FORM 10-Q
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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Commission
File Number
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Exact Name of Registrant as Specified in its Charter,
Principal Executive Office Address and Telephone Number
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State of
Incorporation
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I.R.S. Employer
Identification No.
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001-06033
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United Continental Holdings, Inc.
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Delaware
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36-2675207
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233 South Wacker Drive, Chicago, Illinois 60606
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(872) 825-4000
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001-10323
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United Airlines, Inc.
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Delaware
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74-2099724
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233 South Wacker Drive, Chicago, Illinois 60606
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(872) 825-4000
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United Continental Holdings, Inc.
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Yes
x
No
o
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United Airlines, Inc.
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Yes
x
No
o
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United Continental Holdings, Inc.
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Yes
x
No
o
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United Airlines, Inc.
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Yes
x
No
o
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United Continental Holdings, Inc.
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Large accelerated filer
x
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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Emerging growth company
o
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United Airlines, Inc.
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Large accelerated filer
o
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Accelerated filer
o
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Non-accelerated filer
x
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Smaller reporting company
o
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Emerging growth company
o
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United Continental Holdings, Inc.
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o
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United Airlines, Inc.
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o
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United Continental Holdings, Inc.
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Yes
o
No
x
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United Airlines, Inc.
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Yes
o
No
x
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United Continental Holdings, Inc.
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272,603,972 shares of common stock ($0.01 par value)
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United Airlines, Inc.
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1,000 shares of common stock ($0.01 par value) (100% owned by United Continental Holdings, Inc.)
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Page
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Three Months Ended June 30,
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Six Months Ended June 30,
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||||||||||||
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2018
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2017 (a)
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2018
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2017 (a)
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||||||||
Operating revenue:
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||||||||
Passenger revenue
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$
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9,880
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$
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9,151
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$
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18,030
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$
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16,804
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Cargo
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314
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273
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|
607
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511
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||||
Other operating revenue
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583
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584
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1,172
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1,119
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||||
Total operating revenue
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10,777
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10,008
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19,809
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18,434
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||||||||
Operating expense:
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||||||||
Salaries and related costs
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2,878
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2,842
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5,604
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5,478
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Aircraft fuel
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2,390
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1,669
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4,355
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3,229
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Regional capacity purchase
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681
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549
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1,300
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1,085
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||||
Landing fees and other rent
|
603
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541
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1,161
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1,085
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||||
Depreciation and amortization
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557
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536
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1,098
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1,054
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Aircraft maintenance materials and outside repairs
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438
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472
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878
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926
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||||
Distribution expenses
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393
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|
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385
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735
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704
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||||
Aircraft rent
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119
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152
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246
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331
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||||
Special charges (Note 10)
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129
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44
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|
|
169
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|
|
95
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|
||||
Other operating expenses
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1,428
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1,381
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2,826
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2,690
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||||
Total operating expenses
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9,616
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8,571
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18,372
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16,677
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Operating income
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1,161
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1,437
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1,437
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1,757
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Nonoperating income (expense):
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||||||||
Interest expense
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(177
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)
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(167
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)
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(353
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)
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(329
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)
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Interest capitalized
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14
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21
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33
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44
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Interest income
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25
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13
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42
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24
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Miscellaneous, net
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(166
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)
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(27
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)
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(118
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)
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(69
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)
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Total nonoperating expense, net
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(304
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)
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(160
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)
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(396
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)
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(330
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)
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||||
Income before income taxes
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857
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1,277
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1,041
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1,427
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Income tax expense
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173
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456
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210
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507
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Net income
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$
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684
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$
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821
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$
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831
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$
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920
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Earnings per share, basic
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$
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2.49
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$
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2.67
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$
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2.97
