UAL - Earnings call transcript Q1 2024 | United Airlines Holdings, Inc.

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Operator

Good morning, and welcome to United Airlines Holdings' Earnings Conference Call for the First Quarter 2024. My name is Krista, and I will be your conference facilitator today. [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

these do drop not you terms, agree If with simply line. off the

I ahead. over presentation call, Director turn host Investor now of go today's Managing Kristina to Please Relations. for Edwards, will your the

Kristina Munoz

Good is and welcome Krista. website ir.united.com. available XXXX on First to our issued everyone, Yesterday, Call. our Conference we morning, earnings you, United's Quarter Thank Earnings release, which at

which release yesterday's and may the remarks the this or during expectations call statements, financial events and made contain conference beliefs forward-looking Information represent future current company's in concerning performance.

forward-looking currently Holdings from Form of and filed factors. XX-Q more and A actual company. All Airlines to current based with are could thorough a description to XX-K and the results statements refer upon release, our available to cause earnings reports factors United of information United other expectations. the by materially these for SEC differ Airlines Please number our

will financial press release. to be and our the in Unless refer otherwise reconciliations discussing related Please a noted, metrics non-GAAP on call. our we definitions this basis on

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

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

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

Scott Kirby

today. call for Kristina, Thanks, everyone, and welcome, the

order. always is first about is we I pillar our at core caring, everything do want our the the success. coreX. and at in at earnings United, the dive we issue United start to performance, a that Safety And Before by efficient. our to fundamental dependable Safe, Safety airlines of of safety. make QX talking comes that into

our FAA to operations elements recently compliance. all began to ensure evaluating safety read, doing of we can several we're drive you've the As

as embracing culture standards are to We our welcome and review the opportunity FAA's take to we this higher an an level. even engagement, safety

review, have have a and reporting processes protocols. backed safety United, we As here including strong culture. confidence strong I that, systems, training, up at undergo of safety culture And track and of we success this our a by our and record that's foundation the first,

Second, that confident through we'll opportunities review, airline the I'm make even safer. to uncover our FAA

the have customers the the we best the United, make we're professionals embracing and committed best At airline airline world world, in to to better of even for in this opportunity our employees. team and

our QX to continues improvement path. would Notably, have earnings. been it's quarter. quarter. in hadn't the first first Now airline plan X to we meaningful been for grounded, strong a our Next year-over-year profitable clear on and a put We if the Boeing the And a United the MAX margin bright quarter, saw delivered we

been able customer. industry delivery we've ways Next United faced driving costs plan see momentum warriors road to to and to resilience offset up all aircraft positive we demonstrate find from delays further significant temporarily continued this demand, year higher the are in conditions challenging most and delays. segments Our On to across as These to customers but domestic most of we premium customer those price-sensitive the headwinds. continued global bookings

our the it clear strategy $X I'm continue United to Next with the choose Brett. to for I'll support in to and demand and EPS United of fly. and that, operational confidence Our Thank the proud $XX. In top-tier full of you XXXX year United that cost conclusion, management hand product delivering over you work the for for us financial the airline results. all do makes And to team that customers

Brett Hart

their hard X quarter to fleet. and for morning. good our destinations and the as of our Boeing navigated their through we I'd well to work limited Thank got recovered grounding with MAX Scott, this you, We like customers employees the thank disruption.

review as processes our very are opportunity will safety. procedures. taken reviews further As Scott being begun and the Together we we mentioned, with seriously, have an our to and These an see of FAA, strengthen commitment in-depth this to

this with through work we As will the safety certifications FAA, certain delayed. review be

of a As we result delivery expect delayed. to this, in the for a of be number small aircraft quarter second scheduled

confident be to on this minimal to have and impact successfully employees a able look better plans. process, that expect airline our am for review resulting this will capacity to XXXX customers, an our We shareholders. even I back we in

a front, with tentative employee reached existing their to the On X-year agreement contract. a for we extension the IBT

We expect few days. ratified their the by to next hear if in membership it is

a in our history look excluding second the had on-time top-tier our In quarter, service We delivered our quarter in first we customers. best performance Taking operation. for at years. the departure our first pandemic

seventh the resulted a This second row. the being and month on-time industry in departures in for in

on-time in history. our hard the all having best We since operation performance a any widebody testament our great while seat quarter our company's accomplished first is work highest team. pandemic. this for Additionally, had of factor This of the the the to

to have addition performance, customer strong operational that we also Scores. In make driven up to Net our continue Promoter enhancements

signature connectivity. our and larger continuing every in Bluetooth with feature include bins, to mainline Some entertainment that overhead of retrofit interiors existing inflight back seat these fleet

MileagePlus for NPS and to share aircraft to TSA narrow-body were friends customers and pull our North that interior biometrics enable the launch ID and to Touchless allowing on-time LAX, which fleet we U.S. uses year. also Signature have track pooling, points through to pass We without interiors faster TSA miles on of America and end ID. higher the to fleet, Precheck X TSA We've in the rest XX% the compared of the at out having customers were partnered families. with O’Hare and the to line with their their to use of are airline by offer the Signature first

air Scores Andrew combined on and Promoter turn Net over focus and continues our momentum the it for talk by differentiate operational revenue strong about of XXXX. to creating reliable now I with enhancing rest experience to will to results customer These safety the environment. improved a the encouraging operation Running United.

