

8,265

8,525

(3.0)

16,141

16,320

(1.1)

Passenger load factor

81.9 %

79.3 %

2.6

pts.

78.6 %

76.3 %

2.3

pts.

Passenger revenue per available seat mile (cents)

22.07

20.34

8.5

20.93

19.26

8.7

Average yield per revenue passenger mile (cents)

26.93

25.65

5.0

26.62

25.24

5.5

Aircraft in fleet at end of period

558

557

0.2

558

557

0.2

Average stage length (miles) (d)

534

561

(4.8)

538

557

(3.4)

UNITED CONTINENTAL HOLDINGS, INC.

STATISTICS (Continued)

Three Months Ended

Six Months Ended

June 30,

%

June 30,

%

2012

2011

Increase/ (Decrease)

2012

2011

Increase/ (Decrease)

Consolidated (Mainline and Regional):

Passengers (thousands)

37,071

37,000

0.2

69,598

69,589

-

Revenue passenger miles (millions)

54,491

54,245

0.5

101,598

101,209

0.4

Available seat miles (millions)

64,616

65,006

(0.6)

124,960

125,178

(0.2)

Passenger load factor

84.3 %

83.4 %

0.9

pts.

81.3 %

80.9 %

0.4

pts.

Passenger revenue per available seat mile (cents)

13.57

13.18

3.0

13.02

12.53

3.9

Total revenue per available seat miles (cents)

15.38

15.09

1.9

14.84

14.39

3.1

Average yield per revenue passenger mile (cents)

16.09

15.80

1.8

16.02

15.50

3.4

CASM (a)

14.49

13.85

4.6

14.59

13.72

6.3

CASM, excluding special charges (b)

14.17

13.62

4.0

14.30

13.54

5.6

CASM, excluding special charges and third-party business expenses (b)

14.08

13.53

4.1

14.20

13.44

5.7

CASM, excluding special charges, third-party business expenses and fuel (b)

8.81

8.57

2.8

8.89

8.73

1.8

CASM, holding fuel rate and profit sharing constant, excluding special charges and third-party business expenses (b)

13.82

13.53

2.1

13.63

13.44

1.4

Average price per gallon of jet fuel (cents) (c)

329.3

309.4

6.4

331.5

294.5

12.6

Average price per gallon of jet fuel excluding fuel hedge impacts (cents) (c)

325.6

336.0

(3.1)

328.1

316.1

3.8

Fuel gallons consumed (millions)

1,035

1,043

(0.8)

2,002

2,003

-

Average full-time equivalent employees (thousands)

84.5

81.1

4.2

84.1

81.7

2.9

(a)

Includes impact of special charges (See Note C).

(b)

These financial measures provide management and investors the ability to monitor the company's performance on a consistent basis.

(c)

Fuel price per gallon includes aircraft fuel and related taxes.

(d)

Average stage length equals the average distance a seat travels adjusted for size of aircraft (available seat miles/seats).

UNITED CONTINENTAL HOLDINGS, INC.

NON-GAAP FINANCIAL RECONCILIATION

UAL evaluates its financial performance utilizing various GAAP and non-GAAP financial measures including, net income/loss, net earnings/loss per share and CASM, among others. CASM is a common metric used in the airline industry to measure an airline's cost structure and efficiency. Pursuant to SEC Regulation G, UAL has included the following reconciliation of reported non-GAAP financial measures to comparable financial measures reported on a GAAP basis. UAL believes that excluding fuel costs from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence. UAL also believes that adjusting for special items is useful to investors because they are non-recurring items not indicative of UAL's on-going performance. UAL also believes that excluding third-party business expenses, such as maintenance, ground handling and catering services for third parties, fuel sales and non-air mileage redemptions, provides more meaningful disclosure because these expenses are not directly related UAL's core business.

Three Months Ended

Six Months Ended

(in millions)

June 30,

$

%

June 30,

$

%

2012

2011

Increase/ (Decrease)

Increase/ (Decrease)

2012

2011

Increase/ (Decrease)

Increase/ (Decrease)

Consolidated Operating Revenue

$9,939

$9,809

$130

1.3

$18,541

$18,011

$530

2.9

Less: Special revenue item (C)

-

107

(107)

NM

-

107

(107)

NM

Consolidated Operating Revenue, excluding special revenue item

$9,939

$9,702

$237

2.4

$18,541

$17,904

$637

3.6

Consolidated Operating Expenses

$9,364

$9,001

$363

4.0

$18,237

$17,169

$1,068

6.2

Less: Special charges (C)