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$
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2.96
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Earnings per share, diluted
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$
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2.48
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$
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2.67
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$
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2.96
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$
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2.96
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Three Months Ended June 30,
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Six Months Ended June 30,
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||||||||||||
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2018
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2017 (a)
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2018
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2017 (a)
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Net income
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$
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684
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$
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821
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$
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831
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$
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920
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Other comprehensive income (loss), net change related to:
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Employee benefit plans, net of taxes
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12
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4
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42
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(4
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)
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||||
Investments and other, net of taxes
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—
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(12
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)
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3
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(11
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)
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Total other comprehensive income (loss), net
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12
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(8
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)
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45
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(15
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)
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Total comprehensive income, net
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$
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696
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$
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813
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$
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876
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$
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905
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June 30, 2018
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December 31, 2017 (a)
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||||
ASSETS
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Current assets:
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Cash and cash equivalents
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$
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2,884
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$
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1,482
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Short-term investments
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2,187
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2,316
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Receivables, less allowance for doubtful accounts (2018 — $7; 2017 — $7)
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1,840
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1,340
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Aircraft fuel, spare parts and supplies, less obsolescence allowance (2018 — $380; 2017 — $354)
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942
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924
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Prepaid expenses and other
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1,028
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1,071
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Total current assets
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8,881
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7,133
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Operating property and equipment:
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Owned—
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Flight equipment
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30,143
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28,692
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Other property and equipment
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7,481
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6,946
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Total owned property and equipment
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37,624
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35,638
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Less — Accumulated depreciation and amortization
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(11,974
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)
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(11,159
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)
|
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Total owned property and equipment, net
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25,650
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24,479
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Purchase deposits for flight equipment
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894
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1,344
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Capital leases—
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|
||||
Flight equipment
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1,224
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1,151
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Other property and equipment
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11
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11
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Total capital leases
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1,235
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1,162
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Less — Accumulated amortization
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(833
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)
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(777
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)
|
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Total capital leases, net
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402
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385
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|
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Total operating property and equipment, net
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26,946
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26,208
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Other assets:
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Goodwill
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4,523
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4,523
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Intangibles, less accumulated amortization (2018 — $1,346; 2017 — $1,313)
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3,399
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3,539
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Restricted cash
|
94
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|
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91
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|
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Investments in affiliates and other, net
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848
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852
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Total other assets
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8,864
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9,005
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|
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Total assets
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$
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44,691
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|
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$
|
42,346
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|
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June 30, 2018
|
|
December 31, 2017 (a)
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
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|
||||
Current liabilities:
|
|
|
|
||||
Advance ticket sales
|
$
|
5,826
|
|
|
$
|
3,940
|
|
Accounts payable
|
2,703
|
|
|
2,196
|
|
||
Frequent flyer deferred revenue
|
2,206
|
|
|
2,192
|
|
||
Accrued salaries and benefits
|
1,782
|
|
|
2,166
|
|
||
Current maturities of long-term debt
|
887
|
|
|
1,565
|
|
||
Current maturities of capital leases
|
117
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|
|
128
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|
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Other
|
571
|
|
|
576
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|
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Total current liabilities
|
14,092
|
|
|
12,763
|
|
||
|
|
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|
||||
Long-term debt
|
12,460
|
|
|
11,703
|
|
||
Long-term obligations under capital leases
|
1,039
|
|
|
996
|
|
||
|
|
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|
||||
Other liabilities and deferred credits:
|
|
|
|
||||
Frequent flyer deferred revenue
|
2,783
|
|
|
2,591
|
|
||
Postretirement benefit liability
|
1,585
|
|
|
1,602
|
|
||
Pension liability
|
1,815
|
|
|
1,921
|
|
||
Deferred income taxes
|
419
|
|
|
204
|
|
||
Lease fair value adjustment, net
|
155
|
|
|
198
|
|
||
Other
|
1,704
|
|
|
1,634
|
|
||
Total other liabilities and deferred credits
|
8,461
|
|
|
8,150
|
|
||
Commitments and contingencies
|
|
|
|
||||
Stockholders' equity:
|
|
|
|
||||
Preferred stock
|
—
|
|
|
—
|
|
||
Common stock at par, $0.01 par value; authorized 1,000,000,000 shares; outstanding 273,017,840 and 286,973,195 shares at June 30, 2018 and December 31, 2017, respectively
|
3
|
|
|
3
|
|
||
Additional capital invested
|
6,091
|
|
|
6,098
|
|
||
Retained earnings
|
5,367
|
|
|
4,549
|
|
||
Stock held in treasury, at cost
|
(1,720
|
)
|
|
(769
|
)
|
||
Accumulated other comprehensive loss
|
(1,102
|
)
|
|
(1,147
|
)
|
||
Total stockholders' equity
|
8,639
|
|
|
8,734
|
|
||
Total liabilities and stockholders' equity
|
$
|
44,691
|
|
|
$
|
42,346
|
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
Cash Flows from Operating Activities:
|
|
|
|
||||
Net cash provided by operating activities
|
$
|
4,175
|
|
|
$
|
2,108
|
|
|
|
|
|
||||
Cash Flows from Investing Activities:
|
|
|
|
||||
Capital expenditures
|
(1,734
|
)
|
|
(1,780
|
)
|
||
Purchases of short-term and other investments
|
(1,326
|
)
|
|
(1,587
|
)
|
||
Proceeds from sale of short-term and other investments
|
1,455
|
|
|
1,561
|
|
||
Investment in affiliates
|
(139
|
)
|
|
—
|
|
||
Proceeds from sale of property and equipment
|
20
|
|
|
5
|
|
||
Other, net
|
7
|
|
|
123
|
|
||
Net cash used in investing activities
|
(1,717
|
)
|
|
(1,678
|
)
|
||
|
|
|
|
||||
Cash Flows from Financing Activities:
|
|
|
|
||||
Proceeds from issuance of long-term debt and airport construction financing
|
1,308
|
|
|
1,139
|
|
||
Repurchases of common stock
|
(969
|
)
|
|
(712
|
)
|
||
Payments of long-term debt
|
(1,294
|
)
|
|
(525
|
)
|
||
Principal payments under capital leases
|
(62
|
)
|
|
(59
|
)
|
||
Other, net
|
(41
|
)
|
|
(75
|
)
|
||
Net cash used in financing activities
|
(1,058
|
)
|
|
(232
|
)
|
||
Net increase in cash, cash equivalents and restricted cash
|
1,400
|
|
|
198
|
|
||
Cash, cash equivalents and restricted cash at beginning of the period
|
1,591
|
|
|
2,303
|
|
||
Cash, cash equivalents and restricted cash at end of the period (a)
|
$
|
2,991
|
|
|
$
|
2,501
|
|
|
|
|
|
||||
Investing and Financing Activities Not Affecting Cash:
|
|
|
|
||||