Andrew Nocella

and Brett. the in Brett into will in profit as quarter. revenue be strong Without clearly performance had QX. Thanks, operational And top results. produced we and MAX X, mentioned, Scott a United's the financial ground have tier also would we the

did back XXXX, have great QX in and we Looking at year, particularly a QX.

expectations. financially. challenged QX decreases in Post-pandemic financial due targets. corporate been always long-term Improve we're QX relative QX did very meet financial relative However, United's in achieve focused United's worsened margin in not is our to our QX to has seasonality XXXX and absolute on of performance quarter business. our most something

X%, Vegas results. XX Las changes For off-peak results. and our took the Margins domestic margins by the again, days lessons and few improved by flights commercial AM our first well with in on off-peak, encouraging driven improved financial early changes. quarter from changes XXXX results strong points capacity QX year-over-year capacity XX of our with Florida above by of with plan A refined increased capacity on system included XX% XXXX, average. points and we financial late increased and carefully industry PM United

believe year-over-year. QX, more QX producing we making to offered times schedule we deploy meet capacity lower results departure better was upcoming up United utilization reliability. United, profitable utilization in our and for and a show also But the years first more profitable our XXXX passengers our attractive challenges. set with and We on new to agility about arrival enhanced adjusting sacrificed in of changes narrow-body these that quarters In we exchange, in to point X how for our plan

our demand having in gauged PRASM on we strong airline. global the did up year-over-year year-over-year to United gains Domestic on increased up first X.X%, which with largest was and overall X.X% America. United's expect gauge the international was capacity increase be since to the in performance Turning results expectations Domestic also industry-leading aircraft quarter. X.X% network increased lead Revenue RASM were consolidated historically. revenue than flying our industry domestic revenue has in more while from help even PRASM X%. TRASM down PRASM was been of RASM X.X%. starved well and United's lower offset domestic Latin XXXX U.S. above X.X%

that RASM performance airlines that created versus of and equally, QX decline we're the United. RASM, the showed the other at X.X% domestic in revenue see term. Cargo hopeful industry ASMs this our year-over-year marginal all growth capacity last near results considering in is think yet year-over-year, again I is not decreased we'll

a engaged XX%. ever discounting of than corporate MileagePlus premier up nice close-in QX guidelines. than United. will cards. XX% for travel the faster and traffic travel had using rebound for business more year-over-year. our co-brand is quarter and managed non-managed by airline with travel new pricing another an members credit revenue flying one strong Yields are flyer strength The refined like due of frequent was Managed up development to stronger in United's be

XX.X%. down in was most felt PRASM American the Weakness markets America South part America. Latin versus for near was Latin

We pleased where growth down and Pacific with capacity are was up XX.X%. capacity across our PRASM was XX%

saw this London line on adjustments United's material strong number make We Atlantic performance XX% do where a capacity in QX plan PRASM to to X% small capacity. rebound up. routes underperforming we a revenues up year. However, of were Polaris XX% later with was for less up

a premium network while customer and our strength we weakness reducing where the across choices as travelers. positive impact for noticeable business saw and build having share increased friction to offset by capacity. We leisure Germany in Africa on we Europe efforts Southern results and our is to United's brand product gain

experience, frequent MileagePlus increase the in app For and Club business facilities elimination share. resulted our has travel United of improving change road the entire or functionality to warrior or customers, improvements United steady fees, to in their manage flyer

for the premium XXXX passenger about a premium mix less has our understate how for and feel cannot the points X.X QX QX increased believe has the run. on of diversified versus improved matched points products game well our made choices. in we long XXXX. changer focus fees, Premium cyclical importance focus this which and We X with change of versus revenue seat is people elimination consumer United's United. demand However, revenues

XX% In premium XX% other revenue streams more that lead revenues words, estimate United's and were we're capacity, Premium seeing near-term up the on acceleration. we industry. year-over-year

QX While focus important were we trends Basic year-over-year. attracting growing Economy customers revenues, in all a in also geography. tool our critical and up is Basic to sales competitive rollout Economy on XX% premium our largest is our believe types core of of

changed narrow-body premium with our Basic airline. fees clearly other Larger gauge United's competitive any jets U.S. versus than the increasing stance are has also faster more ULCCs.

well, our which absorbing increase are growth RASM relative others. easily gauge measured in We can this be domestic to continued

for our further expanded gauge to MAX growth and between and X AXXX continue XXXX We fleet. XXXX plan with

goal growth segmenting demand. cost increasing create and premium streams are of innovations gauge with Other choice further product United's revenue also planned the expanding customers, for will convergence.

seat premium that and that can of importantly, gauge monetize. they range choices growth consumers More proven provides we a wide we have want

QX, result expect Atlantic domestic tempered by continue where the to RASM a results strong positive year-over-year. we negative For see and demand we with Pacific

materially expect Latin in also PRASM America will have a negative the result quarter. We year-over-year

think we can XXXX, think of setup, we we domestic capacity second continue RASM industry particularly the for about average. we As macro the above do where half like growth

are discuss that, the I wanted in in our non-coastal on and to turn core on results call mainline done well new our RJ team the updated We jets and Mike building to with plan. over hubs to congratulate United focused With with connectivity enhanced entire Mike? a XXXX financial job and both fleet capabilities.

