United Airlines (UAL) 16 Oct 242024 Q3 Earnings call transcript

Company Profile

Participants

Kristina Munoz	executive
Scott Kirby	executive
Brett Hart	executive
Linda Jojo	executive
Andrew Nocella	executive
Michael Leskinen	executive
Conor Cunningham	analyst
David Vernon	analyst
Andrew Didora	analyst
Jamie Baker	analyst
Thomas Fitzgerald	analyst
Scott Group	analyst
Duane Pfennigwerth	analyst
Sheila Kahyaoglu	analyst
Brandon Oglenski	analyst
Michael Linenberg	analyst
Stephen Trent	analyst

Call transcript

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Operator

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

Following the initial remarks from management, we will open the lines for questions. [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 and welcome Krista. XXXX Third to everyone, Call. Conference morning, you, United's Quarter Thank Earnings

which made at release, in factors reports yesterday's statements, release we on earnings financial and and which otherwise the results United reconciliations factors. release, call. and contain Information Yesterday, Please earnings represent Form noted, conference to a refer is SEC Airlines available may by these will current XX-K the differ to actual filed our basis of release. expectations. ir.united.com. in statements Holdings remarks the during company. current thorough be expectations. Please the other press issued our on metrics definitions this call these and our information United A number cause on related more Unless All our website based are company's and to this a the currently we Airlines forward-looking from materially could forward-looking available upon non-GAAP for to XX-Q with of refer description our discussing our

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

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

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

Scott Kirby

All morning, Kristina, right. and good everyone. Thanks,

out team the that to has hurricane occurred the region. devastation start, that severe United hurricanes We've in The and we transported areas. overtime also our employees the to impacted and due the aid get region. southeast acknowledge in to impacted I customers humanitarian raised has of to been and funds want working Before the relief safely

are last to we and We care customers producing now, results solid culture begin years strengthening first. Today's Turning employees customers results want the was these market, point improvement. calls these unprofitable of going quarter, leading happened, on more puts a seeing we're to what the been we've and our broadly. strong inflection for while industry all another the The expected to has taking domestic of capacity I exit spoke delivered safety United call team United about and once several that the the quarter. in happen and the our to for thank to proof again our and the of yield at on to both outlining

in and margin. by customers, So Over also question, United be the are how the seatback to our a way. United a multiyear feel have our has the of is to want Over is period, and great with and that the last several our power technology innovation Starlink. United global a years, a the any customer in also Wi-Fi proud now world experience. investments we with every of important wide and airline like and to with new the gotten industry screens made expanded seat, starts aircraft aviation, here? without hard the and people part significant customers, the in to are culture you, That in clubs clear product that leader great improve we've worked same best fastest

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of work with we contracts reached our X industry-leading the major AFA. also groups. time, federal We're this During X mediation currently with in

same we that of often following kind knew consensus, to we've just agreement to ahead our reaching are all and We been allowed and could be That's the of move attendants. But the hoped the doing flight world for that to COVID opposite We consistently norms. difficult. of that pre-COVID consistently be would committed curve revert right. the have would us

of propelled position with our combined United our for to financially for that All now shareholders. actions our All position X these improved of experience our return all and to things, provide these value those have careers to actions for to stable, leadership a United stakeholders, United can and and our investments we've Next done And customers people, secure financially operationally, employees. benefits customers. we

position This and balance sheet solidifying led us results in has industry. financial strong ability our our success position facilitated take have our leadership to to that the next the in restore step our to

billion next see up for our We current we for point, approved into our United $X.X which will repurchase of has share in We're proud all the we for is predicting, margin believe glad expand Directors to years been to step work the about excited framework, to our happened. that critical Board a that that actually sets ahead go about a the results industry as all allocation customers. stakeholders. Mike and details We're of this we've come. Our have innovation to also inflection has of but United the capital program. value create

And Brett. with that, to it I'll hand

Brett Hart

this a and you, also closing note. on United morning. the Thank thank good Scott, like I'd high out to for team summer

ever with was the XXX,XXX on record setting weather across and second holidays Day records company in customers carried on-time U.S. ranked quarter in in major arrival on-time Labor in at our of of the investments departure first the a a investments, we've are during in the airlines departure operating to day most and passengers, further the tools challenging results September. These network, and quarter of numbers history, along August and for bolster challenging Despite with passengers highest operation. the the amongst we operations, the weather July. our recovery and the the from durability events. for in has carried third what and our have irregular This best of geographies, made and improved operations to resilience months for we X These learned company testament July in third our on-time resources number in quarter busiest and

of become across safety operation, in people the for this are We year. key focused rolled will that has our safety addition, airline will technology. This operation contributors on Running more in our with a employees measures the safety additional for out safe in new it safety make training technology In we next investments business. easier only to of our our reliable be the with backbone investing stronger professionalism been and we is customer and and the year, launched and and many have our experience to one year advantage. resources and added success competitive also to this Investing the of engage additional widening pilots programs. our

Our NPS these scores from continue to reflect the investments. benefit

last and Jojo. X and have and President Our up Vice points third quarter been These versus Linda NPS leadership Officer, would is year-to-date. points was the possible XX not versus year vision the Chief Customer same without our results XXXX of up Executive period

of impact not has United, Last people, team a years, airline, is her that not that to and Linda team, the and to value In many element be especially innovations. month, her news across likely continued women. of it. Countless These apart our end customer willingness that the an is just so of real but men Linda led air had women Her company mentoring generously from this the across of at follow. certainly at year. and and commitment it's leadership XX most she have example next set benefited business. she travel enabled the easily her we'll brand legacy innovations shared have Linda's well have to and be replaced, our leaders to to revolutionized and generation will on retire share culture her United our on lasting the industry-leading aim our delivered wisdom the her to known the will for But

to let changes United it the years. thoroughly have Now off about talk that XX to embarrassed has her in at I her, seen Linda she me hand