Property and equipment acquired through the issuance of debt and capital leases
|
$
|
139
|
|
|
$
|
907
|
|
Airport construction financing
|
12
|
|
|
32
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017 (a)
|
|
2018
|
|
2017 (a)
|
||||||||
Operating revenue:
|
|
|
|
|
|
|
|
||||||||
Passenger revenue
|
$
|
9,880
|
|
|
$
|
9,151
|
|
|
$
|
18,030
|
|
|
$
|
16,804
|
|
Cargo
|
314
|
|
|
273
|
|
|
607
|
|
|
511
|
|
||||
Other operating revenue
|
583
|
|
|
584
|
|
|
1,172
|
|
|
1,119
|
|
||||
Total operating revenue
|
10,777
|
|
|
10,008
|
|
|
19,809
|
|
|
18,434
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating expense:
|
|
|
|
|
|
|
|
||||||||
Salaries and related costs
|
2,878
|
|
|
2,842
|
|
|
5,604
|
|
|
5,478
|
|
||||
Aircraft fuel
|
2,390
|
|
|
1,669
|
|
|
4,355
|
|
|
3,229
|
|
||||
Regional capacity purchase
|
681
|
|
|
549
|
|
|
1,300
|
|
|
1,085
|
|
||||
Landing fees and other rent
|
603
|
|
|
541
|
|
|
1,161
|
|
|
1,085
|
|
||||
Depreciation and amortization
|
557
|
|
|
536
|
|
|
1,098
|
|
|
1,054
|
|
||||
Aircraft maintenance materials and outside repairs
|
438
|
|
|
472
|
|
|
878
|
|
|
926
|
|
||||
Distribution expenses
|
393
|
|
|
385
|
|
|
735
|
|
|
704
|
|
||||
Aircraft rent
|
119
|
|
|
152
|
|
|
246
|
|
|
331
|
|
||||
Special charges (Note 10)
|
129
|
|
|
44
|
|
|
169
|
|
|
95
|
|
||||
Other operating expenses
|
1,428
|
|
|
1,380
|
|
|
2,825
|
|
|
2,689
|
|
||||
Total operating expense
|
9,616
|
|
|
8,570
|
|
|
18,371
|
|
|
16,676
|
|
||||
Operating income
|
1,161
|
|
|
1,438
|
|
|
1,438
|
|
|
1,758
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Nonoperating income (expense):
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
(177
|
)
|
|
(167
|
)
|
|
(353
|
)
|
|
(329
|
)
|
||||
Interest capitalized
|
14
|
|
|
21
|
|
|
33
|
|
|
44
|
|
||||
Interest income
|
25
|
|
|
13
|
|
|
42
|
|
|
24
|
|
||||
Miscellaneous, net
|
(167
|
)
|
|
(28
|
)
|
|
(119
|
)
|
|
(69
|
)
|
||||
Total nonoperating expense, net
|
(305
|
)
|
|
(161
|
)
|
|
(397
|
)
|
|
(330
|
)
|
||||
Income before income taxes
|
856
|
|
|
1,277
|
|
|
1,041
|
|
|
1,428
|
|
||||
Income tax expense
|
172
|
|
|
457
|
|
|
210
|
|
|
508
|
|
||||
Net income
|
$
|
684
|
|
|
$
|
820
|
|
|
$
|
831
|
|
|
$
|
920
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017 (a)
|
|
2018
|
|
2017 (a)
|
||||||||
Net income
|
$
|
684
|
|
|
$
|
820
|
|
|
$
|
831
|
|
|
$
|
920
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss), net change related to:
|
|
|
|
|
|
|
|
||||||||
Employee benefit plans, net of taxes
|
12
|
|
|
4
|
|
|
42
|
|
|
(4
|
)
|
||||
Investments and other, net of taxes
|
—
|
|
|
(12
|
)
|
|
3
|
|
|
(11
|
)
|
||||
Total other comprehensive income (loss), net
|
12
|
|
|
(8
|
)
|
|
45
|
|
|
(15
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Total comprehensive income, net
|
$
|
696
|
|
|
$
|
812
|
|
|
$
|
876
|
|
|
$
|
905
|
|
|
June 30, 2018
|
|
December 31, 2017 (a)
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
2,878
|
|
|
$
|
1,476
|
|
Short-term investments
|
2,187
|
|
|
2,316
|
|
||
Receivables, less allowance for doubtful accounts (2018 — $7; 2017 — $7)
|
1,840
|
|
|
1,340
|
|
||
Aircraft fuel, spare parts and supplies, less obsolescence allowance (2018 — $380; 2017 — $354)
|
942
|
|
|
924
|
|
||
Prepaid expenses and other
|
1,028
|
|
|
1,071
|
|
||
Total current assets
|
8,875
|
|
|
7,127
|
|
||
Operating property and equipment:
|
|
|
|
||||
Owned—
|
|
|
|
||||
Flight equipment
|
30,143
|
|
|
28,692
|
|
||
Other property and equipment
|
7,481
|
|
|
6,946
|
|
||
Total owned property and equipment
|
37,624
|
|
|
35,638
|
|
||
Less — Accumulated depreciation and amortization
|
(11,974
|
)
|
|
(11,159
|
)
|
||
Total owned property and equipment, net
|
25,650
|
|
|
24,479
|
|
||
|
|
|
|
||||
Purchase deposits for flight equipment
|
894
|
|
|
1,344
|
|
||
|
|
|
|
||||
Capital leases—
|
|
|
|
||||
Flight equipment
|
1,224
|
|
|
1,151
|
|
||
Other property and equipment
|
11
|
|
|
11
|
|
||
Total capital leases
|
1,235
|
|
|
1,162
|
|
||
Less — Accumulated amortization
|
(833
|
)
|
|
(777
|
)
|
||
Total capital leases, net
|
402
|
|
|
385
|
|
||
Total operating property and equipment, net
|
26,946
|
|
|
26,208
|
|
||
Other assets:
|
|
|
|
||||
Goodwill
|
4,523
|
|
|
4,523
|
|
||
Intangibles, less accumulated amortization (2018 — $1,346; 2017 — $1,313)
|
3,399
|
|
|
3,539
|
|
||
Restricted cash
|
94
|
|
|
91
|
|
||
Investments in affiliates and other, net
|
848
|
|
|
852
|
|
||
Total other assets
|
8,864
|
|
|
9,005
|
|
||
Total assets
|
$
|
44,685
|
|
|
$
|
42,340
|
|
|
June 30, 2018
|
|
December 31, 2017 (a)
|
||||
LIABILITIES AND STOCKHOLDER'S EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Advance ticket sales
|
$
|
5,826
|
|
|
$
|
3,940
|
|
Accounts payable
|
2,703
|
|
|
2,196
|
|
||
Frequent flyer deferred revenue
|
2,206
|
|
|
2,192
|
|
||
Accrued salaries and benefits
|
1,782
|
|
|
2,166
|
|
||
Current maturities of long-term debt
|
887
|
|
|
1,565
|
|
||
Current maturities of capital leases
|
117
|
|
|
128
|
|
||
Other
|
575
|
|
|
581
|
|
||
Total current liabilities
|
14,096
|
|
|
12,768
|
|
||
|
|
|
|
||||
Long-term debt
|
12,460
|
|
|
11,703
|
|
||
Long-term obligations under capital leases
|
1,039
|
|
|
996
|
|
||
|
|
|
|
||||
Other liabilities and deferred credits:
|
|
|
|
||||
Frequent flyer deferred revenue
|
2,783
|
|
|
2,591
|
|
||
Postretirement benefit liability
|
1,585
|
|
|
1,602
|
|
||
Pension liability
|
1,815
|
|
|
1,921
|
|
||
Deferred income taxes
|
446
|
|
|
231
|
|
||
Lease fair value adjustment, net
|
155
|
|
|
198
|
|
||
Other
|
1,704
|
|
|
1,634
|
|
||
Total other liabilities and deferred credits
|
8,488
|
|
|
8,177
|
|
||
Commitments and contingencies
|
|
|
|
||||
Stockholder's equity:
|
|
|
|
||||
Common stock at par, $0.01 par value; authorized 1,000 shares; issued and outstanding 1,000 shares at both June 30, 2018 and December 31, 2017
|
—
|
|
|
—
|
|
||
Additional capital invested
|
841
|
|
|
1,787
|
|
||
Retained earnings
|
8,971
|
|
|
8,146
|
|
||
Accumulated other comprehensive loss
|
(1,102
|
)
|
|
(1,147
|
)
|
||
Receivable from related parties
|
(108
|
)
|
|
(90
|
)
|
||
Total stockholder's equity
|
8,602
|
|
|
8,696
|
|
||
Total liabilities and stockholder's equity
|
$
|
44,685
|
|
|
$
|
42,340
|
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
|
|
|
|
||||
Cash Flows from Operating Activities:
|
|
|
|
||||
Net cash provided by operating activities
|
$
|
4,158
|
|
|
$
|
2,095
|
|
|
|
|
|
||||
Cash Flows from Investing Activities:
|
|
|
|
||||
Capital expenditures
|
(1,734
|
)
|
|
(1,780
|
)
|
||
Purchases of short-term investments and other investments
|
(1,326
|
)
|
|
(1,587
|
)
|
||
Proceeds from sale of short-term and other investments
|
1,455
|
|
|
1,561
|
|
||
Investment in affiliates
|
(139
|
)
|
|
—
|
|
||
Proceeds from sale of property and equipment
|
20
|
|
|
5
|
|
||
Other, net
|
7
|
|
|
123
|
|
||
Net cash used in investing activities
|
(1,717
|
)
|
|
(1,678
|
)
|
||
|
|
|
|
||||
Cash Flows from Financing Activities:
|
|
|
|
||||
Proceeds from issuance of long-term debt and airport construction financing
|
1,308
|
|
|
1,139
|
|
||
Dividend to UAL
|
(969
|
)
|
|
(712
|
)
|
||
Payments of long-term debt
|
(1,294
|
)
|
|
(525
|
)
|
||
Principal payments under capital leases
|
(62
|
)
|
|
(59
|
)
|
||
Other, net
|
(24
|
)
|
|
(62
|
)
|
||
Net cash used in financing activities
|
(1,041
|
)
|
|
(219
|
)
|
||
Net increase in cash, cash equivalents and restricted cash
|
1,400
|
|
|
198
|
|
||
Cash, cash equivalents and restricted cash at beginning of the period
|
1,585
|
|
|
2,297
|
|
||
Cash, cash equivalents and restricted cash at end of the period (a)
|
$
|
2,985
|
|
|
$
|
2,495
|
|
|
|
|
|
||||
Investing and Financing Activities Not Affecting Cash:
|
|
|
|
||||
Property and equipment acquired through the issuance of debt and capital leases
|
$
|
139
|
|
|
$
|
907
|
|
Airport construction financing
|
12
|
|
|
32
|
|
|
|
Three Months Ended June 30, 2017
|
||||||||||||||
|
|
As Previously Reported
|
|
New Revenue
Standard
Adjustments
|
|
New Retirement
Standard
Adjustments
|
|
As Adjusted
|
||||||||
Passenger revenue
|
|
$
|
8,622
|
|
|
$
|
529
|
|
|
$
|
—
|
|
|
$
|
9,151
|
|
Cargo
|
|
254
|
|
|
19
|
|
|
—
|
|
|
273
|
|
||||
Other operating revenue
|
|
1,124
|
|
|
(540
|
)
|
|
—
|
|
|
584
|
|
||||
Total operating revenue
|
|
10,000
|
|
|
8
|
|
|
—
|
|
|
10,008
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Salaries and related costs
|
|
2,868
|
|
|
—
|
|
|
(26
|
)
|
|
2,842
|
|
||||
Distribution expenses
|
|
362
|
|
|
23
|
|
|
—
|
|
|
385
|
|
||||
Other operating expenses
|
|
1,408
|
|
|
(27
|
)
|
|
—
|
|
|
1,381
|
|
||||
Total operating expenses
|
|
8,601
|
|
|
(4
|
)
|
|
(26
|
)
|
|
8,571
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Operating income
|
|
1,399
|
|
|
12
|
|
|
26
|
|
|
1,437
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
|
(158
|
)
|
|
(9
|
)
|
|
—
|
|
|
(167
|
)
|
||||
Miscellaneous, net
|
|
(1
|
)
|
|
—
|
|
|
(26
|
)
|
|
(27
|
)
|
||||
Total nonoperating expense, net
|
|
(125
|
)
|
|
(9
|
)
|
|
(26
|
)
|
|
(160
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes
|
|
1,274
|
|
|
3
|
|
|
—
|
|
|
1,277
|
|
||||
Income tax expense
|
|
456
|
|
|
—
|
|
|
—
|
|
|
456
|
|
||||
Net income
|
|
818
|
|
|
3
|
|
|
—
|
|
|
821
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share, basic
|
|
2.67
|
|
|
—
|
|
|
—
|
|
|
2.67
|
|
||||
Earnings per share, diluted
|
|
2.66
|
|
|
0.01
|
|
|
—
|
|
|
2.67
|
|
|
|
Six Months Ended June 30, 2017
|
||||||||||||||
|
|
As Previously Reported
|
|
New Revenue
Standard
Adjustments
|
|
New Retirement
Standard
Adjustments
|
|
As Adjusted
|
||||||||
Passenger revenue
|
|
$
|
15,796
|
|
|
$
|
1,008
|
|
|
$
|
—
|
|
|
$
|
16,804
|
|
Cargo
|
|
474
|
|
|
37
|
|
|
—
|
|
|
511
|
|
||||
Other operating revenue
|
|
2,150
|
|
|
(1,031
|
)
|
|
—
|
|
|
1,119
|
|
||||
Total operating revenue
|
|
18,420
|
|
|
14
|
|
|
—
|
|
|
18,434
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Salaries and related costs
|
|
5,529
|
|
|
—
|
|
|
(51
|
)
|
|
5,478
|
|
||||
Distribution expenses
|
|
669
|
|
|
35
|
|
|
—
|
|
|
704
|
|
||||
Other operating expenses
|
|
2,740
|
|
|
(50
|
)
|
|
—
|
|
|
2,690
|
|
||||
Total operating expenses
|
|
16,743
|
|
|
(15
|
)
|
|
(51
|
)
|
|
16,677
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Operating income
|
|
1,677
|
|
|
29
|
|
|
51
|
|
|
1,757
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
|
(308
|
)
|
|
(21
|
)
|
|
—
|
|
|
(329
|
)
|
||||
Miscellaneous, net
|
|
(18
|
)
|
|
—
|
|
|
(51
|
)
|
|
(69
|
)
|
||||
Total nonoperating expense, net
|
|
(258
|
)
|
|
(21
|
)
|
|
(51
|
)
|
|
(330
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes
|
|
1,419
|
|
|
8
|
|
|
—
|
|
|
1,427
|
|
||||
Income tax expense
|
|
505
|
|
|
2
|
|
|
—
|
|
|
507
|
|
||||
Net income
|
|
914
|
|
|
6
|
|
|
—
|
|
|
920
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share, basic
|
|
2.95
|
|
|
0.01
|
|
|
—
|
|
|
2.96
|
|
||||
Earnings per share, diluted
|
|
2.94
|
|
|
0.02
|
|
|
—
|
|
|
2.96
|
|
|
|
At December 31, 2017
|
||||||||||
|
|
As Previously Reported
|
|
New Revenue Standard
Adjustments
|
|
As Adjusted
|
||||||
Prepaid expenses and other
|
|
$
|
1,051
|
|
|
$
|
20
|
|
|
$
|
1,071
|
|
Total current assets
|
|
7,113
|
|
|
20
|
|
|
7,133
|
|
|||
Total assets
|
|
42,326
|
|
|
20
|
|
|
42,346
|
|
Advance ticket sales
|
|
3,876
|
|
|
64
|
|
|
3,940
|
|
Frequent flyer deferred revenue
|
|
2,176
|
|
|
16
|
|
|
2,192
|
|
Other
|
|
569
|
|
|
7
|
|
|
576
|
|
Total current liabilities
|
|
12,676
|
|
|
87
|
|
|
12,763
|
|
|
|
|
|
|
|
|
|||
Frequent flyer deferred revenue - long-term
|
|
2,565
|
|
|
26
|
|
|
2,591
|
|
Deferred income taxes
|
|
225
|
|
|
(21
|
)
|
|
204
|
|
Total other liabilities and deferred credits
|
|
8,145
|
|
|
5
|
|
|
8,150
|
|
|
|
|
|
|
|
|
|||
Retained earnings
|
|
4,621
|
|
|
(72
|
)
|
|
4,549
|
|
Total stockholders' equity
|
|
8,806
|
|
|
(72
|
)
|
|
8,734
|
|
Total liabilities and stockholders' equity
|
|
42,326
|
|
|
20
|
|
|
42,346
|
|
•
|
MileagePlus miles awarded - United has a performance obligation to provide MileagePlus cardholders with miles to be used for air travel and non-travel award redemptions. The Company records Passenger revenue related to the travel awards when the transportation is provided and records Other revenue related to the non-travel awards when the goods or services are delivered. The Company records the cost associated with non-travel awards in Other operating revenue.
|
•
|
Marketing - United's performance obligation is to provide Chase access to its customer list and the use of its brand. United determined access to its customer list and use of the United brand constitute a single performance obligation by virtue of being highly interdependent and interrelated. Marketing revenue is recorded to Other operating revenue over the term of the co-brand agreement based on customers' use of the MileagePlus credit card.
|
•
|
Advertising - United has a performance obligation to provide advertising in support of the MileagePlus card in various customer contact points such as United's website, email promotions, direct mail campaigns, airport advertising and in-flight advertising. Advertising revenue is recorded to Other operating revenue as advertising is provided over the term of the co-brand agreement in accordance with customers' use of the MileagePlus credit card.
