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United Continental: Issue Date

The following excerpt is from the company's SEC filing.

This investor update provides guidance and certain forward-looking statements about United Continental Holdings, Inc. (the Company or UAL). The information in this investor update contains the preliminary financial and operational outlook for the Company for third quarter 2015 and forward looking statements for other periods.

Third-Quarter 2015 Outlook


3Q 2015

Consolidated Capacity Year-Over-Year Change Higher/(Lower)

Pre-Tax Margin


Consolidated PRASM (¢/ASM)

Cargo Revenue ($M)

Other Revenue ($M)

Non-Fuel Operating Expense< br>
Consolidated CASM Excluding Profit Sharing, Fuel & Third-Party Business Expense

Third-Party Business Expense

Aircraft Rent ($M)

Depreciation and Amortization ($M)

Consolidated Fuel Expense

Fuel Consumption (Million Gallons)

Fuel Price Excluding Hedges (Price/Gallon)

Operating Cash-Settled Hedge Loss (Price/Gallon)

Fuel Price Including Operating Cash-Settled Hedges (Price/Gallon)

Non-Operating Cash-Settled Hedge Loss (Price/Gallon)

Fuel Price Including All Cash-Settled Hedges (Price/Gallon)

Non-Operating Expense

Effective Income Tax Rate

Gross Capital Expenditures

Debt and Capital Lease Payments ($M)

Pension Cash Contribution ($M)

Diluted Share Count

Quarter End Liquidity ($B)

Unrestricted Cash, Cash Equivalents and Short-Term Investments ($B)

Undrawn Commitments Under Revolving Credit Facility ($B)

Excludes special charges, the nature and amount of which are not determinable at this time

Third-party business revenue associated with third-party business expense is recorded in other revenue

Fuel price including taxes and fees

This price per gallon corresponds to the fuel expense line of the income statement

This price per gallon corresponds to the impact of non-operating hedges that appear in the non-operating line of the income statement

This price per gallon corresponds to the total economic cost of the Companys fuel consumption including all cash-settled hedges but does not directly correspond to the fuel expense line of the income statement

The Company excludes the non-cash impact of fuel hedges from its non-operating expense guidance and Non-GAAP earnings

Excludes the nonrecurring release of the valuation allowance. See tax description below for details

Capital expenditures include net purchase deposits and exclude fully reimbursable capital projects and operating leases converted to capital leases

Diluted share count is approximately equal to basic share count



In the third quarter, better-than-expected completion factor resulted in consolidated capacity that was in the higher end of the Companys original guidance range provided on July 23, 2015.

Passenger Revenue

Third-quarter 2015 passenger revenue performance year-over-year was primarily impacted by a strong U.S. dollar, lower surcharges, travel reductions from energy dependent corporate customers and a softening in domestic yields.

Other revenue performed better than expected in the third quarter, largely driven by approximately $100 million from the combined impact of the amended co-branded card marketing services agreement with Chase Bank USA, N.A., the related amendments to the agreements with Visa U.S.A., Inc., JPMorgan Chase Bank, N.A. and Paymentech LLC, and updated assumptions for accounting purposes.

Non-Fuel Expense

In the third quarter, the strong U.S. dollar contributed to 1 point of unit cost benefit. The Companys third-quarter non-fuel unit cost was better than original guidance due to higher than expected consolidated capacity, timing of certain expense items and better-than-expected performance in its Project Quality efficiency program.

United expects a total third quarter hedge loss of approximately $0.25 per gallon, or approximately $250 million. This expense is included in the cash-settled hedge losses in the table above (combination of operating and non-operating) and will be included in the Companys third-quarter 2015 Non-GAAP earnings. The third quarter hedge loss that is included in fuel expense is approximately $0.15 per gallon, or approximately $150 million.

Estimates for non-operating expense include cash-settled hedge losses of approximately $0.10 per gallon, or approximately $100 million, in the third quarter of 2015.

The Company expects to reverse its tax...