Linda Jojo

best choose to customers believe the outstanding investments deliver has brand hub in to United that why We more that best and billion a these give advantage a unique a best believe to decade, we our the that's the strengthening our hard we've $XX the competitive and to people. airline service. need efficiently Brett. network over innovation invested cities, fly, of deliver over match. culture and We employees help foster further work technology United Thanks, create experience. an last to That's customer But great

to infrastructure, combined issue example, first flight NPS unlocked we joined connections thinking was during way culture For United iPhones tools, a way. We've our one to in contact the us our also for it both enabled turns in innovation, launch center, customers of investments upgraded our moment the to a our the when hands, of airport were scores capabilities aircraft building attendants. these of devices flight This technology Once our made to communication, deck, more new help efficient care crew drive along our crew sharing customers technology our with decisions industry-first especially I and for stronger better a resulting our employees' attendants recognizing now with in technicians, service and iPads employees. our devices scheduling frontline deliver and to moved teams. gate regular our issued our offering more personalized and and flight higher in birthday connecting our operations. our These paperless dozens someone's information, to of digital from to

years customer ago, by since ConnectionSaver is other then. airlines. still the launched more This customers benefit for we than example, million For a day X X not over saving copied

to to It's proud nearly airport. app. customers standby planned, very customers to introduced hotel things features Like like I'm of where access XX automatically of new our we day travel, XX% for flights can list they earlier on up allowing and our meal steps go as at the don't and you, Scott, we've of vouchers. rebook And the and take by save to when minutes used

help. assist rates which getting their more on and way since making customers to customers have translates freed who up changes, success these the faster to employees our self-service need Our in app those doubled

to resources patented customers option to United Demand they're enables our needed Agent people the teams app video from agent on a technology call, aligning across talk or collaborate where live airports, our Our to the and text, gives most.

During got from storm impacted Houston, live already duty live help United by X,XXX were over who in other customers in Airport on not recent airports agents storm. -- got a the

of innovation continues. Our pace

can to a wait aircraft to environment. Andrew customers ago, decade full we live accommodate their we've created moved filter circle experience a Starlink be a announcement we see what nearly to signed year's been the this And team it Starlink and revenue like Wi-Fi. industry's travelers for I think allowed ways confirm year, will me. slight automatically now for to the seat, Watch in-flight completely has challenge. a when our Apple far imagine a improve the the next. I'll moment that do in-flight that's in was to expanded about Finding transform to so over gave why onboard Wi-Fi to way wheelchair, largest attendants with flight So activities can today. a The probably preferred will deal talk long to can't And can't hand iPhones this I

Andrew Nocella

at decade great It's results Thank United, exciting RASM few pride we been Linda. the years. an our take last leading over in United. At you,

our strategies, fees others. created has very have versus RJs decisions relative Elimination capacity positive segmentation multiple of margins strong for United Polaris jets change mainline single Our been and negative network United for and product to basics from the out and swapping deployment for of choices for class competitors.

quarter our capacity year-over-year, quarter industry X.X% of challenging to line results. billion expectations dynamic of was July. grew X.X% with in domestic on revenue revenue top aligned the $XX.X Turning versus more 'XX. X.X% United's third TRASM capacity a our third down to year-over-year Consolidated

in was inflection domestic capacity improvement was earlier positive the the Domestic shaped a it As down that with in earnest August was and domestic capacity material slightly expected, reached X%. United's would was which in expectation unprofitable September remove quarter the the year-over-year, PRASM XXXX point. we in industry QX. where in from

environment, and resulting business improving growth domestic recovery into in with post the pandemic. across we push good was Latin XXXX quarters XXXX United X as demand near and Europe by in at and creating expect known and result, than when entered but we strongest during be the same Network on our to of dynamics best. growth where proved model to and QX expanded favorable, mature good where and the as just the capacity spot a XXXX. The to industry to XXXX year, in with timing be As America financial XXXX We've RASM pricing quarter due changes the gotten more year, not large in we We capacity yield of was where momentum allowed added This and less results. our Atlantic as exited the RASM first plus importantly, growth the slower when others losses QX were X%. the at tilting in most knowing an conditions when pretty are importantly, right, our grow. would to and timing to grow of

quarter we profitable, network was headwinds more by driven numeralized to Asia is simply continue challenged returning Pacific the as revenue South and in Pacific Asia to While our environment. a RASM China face solidly

capacity to months. process Guam expanded last operation revenue connectivity the evident focus remains plan versus seeing outlook optimistic in post-pandemic Pacific capacity from reallocating and a of remain X typical of to the across prospects is in bullish create far specific moderate underperforming expected Asian return will is QX. We much America growth more rate We're as in offline. long-term growth global long international global our year-over-year of about seeing structural capacity to network strong. We're All in produced The performance year-over-year We RASM months. better the by in Pacific quarters QX, restored. entities in across QX, at XXXX. the performance also X significantly United the once to all QX our in the last a produced that shift narrow-body again QX plan to further produced and capacity over entities so United Latin in X% profits in and in XX significant Atlantic is United's QX. network United's With United hubs Tokyo. XX% United the and improve in and pools -- and coming is by XX% as fully in airlines. will new region year-over-year low-margin the we rationalization health the stronger our a remained network year-to-date profits Pivoting growth X profitability XXXX. profits enter XX

markets were expected cabins revenue the gains and all to expect QX a was XX United to largest entities and corporate in points RASM to across days August. acceleration demand booking Contracted better QX. corporate Corporate XX% than including September as XXXX. We've XX% we and the in for nearly look in United's is main higher tailwind. business centered all nice post-pandemic premium which performed September XXXX, than XXXX down the July day was still up forward see in continue was steady up into points business cabin regions material and at enter X.X RASM during revenues QX. expands, revenues, the managed Premium versus factor United's corporate is but X since of cabin slow a is September, demand in as in seen quarter. of X% the history. we XX of biggest we in start biggest top Load