Michael Leskinen

the year. and the as thank the season. quarter, of we a the fleet Boeing of over tremendous Thanks, the for first $XXX team effort $XX the to Andrew, million break you the grounding X MAX we million, peak quarter United produced first a spring last improvement loss pretax travel In enter of work through and

was per of management. and than $X.XX expense share both results ahead strong driven disciplined better expectations, our loss consensus Our revenue of well and by guidance,

more and MAX fleet had quarter. million our of it, have would without by grounding impacted The we the negatively X a earnings profitable Boeing $XXX than

proof cash in These also is We United working. quarter, results is what another and levels. that debt billion to free are generated provide weakest to our net $X.X is plan seasonally they EBITDAR our Next and back point flow pre-pandemic in our strong X.Xx adjusted of

I'd the address we to delivery Airbus, to outlook, Boeing with skyline. the like changes turn made and to I optimize Before the

aircraft wave expect we In Boeing's take that of had an repeated both have. now delivery deliveries impractical United of This wide-body start to address year-end deliveries contractual at we narrow-body bow delays X narrow-body the the to had and XXX to aircraft delivery to of aircraft aircraft. XX XXXX, and planning XXX year. our of Boeing for created at aircraft were compares and we the

$X to expenditures total fleet down these full we billion the $X.X to expect year. from Due billion capital at the changes, be year of now approximately XXXX start

through allows to changes made goals This also spend. deliveries plan deliveries of We've annual to our long-term through We've and fleet CapEx pace also fleet the while XX on of XXXX XXXX MAX out modified Xs. our portion our us near-term a smoothing execute level our into plan XXXX. for scheduled out MAX converted

of signed XXXX. letters Airbus AXXXneos with scheduled in we have XXXX to intent for XX Additionally, lease CFM delivery and engines new

in aircraft of billion total been adjusted With approximately schedule X-year during average provides wave this the in XXX building. through delivery expenditures delivery range $X steady these had our of of to $X This XXXX changes, to each that These now bring delays taking aircraft year capital delivery billion we anticipate the years. fleet XXXX growth and addresses bow on period. renewal, changes those each narrow-body

cash managing with free cash positive next top X growth our flow the plan years. we flow free over rebalanced Balancing growing Next the remain are skyline, positive the targeting business And towards priorities. and United and

provide we target updated we earnings, cash margins on path an this and stronger year, are will free later While conversion. earnings to better long-term confident are materially a we higher

quarter X.X% Now costs capacity costs. expected turning to year-over-year were growth. and trended X.X% on up during as the Unit

and reoptimize As deliveries. expenses the aircraft by was the grounding with created our uncertainty our challenging I delays mentioned, to to MAX it continued

XXXX. consistent While all that year, our beginning delivery CASM-ex at of capacity continue to it's costs reduction the important are pressure understand with temporarily to our in will delays the underlying our the from continued of for forecast

And airline. fallen than have more plan As our a short we expectations. business larger we built a XX aircraft deliveries enter of for the year,

pressure. expenses We incur continue fewer flying of hired CASM-ex the capacity is most despite it and we for driving almost as to point that ASMs a of

costs diligently possible, to helped these much and are as offset higher as it. has We of working some completion our reduce factor

to year-over-year be we CASM-ex quarter. versus on the a basis the For second expect quarter, first similar

costs $X.XX per share to our current for expectation and between expect we outlook revenue and our Given be fuel, for $X.XX. quarter earnings second and

great momentum. have We

Our plan has United future for and industry never is and working our the Next brighter. United looked

top has position. industry, competitive of in opportunities near stronger network are significant gauge the us. unique and and in never margins of already still been front Our the a have we and United

are developed are compelling have wide result, We wide variety a a choosing United. of that a of they fly to as And increasingly products customers. variety to

on deliver With $XX Kristina track about per $X to and believe our the share future it earnings excited we're I remain firmly to pass start over year. I'll to Q&A. to that, in this

Kristina Munoz

Mike. Thanks,

the We will now [Operator take community. questions from analyst Instructions]

Operator

of [Operator from Instructions] America. Your first question comes from Didora the Andrew line Bank of

Andrew Didora

fit capital? about flow implies for with you here. that Mike stone I yet the not are in over certainly much set guess is new forward? a there that years. forecast, the lot guess, consistent moving generation first next more thinking or you cash few are It How maybe Scott. deploying Where free do CapEx that best going are your given parts of sure one see I for I'm

Michael Leskinen

from currently you. back said -- take remarks, of is levels. range prepared X.Xx X.Xx, puts as our in is my in net net hear to which I I'll leverage Andrew, leverage the nice us Andrew our that question. pre-pandemic

In X.Xx. we fact, XXXX, at at forward, expect In XXXX, to we at see we're path Xx in look as continued I the deleveraging. were

have -- also some outstanding. high coupon also have We still debt we

XX%. That $X.X billion over is yielding still piece MileagePlus debt, of becomes July. prepayable debt A in our

other with we'll going a my near-term way of to tuned. amount stay -- free time. have you're to at be take and After will But uses metrics, of have our revisit that to investment-grade So that the tremendous cash of priority care debt. credit going to that, is flexibility, to on that we're

Andrew Didora

Great.

question Andrew. for a Just in follow-up

driving I that, there? the Heathrow Should what's have strong read get cited prepared you your the do remarks. other trans-Atlantic, and big you know corporate sense trans-Atlantic on corporate a into XQ was Just a have in you would for that on that outperformance call-outs results in just the any driver we the or commentary of to

Andrew Nocella

As the strong strength board, domestically I to some [indiscernible] clear. be globe. around just corporate We across said, was mean, the saw not and I

top booking So X this our see. corporate saw, history, to also We year really our days it's is think, which of strong. XX I great in

the board, think are up I numbers services, this every tech the really strongest but just in So the industries -- professional was about every across industrials, sector and year.

said it for And where just really reflects my corporate QX. for is us. future our good I earlier corporate And And strength I outlook gaining think as on in for going. is the that is script, that's fact QX important to really QX very

Operator

Your comes the Jefferies. next question of Sheila from from line Kahyaoglu

Sheila Kahyaoglu

of so Great peers corporate, you restoration, to the that X% job. Mid-Con your reported attribute up strong Great the premium of wanted PRASM QX I would either Curious basic. year-over-year that or double one in performance in ask how to domestic that was quarter. share far. gains across have

upon a touched You've little that bit.

about maybe here as well, follow-up unit are a how But revenues then capacity? that as thinking you with domestic industry sustaining