|
•
|
Other travel-related benefits - United's performance obligations are comprised of various items such as waived bag fees, seat upgrades, and lounge passes. Lounge passes are recorded to Other operating revenue as customers use the lounge passes. Bag fees and seat upgrades are recorded to Passenger revenue at the time of the associated travel.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Total Frequent flyer deferred revenue - beginning balance
|
$
|
4,937
|
|
|
$
|
4,940
|
|
|
$
|
4,783
|
|
|
$
|
4,889
|
|
Total miles awarded
|
607
|
|
|
531
|
|
|
1,210
|
|
|
1,019
|
|
||||
Travel miles redeemed (Passenger revenue)
|
(519
|
)
|
|
(535
|
)
|
|
(928
|
)
|
|
(933
|
)
|
||||
Non-travel miles redeemed (Other operating revenue)
|
(36
|
)
|
|
(45
|
)
|
|
(76
|
)
|
|
(84
|
)
|
||||
Total Frequent flyer deferred revenue - ending balance
|
$
|
4,989
|
|
|
$
|
4,891
|
|
|
$
|
4,989
|
|
|
$
|
4,891
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Mainline
|
$
|
4,395
|
|
|
$
|
4,043
|
|
|
$
|
7,881
|
|
|
$
|
7,315
|
|
Regional
|
1,786
|
|
|
1,615
|
|
|
3,269
|
|
|
2,994
|
|
||||
Domestic
|
6,181
|
|
|
5,658
|
|
|
11,150
|
|
|
10,309
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Atlantic
|
1,824
|
|
|
1,615
|
|
|
3,076
|
|
|
2,732
|
|
||||
Pacific
|
1,103
|
|
|
1,064
|
|
|
2,172
|
|
|
2,117
|
|
||||
Latin America
|
772
|
|
|
814
|
|
|
1,632
|
|
|
1,646
|
|
||||
International
|
3,699
|
|
|
3,493
|
|
|
6,880
|
|
|
6,495
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Consolidated
|
$
|
9,880
|
|
|
$
|
9,151
|
|
|
$
|
18,030
|
|
|
$
|
16,804
|
|
|
|
|
|
|
|
|
|
||||||||
Mainline
|
8,045
|
|
|
7,492
|
|
|
14,661
|
|
|
13,719
|
|
||||
Regional
|
1,835
|
|
|
1,659
|
|
|
3,369
|
|
|
3,085
|
|
||||
Consolidated
|
$
|
9,880
|
|
|
$
|
9,151
|
|
|
$
|
18,030
|
|
|
$
|
16,804
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Earnings available to common stockholders
|
$
|
684
|
|
|
$
|
821
|
|
|
$
|
831
|
|
|
$
|
920
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted-average shares outstanding
|
274.7
|
|
|
306.9
|
|
|
279.3
|
|
|
310.3
|
|
||||
Effect of employee stock awards
|
0.9
|
|
|
0.8
|
|
|
0.9
|
|
|
0.8
|
|
||||
Diluted weighted-average shares outstanding
|
275.6
|
|
|
307.7
|
|
|
280.2
|
|
|
311.1
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings per share, basic
|
$
|
2.49
|
|
|
$
|
2.67
|
|
|
$
|
2.97
|
|
|
$
|
2.96
|
|
Earnings per share, diluted
|
$
|
2.48
|
|
|
$
|
2.67
|
|
|
$
|
2.96
|
|
|
$
|
2.96
|
|
UAL
|
|
Pension and Other Postretirement Liabilities
|
|
Investments and Other
|
|
Income Taxes
|
|
Total
|
|||||||||
Balance at March 31, 2018
|
|
$
|
(1,063
|
)
|
|
$
|
(3
|
)
|
|
$
|
(48
|
)
|
|
$
|
(1,114
|
)
|
|
Changes in value
|
|
1
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|||||
Amounts reclassified to earnings
|
|
14
|
|
|
—
|
|
|
(4
|
)
|
|
10
|
|
|||||
Net change
|
|
15
|
|
|
1
|
|
|
(4
|
)
|
|
12
|
|
|||||
Balance at June 30, 2018
|
|
$
|
(1,048
|
)
|
|
$
|
(2
|
)
|
|
$
|
(52
|
)
|
|
$
|
(1,102
|
)
|
|
Balance at December 31, 2017
|
|
$
|
(1,102
|
)
|
|
$
|
(6
|
)
|
|
$
|
(39
|
)
|
|
$
|
(1,147
|
)
|
|
Changes in value
|
|
24
|
|
|
(3
|
)
|
|
(6
|
)
|
|
15
|
|
|||||
Amounts reclassified to earnings
|
|
30
|
|
|
—
|
|
|
(7
|
)
|
|
23
|
|
|||||
Amounts reclassified to retained earnings
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|||||
Net change
|
|
54
|
|
|
4
|
|
|
(13
|
)
|
|
45
|
|
|||||
Balance at June 30, 2018
|
|
$
|
(1,048
|
)
|
|
$
|
(2
|
)
|
|
$
|
(52
|
)
|
|
$
|
(1,102
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance at March 31, 2017
|
|
$
|
(867
|
)
|
|
$
|
1
|
|
|
$
|
30
|
|
|
$
|
(836
|
)
|
|
Changes in value
|
|
(7
|
)
|
|
(17
|
)
|
|
8
|
|
|
(16
|
)
|
|||||
Amounts reclassified to earnings
|
|
14
|
|
|
—
|
|
|
(6
|
)
|
|
8
|
|
|||||
Net change
|
|
7
|
|
|
(17
|
)
|
|
2
|
|
|
(8
|
)
|
|||||
Balance at June 30, 2017
|
|
$
|
(860
|
)
|
|
$
|
(16
|
)
|
|
$
|
32
|
|
|
$
|
(844
|
)
|
|
Balance at December 31, 2016
|
|
$
|
(854
|
)
|
|
$
|
(1
|
)
|
|
$
|
26
|
|
|
$
|
(829
|
)
|
|
Changes in value
|
|
(33
|
)
|
|
(17
|
)
|
|
18
|
|
|
(32
|
)
|
|||||
Amounts reclassified to earnings
|
|
27
|
|
|
2
|
|
|
(12
|
)
|
|
17
|
|
|||||
Net change
|
|
(6
|
)
|
|
(15
|
)
|
|
6
|
|
|
(15
|
)
|
|||||
Balance at June 30, 2017
|
|
$
|
(860
|
)
|
|
$
|
(16
|
)
|
|
$
|
32
|
|
|
$
|
(844
|
)
|
Details for AOCI Components Reclassified to Income
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
Affected Line Item
in the Statements of
Consolidated Operations
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
||||||||
Pension and other postretirement liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||
Amortization of unrecognized losses and prior service cost
(a)
|
|
$
|
14
|
|
|
$
|
14
|
|
|
$
|
30
|
|
|
$
|
27
|
|
|
Miscellaneous, net
|
Investments and Other
|
|
|
|
|
|
|
|
|
|
|
||||||||
Reclassifications of losses into earnings related to fuel derivative contracts
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
Aircraft fuel
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
|
Affected Line Item
in the Statements of Consolidated Operations |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
||||||||
Service cost
|
|
$
|
57
|
|
|
$
|
49
|
|
|
$
|
3
|
|
|
$
|
4
|
|
|
Salaries and related costs
|
Interest cost
|
|
54
|
|
|
55
|
|
|
15
|
|
|
17
|
|
|
Miscellaneous, net
|
||||
Expected return on plan assets
|
|
(73
|
)
|
|
(61
|
)
|
|
—
|
|
|
(1
|
)
|
|
Miscellaneous, net
|
||||
Amortization of unrecognized (gain) loss and prior service cost (credit)
|
|
32
|
|
|
32
|
|
|
(18
|
)
|
|
(18
|
)
|
|
Miscellaneous, net
|
||||
Settlement loss
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
Miscellaneous, net
|
||||
Total
|
|
$
|
70
|
|
|
$
|
76
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
|
Affected Line Item
in the Statements of Consolidated Operations |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
||||||||
Service cost
|
|
$
|
114
|
|
|
$
|
98
|
|
|
$
|
6
|
|
|
$
|
6
|
|
|
Salaries and related costs
|
Interest cost
|
|
108
|
|
|
110
|
|
|
30
|
|
|
34
|
|
|
Miscellaneous, net
|
||||
Expected return on plan assets
|
|
(146
|
)
|
|
(121
|
)
|
|
—
|
|
|
(1
|
)
|
|
Miscellaneous, net
|
||||
Amortization of unrecognized (gain) loss and prior service cost (credit)
|
|
65
|
|
|
63
|
|
|
(35
|
)
|
|
(36
|
)
|
|
Miscellaneous, net
|
||||
Settlement loss
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
Miscellaneous, net
|
||||
Total
|
|
$
|
141
|
|
|
$
|
152
|
|
|
$
|
1
|
|
|
$
|
3
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Share-based compensation expense
|
$
|
27
|
|
|
$
|
33
|
|
|
$
|
44
|
|
|
$
|
56
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
June 30, 2018
|
|
December 31, 2017
|
|
|
|
|
||||||||
Unrecognized share-based compensation
|
$
|
86
|
|
|
$
|
53
|
|
|
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||||||
Cash and cash equivalents
|
$
|
2,884
|
|
|
$
|
2,884
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,482
|
|
|
$
|
1,482
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Corporate debt
|
958
|
|
|
—
|
|
|
958
|
|
|
—
|
|
|
958
|
|
|
—
|
|
|
958
|
|
|
—
|
|
||||||||
Asset-backed securities
|
722
|
|
|
—
|
|
|
722
|
|
|
—
|
|
|
753
|
|
|
—
|
|
|
753
|
|
|
—
|
|
||||||||
U.S. government and agency notes
|
102
|
|
|
—
|
|
|
102
|
|
|
—
|
|
|
113
|
|
|
—
|
|
|
113
|
|
|
—
|
|
||||||||
Certificates of deposit placed through an account registry service ("CDARS")
|
49
|
|
|
—
|
|
|
49
|
|
|
—
|
|
|
120
|
|
|
—
|
|
|
120
|
|
|
—
|
|
||||||||
Other fixed-income securities
|
170
|
|
|
—
|
|
|
170
|
|
|
—
|
|
|
188
|
|
|
—
|
|
|
188
|
|
|
—
|
|
||||||||
Other investments measured at net asset value ("NAV")
|
186
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
184
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Restricted cash
|
107
|
|
|
107
|
|
|
—
|
|
|
—
|
|
|
109
|
|
|
109
|
|
|
—
|
|
|
—
|
|
||||||||
Long-term investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equity securities
|
147
|
|
|
147
|
|
|
—
|
|
|
—
|
|
|
99
|
|
|
99
|
|
|
—
|
|
|
—
|
|
||||||||
Enhanced equipment trust certificates ("EETC")
|
19
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
22
|
|
Description
|
|
Fair Value Methodology
|
Cash and cash equivalents
|
|
The carrying amounts approximate fair value because of the short-term maturity of these assets.
|
|
|
|
Short-term investments,
Equity securities, EETC and
Restricted cash
|
|
Fair value is based on (a) the trading prices of the investment or similar instruments, (b) an income approach, which uses valuation techniques to convert future amounts into a single present amount based on current market expectations about those future amounts when observable trading prices are not available, or (c) broker quotes obtained by third-party valuation services.
|
|
|
|
Other investments measured at NAV
|
|
In accordance with the relevant accounting standards, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. The investments measured using NAV are shares of mutual funds that invest in fixed-income instruments including bonds, debt securities, and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities. The Company can redeem its shares at any time at NAV subject to a three-day settlement period.
|
|
|
|
Long-term debt
|
|
Fair values were based on either market prices or the discounted amount of future cash flows using our current incremental rate of borrowing for similar liabilities.
|
Aircraft Type
|
|
Number of Firm
Commitments (a) |
|
Airbus A350
|
|
45
|
|
Boeing 737 MAX
|
|
155
|
|
Boeing 777-300ER
|
|
1
|
|
Boeing 787
|
|
18
|
|
(a) United also has options, purchase and other rights for additional aircraft.