engaged all spool our XX%, up remains reached with Media revenue On flyers up in Active records record, reaching as the technology and card the create streams. with up high-margin membership volumes continues seatback spectrum, new to are has important to product business an basic XX% a invest and was with end XX% Kinective increasingly credit economy new X% holders new in and year-over-year. MileagePlus year-over-year, of have spend screens offer. other United we our year-over-year, credit up card showing up MileagePlus of revenue was penetration to

leisure book the end XXXX. will view in have I for the Much challenges for yields on of customers with out. a were domestic we revenue early who weak setup far quick seen QX travel revenue of

significant QX, yield and possible business changes at by changes same implemented schedule higher. be to are we airlines. will continue We very tickets low-margin strength QX these that As yields to be much that look into will due the model selling believe we're

noise the multiple pivot improving is the still the rapidly, a While of that environment there's make in the shifts anticipated. to difficult domestic revenue positive bunch a of due some, calendar to magnitude we see QX just as bit for

level growth great creating job earlier, policies, In addition an for leisure yields team accelerated revenue and which corporate a entire to well the traffic have a QX, revenues pivoted we're clearly unit at Thanks the XXXX. positive -- Further, an expect return to for Asia yield QX. driving we said I to office in seeing done. in setup of acceleration clearly as are

With Mike discuss to over that, our I'll financial turn to it results.

Michael Leskinen

and team Andrew, solid quarter. Thanks, for another United the you thank to

improved we margin $X.XX. third and continue end delivered resilient quarter, a most fuel across of CrowdStrike from United challenges Amman. of while earnings range In Customers we a our trends choose outage per prices. industry to Above to the rationalized, X.X% the flights our a geographies as our Tel invest high and and and in in of suspension we as all Revenue operation. of hard capacity pretax people share our product, relief saw Aviv despite the guidance

quarter costs capacity of Turning X.X% was quarter. growth versus CASM-ex up on year. in last the the to X.X% third

from Aviv We expected amplified CASM-ex X reduction capacity and CrowdStrike capacity further suspension Tel and be growth. approximately This was quarter pressured lower Amman. point in with an of the to with in

improvement unit our labor the headwinds and As up. fourth quarter, we to moderate back steps look growth some expect capacity as we cost

from and Atlantic domestic our reductions expect and schedules both from and remain will that pressured costs capacity delays delivery Boeing. our Airbus in We previous

plans, better expect tailwinds ahead CASM-ex moderate. OEM delivery to delays we from and firmer XXXX, to see utilization As capacity we assuming look in

from around see X which as points, to pressure headwind be continue an well. should to labor expect agreements our X We industry of to

For $X.XX the be quarter, we $X. fourth and to per share expect earnings between

quarter, the quarter, and delivery In the took aircraft X delivery expect wide-body Boeing and to we narrow-body X of to take MAX the fleet. aircraft Turning we fourth of AXXXneo aircraft. XX In XX aircraft.

Our both assessment of at for estimate delays accounts current Boeing. our the and Airbus impact of

we expenditures $X.X full less billion. adjusted to year these be now capital With deliveries, expect than

based selection airline is flexible customers for On travelers midst capital on a United the basic price-sensitive business premium is positive international the plan to decommoditization our wide travel domestic for choosing the of seats and where a transformation, from working, in United customers. and allocation, ex industry of our products are economy

have a industry. investments solidified Our for leading in the position us

As has to profitability worked, improved up. value strategy opportunistically stock our there's has in free cash but relative sheet We now have hasn't flow tremendous our shares. those our shares and materially, and balance believe repurchase the kept our

of be imperative program also $X.X shareholders profitability consistently our deleveraging. expect that investing approved Board free beginning the our throughout to share in while This of to Directors we will billion funded Our intend and returning improve. quarter we repurchase to priorities business that our flow as balance generation has we cash execute this by and XXXX. value program a It's

Our the leverage are current below few net in is X.Xx, Xx and years. we targeting next

that shares authorization, shares at granted dilution that portion parallel buyback the X an when with new exercise a The were during payroll approximately we've million average to Treasury warrants. of of U.S. purchased shares repurchase already Act warrants million I'm over quarter. of repurchased were fully the CARES price just $XX.XX. exercised associated share this the support program originally the offset were the The and these of In under $XX with to issued happy

guidance and row. year the our financial deliver our EPS We on commitments are delivering expect on second for a in to

improve made product, our to by future now sheet encouraged Airlines the TRASM, incredibly and greatly differentiate at The return balance shareholders. third performance are quarter our we've is increase and to positively cash our United We progress bright.

over pass to start With that, it to I'll the Q&A. Kristina

Kristina Munoz

community. Mike. please Thanks, the procedure questions We'll [Operator the to describe now Krista, question. take analyst from the ask Instructions]

Operator

question from Melius first Research. Conor comes the with And Cunningham Instructions] [Operator

Conor Cunningham

to When significant back, I biggest competitors of next you network you pretty market A plan an 'XX. from on the get you capitalize making the changes question step backdrop see in investors the in to industry take year? are just is where your often evolving opportunity a product. and U.S. how do Many domestic

Andrew Nocella

on take to our the outlook focused United it. plan. I'll continuing We're United and develop try Next to and

lot a of so opportunity. And there's

our We've stars I think, build all, to first to we're going they But we we'll a in of continue to that invest related our choose to share And and as continue more continue make also do to connectivity continue long north that to product to gains one the market one had see that. to time, often. going our that. we're in of for more customer hubs. and mid-con

is butter. view, That's a last waiting think to point happen bread We've QX, say particularly for point corporate set of It's then for that in been traffic it's us. the And to particularly from I a see while. and I a up happen accelerating. corporate going important and for we great would that creates and we think United's QX, in

to So to we We're forward stay high-yield over our building as share course, we're focused our going global incredibly that done on going and, building few well building buy. and connectivity years. which the building go to has of stay network, last focused customers products on want

