UAUA Ual Corp. (MM)

United Airlines today reported its preliminary consolidated traffic results for July 2010. Total consolidated revenue passenger miles (RPMs) increased in July by 2.1% on an increase of 1.8% in available seat miles (ASMs) compared with the same period in 2009. This resulted in a reported July consolidated passenger load factor of 87.2%, an increase of 0.3 points compared to 2009.

United reported a U.S. Department of Transportation on-time arrival rate of 82.9% in July.

For July 2010, consolidated passenger revenue per available seat mile (PRASM) is estimated to have increased 22.0% to 23.0% year-over-year. Consolidated PRASM is estimated to have increased 3.9% to 4.9% for July 2010 compared to July 2008, 2.0 percentage points of which is due to fees and other ancillary revenue. A table reviewing United’s 2009 monthly PRASM performance compared to 2008 and relative to the combined Air Transport Association (ATA) carriers is included at the end of this release.

Average July 2010 mainline fuel price, including gains or losses on settled fuel hedges and excluding non-cash, mark-to-market fuel hedge gains and losses, is estimated to be $2.31 per gallon. Including non-cash, mark-to-market fuel hedge gains and losses, the estimated fuel price is $2.33 per gallon for the month.

About United

United Airlines, a wholly-owned subsidiary of UAL Corporation (Nasdaq: UAUA), operates approximately 3,400* flights a day on United and United Express to more than 230 U.S. domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C. With key global air rights in the Asia-Pacific region, Europe and Latin America, United is one of the largest international carriers based in the United States. United also is a founding member of Star Alliance, which provides connections for our customers to 1,172 destinations in 181 countries worldwide. United's 46,000 employees reside in every U.S. state and in many countries around the world. United ranked No. 1 in on-time performance for domestic scheduled flights for 2009 among America’s five largest global carriers, as measured by the Department of Transportation and published in the Air Travel Consumer Report for 2009. News releases and other information about United can be found at the company's Web site at united.com. Follow United on Twitter @UnitedAirlines, and become a fan on Facebook by visiting facebook.com/unitedairlines.

*Based on United's forward-looking flight schedule for July 2010 to June 2011.

  REVENUE PASSENGER MILES (‘000)**  

July 2010

 

July 2009

Change

North America 5,461,151 5,699,161 -4.2 %   Pacific 2,110,120 2,015,337 4.7 % Atlantic 1,950,231 1,829,100 6.6 % Latin America

308,472

271,767

13.5

%

Total International 4,368,823 4,116,204 6.1 %   Total Mainline 9,829,974 9,815,365 0.1 %   Regional Affiliates 1,559,412 1,336,551 16.7 %   Total Consolidated 11,389,386 11,151,916 2.1 %   AVAILABLE SEAT MILES (‘000)**   North America 6,151,654 6,412,168 -4.1 %   Pacific 2,428,822 2,406,580 0.9 % Atlantic 2,224,255 2,064,252 7.8 % Latin America

370,079

315,199

17.4

%

Total International 5,023,156 4,786,031 5.0 %   Total Mainline 11,174,810 11,198,199 -0.2 %   Regional Affiliates 1,888,945 1,638,755 15.3 %   Total Consolidated 13,063,755 12,836,954 1.8 %   LOAD FACTOR**   North America 88.8 % 88.9 % -0.1 pts   Pacific 86.9 % 83.7 % 3.2 pts Atlantic 87.7 % 88.6 % -0.9 pts Latin America

83.4

%

86.2

%

-2.8 pts

Total International 87.0 % 86.0 % 1.0 pts   Total Mainline 88.0 % 87.7 % 0.3 pts   Regional Affiliates 82.6 % 81.6 % 1.0 pts   Total Consolidated 87.2 % 86.9 % 0.3 pts   REVENUE PASSENGERS BOARDED (‘000)**   Mainline 5,065 5,424 -6.6 % Regional Affiliates

2,657

2,402

10.6

%

Total Consolidated

7,722

7,826

-1.3 %   CARGO TON MILES (‘000)**   Freight 141,601 116,908 21.1 % Mail

13,646

15,120

-9.7

%

Total Mainline 155,247

132,028

17.6 %

** Includes Scheduled and Charter Operations. Regional Affiliates results only reflect flights operated under capacity purchase agreements and flights operated as part of our joint venture with Aer Lingus.