206

146

60

NM

370

223

147

NM

Consolidated Operating Expenses, excluding special charges

9,158

8,855

303

3.4

17,867

16,946

921

5.4

Less: Third-party business expenses

60

60

-

-

125

118

7

5.9

Less: Consolidated fuel expense

3,408

3,227

181

5.6

6,637

5,899

738

12.5

Less: Profit sharing programs, including taxes

54

90

(36)

(40.0)

54

90

(36)

(40.0)

Consolidated Operating Expenses, excluding fuel, profit sharing, special charges and third-party business expenses

$5,636

$5,478

$158

2.9

$11,051

$10,839

$212

2.0

Net Income (loss)

$339

$538

$(199)

(37.0)

$(109)

$325

$(434)

NM

Less: Special items, net (C)

206

39

167

NM

368

116

252

NM

Net Earnings, excluding special items

$545

$577

$(32)

(5.5)

$259

$441

$(182)

(41.3)

Diluted earnings (loss) per share

$0.89

$1.39

$(0.50)

(36.0)

$(0.33)

$0.88

$(1.21)

NM

Add back: Special items, net

0.52

0.10

0.42

NM

1.03

0.30

0.73

NM

Diluted earnings per share, excluding special items

$1.41

$1.49

$(0.08)

(5.4)

$0.70

$1.18

$(0.48)

(40.7)

UNITED CONTINENTAL HOLDINGS, INC.

NON-GAAP FINANCIAL RECONCILIATION (Continued)

Three Months Ended

Six Months Ended

June 30,

%

June 30,

%

2012

2011

Increase/ (Decrease)

2012

2011

Increase/ (Decrease)

CASM Mainline Operations (cents)

Cost per available seat mile (CASM)

13.65

12.97

5.2

13.73

12.84

6.9

Less: Special charges (C)

0.37

0.26

NM

0.34

0.20

NM

CASM, excluding special charges

13.28

12.71

4.5

13.39

12.64

5.9

Less: Third-party business expenses

0.10

0.10

-

0.12

0.11

9.1

CASM, excluding special charges and third-party business expenses

13.18

12.61

4.5

13.27

12.53

5.9

Less: Fuel expense

4.97

4.55

9.2

4.99

4.32

15.5

CASM, excluding special charges, third-party business expenses and fuel

8.21

8.06

1.9

8.28

8.21

0.9

Less: Profit sharing per available seat mile

0.09

0.16

(43.8)

0.05

0.08

(37.5)

CASM, excluding special charges, third-party business expenses, fuel, and profit sharing

8.12

7.90

2.8

8.23

8.13

1.2

Add: Profit sharing held constant at prior year expense per available seat mile

0.16

0.16

-

0.08

0.08

-

Add: Current year fuel cost at prior year fuel price per available seat mile

4.54

-

NM

4.33

-

NM

Add: Prior year fuel cost per available seat mile

-

4.55

NM

-

4.32

NM

CASM, holding fuel and profit sharing constant and excluding special charges and third-party business expenses

12.82

12.61

1.7

12.64

12.53

0.9

CASM Consolidated Operations (cents)

Cost per available seat mile (CASM)

14.49

13.85

4.6

14.59

13.72

6.3

Less: Special charges (C)

0.32

0.23

NM

0.29

0.18

NM

CASM, excluding special charges

14.17

13.62

4.0

14.30

13.54

5.6

Less: Third-party business expenses

0.09

0.09

-

0.10

0.10

-

CASM, excluding special charges and third-party business expenses

14.08

13.53

4.1

14.20

13.44

5.7

Less: Fuel expense

5.27

4.96

6.3

5.31

4.71

12.7

CASM, excluding special charges, third-party business expenses and fuel

8.81

8.57

2.8

8.89

8.73

1.8

Less: Profit sharing per available seat mile

0.09

0.14

(35.7)

0.05

0.07

(28.6)

CASM, excluding special charges, third-party business expenses, fuel, and profit sharing

8.72

8.43

3.4

8.84

8.66

2.1

Add: Profit sharing held constant at prior year expense per available seat mile

0.14

0.14

-

0.07

0.07

-

Add: Current year fuel cost at prior year fuel price per available seat mile

4.96

-

NM

4.72

-

NM

Add: Prior year fuel cost per available seat mile

-

4.96

NM

-

4.71

NM

CASM, holding fuel and profit sharing constant and excluding special charges and third-party business expenses

13.82

13.53

2.1

13.63

13.44

1.4