|
|
|
(in billions)
|
||
Last six months of 2018
|
|
$
|
1.7
|
|
2019
|
|
3.3
|
|
|
2020
|
|
3.0
|
|
|
2021
|
|
2.8
|
|
|
2022
|
|
1.8
|
|
|
After 2022
|
|
9.8
|
|
|
|
|
$
|
22.4
|
|
|
|
Facility and Other Operating Leases
|
||
Last six months of 2018
|
|
$
|
689
|
|
2019
|
|
1,244
|
|
|
2020
|
|
1,338
|
|
|
2021
|
|
1,104
|
|
|
2022
|
|
966
|
|
|
After 2022
|
|
7,934
|
|
|
|
|
$
|
13,275
|
|
EETC Date
|
|
Class
|
|
Principal
|
|
Final expected distribution date
|
|
Stated interest rate
|
|
Total proceeds received
from issuance of debt
during 2018 and
recorded as debt as of
June 30, 2018
|
|
||||
February 2018
|
|
AA
|
|
$
|
677
|
|
|
March 2030
|
|
3.50%
|
|
$
|
677
|
|
|
February 2018
|
|
A
|
|
258
|
|
|
March 2030
|
|
3.70%
|
|
258
|
|
|
||
May 2018
|
|
B
|
|
226
|
|
|
March 2026
|
|
4.60%
|
|
226
|
|
|
||
|
|
|
|
$
|
1,161
|
|
|
|
|
|
|
$
|
1,161
|
|
|
Last six months of 2018
|
|
$
|
394
|
|
2019
|
|
1,244
|
|
|
2020
|
|
1,242
|
|
|
2021
|
|
1,230
|
|
|
2022
|
|
1,565
|
|
|
After 2022
|
|
7,838
|
|
|
|
|
$
|
13,513
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
Operating:
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Impairment of assets
|
$
|
111
|
|
|
$
|
—
|
|
|
$
|
134
|
|
|
$
|
—
|
|
Severance and benefit costs
|
11
|
|
|
41
|
|
|
25
|
|
|
78
|
|
||||
(Gains) losses on sale of assets and other special charges
|
7
|
|
|
3
|
|
|
10
|
|
|
17
|
|
||||
Special charges
|
129
|
|
|
44
|
|
|
169
|
|
|
95
|
|
||||
Income tax benefit related to special charges
|
(29
|
)
|
|
(16
|
)
|
|
(38
|
)
|
|
(34
|
)
|
||||
Total special charges, net of tax
|
$
|
100
|
|
|
$
|
28
|
|
|
$
|
131
|
|
|
$
|
61
|
|
|
Severance and Benefits
|
|
Permanently Grounded Aircraft
|
||||
Balance at December 31, 2017
|
$
|
37
|
|
|
$
|
22
|
|
Accrual
|
25
|
|
|
—
|
|
||
Payments
|
(34
|
)
|
|
(2
|
)
|
||
Balance at June 30, 2018
|
$
|
28
|
|
|
$
|
20
|
|
|
Severance and Benefits
|
|
Permanently Grounded Aircraft
|
||||
Balance at December 31, 2016
|
$
|
14
|
|
|
$
|
41
|
|
Accrual
|
78
|
|
|
—
|
|
||
Payments
|
(65
|
)
|
|
(12
|
)
|
||
Balance at June 30, 2017
|
$
|
27
|
|
|
$
|
29
|
|
•
|
Second quarter
2018
net income was
$684 million
, or
$2.48
diluted earnings per share, as compared to net income of
$821 million
, or diluted earnings per share of $2.67, in the
second quarter
of
2017
.
|
•
|
Passenger revenue increased
8.0%
to
$9.9 billion
during the
second quarter
of
2018
as compared to the
second quarter
of
2017
.
|
•
|
Second quarter
2018
aircraft fuel cost increased $
721 million
,
43.2%
year-over-year.
|
•
|
In the
three months ended June 30, 2018
, UAL repurchased approximately
5.9 million
shares of its common stock in open market transactions for
$407 million
. As of
June 30, 2018
, the Company had approximately
$2.0 billion
remaining to purchase shares under its share repurchase program.
|
•
|
Consolidated traffic increased
6.4%
and consolidated capacity increased
4.8%
during the
second quarter
of
2018
as compared to the
second quarter
of
2017
. The Company's load factor for the
second quarter
of
2018
was
84.8%
.
|
•
|
Completed the best second-quarter on-time departure performance in United's history.
|
|
|
2018
|
|
2017
|
|
Increase (Decrease)
|
|
% Change
|
|||||||
Operating revenue
|
|
$
|
10,777
|
|
|
$
|
10,008
|
|
|
$
|
769
|
|
|
7.7
|
|
Operating expense
|
|
9,616
|
|
|
8,571
|
|
|
1,045
|
|
|
12.2
|
|
|||
Operating income
|
|
1,161
|
|
|
1,437
|
|
|
(276
|
)
|
|
(19.2
|
)
|
|||
Nonoperating expense
|
|
(304
|
)
|
|
(160
|
)
|
|
144
|
|
|
90.0
|
|
|||
Income tax expense
|
|
173
|
|
|
456
|
|
|
(283
|
)
|
|
(62.1
|
)
|
|||
Net income
|
|
$
|
684
|
|
|
$
|
821
|
|
|
$
|
(137
|
)
|
|
(16.7
|
)
|
|
2018
|
|
2017
|
|
Increase (Decrease)
|
|
% Change
|
|||||||
Passenger revenue
|
$
|
9,880
|
|
|
$
|
9,151
|
|
|
$
|
729
|
|
|
8.0
|
|
Cargo
|
314
|
|
|
273
|
|
|
41
|
|
|
15.0
|
|
|||
Other operating revenue
|
583
|
|
|
584
|
|
|
(1
|
)
|
|
(0.2
|
)
|
|||
Total operating revenue
|
$
|
10,777
|
|
|
$
|
10,008
|
|
|
$
|
769
|
|
|
7.7
|
|
|
Domestic
|
|
Atlantic
|
|
Pacific
|
|
Latin
|
|
Consolidated
|
||||||||||
Increase (decrease) from 2017:
|
|
|
|
|
|
|
|
|
|
||||||||||
Passenger revenue (in millions)
|
$
|
523
|
|
|
$
|
209
|
|
|
$
|
39
|
|
|
$
|
(42
|
)
|
|
$
|
729
|
|
Passenger revenue
|
9.2
|
%
|
|
12.9
|
%
|
|
3.7
|
%
|
|
(5.2
|
)%
|
|
8.0
|
%
|
|||||
Average fare per passenger
|
—
|
%
|
|
1.3
|
%
|
|
12.7
|
%
|
|
0.4
|
%
|
|
0.6
|
%
|
|||||
Yield
|
1.3
|
%
|
|
0.9
|
%
|
|
4.3
|
%
|
|
(4.2
|
)%
|
|
1.5
|
%
|
|||||
PRASM
|
1.7
|
%
|
|
7.9
|
%
|
|
3.4
|
%
|
|
(2.9
|
)%
|
|
3.0
|
%
|
|||||
Passengers
|
9.2
|
%
|
|
11.5
|
%
|
|
(8.0
|
)%
|
|
(5.5
|
)%
|
|
7.3
|
%
|
|||||
RPMs (traffic)
|
7.8
|
%
|
|
11.9
|
%
|
|
(0.6
|
)%
|
|
(1.0
|
)%
|
|
6.4
|
%
|
|||||
ASMs (capacity)
|
7.4
|
%
|
|
4.7
|
%
|
|
0.2
|
%
|
|
(2.3
|
)%
|
|
4.8
|
%
|
|||||
Passenger load factor (points)
|
0.3
|
|
|
5.2
|
|
|
(0.7)
|
|
|
1.1
|
|
|
1.3
|
|
|
2018
|
|
2017
|
|
Increase (Decrease)
|
|
% Change
|
|||||||
Salaries and related costs
|
$
|
2,878
|
|
|
$
|
2,842
|
|
|
$
|
36
|
|
|
1.3
|
|
Aircraft fuel
|
2,390
|
|
|
1,669
|
|
|
721
|
|
|
43.2
|
|
|||
Regional capacity purchase
|
681
|
|
|
549
|
|
|
132
|
|
|
24.0
|
|
|||
Landing fees and other rent
|
603
|
|
|
541
|
|
|
62
|
|
|
11.5
|
|
|||
Depreciation and amortization
|
557
|
|
|
536
|
|
|
21
|
|
|
3.9
|
|
|||
Aircraft maintenance materials and outside repairs
|
438
|
|
|
472
|
|
|
(34
|
)
|
|
(7.2
|
)
|
|||
Distribution expenses
|
393
|
|
|
385
|
|
|
8
|
|
|
2.1
|
|
|||
Aircraft rent
|
119
|
|
|
152
|
|
|
(33
|
)
|
|
(21.7
|
)
|
|||
Special charges
|
129
|
|
|
44
|
|
|
85
|
|
|
NM
|
|
|||
Other operating expenses
|
1,428
|
|
|
1,381
|
|
|
47
|
|
|
3.4
|
|
|||
Total operating expenses
|
$
|
9,616
|
|
|
$
|
8,571
|
|
|
$
|
1,045
|
|
|
12.2
|
|
|
2018
|
|
2017
|
||||
Impairment of assets
|
$
|
111
|
|
|
$
|
—
|
|
Severance and benefit costs
|
11
|
|
|
41
|
|
||
(Gains) losses on sale of assets and other special charges
|
7
|
|
|
3
|
|
||
Special charges
|
$
|
129
|
|
|
$
|
44
|
|
|
2018
|
|
2017
|
|
Increase (Decrease)
|
|
% Change
|
|||||||
Interest expense
|
$
|
(177
|
)
|
|
$
|
(167
|
)
|
|
$
|
10
|
|
|
6.0
|
|
Interest capitalized
|
14
|
|
|
21
|
|
|
(7
|
)
|
|
(33.3
|
)
|
|||
Interest income
|
25
|
|
|
13
|
|
|
12
|
|
|
92.3
|
|
|||
Miscellaneous, net
|
(166
|
)
|
|
(27
|
)
|
|
139
|
|
|
NM
|
|
|||
Total
|
$
|
(304
|
)
|
|
$
|
(160
|
)
|
|
$
|
144
|
|
|
90.0
|
|
|
|
2018
|
|
2017
|
|
Increase (Decrease)
|
|
% Increase (Decrease)
|
|||||||
Operating revenue
|
|
$
|
19,809
|
|
|
$
|
18,434
|
|
|
$
|
1,375
|
|
|
7.5
|
|
Operating expense
|
|
18,372
|
|
|
16,677
|
|
|
1,695
|
|
|
10.2
|
|
|||
Operating income
|
|
1,437
|
|
|
1,757
|
|
|
(320
|
)
|
|
(18.2
|
)
|
|||
Nonoperating expense
|
|
(396
|
)
|
|
(330
|
)
|
|
66
|
|
|
20.0
|
|
|||
Income tax expense
|
|
210
|
|
|
507
|
|
|
(297
|
)
|
|
(58.6
|
)
|
|||
Net income
|
|
$
|
831
|
|
|
$
|
920
|
|
|
$
|
(89
|
)
|
|
(9.7
|
)
|
|
2018
|
|
2017
|
|
Increase (Decrease)
|
|
% Change
|
||||||
Passenger revenue
|
$
|
18,030
|
|
|
$
|
16,804
|
|
|
$
|
1,226
|
|
|
7.3
|
Cargo
|
607
|
|
|
511
|
|
|
96
|
|
|
18.8
|
|||
Other operating revenue
|
1,172
|
|
|
1,119
|
|
|
53
|
|
|
4.7
|
|||
Total operating revenue
|
$
|
19,809
|
|
|
$
|
18,434
|
|
|
$
|
1,375
|
|
|
7.5
|
|
Domestic
|
|
Atlantic
|
|
Pacific
|
|
Latin
|
|
Consolidated
|
||||||||||
Increase (decrease) from 2017:
|
|
|
|
|
|
|
|
|
|
||||||||||
Passenger revenue (in millions)
|
$
|
841
|
|
|
$
|
344
|
|
|
$
|
55
|
|
|
$
|
(14
|
)
|
|
$
|
1,226
|
|
Passenger revenue
|
8.2
|
%
|
|
12.6
|
%
|
|
2.6
|
%
|
|
(0.9
|
)%
|
|
7.3
|
%
|
|||||
Average fare per passenger
|
0.8
|
%
|
|
1.3
|
%
|
|
8.8
|
%
|
|
2.9
|
%
|
|
1.3
|
%
|
|||||
Yield
|
1.7
|
%
|
|