Conor Cunningham

to laid that XXXX, then you changed. Great. or Next. maybe out And lot obviously, with first going in sticking plan Okay. United a back When just has

by double-digit update get margin you how You're curious to on us process pretax I you that if just XXXX. forecasting could your thought and a was margin. double-digit

relative good any with obviously to margins would pivoting You've be But others. a very done there and driving helpful. thoughts job just

Scott Kirby

Sure.

a reach industry we've we're of an like we'd run the margins. to past that and XXXX that anticipated lot that off point inflection to For airline earnings XXXX for would We investors. that confident years, higher lead a looked the kick will evolution an couple multiyear been describing

pretax and margins XXXX, For United in history, between X%. Southwest some and X% each Delta, of had

X expanded Southwest points. lived the ROIC and margins certain a years. low their X committed years they until their target, growth later, by next to have for up to X hit commitment that

all about while ULCCs had the year. an to carriers even XX% network points. per That expanded the XX% were of growing by X happened average So

large to than significantly one that with Fast forward once less margins other lower a that commitment absolute are were relative and start one may even ULCCs in in the Southwest margins has they airline Southwest today, are and time of at long-term same they in -- even airlines XXXX In again XX% not XXXX. were much grow to worse XX%. the survive capacity response, made the than that actually

will And can in you been debate now to to no this be in The in I But happen, a it theoretical. is the points expansion have likely only suppose X It expand of scenario a reasonable X while to margins we've whether predicting it's would going much something longer margins mid-August. period. X next how question the years. time happened happened meaningful about XXXX compared be or there's the XXXX same to each regardless, what of less.

Operator

question of the next David from Bernstein. Your line comes Vernon from

David Vernon

picking, impact are year? country I may little what of of of next other a I strategy system these the to on the kind newer you results about some city? Can that of rationale sort This and your leans Nuuk know, international talk had any add like maybe a idea a process the And question for into expansion. sounds the to on routes differentiated that have versus Greenland bit kind Wanderlust. just sort of undiscovered seasoning don't for here of

Andrew Nocella

business. this fact and I Well, our partner financially announcement. the We a successfully allow fly the as We outside into And to a our simply of debating which people, think our model importantly, it's a to traditional do spend customers. of we're that is hubs, gateways most of attention just lot Grow, But announcement question. clearly thanks those has range caught United gateways the the our we'll. has for best hubs. in lot announcement of fly destinations. the a broad partner global where able for the global well backdrop to And the us also heavily But Airlines how is of exciting business. in very the time and

money globe, we we across destinations can look the most destinations, new look hot and we for importantly, make so And for we destinations, look in.

good really very added We track few last have a we years this, the of we've over canceled. little what on have record

look new is look end a of got the as we Greenland has forward, of two day, so for those the attention, week. And XXXs but per And it lot we destinations. only at

profile great. impact so So on possible its on system be our I will more or possible than sign-ups And be was X for front customer and our MileagePlus thought its and this years there will is on much United, it brand ago. our impact small. But even X

United cargo, with high Next in volumes volumes of builds growing leisure unlock to a out we're We'll carefully. just traffic. our cities global volumes it expect lot do great just sure business hubs have very As profitably, more the We connectivity are on but the these make We'll there. to come this as and high of high plan of importantly, traffic most front.

David Vernon

platform the then supply-demand you the the announced sort production another the And the delays for wide-body? on as they're next-generation on affect a in just delay that maybe going to brief that's XXXX. to situation. as think years, wide-body of you're going out do follow-up of right. have All couple Boeing's next looking How

Andrew Nocella

about capacity. it obviously be the doubt the based based and is prudently. we'll bodies although and next airlines many do there of in in many are network. a demand There's setup -- appears pandemic, no on to we shift with we've the that. AXXXs bringing is about X that, lines we see. this are for fact some aircraft The wide-body better structural even middle And years the a production long-haul times week, remain those probably wide We remain XXXX A announcement global back. everything will setup grounded that and the last good So over yet talked not turn, we X since and of bullish delayed other is again. thought keep lot up the it in creates on think the global of for I our pretty on aircraft think, grounded, But to

Michael Leskinen

delays rumor XXX would on. business. least you I'll on continue. as and us and that as David, at the Boeing, stabilize some are would we smart for the to But expect to making downward pile is equity some capital we're Mike. decisions. they in to We raise there's markets delivery bias CapEx this their And We're certainly those the be. XXXs, just the delays more focused expect rooting might in a decision the we delays if see on applaud

Operator

question of America. next line Andrew Didora from of with comes Your the Bank

Andrew Didora

picture, -- or And across the of Mike, the last to Scott Kind company is billion of your bigger lower just what up -- of perspective? from Boeing your to billion just given of expect range piggybacking $X we reasonable answer. in you as question. the your from off Mike, then implications end I mean, $X a it everything that is next Maybe on something know kind it last CapEx production do Like year following fair see strike? to

Scott Kirby

roots. is the I'll with in But I back aviation big build great short-term Boeing that picture, on at I what long best pivoting the the term. my for Kelly Ortberg We're What term, focused view, reliability, start where quality, care Boeing on made of Mike is the that you about Mike I'm to the is price then great, history could they to I expense long which trying And Boeing. airline and it. challenge very safety short-term challenge engineering, answers. company been Well, focused and you long great to already building encouraged term. am referenced on. And think Boeing CapEx products, actually the of give decades cultural for the the their stock let and count great has, with the the at profitability the

of employees of at equity Boeing, think willingness what making to about willingness the the the biggest To around Boeing decision is will long-term me, the short I sell couple decades, the thinks that. news last really it rally right of the term. regardless Street the in reported -- in all that's

for applaud long the I shareholders thing doing It's So do right long-term for customer. a that as them their also. term to