  REVENUE PASSENGER MILES (‘000)**  

YTD July 2010

 

YTD July 2009

Change

North America 33,375,812 34,347,589 -2.8 %   Pacific 13,150,073 12,276,424 7.1 % Atlantic 10,625,294 10,187,863 4.3 % Latin America

1,963,260

1,902,442

3.2

%

Total International 25,738,627 24,366,729 5.6 %   Total Mainline 59,114,439 58,714,318 0.7 %   Regional Affiliates 9,400,970

7,746,586

21.4 %   Total Consolidated 68,515,409

66,460,904

3.1 %   AVAILABLE SEAT MILES (‘000)**   North America 39,311,821 41,041,222 -4.2 %   Pacific 15,616,250 16,238,768 -3.8 % Atlantic 12,994,688 12,952,209 0.3 % Latin America

2,454,684

2,518,934

-2.6

%

Total International 31,065,622 31,709,911 -2.0 %   Total Mainline 70,377,443 72,751,133 -3.3 %   Regional Affiliates 11,999,179 10,138,063 18.4 %   Total Consolidated 82,376,622 82,889,196 -0.6 %   LOAD FACTOR**   North America 84.9 % 83.7 % 1.2 pts   Pacific 84.2 % 75.6 % 8.6 pts Atlantic 81.8 % 78.7 % 3.1 pts Latin America

80.0

%

75.5

%

4.5 pts

Total International 82.9 % 76.8 % 6.1 pts   Total Mainline 84.0 % 80.7 % 3.3 pts   Regional Affiliates 78.3 % 76.4 % 1.9 pts   Total Consolidated 83.2 % 80.2 % 3.0 pts   REVENUE PASSENGERS BOARDED (‘000)**   Mainline

31,471

33,178 -5.1 % Regional Affiliates

16,393

14,380

14.0

%

Total Consolidated

47,864

47,558

0.6 %   CARGO TON MILES (‘000)**   Freight 1,019,613

735,586

38.6 % Mail

105,644

116,191

-9.1

%

Total Mainline 1,125,257

851,777

32.1 %

**Includes Scheduled and Charter Operations. Regional Affiliates results only reflect flights operated under capacity purchase agreements and flights operated as part of our joint venture with Aer Lingus.

United’s Consolidated Year-Over-Year PRASM     Higher / Lower than

Industry (ATA)

2009 vs. 2008

including fees

January 2009 -6.7% -4.0 points February 2009 -11.2% -3.4 points March 2009

-15.0%

-1.2 points

First Quarter 2009 -11.1% -2.7 points   April 2009 -14.2% -5.1 points May 2009 -17.6% -1.2 points June 2009

-19.5%

-1.2 points

Second Quarter 2009 -17.2% -2.3 points   July 2009 -14.9% -0.8 points August 2009 -15.1% -0.7 points September 2009

-14.2%

±0.6 points

Third Quarter 2009 -14.7% -0.3 points   October 2009 -11.3% -1.4 points November 2009 -4.4% -1.5 points December 2009

1.5%

±1.8 points

Fourth Quarter 2009 -5.2% -0.6 points  

GAAP To Non-GAAP Reconciliations

Pursuant to SEC Regulation G, the Company has included the following reconciliation of reported non-GAAP financial measures to comparable financial measures reported on a GAAP basis. Since the Company did not apply cash flow hedge accounting prior to April 1, 2010, the Company believes that the net fuel hedge adjustments provide management and investors with a better perspective of its performance and comparison to its peers because the adjustments reflect the economic fuel cost during the periods presented and many of our peers apply cash flow hedge accounting. The non-cash mark-to-market gain/loss adjustment includes the reversal of prior period non-cash mark-to-market gain/loss related to July hedge settlements.

 

July 2010

Mainline fuel price per gallon excluding non-cash, net mark-to-market gains and losses

$2.31

Add: Non-cash, net mark-to-market (gains) and losses per gallon

0.02

Mainline fuel price per gallon

$2.33

 

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements included in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and financial performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as “expects,” “will,” “plans,” “anticipates,” “indicates,” “believes,” “forecast,” “guidance,” “outlook” and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements which do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: our ability to comply with the terms of our amended credit facility and other financing arrangements; the costs and availability of financing; our ability to maintain adequate liquidity; our ability to execute our operational plans; our ability to control our costs, including realizing benefits from our resource optimization efforts, cost reduction initiatives and fleet replacement programs; our ability to utilize our net operating losses; our ability to attract and retain customers; demand for transportation in the markets in which we operate; an outbreak of a disease that affects travel demand or travel behavior; demand for travel and the impact the economic recession has on customer travel patterns; the increasing reliance on enhanced video-conferencing and other technology as a means of conducting virtual meetings; general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aviation fuel and energy refining capacity in relevant markets); our ability to cost-effectively hedge against increases in the price of aviation fuel; any potential realized or unrealized gains or losses related to fuel or currency hedging programs; the effects of any hostilities, act of war or terrorist attack; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; the costs and availability of aviation or other insurance; the costs associated with security measures and practices; industry consolidation; competitive pressures on pricing and on demand; capacity decisions of United and/or our competitors; U.S. or foreign governmental legislation, regulation and other actions (including open skies agreements); labor costs; our ability to maintain satisfactory labor relations and the results of the collective bargaining agreement process with our union groups; any disruptions to operations due to any potential actions by our labor groups; weather conditions; our ability to complete the planned merger with Continental Airlines, Inc.; and other risks and uncertainties set forth under the caption “Risk Factors” in Item 1A. of the 2009 Annual Report, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission (“SEC”). Consequently, forward-looking statements should not be regarded as representations or warranties by UAL Corporation or United that such matters will be realized.