Scott Kirby

been essentially to it it to strategy bigger tell more but was it hasn't think, said we've But United to to the least Thanks, Sheila. approach saying, over you worked. turn and I'm and the I'd question. I to for that Andrew take by And a industry the resonated. we've years, we has answer, developing, going trying picture, going tactical last at then I'm start the that more thought strategic several start everything and Next behind how the

So try today. I'm going approach to a different

based on for now essentially moat never our before. the industry having is be by happened to a is moat, have least of structurally business is have around what the has moat has at way, United But is a and we in one describing. customers. happening, proposition existed that other better The what really have changed couple there's I'm that a that airlines And -- a clear, what and

better and fly program network, loyalty have we better choose a have have product, what makes they we a it unique. a us and better We to

makes products, service. can have we airlines great of great piece that, unique of Other have we couple a is a what have airlines

have hundreds a Australia, more. the exciting And people program. a to network. get to We in go you Town, to in be and Zealand, program, we global Paris Americas, destinations part can and Cape ability a want We It's aspirational X to Singapore, to the to New also loyalty the hard of X destinations replicate. have great [indiscernible] causes

whom past, you're there it really it's in the trumps what and customers large X sticky moat of competitor. call that significant domestic they in fees, change One, doing -- travelers, fees, breached right. had ways. we we road would that small when And choose segment particularly for it you change had everything else, large are a business large that was But And I X doing didn't warriors. competitor well ways and when a are

And Even though the may even because out than I that advantages all we're of appreciated. of turns appears fees existed, public win. change to now trumpet. advantages It have winning the be segment our traveling our natural them larger

that closed So we've off breach.

The that customers had a customers. second want to product us time create took And we those repair price-sensitive to that a that for breach disaggregated to that, address who was and price. for

great make have had two competitive make things is is and it great we X we've leads had secondly, that to to described, to we and that great create done. real sell importantly, in and about. a permanent. a That a we we are in huge to what have those order service, is basic product, to of a which we I changes. part there's network, structural Next able have had things. which that be loyalty we that product But and maybe higher where was those to done moat and up gauge. United those One, more numbers profitably also seal program to seats We economy structural, global to The but had that have now And meaningful do. great breach. But And

because a longer it airlines margin going your on point this normal. Andrew? going is been To happened. structural of has to a We're forward theoretical. airlines was has about going or be that in the the for? this go highest couple There's is is the is case temporary now. this This category. no This new That change, to

Andrew Nocella

it's Well, that. hard follow to

the that to very not aircraft On high into bring the utilization, one the QX, weaker. we would at the tactics, went trying a maximize which would is quarter seasonally I up across to particularly trying in be, I'm maximize in profitability. effective. level went they're network it incredibly we all proud works We because made for the team I I think our And changes really the think of and

Operator

Cunningham question from Your comes Melius next from the of Conor Research. line

Conor Cunningham

just advantage bit there Las in market. talked to more have shoulder going of comment little elaborate is you -- more back that about dealing on number you that a maybe the advantage go can any Vegas, of of issues you take just general? with other the you You domestic as that taking you are the Or a peak Can that? some Just some the opportunities and a of that into kind is other learnings U.S. carriers you of on comment season? of little bit the it Florida of in

Andrew Nocella

Next vision all lot see to said, Scott we as that is did think, we distribute in with did United and great type definitely our things advantage the sunshine of the But take and Florida Caribbean, the continue so, quarters. QX, control And within control. to in opportunity to here ability I markets success. goes the airline a were to like Well, of continue our to across more

Las we there in as well category deployed our that that In Vegas, effective. capacity put incredibly was

It's not time we to a is we opportunity utilization, QX. offering And by the The we to periods unproductive I this sure in were that reschedule capacity. knew make max to not think other worked and off-peak airline effectively. very that thing took

our was just exactly to it levels. working hubs. of core to all before will XXXX, across XXXX all front. look how I Below the on or connectivity still It's have go that we this as or connectivity desired better the you We ways intended It think, above our that's building reaches, at be do.

up continue growth offered And by to bullish on competitors. so our pretty outpace our domestic ability RASM to we're

Conor Cunningham

And competitors, sticks and that's fact I of that relative Delta sticking actually some the and Delta this And at with your -- -- point, pretty get distanced because a about -- on but on to opportunity out premium. you when maybe bit yourself have you little uniquely a Maybe obvious could that I I just have what's just think bigger meaningfully. you I think. was your elaborate more I think just pretty that from more performance United a specifically. it,

lot You about but lot to that do talk a fleet of delivery. a upgauging, has with

close continue from how So I'm understand just to peers separate or the trying to you the gap kind on this of yourself, say, I should year.

Andrew Nocella

It's a great question.

continue the a And you're Next with absolutely strategy. We take we'll premium delivery correct. come seat that more The drive United to of aircraft options. lot

Our I time. in is, a this revenue, points change significant very in mix period terms of is of up a X.X very which premium short year-over-year think, year

to to to also push that basic are we going push to we're continue continue economy. but And going

pretty briefly our So our none. diversified our the streams. It's for the efficient the and of come. up, kind revenue to and accretive. think, Atlantic in more basic premium a global to the second across #X up. And is been, bit And quite we're while the And network, mix we've recipe of economy made changes of And that exactly the just looking it's is there's on that's and actually I Pacific. #X have productive across

to to gap. to continue we the answers very that there's strategy it, exactly revenue incredibly and outlook, push room we're question, know don't going close I but I premium bright. effectively if is The more So your is and think, think that working

Operator

of the from question Baker JPMorgan. comes Your Jamie line from next

Jamie Baker

First for one, probably Andrew.

following of for we The evolution as topic been Polaris social at chronicled point. the upfront. this in seen an admit, economy change And forward by in But media. So potentially unbundling well cabin. champagne I've haven't this on is intrigued seriousness, analyst, much all the press I'm notion I'll

pays as that and that passenger something thinking I waste a time? this my be the passenger of last least, the the about? same an it has books it books The the the to but Is economy. even early most, used is be Or way should pays experience

Andrew Nocella

time, you But... how your Jamie. use won't I dictate

Scott Kirby

I would TikTok. say delete

Jamie Baker

wasn't Well, that the point.