I'm encouraged changes they're the so with And making. that

It's the of decades. line I'm past the team, happened the most they they all ways, to the folks a lot be and is, one in a all certain company but companies a get make will. of great on world. are the that tough, strike through have legacy same Boeing management The picket of out that part desire confident I'm of issues it. important over will cultural a that's that now, with of along in the of share the great couple

we've be so company get we're long for, And work for airplanes that is to been near going the up. would we focused in term eye wanted have I than have we're then work fewer really the hoping but this. think can going And and through -- on a the they'll term. It's a through term. our build I ultimately long it -- to set to good

Michael Leskinen

want those Boeing with on, pile me order let in as that have third Boeing aircraft, we off Airbus forward for based and them can them. seeing quarter want soon you're them we based profitability, on me of complete Andrew, and for and the we on aircraft and let clear. profitability The as be deliver our the expectation results our

down a bias guidance would on normally have That we'll to assume we resolved said, more that call I based precise when production January do give bias we pragmatically, to range, be within you're we downward to unlikely would. and delays expect But -- expect delays. these on to quickly, the correct as it are CapEx. stay downward

Operator

from question comes line with James Baker of the next JPMorgan. Your

Jamie Baker

So a Andrew. couple for

they a as of pressure the summer, better of I term, Looking past back your at much elevated this that lack simply capacity, assume is maybe guess, are I should capacity threw not and profitability. on taste the that the scantest new lot know I'm yields, now change several as the next summer, we between airlines of could, peak but static, can for normal. at associated the competitors for a this struggling particularly even that

as capacity throw the they'll much peaks. just So continue struggle, LMAs [ at ] to as

off-peaks peaks we've on become in seasonal little thoughts a than more past. those So Any that? softer, firmer, the become trends seen that bit the

Andrew Nocella

Jamie. I didn't so you're sympathetic, know

Scott Kirby

it. hear to Nice

Jamie Baker

of logic. or obviously not cherub get no, mean, I kind I'm a But just didn't their it claiming anything. I to Well, be help.

Andrew Nocella

they an not model, business as expert rapidly on other as changing they their struggling, models are I'm look, than are their can. and Well, them clearly business

to quickly. However, change hard your the that spots -- it to it's is change hard

what did they course, described. exactly Of you

I that ] the the one went I through situation of that in you stages think do and is quarters of of a of grief on I think [ stages what ago, quarters grief. couple ago,

all of unproductive the wait majority unprofitable financial pace marketplace. up which We've to that for that and international my mid-August, amount can that airline march capacity works margins, imbalance and with strong, we have evolution in I'm And of there's our or see. The We'll X United next incredible remains occurs. about, a that this bread you You either. talked wind seen remains strong, higher continues is that point continue is complete a model not uses an have an this aircraft for -- into at has that States utilization, Scott year. where of time per at traffic, the of our X sure is as months and business And that in butter, that same we'll expectation towards rapid starting exiting as year.

can we is are getting that months I the in of are you changes the remain work actually work the months. because and seen mind way where bullish other right for that the in so don't far just models my and only So now the not X better we've tip X the that iceberg only

Jamie Baker

XX That's said rise the helpful. think I then on economy you basic XX% volumes. And -- in

this that's of road, I'm down measures discount with perhaps Can ability economy compares growth the I And comment largest become magnitude, is you it of the is by economy of although track limited. domestically with supply inventory and American? you how internally. already to basic basic that capacity my it some supplier So to track mean, been intent your on assuming achieved? United's essentially obviously Delta

Andrew Nocella

our to our look, really margins, clear. be to is Well, intent expand

capacity and for bad have of profitable volume basic is offer full from expanding that everything offer based come conclusion to in and a hubs the our the offered is And competitors. basic pivot categories to intent particularly is want Our those amount United in we will on firm we to good But Polaris. for our we range to margins. our offered to amount products of in United, that all a is of customers, substantial

for And expanded. are so what's we to United. It do continue good to going

think domestic it's our in XX% I volumes neighborhood to the XX% of now. right of passenger

changed go again, with lower as gauge bottom of it line higher our we'll for dramatically I at we years home I X end could costs, business pivot benefit. basic, our But run and X, go grow a solid and But to forward. say day. the marginal experiment would the experiment we think the an the As X ago, which that or the was do right what's is has with

Operator

Your next Cowen. the from comes with question line Tom TD Fitzgerald of

Thomas Fitzgerald

the in us help of MileagePlus Kinective XXXX? expansion on understand Media sizing you contribution margin and the Would from

Andrew Nocella

a a last business. we took We do technology we our year as the in that to been I our ago of we about That is hired technology Nunn. lot a MileagePlus do don't invest And has jewel few is going a when think path business focused not we're investment a different for Richard there. different things to in over on took today. and years. prepared path in enough the

and don't has personalize First in customers I going airline to a service that to any way think done. foremost, our to us it's allow

part core just a is Starlink which of that, obviously was announced. course, recently Of

but you going going today to lot spool substantial. this, to on the going I'm have a say have but is pretty give to but on up it next going details to we'll be I'm that, So -- year, it's not It's more starting material. to to

Michael Leskinen

detail. to going of 'XX in phase. accelerate to going you going bit in little I'm little in an to give We're it's money investment is this money. on that be 'XX, of 'XX, And but losing to is really this a that -- a not bit make We'll Tom, starts and beyond.

a of revenue momentum on this we've can I be we'll of you the on though, 'XX MileagePlus giving modeling XXXX. about wouldn't core think a bunch your I in so you do connected more ton got more and expect layer in as business. own. disclosure So model

You allow getting model time, information I'm don't have to you but it that information to more yourself. for to committed this at you