1.0
|
%
|
|
1.3
|
%
|
|
(0.6
|
)%
|
|
1.6
|
%
|
|||||
PRASM
|
1.7
|
%
|
|
8.2
|
%
|
|
0.9
|
%
|
|
1.1
|
%
|
|
3.0
|
%
|
|||||
Passengers
|
7.3
|
%
|
|
11.1
|
%
|
|
(5.7
|
)%
|
|
(3.7
|
)%
|
|
5.9
|
%
|
|||||
RPMs (traffic)
|
6.3
|
%
|
|
11.5
|
%
|
|
1.3
|
%
|
|
(0.3
|
)%
|
|
5.6
|
%
|
|||||
ASMs (capacity)
|
6.4
|
%
|
|
4.0
|
%
|
|
1.6
|
%
|
|
(1.9
|
)%
|
|
4.2
|
%
|
|||||
Passenger load factor (points)
|
(0.1)
|
|
|
5.2
|
|
|
(0.2)
|
|
|
1.5
|
|
|
1.1
|
|
|
2018
|
|
2017
|
|
Increase (Decrease)
|
|
% Change
|
|||||||
Salaries and related costs
|
$
|
5,604
|
|
|
$
|
5,478
|
|
|
$
|
126
|
|
|
2.3
|
|
Aircraft fuel
|
4,355
|
|
|
3,229
|
|
|
1,126
|
|
|
34.9
|
|
|||
Regional capacity purchase
|
1,300
|
|
|
1,085
|
|
|
215
|
|
|
19.8
|
|
|||
Landing fees and other rent
|
1,161
|
|
|
1,085
|
|
|
76
|
|
|
7.0
|
|
|||
Depreciation and amortization
|
1,098
|
|
|
1,054
|
|
|
44
|
|
|
4.2
|
|
|||
Aircraft maintenance materials and outside repairs
|
878
|
|
|
926
|
|
|
(48
|
)
|
|
(5.2
|
)
|
|||
Distribution expenses
|
735
|
|
|
704
|
|
|
31
|
|
|
4.4
|
|
|||
Aircraft rent
|
246
|
|
|
331
|
|
|
(85
|
)
|
|
(25.7
|
)
|
|||
Special charges
|
169
|
|
|
95
|
|
|
74
|
|
|
NM
|
|
|||
Other operating expenses
|
2,826
|
|
|
2,690
|
|
|
136
|
|
|
5.1
|
|
|||
Total operating expenses
|
$
|
18,372
|
|
|
$
|
16,677
|
|
|
$
|
1,695
|
|
|
10.2
|
|
|
2018
|
|
2017
|
||||
Impairment of assets
|
$
|
134
|
|
|
$
|
—
|
|
Severance and benefit costs
|
25
|
|
|
78
|
|
||
(Gains) losses on sale of assets and other special charges
|
10
|
|
|
17
|
|
||
Special charges
|
$
|
169
|
|
|
$
|
95
|
|
|
2018
|
|
2017
|
|
Increase (Decrease)
|
|
% Change
|
|||||||
Interest expense
|
$
|
(353
|
)
|
|
$
|
(329
|
)
|
|
$
|
24
|
|
|
7.3
|
|
Interest capitalized
|
33
|
|
|
44
|
|
|
(11
|
)
|
|
(25.0
|
)
|
|||
Interest income
|
42
|
|
|
24
|
|
|
18
|
|
|
75.0
|
|
|||
Miscellaneous, net
|
(118
|
)
|
|
(69
|
)
|
|
49
|
|
|
71.0
|
|
|||
Total
|
$
|
(396
|
)
|
|
$
|
(330
|
)
|
|
$
|
66
|
|
|
20.0
|
|
Period
|
|
Total number of shares purchased
(a)(b)
|
|
Average price paid per share
(b)(c)
|
|
Total number of shares purchased as part of publicly announced plans or programs
(a)
|
|
Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions)
(a)
|
||||||
April 2018
|
|
3,224,922
|
|
|
$
|
68.11
|
|
|
3,224,922
|
|
|
$
|
2,212
|
|
May 2018
|
|
1,789,844
|
|
|
68.42
|
|
|
1,789,844
|
|
|
2,089
|
|
||
June 2018
|
|
916,248
|
|
|
71.15
|
|
|
916,248
|
|
|
2,024
|
|
||
Total
|
|
5,931,014
|
|
|
|
|
5,931,014
|
|
|
|
Exhibit No.
|
Registrant
|
Exhibit
|
|
|
|
|
|
10.1
|
UAL
United
|
||
|
|
|
|
^10.2
|
UAL
United
|
||
|
|
|
|
^10.3
|
UAL
United
|
||
|
|
|
|
12.1
|
UAL
|
||
|
|
|
|
12.2
|
United
|
||
|
|
|
|
31.1
|
UAL
|
||
|
|
|
|
31.2
|
UAL
|
||
|
|
|
|
31.3
|
United
|
||
|
|
|
|
31.4
|
United
|
||
|
|
|
|
32.1
|
UAL
|
||
|
|
|
|
32.2
|
United
|
||
|
|
|
|
101.1
|
UAL
United
|
XBRL Instance Document
|
|
|
|
|
|
101.2
|
UAL
United
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
101.3
|
UAL
United
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
|
101.4
|
UAL
United
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
101.5
|
UAL
United
|
XBRL Taxonomy Extension Labels Linkbase Document
|
|
|
|
|
|
101.6
|
UAL
United
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
|
|
|
United Continental Holdings, Inc.
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
Date:
|
July 18, 2018
|
|
By:
|
/s/ Gerald Laderman
|
|
|
|
|
Gerald Laderman
Senior Vice President Finance and acting Chief Financial Officer (Principal Financial Officer) |
|
|
|
||
Date:
|
July 18, 2018
|
|
By:
|
/s/ Chris Kenny
|
|
|
|
|
Chris Kenny
Vice President and Controller
(Principal Accounting Officer)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United Airlines, Inc.
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
Date:
|
July 18, 2018
|
|
By:
|
/s/ Gerald Laderman
|
|
|
|
|
Gerald Laderman
Senior Vice President Finance and acting Chief Financial Officer (Principal Financial Officer) |
|
|
|
|
|
Date:
|
July 18, 2018
|
|
By:
|
/s/ Chris Kenny
|
|
|
|
|
Chris Kenny
Vice President and Controller
(Principal Accounting Officer)
|
Class of Loans
|
Applicable Margin
Eurodollar Loans |
Applicable Margin
ABR Loans |
||
Class B Term Loans
|
1.75
|
%
|
0.75
|
%
|
Revolving Loans
|
2.25
|
%
|
1.25
|
%
|
By:
|
/s/ Cristina Caviness
Name: Cristina Caviness Title: Vice President |
By:
|
/s/ Craig Malloy
Name: Craig Malloy Title: Director |
•
|
OPTION A (Cashless):
If you elect Option A, on the Second Amendment Effective Date, your Class B Term Loans, in a principal amount equal to your Refinanced Term Loans or greater amount as agreed between you and the Fronting Lender, will automatically be subject to the amended terms described in the Amendment.
|
•
|
OPTION B (Cash Roll):
If you elect Option B, on the Second Amendment Effective Date (i) your Class B Term Loans will be assigned to the Fronting Lender pursuant to the terms of the Amendment (the “
First-Step Assignment
”), (ii) you will receive an amount equal to the outstanding principal amount of, together with accrued and unpaid interest to the Second Amendment Effective Date on, such Term Loans, and (iii) you or such other Eligible Assignees as you may designate will commit to purchase new Class B Term Loans from the Fronting Lender (the “
Second-Step Assignment
”)
in a principal amount to be determined by the Fronting Lender up to the amount of the original Class B Term Loans you assigned pursuant to the First-Step Assignment (or such greater amount as may be agreed between you and the Fronting Lender).
|
•
|
Michael Miller, michael.miller3@barclays.com, (212) 526-1288.
|
•
|
James V. Pascale, jpascale@milbank.com, (212) 530-5370
|
•
|
Joshua Forman, jforman@milbank.com, (212) 530-5246
|
By a Term Lender’s signature hereto, such Term Lender is electing to consent to the Amendment by Option A: CASHLESS for the entire principal amount of Term Loans held by such Term Lender
unless
a different option is checked:
CURRENT HOLDING AMOUNT: $______________________
PLEASE CHECK:
OPTION A :
¨
CASHLESS
OPTION B :
¨
CASH ROLL
|
By:
|
|
|
|
Name:
|
|
|
Title:
|
|
*By:
|
|
|
|
Name:
|
|
|
Title:
|
|
|
|
Exhibit 10.2
|
UAL-PA-03776
|
SA-10
|
Page
1
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776
|
SA-10
|
Page
2
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
Document(s)
|
Original Text
|
Replacement Text
|
|
5)
|
UAL-PA-03776-LA-1207640 “Demonstration Flight Waiver”
|
“Reference: Purchase Agreement No. PA-03776 (
Purchase Agreement
) between The Boeing Company (
Boeing
) and United Continental Holdings, Inc. (
Customer
) relating to Model 737-*** aircraft (
Aircraft
)”
|
“Reference: Purchase Agreement No. 03776 (
Purchase Agreement
) between The Boeing Company (
Boeing
) and United Airlines, Inc. (
Customer
) relating to Model 737 *** aircraft (
Aircraft
)”
|
6)
|
UAL-PA-03776-LA-1207647 “Seller Purchased Equipment”
|
||
7)
|
UAL-PA-03776-LA-1208055R1 “*** Program”
|
||
8)
|
UAL-PA-03776-LA- 1208234 “Privileged and Confidential Matters”
|
||
9)
|
UAL-PA-03776-LA- 1208238 “Assignment Matters”
|
||
10)
|
UAL-PA-03776-LA- 1208869 “Delivery *** Matters”
|
UAL-PA-03776
|
SA-10
|
Page
3
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
Document(s)
|
Original Text
|
Replacement Text
|
|
11)
|
UAL-PA-03776-LA-1207649 “Spare Parts Initial Provisioning”
|
“Reference:
a) Purchase Agreement No. PA-03776 (
Purchase Agreement
) between The Boeing Company (
Boeing
) and United
Continental Holdings, Inc. (
Customer
) relating to Model 737-*** aircraft (
Aircraft
)
b) Customer Services General Terms Agreement No. CSGTA-UCH (
CSGTA
) between
Boeing and Customer.”
|
“References:
a) Purchase Agreement No.