Andrew Nocella

products, opportunity and our don't What to that further we on today. believe is And ways is and our today, you, we revenue not there's innovate say segment to and premium I the And choice to tell more to would going monetize diversify products obviously, aircraft people that behalf, more premium continue in on continue there work that but how can future. and I'm on streams to to of announce have provide the I have it board you choice many incremental those we teams them. more that believe for further

a to make we So headline working many U.S. from not I of people competitors hint the lot United sure differentiate globe. at think was more our a come to competitors, and but can of hard that that ourselves just only our around

Jamie Baker

model were to wasn't very initially domestically. on The take being Okay. helpful. time. when then And aircraft whoever and Next wants discount this, That's second, impaired plan, but you introduced United and delivered growth its

for was us how ramp share easy your would over map capacity pretty it time. to out So

changed everything since then. relative Obviously, on basis has is industry. a My to the U.S. question

position market few a does you but fleet might the have OA me the quite constraints new somewhat the plan there. these of relative capacity, considering It like seems ahead plan share, are on United plan. Next on So on track your assumptions to with actually that be I there to keep make

Andrew Nocella

There's pieces. the specifically a not going lot answer to I'm of moving question.

competitors, our improving improving share next and TBD This months Our on we're our what than single less than every X it's capacity obviously to are think going our the we're domestically, our hubs across competitors year, I X growing do. is quicker of share. market

on Mid-Continent we've a to continue as But dividends up levels right, and talked but is connectivity big our paying times, hubs And will back generated we've and on from delivering so. plan the think we're do being hubs about we coastal are critical it left that. a that's Next the created focused United second getting to and just core all value the and and big, our focus their million

What exactly our know. competitors just don't do, I

for Michael in will we've of all We insurance to from hopefully, But schemes the as struggles plans delivery Airbus. about, Boeing the built talked face and on continue that. appropriate

So you better say on... can

Jamie Baker

behind to say, haven't industry? the relative on to fallen suffice basis a But you

Andrew Nocella

It you're depends measuring. on what

in measuring our you're not. share hubs, If absolutely market

Michael Leskinen

you But to what in encourage Jamie, I'd United. here we're our focused that's on relative and profitability, measure profitability certainly

Operator

from of Ravi comes Shanker the Stanley. question next Your line from Morgan

Ravi Shanker

So TikTok, insightful. your is usually very speaking of commentary Scott, industry

lack the be headline your this that love Is out as to What's industry it the I'd the going the So the thing? as hangover a going incidents how to kerfuffle? new it's is current to thing? may safe thoughts assure labor on of social a view pandemic it is there Is aircraft its flying just industry it is kind that risk of, on Is your thing? be? media customers from

Scott Kirby

far, of the incidents #X reasons competitors. way of We #X events places safety, forms of learn compete. This aviation is not at And where by all the and better is to other share from because other. each that one And priority that of it than orders each the the with other. happen. of is of magnitude travel. We travel, it share and all but United, safest the the data is actually we safety one one I the is priority U.S. we at don't reasons also just Well, know is our the

so strong. us And what makes that's

of high-profile reporting even foundation, that the United to ways step great Of is It's industry. high our were systems, take training, at to that United, is opportunity already an it's true of a is what happened our and make foundation. find leading in very there And cluster our already for standard proud to safety of -- think have it they higher. of that take and back I a note and us have it But several unrelated, what in events was and our we a process while and a we're culture. also

other those better That's while are customers, there do out just but that. a done, employees do, running that embracing why great certainly an United, side. embracing truly at to already We our Not the do of more already our going as time, lot industry. as We an our all and an the come be even do the whole shareholders. will high we've we're things opportunity. for for United, and confident this for standards we'll on even a can take we at There I'm that and that things are the same on to can level, for higher but to airline this opportunity we

Ravi Shanker

of you maybe bit roll what might follow-up, may be And benefits your at And are very idea. Very implications some of as interesting of a time? this the you United Can kind Kind cost thereof? do that just to the out? customers some that helpful. little a what you launched and or the miles a think be pooling as revenue of unpack is what

Andrew Nocella

doing to useful trying of for always of chance can we're the trying [indiscernible] allows the Well, better a there And make And a members so that more MileagePlus pooling that number wherever our they're are enjoy to trip miles go. couldn't they that. members benefits. Sure. them to or get alone option

seeing we how a program. I at look forward think think it at minimal I unique to goes. the the of -- largest definitely comes United, it cost value to it and enhances It's but airlines, no the among pretty

your family members So we pull can to you do. what and urge see you

Operator

next Your from the of Duane from ISI. comes Evercore Pfennigwerth line question

Duane Pfennigwerth

have guess, we plan in a appreciate we year are how have of enter And think the Just path to way time hit did in are XXX pickup target? and the same a realistic XXXX that with this What XXXX the available your or dependencies more to on that the in beyond? mind? I so CapEx, placeholder point what a a longer-term at on than based facts odds to a about but deliveries the you required you the do certainly

Michael Leskinen

the Thanks, our generating over free I question. the United, at to shareholders. important and appreciate I question And to the reiterating we is understand here how long term off cash to by us kick want Duane. do

of something acknowledgment We and is gave OEM some uncertainty we that that production for you delivery range CapEx a billion balancing. are gave $X billion. $X you the an it's a around range rates. because So schedules to We there's

this We also are managing maximize business profitability. to

environment time, at no manage in a a happen years, the in X way make years. we'll so And well X that the mistake, macroeconomic in deliveries can lot our captures as

'XX be to XXX continue able rates make That's going macro in economy, also production to 'XX think to Are rates. -- a XXX uncertainty they the production really for line. can increase for increase I critical As about and can stable rates. Boeing

what are So we'll to our closely. watch that we giving that clear want expectation. be I is

increase expectation rate build that hopes. as Our risk a the rates Boeing builds production is and some to at there's risk upside hedge in that in don't There CapEx -- some -- downside so result.