Andrew Nocella

from and bring don't that And was we should. of incredibly point. talk But doing at to revenue what the well. the it up in airline. one X%, again, population other bring is up majority growth drove And I I'll quarter the premier -- program and about revenue The we enough, going the the just up was

us. premier engaged so are heavily our And members with

program much As record revenue a the cards. the they're credit members more we is and I benefits well. incredibly card spending the all level numbers, our the that actually that deliver premier base the premier population that is credit But made on of we've flat and is held record earlier, sure to premier fact we said base in that can of amounts hold they close doing because their on to flat, members, doing

Thomas Fitzgerald

then early the would mind reaction That's on all on really a And advertising reactions just maybe helpful. the on Kinective to some bit are you of what platform? elaborating little on that the And has customer been? brands

Andrew Nocella

been to been I activities speak no have small. could customer I of. that There's think our rather reaction date

Operator

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

Scott Group

more third than up at think an with quarter, you CASM-ex more if up have look quarter, fourth do QX. 'XX RASM you X. we but when in And about do So RASM we you than guess, CASM? see When see on have is I RASMs I any confidence don't up about it's that X, that down color I inflection think with ultimately, CASM?

Michael Leskinen

In wouldn't, we And the be of will peak absolutely the expect this that we We're going at QX, me Scott, of I clarity. on for CASM-ex, the to expect simply. time expect 'XX, would CASM-ex. let you in inflection inflection. I not as we guidance year that me in XXXX. answer that give quarter-by-quarter but traditionally repeat shared my kind some for calendar prepared pacing but let remarks

operation. fourth should costs to we decline We expect cut XXXX. into to efficient all work the CASM-ex quarter and And that into to going an decline we're the further aggressively to run to

share committed focused the per United. to the continuing working and driving line and growth, I'm adding been very, are that at going very run because costs earnings a customers metric the to sure delivering good operation. At on cutting team on same do in driving hard bottom that at the to we excuses continue philosophy, through so invest are costs we're we but CASM-ex on is personally and balance that, And committed the to of increasingly really time, make that efficient have as focused And we've efficiency, right customer choose around we're to not profitability. a we're to the United. no to We're

Scott Group

Helpful. just would regions And on directional helpful. of some QX, maybe color then in be and a the some positive, just flat expectations differences for follow-up, the negative, your RASM

Andrew Nocella

want I I to Well, another question, hint. but you will give answer that

talk going down I'm from month. QX At and -- to end January of were X% in the XXX the the start January days of X% month the same X% point, about this July, yields domestic down in So and days from is up because in XX can't. currently and I September January.

the traffic Capacity industry We're so booked business looking that as But to our January. percentage to the And a better. want small is pricing only across I good. is, well obviously, for booking environment environment the rebound. shaping looks continues to just curve say yield up just QX of different and is

Operator

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

Duane Pfennigwerth

you are it of in like markets, seeing Domestically, terms San of to signs recovery as West Coast recovery? out stick any relates lagging Specifically that corporate, Francisco? any there in are regions

Andrew Nocella

It the would opposite. be

and are coastal a growing this hubs The coastal good, than few the than hubs stronger much hubs. interior but growing hubs are the financial services, growing are the point. services energy are corporate interior bucket, But other professional all traffic are and tech corporate looks where verticals slow. So stronger at things fastest, the and

Duane Pfennigwerth

Great. Mike XXXX XXXX or the versus higher where little feel year it the it growth on or confidence think a the of about the of bit recast it in XXXX? I a couple setup the But CapEx know into setup XXXX touched you just last on different looking time than but of now your in years And I contrasting in constraints. some of is given in derisked your into Does growth XXXX? this was questions, and up into then same placeholder step OEM up in was and kind deliveries. prior a step-up it, came

Michael Leskinen

you're in about Duane, me think expectations CapEx 'XX? I asking

Duane Pfennigwerth

planned view than has into how it do OEM prior it work confidence point in in CapEx and was given is this been it you that outside. we really -- growth, years, if the the wondering in higher than now have I'm growth constraints, and on at better your was those into just years? prior just a time, out a any placeholder

Michael Leskinen

be been to billion delays, Let And be other to me expect range a we'd in given $X here $X about downward very there billion. strike we today, responsive. a for XXXX. We've range sit to as try of Boeing, clear bias CapEx the of at CapEx within given the

this about this to the for we a have XXXX. guidance you maximize us, relationship, at capacity there's in thinking to fly separately, but earned going for trust We're point. capacity capacity 'XX in going you separately, United. Now But not to profitability should that that expect can give trust we're

Operator

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

Sheila Kahyaoglu

improvement. a QX. was on It you but of little think Congrats domestic X.X% Andrew, a bit little seems a August more this bigger much on how step down X.X% July how in RASM on from gave It touched trended. doesn't parse on much, color quarter. just I a like seem and little but the We maybe bit, it bit we great in a QX could

So was Any you maybe what much details the provide? can you how talk about much How economy? drove Was was was much it share corporate? capacity? that? How -- could gain in

Andrew Nocella

in clearly say better. but much was point that really the things. of was the lot was for in RASM. the a better July. was year dramatically September We of again, it mean, I try. terms year-over-year entities, I'll September, I low July saw than all gains will

We also up. head up to traffic it but I improve QX. spool you Business whole market in an was the XX% think, September about quarter, up, idea the was we expect as into Pacific of the give to in X%

good I beyond. really, hopeful So think, we into were QX And exited and the quarter with earnings we in performance. performance that, some that much quality translates better

Hopefully, question? that answer that your -- did

Sheila Kahyaoglu

the comments being little follow strong, booked. bookings A the on only with made you so minimally Maybe QX could but bit. up I that

you're than from? strength Is it what September that? Is how the like that that you think do into saw is coming about drove different trend we what So QX? QX -- seeing where in And it performance? how