03776 (
Purchase Agreement
) between The Boeing Company (
Boeing
) and United Airlines, Inc. (
Customer
) relating to Model 737 *** aircraft (
Aircraft
); and
b) Customer Services General Terms Agreement No. 24-1 (
CSGTA
) between Boeing and Customer.”
|
Document(s)
|
Original Text
|
Replacement Text
|
|
12)
|
12) UAL-PA-03784-LA-1207869 “737 Production Adjustments”
|
“Reference:
1) Purchase Agreement No. PA 03784 (
Purchase Agreement
) between The Boeing Company (
Boeing
) and United Air Lines, Inc. (
Customer
) relating to Model 737-
900ER aircraft (including any 737-700 or 737-800 aircraft, collectively the
737NG Aircraft
)******
|
“References:
1) Purchase Agreement No.
03784 (
Purchase Agreement
) between The Boeing Company (
Boeing
) and United Air Lines, Inc. (
Customer
) relating to Model 737-900ER aircraft (including any 737-700 or
737-800 aircraft, collectively the
737NG Aircraft
)
***
|
UAL-PA-03776
|
SA-10
|
Page
4
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
Document
|
Original Reference
|
Replacement Reference
|
Purchase Agreement Basic
Articles
|
Reference to “Table 1”
(i) Opening Paragraph 1 (ii) Article 2
(iii) Article 3.1
(iv) Article 4.1 & 4.2 (v) Article 5.1
|
“Table 1, Table 1.1 and Table
1A”
|
Supplemental Exhibit AE2
|
Reference to “Table 1”
(i) Article 1
(ii) Notes to Article 1
|
“Table 1A”
|
Supplemental Exhibit EE1
|
Reference to “Table 1”
Article 2.6.2
|
“Table 1, Table 1.1 and Table
1A”
|
UAL-PA-03776-LA-1207647 “Seller Purchased Equipment”
|
Reference to “Table 1”
Article 2.6.2
|
“Table 1, Table 1.1 and Table
1A”
|
UAL-PA-03776-LA-1207637R1 “*** Matters”
|
Reference to “Table 1”
Article 1.1
|
“Table 1, Table 1.1 and Table
1A”
|
UAL-PA-03776
|
SA-10
|
Page
5
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
THE BOEING COMPANY
|
|
UNITED AIRLINES, INC.
|
/s/ Irma L. Krueger
|
|
/s/ Gerald Laderman
|
Signature
|
|
Signature
|
|
|
|
Irma L. Krueger
|
|
Gerald Laderman
|
Printed Name
|
|
Printed Name
|
|
|
|
Attorney-in-Fact
|
|
Senior Vice President Finance,
Procurement and Treasurer
|
Title
|
|
Title
|
UAL-PA-03776
|
SA-10
|
Page
6
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
ARTICLES
|
SA
NUMBER
|
|
Article 1.
|
Quantity, Model and Description
|
|
Article 2.
|
Delivery Schedule
|
|
Article 3.
|
Price
|
|
Article 4.
|
Payment
|
|
Article 5.
|
Additional Terms
|
|
TABLE
|
|
|
1.
|
737-*** Aircraft Delivery, Description, Price and ***
|
SA-9
|
1.1
|
*** 737-*** Aircraft Delivery, Description, Price and ***
|
SA-10
|
1A.
|
737-*** Aircraft Delivery, Description, Price and ***
|
SA-9
|
EXHIBITS
|
|
|
A-1
|
737-*** & *** 737-***Aircraft Configuration
|
SA-8
|
A-2
|
737-*** Aircraft Configuration
|
|
A-3
|
737-*** Aircraft Configuration
|
|
A-4
|
737-*** Aircraft Configuration
|
SA-9
|
B.
|
Aircraft Delivery Requirements and Responsibilities
|
|
SUPPLEMENTAL EXHIBITS
|
|
|
AE1.
|
***Adjustment/Airframe and ***
|
|
AE2.
|
***Adjustment/Airframe and *** for the 737-*** Aircraft
|
SA-9
|
BFE1.
|
BFE Variables 737-*** Aircraft-
|
SA-7
|
BFE2.
|
BFE Variables 737-*** Aircraft
|
SA-9
|
CS1.
|
Customer Support Variables
|
SA-9
|
EE1.
|
Engine Warranty and ***
|
|
SLP1.
|
Service Life Policy Components
|
|
UAL-PA-03776
|
TABLE OF CONTENTS
|
SA-10, Page
1
of 3
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
TABLE OF CONTENTS, CONTINUED
|
|
|
LETTER AGREEMENTS
|
SA
NUMBER
|
|
UAL-PA-03776-LA-1207637R1
|
*** Matters
|
SA-8
|
UAL-PA-03776-LA-1207638R2
|
***
|
SA-10
|
UAL-PA-03776-LA-1207640
|
Demonstration Flight Waiver
|
|
UAL-PA-03776-LA-1207643R1
|
Open Matters 737-*** Aircraft
|
SA-9
|
UAL-PA-03776-LA-1207644R2
|
*** Aircraft
|
SA-10
|
|
*** Aircraft - Attachment A
|
SA-10
|
UAL-PA-03776-LA-1207646R2
|
Promotional Support
|
SA-10
|
UAL-PA-03776-LA-1207647
|
Seller Purchased Equipment
|
|
UAL-PA-03776-LA-1207649
|
Spare Parts Initial Provisioning
|
|
UAL-PA-03776-LA-1207650R4
|
Special Matters
|
SA-10
|
UAL-PA-03776-LA-1208055R1
|
***
|
SA-7
|
UAL-PA-03776-LA-1208122
|
***
|
SA-10
|
UAL-PA-03776-LA-1208123R1
|
*** Matters for 737-*** Aircraft
|
SA-9
|
UAL-PA-03776-LA-1208157R2
|
***
|
SA-9
|
UAL-PA-03776-LA-1208234
|
Privileged and Confidential Matters
|
|
UAL-PA-03776-LA-1208596R1
|
AGTA Matters
|
SA-10
|
UAL-PA-03776-LA-1208238
|
Assignment Matters
|
|
UAL-PA-03776-LA-1208869
|
Delivery *** Matters
|
|
UAL-PA-03784-LA-1207869
|
737 Production Adjustments
|
|
UAL-PA-03776-LA-1606848R2
|
*** Special *** Aircraft
|
SA-9
|
UAL-PA-03776-LA-1703685
|
737-*** Aircraft ***
|
SA-9
|
UAL-PA-03776-LA-1703743
|
2017 ***
|
SA-9
|
UAL-PA-03776-LA-1703858R1
|
*** Program for the 737-*** Aircraft
|
SA-10
|
|
*** Commitment for the 737‑*** Aircraft
|
§5.1.2 of SA‑9
|
UAL-PA-3776-LA-1801367
|
Loading of Customer Software
|
SA-10
|
UAL-PA-3776-LA-1801619
|
Installation of Cabin Systems Equipment
|
SA-10
|
UAL-PA-03776
|
TABLE OF CONTENTS
|
SA-10, Page
2
of 3
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
SUPPLEMENTAL AGREEMENTS
|
DATED AS OF
|
Supplemental Agreement No. 1
|
June 17, 2013
|
Supplemental Agreement No. 2
|
January 14, 2015
|
Supplemental Agreement No. 3
|
May 26, 2015
|
Supplemental Agreement No. 4
|
June 12, 2015
|
Supplemental Agreement No. 5
|
January 20, 2016
|
Supplemental Agreement No. 6
|
February 8, 2016
|
Supplemental Agreement No. 7
|
December 27, 2016
|
Supplemental Agreement No. 8
|
June 7, 2017
|
Supplemental Agreement No. 9
|
June 15, 2017
|
Supplemental Agreement No. 10
|
May 15, 2018
|
UAL-PA-03776
|
TABLE OF CONTENTS
|
SA-10, Page
3
of 3
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
Airframe Model/MTOW:
|
737-***
|
**** pounds
|
|
|
Detail Specification:
|
|
***
|
|
||
Engine Model/Thrust:
|
***
|
**** pounds
|
|
|
Airframe Price Base Year/*** Formula:
|
***
|
***
|
|||
Airframe Price:
|
|
$***
|
|
|
Engine Price Base Year/*** Formula:
|
***
|
***
|
|||
*** Features:
|
|
$***
|
|
|
|
|
|
|
|
|
Sub-Total of Airframe and Features:
|
$***
|
|
|
Airframe *** Data:
|
|
|
|
|||
Engine Price (Per Aircraft):
|
|
$***
|
|
|
Base Year Index (ECI):
|
|
***
|
|
||
Aircraft Basic Price (Excluding BFE/SPE):
|
$***
|
|
|
Base Year Index (CPI):
|
|
***
|
|
|||
Buyer Furnished Equipment (BFE) Estimate:
|
$***
|
|
|
|
|
|
|
|
||
Seller Purchased Equipment (SPE) Estimate:
|
$***
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Deposit per Aircraft:
|
|
$***
|
|
|
|
|
|
|
|
# of Aircraft
|
Delivery Date
|
|
***
|
Manufacturer Serial Number
|
Subject of Letter No. UAL-PA-03776-LA-1802280?
|
Actual or Nominal Delivery ****
|
*** Estimate
|
*** Per Aircraft (Amts. Due/*** Prior to Delivery):
|
|
||
Number of
|
Factor
|
*** Base
|
***
|
***
|
***
|
***
|
|||||
Aircraft
|
(Airframe)
|
Price Per A/P
|
***
|
***
|
***
|
***
|
|||||
***
|
***
|
***
|
***
|
***
|
***
|
***
|
$
***
|
$
***
|
$
***
|
$
***
|
$
***
|
Total in this Table:
|
***
|
Total Deferral Aircraft:
|
|
|
|
|
|
|
|||
|
* Nominal delivery *** pursuant to Letter Agreement number UAL-PA-03776-LA-1207643 entitled "Open Matters 737-*** Aircraft", including successors thereof.