I think to wanted we're billion all going $X we to that $X that with of you to be why managing billion and today. range, share that's

Duane Pfennigwerth

U.S. asked where then or point time. your if to say I'm U.S. this as inbound a a you to pick think on maybe today? does quick a maybe way Andrew. it, in Are it's And And I've that of inflections? you any Appreciate sale? different stand of little starting one international But just up seeing back sorry sale, those geographies, before, waste of of Mike. point ex that of for or And terms are ex about any entities detail,

Andrew Nocella

yes, are Germany look Europe, and The core progress. is we to and one trails. place say, we I would the still seeing most that's

move will So less progress globe to seeing drive think across on U.S. network. bit we're to the little really hopefully, the I being and the rebalancing global dependent But that consumer a continue on forward. whole

Operator

Your of Savi line next Syth James. the comes Raymond from question from

Savanthi Syth

the the thought look growth kind the appreciate, what's wondering just year, guess, mentioned kind just of get X that replacement? into on the per years, domestic versus was X over level to of can asked you assuming of taking kind I realities, macro narrow-body on aircraft account delivered. but growth the XXX Mike, another as I right aircraft you way, of mix I you And what's of next

Michael Leskinen

from the aircraft And have when would we the in to fleet 'XX, older XXXX, and The at economy ability existing continue we delays our our given aircraft, they're to would Boeing end year. that going longer. again, of fly Investor until checks. macro And Savi. expect life wait some of heavy and the I dependent Airbus, to growth great to a you're 'XX rate Day for question, our in fly later have XXX for It's

those strong maintenance. we But early an very early some fuel are less and always have an in aircraft its and not the late efficient to optionality. aircraft, of aircraft retire of heavy it's If some decision life yields those that is when economic retire to are

expect of event. absent should macro until of a flexibility as macro we assets have a that is think in us event end event, I there our you So sweat of to But the if life.

Savanthi Syth

Got the XQ as what the level, it. And about of step just headwinds the that cost kind just are the maybe to I a from I'm your the a now a color. first little But on -- year I you unit wondering second might kind high earlier to able cost or you that you think given levels capacity get follow-up, year-over-year made of into comment Mike, just bit of down appreciate the know step the fixed you you time, up? address half. from half? have more more are curious, the But is moderating as in

Michael Leskinen

a to would I when think and costs It's costs. labor labor lap of Savi. some say great those you question, and need about we annualize

impact calendar than two, around would of that be we #X factor less Number you year. flying the quarter-to-quarter. CASM-ex for model So put this the your XX differences aircraft into planned should

quarter, about think continuing but weigh and begin back half the those expect the to QX should to in those some to should costs linger costs down. those particularly into and moderate, fourth get costs as you of You us QX, we

in will by improving offset some parts driving those we've to of efficiency great I'll taken are offset volume since we will go we an for away use factors the also for efficiencies rates there in as our cost that opportunities operation supply CFO those our seat. started parts. tech talk Number I've over opportunity up, the partially. to tech with about move significant the don't us drive But and as pay initiatives longer-term we're completion in Again, the ops to running we one, ops, overnight. this optimizing chain we And costs see purchased

we're there. a So undergoing initiative significant

more like But go Think efficiencies cost in category. United 'XX. would rate that going this I to Again, going like that's going help a evaluation. is in organization I time, opportunities, highlight initiative undergoing make sure XXXX. I and the efficiencies. is more pricing the industry. of vendors drive fullness run be 'XX that and about I'll opportunities that got to through have put significant we've throughout this our the million-plus within think airline. measured then finally, We're bottoms-up you'll talk $XXX when in best to significant different technology And unique see in procurement we waves, full We're the from also to through

don't of cloud moving computing cost lot save the highlight is the to shut into a mainframe until That's But of something the you I'll you cloud. that our that the one down. mainframe moving

XX%, we've XX% with cloud, So have still moved but XX% mainframe the to of many to cases, that the that maintain XX%, systems XX% or we on mainframe.

Day. give We'll lot at more answer taste. fulsome little a there's So our Investor a upcoming

Operator

next Wolfe from Research. Group Your of from line Scott question comes the

Scott Group

the thinking So a it thought RASM, assume easier? be RASM that half accelerate and any back half about? was back in there bit. puts Is fair comps year? other Maybe CASM sort takes of get see on just similar on back a to we helpful color Is half little to the of

Andrew Nocella

domestically, better fact QX is that [indiscernible] in really probably rough a in at and better at. level, QX, as in QX what but on we high I say I based the Just set estimate up particularly gets would our is look think

think I a So that nice is trajectory.

of middle Asia expect improvements. region, we some that last Second, up, we so that in to fully as now make capacity, we going improve the to we to year that's so late added show Pacific adjustments we line as a capacity also to expect unproductive amount capacity considerable and it's spooled capacity lap

first been next capacity for half always of difficult has follows particularly through year. QX of year. Latin that America, the this And the picture

all you different. very think, know, half the looks, As I second

going our on optimistic sharpened purpose. in We still And year results. Europe, And that poor paused so quarter pencil. very a in really the this part growth is to I'm most for we've think although turn is Latin QX, I the QX

we And how particularly capacity deploy going optimistic look Europe based fine. to is I'm that on

negative region. exact the how globe So I'm not think and look numbers, about giving that's but by what's and see you trajectory across positive the happening I or