Andrew Nocella

airlines. it is what booking although much attribute we a low-margin are early pricing changes that of there's that just And I capacity, have slim leisure at geography, the to the models changes but business very don't by look of better better we elimination capacity, this for the in unprofitable curve. and seeing point, that bookings, very in the yields environment business

Airlines. much in All of factors we to environment what a leading stronger anticipate United will these for are XXXX be

Operator

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

Brandon Oglenski

to dynamics the next billion you of how retirement, all aircraft guess, integral fleet year, share because target? be guys had. know into headwinds you going the understand Linda. and CapEx range that congrats spending pretty on attitude $X is vote elevated margin but outcome that That is can the repurchase to here achieving to a really maybe I on you to here. are to with term, excuses in XQ Congrats is $X the longer this strong Mike, But the outside billion. The And of that investments a help little compared even of investors others. confidence. team we I a definitely double-digit like

Michael Leskinen

of a That that the the creating growth just of Brandon, from fundamentally that's we I fleet is the days provide strategy. ability the in increase department think integral which It's industry. these reshaping finance though competitive absolutely lot a driving frankly fleet, our about been narrow-bodies, to to CapEx the basic gauge United question. what's The economy, Next United. something is dynamic has refreshing appreciate at elevated. the the the is

strategy think focused next they expand, X in perfectly am individual higher, going in not or am about We're I of opportunity. term, use free years, our flow in think Later and the than target But XX% XX% a I decade, later cash near we're of next think, as a progresses But a term, near XX% the over about intertwined. That the in XX%. and the So target. I term aiming I to longer free conversion. flow margins cash cash And conversion X conversion. for are XX% on said, target as year. would XX% in decade, free I manage the that, focused to years, the think X on every there's

Brandon Oglenski

billion It's appreciate on few And CapEx that's outlook helpful. years, actually $X I for that. the Mike, that $X the within next to of right? context billion very

Michael Leskinen

But $X next The to the $X you years, that years, $X the billion the for billion next billion And few bias update remains that target. an billion few the we'll target the year. in for a say the has to third give remains and next to me downward future. $X time, let for

Operator

line from the comes Mike Your of next with Deutsche Linenberg Bank. question

Michael Linenberg

your day, keeping say that nothing of I obviously, called tools, ability maybe and cancel, to booking What no-excuses hit it even at there related to mantra, the CASM, it worth the out X,XXX want is than I the you impact? revenue Or did either reporting? maybe of in much thought not end CrowdStrike. Mike, like your reaccommodate interesting know, its with on was but to others flights you revenue better just as or partners. release point was that it as as was X,XXX it And United your with was the the one was I

Michael Leskinen

God be the the obviously, or up negative we a can healthy our they the We not large, if And can. way. come that make in in about make healthy will Andrew, expectation beat in they weather. so being guidance. excuses high and healthy quarter impacts beat end they'll on to provide Scott that a guidance, impact active at some CrowdStrike. want there business ends They'll -- detail, about industrials, then into But build if businesses, Mike, our excuses businesses,

or in I But series it's always basic way quarter a to setting a a guidance. day. have you're course, hit your that to be not events then not in you If sunny just expects a going massive a it perfectly of of a think targets event, always of

Scott Kirby

Force And sir. to but I one here I'll best your United. point was I Academy, that It's important expand think excuses, States was ma'am, philosophy just in at like it answers. come excuses, easy hard. the air-conditioned the the constantly that is mean learned have get that don't much when of a a.m. to is easy use your feel to basic how good actually -- philosophy this it's at no It's I aren't we on What an thing your was that a better. Air they're the really outside fault, no to And story. United And cubicle, that And somewhere costs. fault. your cultural an They get to to it's means X:XX still have tried instilled that's and that control at United. end in that forces you throughout MBA Monday It's on wrong. office then calculate But it's I of event some right. the of in not things

to do globe, us write just ourselves happen to it It go when If and around do you let things a innovation this those we excuses and is and forces that on better the we wouldn't the bad behind. allow airline things leader And the have in big those numbers, said have second is no that or the call, people you excuses philosophy they and the don't no at industry get at off. calendar to times it and look overcome better forces of innovation, go even are a you ways happen. find can mantra we look so people we that the those calculate And otherwise part things that. few place far better to creative if

that a point has for I of cost side. both proud And revenue heart. I'm it's important team and the so the it the the And think cultural team taking on really side to

and room, United. He And it at be is Officer we in here way, great. is like the Our he our our in about fault, different but may talking the but the responsibility. says not Chief Toby, says, attitude things It weather. it have Operating a that's

Michael Linenberg

pilot competitive network Andrew, XX just that's out was related only It think coming like to on pulled in know pressure maybe RASM or those some towards markets to of or had some you the Great. that Anything you serve, probably regional the that there excuse are you CASM has cities of the during in add back those some maybe I markets of were mentioned then online. and town. somewhat. you COVID, additional in some suspect -- of game I I finding. markets to more been alleviated looking And want your XX smaller because feels your about just, issue. When say that now can Mike XXXX, that? I me, moat

Andrew Nocella

Sure, Mike.

of has new its the rate first briefly, network the all, up Just well, RJ pulled in QX. RJ flying back -- run to

And bit the are at anticipated smaller so little CASM. that and they the has of a they aircraft, -- line than back year, come we do quicker it has in and beginning pressure

also which profitability, they RASM help done it. is, We think why we've of and course,

United. think full that back of our new the much at We been for announced utilization for XX rate fleet. RJs We CRJ-XXXs last week with on to I run aircraft a are actually deal SkyWest, than has better expected

think United change and communities. better to smaller smaller I able these serve allows to also we're be large-scale don't there's the But at serve we us a coming that, expand communities. which So glad how to

the lower slightly over bigger that debt lower of Next years costs. that ago. with plan We are Our with number a said is unit run scheduled have with less aircraft long United that frequency

We continue down that and road philosophy. that down

So do of expect RJs those a be with smaller lowest will have become and the and we in smaller a communities this but around RJ the of serve will fleet mainline possible the cost smaller and and mixture still judge business, to thing, communities. and percentage it the

Operator

of question with Steve from comes the next Your Trent line Citi.

Stephen Trent

credit wanted dovetail Could on give you this view some how retirement. wishes high-level the I horizon? in maybe of to strategy, terms with leverage. to good ask on you Linda, trajectory your best us reduced your could on investment-grade rating very

Michael Leskinen

appreciate question. that I Steve,

within is Xx company. more those an as structure with that's less metrics. investment-grade double industry we Xx ratings digit have expands margin earn an investment-grade hard leader rating our that expect But that to the with we to with resilient As of metrics, net and work to the -- margins our United get agencies investment-grade decreases, very that credit and going with we're along leverage will than debt to the are trust industry, go

Stephen Trent

That And makes a lot Mike, question. of just sense, I that. appreciate other and one quick

fellows, drivers your fair partnerships? about going to you do organic have some some anticipate guys You of names from the growth? like Copa bit Alliance are really great these and a coming Or think partnerships of Star with we to long-term growth

Andrew Nocella

that. take I'll Sure,

Our that do are partnerships incredibly we we and important us, the to globe across have great plan names with to. the marquee hubs

approach to balanced. growth our However, is

which partner partner is I incredibly London, ability Heathrow, outside As not we profitably ability have we to to as hubs, for profitably us. our well grow for in the earlier, the but example, to our also partner just of hub have hubs. a We do grow said

the that into And New the D.C. we Francisco, Marrakech added will Washington, so that map. regions or balanced to that Greenland margins, places with recently uniquely the approach are in supportable to and to fly San Those world hubs this in of like I and we've places are expanded York expect by ability or particular. unlock to hubs other think look having expand of new to I but the simply idea just would a again,

is international important United. overseas. X clearly of So big the We're largest flying an of part the

really at and to those we to expand continue. But X importantly, cross look margins going entities to good margins most today, those that least we forward. of We big have expect

Operator

Your the question Leslie Josephs. portion to comes first now the media of Instructions] switch will [Operator We line call. from of the

Leslie Josephs

little election. competitors about I fares seeing I seeing? in the you're know talked week quarter, around of week then to your also Europe And you about decline just you're wanted at if board, and ask a and kind of a you this before to a really talk talk a what what kind lot really, a what's Can across of just And capacity, maybe airlines of kind Or what maybe a seeing? low bit a there? bit one some about And maybe destinations. is this function demand people little play the trends can across already? of that, of traveled after.

Andrew Nocella

we are same obvious week would here of and In normally what RASM. And presidential travel I seeing impact terms election, that thing. it's the think the later, the we is say years are, Fewer for an a X reasons. has people we on election

to there's I don't by. So surprised be anything think

Europe, In good in very good outlook. terms has of X very Europe. so had a months Europe far We've a

rest We for expect to the be of it good one year. the

in there, out It's Europe. to urge excellent trip is Southern a see the winter. great winter, you take friends great in If and your all buy it and fare you Europe. the Rome a I particularly to

Operator

the question line Your next from Mary with of Bloomberg. comes Schlangenstein

Mary Schlangenstein

could additional outlook to changing? on add little back China plans soon? to you routes anytime and wanted And that how and see the about United your be bit go if some any comments a for whether I China-U.S. might back of Asia

Andrew Nocella

the Mary. completely seeing The anticipate China, soon. it to bringing to China United more gone. daily say, Sure, in demand bring It's different different. anytime demand said and those will just are We I We completely just pre-pandemic. today flights. based I've up think a that I'd recently lot on is X used and we're fly, to environment us resumed was to a past, Los we're Shanghai, days XX Angeles don't And flights daily, I really than that world. that to the different think, and today for is roughly this entirely than just just I

I a RASMs describe about The to full terms what down And would we're of during few situation the from as flights -- back schedule those came is just talking back earlier, what we're normal as to time flying we've in was gone RASM, to week. I significantly the China, now per is RASMs. period pandemic which a where

that our negative so across RASM for quarters. a year-over-year on impact has had number of a And results specific

the the in year. that to pivot an starts And negative continues RASM completely. impact see and will of and in end impact that However, China that hopefully we dissipate, when therefore, and -- this in QX next RASM we into QX comes lap QX

Mary Schlangenstein

Can give China load factor idea an of flights? your us you on the

Andrew Nocella

me, that high not I front enough. don't in but of have

Operator

line Your with next Reuters. question of comes from Singh Rajesh the

Rajesh Singh

Emirates it you does start view? When about recently Clark, the possibility? have affecting you is schedule? Boeing. secondly, Boeing's that that United's President, around that planning question done looming And a horizon contingency on have said Tim price. any Chapter Do I for XX And share

Scott Kirby

hear described. to not but hard you outcome It's the anticipating we're all that, of

Rajesh Singh

when having do strike your does -- And impact an expect schedule? you starts the on

Scott Kirby

Kelly have that delivering. immediate It my said earlier We want encouraged the the to as on term. on I we already when stopped long That's aircraft the in focus term. does. comments, have focused long But to I think -- we're Boeing is but I a has in appreciate for term. recently It the as a is what his as themselves strong impact, short-term long long the focus turnaround that's about. care Boeing yesterday term, positioning on and and talked we

Operator

closing remarks. question-and-answer our to Edwards concludes will call now for over That And Kristina session. back the I turn

Kristina Munoz

and joining we and call if Happy contact have today. you to next the questions, talking further Please to any Halloween. quarter. everyone Relations Investor forward thanks Media you Thanks, Krista, to look

Operator

conclude Ladies and may conference gentlemen, does now for you participation, Thank today's call. this and disconnect. you your

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