Scott Group

Scott, your we maybe, love And and of I'd could $X your that on that Mike, Scott, billion Or get your alternatively, on go something months as is on more X start to control says, does billion appreciate billion wake Okay. again, and even delivering again? this sort a planes maybe free well in Boeing your CapEx. Like -- in to comments maybe And up flow. there that then, lot come thoughts down $X discussion mind, $X your to more? $X in cash perspective could hey, if I that can up all maybe billion

Scott Kirby

Yes.

billion described, that then XXXX XX XX is got have kind $X of in with think has in them more of ever as They to in I Mike a pretty anyone got delivered $X billion supply a XX pushed you to bow got that we've challenges, of than think a I in the wave, airplanes and supposed ordered history none and XXXX. yet you the have when And be done. combine XXXX you pushed good airlines to And it chain as lot is probably number. XXXX. are another delivered and of so

capacity you're run That about -- pilots and decisions. that thinking to those also things center, for are because us. on -- hard constantly out training wasn't plan, hard XX-month really like upgrading It things changing like the effectively just may planning

per the So we approximately which one XXX year. was out the level at do to capacity. of The we've attempted things deliveries, aircraft done

And less at be will the in least a deviation than past. a variance, -- standard so been have we'll less the it's a lot lot lot

there's worth. kind flight of lot know because drives complexities is at we're I out, we'll forward. I up just XX-XX take things number so center, that a take but think the not other not of just in Boeing, it little split it drives it Airbus, also don't It's up, a well, taking more to planning training diversity going

hedge that schedule. bigger I other forward think know -- and to our going will I little we hedge now the a -- build going build a into thing do we're that is into

think XX% to cost we extra is a nearly of That to going few if time and as schedule. if XX some everything we're into will year, spares it this like doesn't only put take XXX much by around little on couple airplanes. a on And plan, but number months. a then we'll we're the And cost for or have bit, going as overstaffing airplanes lower

will And more give CapEx, so a certainty running for better efficiently. just it on give I not operational will it lot more certainty us think and us everything

Operator

the from of from comes question Cowen. TD Helane next line Becker Your

Helane Becker

I have So questions. X

to think, network you about and have service to have. question. product talked I your your don't partners, just talked think Andrew, you quality and alliance and somebody's when of about loyalty the that the commitment and that so things you the same But of about they in any answer the on some you of your the

do flying So customers standard place go because want about this is that how have to Patrick, you board not for question as your distress to don't a you think to they on aspirational non-stop when going about alliances the that everybody you're forward, your same they think down. and customers they connect setting let or that getting some maybe you're so you

Andrew Nocella

not the I'll I'm agree premise your off start with with question. I Okay. sure of that.

they've name but been I through few. look, partners the I they're which think gone think number has to of rough behind has Zealand and strikes about Lufthansa standards higher think New think that of highest the that our ANA Lufthansa, when Air I team also core at And a a recently, standards, I the customers, think have on now.

consistent. is we difficult and customer each service so make And different service I'd with of and of customer business. and cultures, of and have are from around commitment joint airlines, And I to to different more quarter. level the problems, seamless more about said, we being That we through we we of our how countries approaching ways different and talk work our ventures sit the and all say, and think these their without table. commitment in actually we're each lawyers like to be to proud pretty

of And quite differences are their unique airlines some really frankly, reflect we each important. of They and identity. to those are think these that

how that trying similar -- we alignment detail I in. forward, first have customer to plug we across single a also So think of on and But being every said, product we alliances. we're do don't not build going we harmonize and

best around in have we I hubs to We one network have partners alliance with that network, is we're competitors. reasons more leading which the this globe, of relative primary global profitable the the and the think best the our

Helane Becker

the how months That's for follow-up that like more domestic, how starting for you Are we think than breakdown? the Maybe, next Mike, the Okay. should percentage, as guidance have in quarter, second about about then the the in earnings skew about think And leisure, think Or helpful. you past? we my question, should corporate very international. we just international X to corporate,

Michael Leskinen

domestic I an were where than say And less really despite would being of that peers. -- of we an above, our the been We've area leisure incredible than of historically less job. just that exposure some an we strong. had done has all

to sales continuing relative that's in And our from clearly Now a back. business come demand perspective. wind is

strong, think call, I of we've the the results current the it's very future So at as are is theme but said, been the United even brighter.

results. feel drive about So great to business continuing relative our

Andrew Nocella

But in passengers manage seats. which X their leisure, incremental we of Helane. got in the all growth the the premium I'll more Polaris we across has added premium we is load of add been in their significant in that, up the one as paid kept premium factors factors Airlines, seats growth board United pretty quarter, corporate revenue year-over-year And fact, load amazing. all as The was our factor load year-over-year. at points into

in, the we we customers see that And but desire in is of products to great be one continue for the the corporate see do were is both. we execution reasons strong. able to by So leisure premium for the quarter that rebound

Helane Becker

more you're for you price answer then putting lose the Don't that if is demand some, same that the of you to have up pricing premium to So have to some corporate demand? seats? right? you're lose Because seats,

Andrew Nocella

figure very cabins, during coming some we is the these in is of high normal. free and more towards in factors load this premium down happened pandemic, number had What case that

Operator

comes the Oglenski of from Barclays. Brandon from line question next Your

Brandon Oglenski

that deliveries planning it decision? Scott to about every well, on on to the year, Mike, can know filter I XXX it's think given gave But how how cost some the you give 'XX that you us on just us an get buffer be some in do spare maybe these aircraft. month through structure as for that of events some 'XX you're variability XX- spoke hiring, here aspirational you insight you in CapEx training and might especially and given

Michael Leskinen

by and attendant. making to better our We're to hiring. going match level loading better think be stable, schedule I flight the we're match to pilot our be aircraft or going skyline able delivery

XX we So themselves again, that the the inefficiencies for have that right year, around, aircraft those we're now will less discussing out. this inefficiencies work

we so And cost -- is our going at But that But and metered that's to the about going critical pressure to be United, been structure, smooth way. when think to will world have gauge to in addition that that industry what's benefit continue inflationary gauge to we've in, that. benefit face this. overall the is the in we a

feel that. I about excited very So

Brandon Oglenski

and get I that's going soon of because back. Mike. Okay. had been want wanted But the focus it's to you for Appreciate us that. an And to to I team. here, maybe guys you in one teasers do a give a just quick know pushed MileagePlus a know any analyst meeting you, yours strategic

Michael Leskinen

at especially source the it's that that value dream I it, a in our is repeat It's not is business, during we today. grow as of United that the recognized, in But crown of assets recognized market pandemic. equity cap. it is I've Airlines. here the collateral value the will a past. asset, there what It have the MileagePlus, we jewel the said critical in was of

more more see business. that going and more us and You're to disclosure, give continue to more to transparency

have I've see data value given to take no and details more Investor that, on that more us market cap, we plans consistent and at more actions. get a if eventually, message growth the aggressive you'll You're more on for we going in share our we'll even business. And our in Day. the hear

Operator

Thank you.

the portion first [Operator now Schlangenstein Bloomberg. switch comes the of from of line media We will question to from Instructions] call. Mary Our the

Mary Schlangenstein

was That close. to. wanted I

from you and to to were the detail can FAA how as in quarter the review, tell wanted a bit if specifically second of quarter many the delays? types how of more FAA aircraft, you what what part I delayed little could us give -- the third whether resulted on So that aircraft aircraft see

Scott Kirby

think I yet. for try. sure don't we I'll know

few FAA that. the next months, are that are I mostly aircraft that coming MAX that's think work what going They're airplanes X aircraft, to though, on, change continue are I'm we'll months. in to X on. we've focused on and next got focused we're in the the with MAX-X, few -- we coming What not

everything call, new embracing this out I are as We this, standard on to higher focused a said how figuring for an to in process opportunity safety. get this use

go that is where focus. will it through process, But we point way focus not aircraft absolutely that again. be be the there As nor some we'll taking deliveries our along start should our

Mary Schlangenstein

Is it themselves? of -- They the Okay. deliveries haven't start planes? aircraft use is FAA the prohibited that those deliveries. the of just hasn't It's right? of the some actually any Or

Scott Kirby

certificate -- putting ]. not the putting [ It's delivery. on It's the it's them

Mary Schlangenstein

Right, right.

Okay.

it's said just you And for X Okay. now. right

you be summer? strong talked season. Great. there for how was might you won't some and summer geographic this that summer last you as corporate domestic the playing to were have it like sounds out. all be to Okay. in strong expect a that that's But been market Like the my expect particularly second question is this areas rebound And strong there summer? about different lot this some see shifts And travel do

Andrew Nocella

strength the across the seasonality and United season, and to our the expect into tilts the Atlantic, QX we within network summer the QX across particularly States. transcon we board and best terms towards As specific United head in across of

now, this those So of stand. we that's right strongly we data say terms all I would to entities year. really everything in where And perform expect have of we

Mary Schlangenstein

to record expect numbers? this set for you Do passenger another for summer

Andrew Nocella

think an I an airline will, Yes, we industry. as and as

Operator

of line question Your next CNBC. Josephs Leslie the from from comes

Leslie Josephs

delays of what of And overlooked the to question checklist the Can or or doing? -- FAA part deliveries prior? because from and anything from in update mechanical just technicians to -- not this the lately. those you And that then don't the prohibits review? year you production kind that the fleet issues change things exactly plan or your had review Have the of because is FAA you getting on of maybe were things so on procedures for a else happen, Boeing

Scott Kirby

it, of safety leadership out a is lot about that everyone XXX% about policies time more of but are processes, delivery the First, really safety the has of really main keeps that focus talking the And making changing making team delays mind spending sure mind been the a awareness. top with awareness less the and sure issue. and as top

now with Now safety through we, go of look FA process at continuing. to we and course, board, improve an It's will through at continuously go across the that and pretty and a ways the rigorous that's doing jobs ideas, elevated level of of unique or something day right day is whose new are in not that and full-time looking for hundreds -- people that's have we but out.

Leslie Josephs

review the prevents new into what you from captain putting upgrade. service else a aircraft then And and is Anything else?

Scott Kirby

No. That's capital upgrades. not it. We can do

Leslie Josephs

into aircraft new putting service. just it's So

Scott Kirby

primary the That's thing.

Leslie Josephs

you Okay. When the review conclude? to do expect

Scott Kirby

a this create as it a it going is. standard, not it of through conclude we way time. this That's, to This to concludes. predict is make process the when again, using We're higher going will and opportunity to better about think the would an new

Operator

will Edwards Kristina you. to call Thank for now closing I the turn remarks. over back

Kristina Munoz

and further thanks for quarter. and next Relations forward we or Krista, to today. questions, IR great Thanks, our talking Media any everyone joining you you call contact Please have look if to

Operator

may Ladies conference, today's and gentlemen, you. now you and concludes this Thank disconnect.

United Airlines (UAL) 17 Apr 242024 Q1 Earnings call transcript