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Serial Numbers are provided as guidance only and are subject to change.
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
***
|
|
|
|
|
|
|
|
|
|
|
UAL-PA-03776 APR: 108191.TXT
|
|
Table 1 per SA-10, Page 1
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
|
|
The Boeing Company
P.O. Box 3707
Seattle, WA 98124‑2207
|
(i)
|
no later than the first day of the month that is ***, provided that a *** Customer, or;
|
UAL-PA-03776-LA-1207638R2
***
|
|
SA-10
Page
1
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1207638R2
***
|
|
SA-10
Page
2
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1207638R2
***
|
|
SA-10
Page
3
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
|
|
The Boeing Company
P.O. Box 3707
Seattle, WA 98124‑2207
|
UAL-PA-03776-LA-1207644R2
|
|
SA-10
|
*** Aircraft - 737-***
|
|
Page
1
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1207644R2
|
|
SA-10
|
*** Aircraft - 737-***
|
|
Page
2
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1207644R2
|
|
SA-10
|
*** Aircraft - 737-***
|
|
Page
3
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1207644R2
|
|
SA-10
|
*** Aircraft - 737-***
|
|
Page
4
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
Airframe Model/MTOW:
|
737-***
|
*** pounds
|
|
Detail Specification:
|
|
***
|
|
|||
Engine Model/Thrust:
|
|
***
|
*** pounds
|
Subject to confirmation
|
Airframe Price Base Year/*** Formula:
|
***
|
***
|
|||
Airframe Price:
|
|
|
$***
|
|
Engine Price Base Year/*** Formula:
|
***
|
***
|
|||
*** Features:
|
|
|
$***
|
|
|
|
|
|
|
|
Sub-Total of Airframe and Features:
|
|
$***
|
|
Airframe *** Data:
|
|
|
|
|||
Engine Price (Per Aircraft):
|
|
$***
|
|
Base Year Index (ECI):
|
|
***
|
|
|||
Aircraft Basic Price (Excluding BFE/SPE):
|
$***
|
|
Base Year Index (CPI):
|
|
***
|
|
||||
Buyer Furnished Equipment (BFE) Estimate:
|
$***
|
|
|
|
|
|
|
|||
Seller Purchased Equipment (SPE) Estimate:
|
$***
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
Deposit per Aircraft:
|
|
|
$***
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
# of *** Aircraft
|
|
|
***
|
***
Exercise
Expiry
|
Actual or
Nominal
Delivery ****
|
*** Estimate
|
*** Per Aircraft (Amts. Due/*** Prior to Delivery):
|
|||
Delivery
|
Number of
|
Factor
|
*** Base
|
***
|
***
|
***
|
***
|
|||
Date
|
Aircraft
|
(Airframe)
|
Price Per A/P
|
***
|
***
|
***
|
***
|
|||
***
|
***
|
***
|
***
|
***
|
***
|
$***
|
$***
|
$***
|
$***
|
$***
|
|
Total:
|
***
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Nominal delivery *** are subject to revision pursuant to Letter Agreement number UAL-PA-03776-LA-1207644R2 and any successor thereof.
|
|
UAL-PA-03776 59499-1F.TXT
|
|
SA-10
Page 1
|
BOIENG / UNITED AIRLINES, INC. PROPRIETARY
|
|
|
The Boeing Company
P.O. Box 3707
Seattle, WA 98124‑2207
|
UAL-PA-03776-LA-1207646R2
|
|
SA-10
|
Promotional Support
|
|
Page
1
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1207646R2
|
|
SA-10
|
Promotional Support
|
|
Page
2
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1207646R2
|
|
SA-10
|
Promotional Support
|
|
Page
3
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1207646R2
|
|
SA-10
|
Promotional Support
|
|
Page
4
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
|
|
The Boeing Company
P.O. Box 3707
Seattle, WA 98124‑2207
|
2)
|
Letter Agreement UAL-PA-03776-1207638 entitled ***
|
UAL-PA-03776-LA-1207650R4
|
|
SA-10
|
Special Matters
|
|
Page
1
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1207650R4
|
|
SA-10
|
Special Matters
|
|
Page
2
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1207650R4
|
|
SA-10
|
Special Matters
|
|
Page
3
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1207650R4
|
|
SA-10
|
Special Matters
|
|
Page
4
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1207650R4
|
|
SA-10
|
Special Matters
|
|
Page
5
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1207650R4
|
|
SA-10
|
Special Matters
|
|
Attachment 1 to UAL-PA-03776-LA-1207650R4, Page
6
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
Year
|
787-***
|
787-***
|
777-300***
|
737 *** and ***
|
Fixed *** and ***
|
Total Cashflow
|
|
|
|
***
|
***
|
***
|
***
|
|
|
|
|||
***
|
***
|
***
|
***
|
|
|
|
|||
***
|
***
|
***
|
***
|
|
|
|
|||
***
|
***
|
***
|
***
|
|
|
|
|||
***
|
***
|
***
|
***
|
|
|
|
|||
***
|
***
|
***
|
***
|
|
|
|
|||
***
|
***
|
***
|
***
|
|
|
|
|||
***
|
***
|
***
|
***
|
|
|
|
|||
Total
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Discount Rate
|
***%
|
PV
|
***
|
***
|
***
|
***
|
***
|
***
|
|
|
|
(***%)
|
|
|
|
|
|
|
|
***
|
$***
|
Year
|
787-***
|
787-***
|
777-300***
|
*** 737-*** Aircraft ***
|
*** 737-*** Aircraft ***
|
Total Cashflow
|
|
|
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
|
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
|
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
|
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
|
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
|
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
|
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
|
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
|
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
|
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
|
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
|
|
Total
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Discount Rate
|
***%
|
PV
|
***
|
***
|
***
|
***
|
***
|
***
|
|
|
|
(***%)
|
|
|
|
|
|
|
|
***
|
$***
|
UAL-PA-03776-LA-1207650R4
|
|
SA-10
|
Special Matters
|
|
Attachment 2 to UAL-PA-03776-LA-1207650R4, Page
7
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
|
|
The Boeing Company
P.O. Box 3707
Seattle, WA 98124‑2207
|
UAL-PA-03776-LA-1208122R1
|
|
SA-10
|
***
|
|
Page
1
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1208122R1
|
|
SA-10
|
***
|
|
Page
2
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1208122R1
|
|
SA-10
|
***
|
|
Page
3
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
|
|
The Boeing Company
P.O. Box 3707
Seattle, WA 98124‑2207
|
UAL-PA-03776-LA-1208596R1
|
|
SA-10
|
AGTA Matters
|
|
Page
1
|
BOEING PROPRIETARY
|
1.4
|
Article 11 of the AGTA i entitled “Notices” is revised to read as follows: Article 11.
Notices
.
|
UNITED
|
BOEING
|
By mail:
United Airlines, Inc.
233 South Wacker Drive
Chicago, Illinois 60606
By Courier:
United Airlines, Inc.
233 South Wacker Drive - HDQPP
Chicago, Illinois 60606
Attn: Vice President of Procurement_______________
|
By mail:
The Boeing Company
P.O. Box 3707
Mail Code: 21-43
Seattle, WA 98124
By Courier:
Boeing Commercial Airplanes
1901 Oakesdale Avenue SW
Renton, Washington 98057
Attn: Vice President - Contracts
Mail Code 21-24
|
UAL-PA-03776-LA-1208596R1
|
|
SA-10
|
AGTA Matters
|
|
Page
2
|
BOEING PROPRIETARY
|
UAL-PA-03776-LA-1208596R1
|
|
SA-10
|
AGTA Matters
|
|
Page
3
|
BOEING PROPRIETARY
|
UAL-PA-03776-LA-1208596R1
|
|
SA-10
|
AGTA Matters
|
|
Page
4
|
BOEING PROPRIETARY
|
|
|
The Boeing Company
P.O. Box 3707
Seattle, WA 98124‑2207
|
Reference:
|
Purchase Agreement No. PA-03776 (
Purchase Agreement
) between The Boeing Company (
Boeing
) and United Continental Holdings, Inc. (
Customer
) relating to Model 737 *** aircraft (
Aircraft
)
|
UAL-PA-03776-LA-1703858R1
|
|
SA-10
|
*** Program
|
|
Page
1
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1703858R1
|
|
SA-10
|
*** Program
|
|
Page
2
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1703858R1
|
|
SA-10
|
*** Program
|
|
Page
3
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1703858R1
|
|
SA-10
|
*** Program
|
|
Page
4
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
*** Forecast
|
Applicable to 737-*** Program Aircraft Delivering in Time Period
|
737-*** Notice Date
|
***
|
***
|
***
|
Attachment A to UAL-PA-03776-LA-1703858R1
|
|
SA-10
|
*** Fixed Program
|
|
Page
1
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
Attachment B to UAL-PA-03776-LA-1703858R1
|
|
SA-10
|
*** Program
|
|
Page
1
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
|
|
The Boeing Company
P.O. Box 3707
Seattle, WA 98124‑2207
|
UAL-PA-03776-LA-1801367
|
|
SA-10
|
Loading of Customer Software
|
|
Page
1
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1801367
|
|
SA-10
|
Loading of Customer Software
|
|
Page
2
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1801367
|
|
SA-10
|
Loading of Customer Software
|
|
Page
3
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
|
|
The Boeing Company
P.O. Box 3707
Seattle, WA 98124‑2207
|
UAL-PA-03776-LA-1801619
|
|
SA-10
|
Installation of Cabin System Equipment
|
|
Page
1
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1801619
|
|
SA-10
|
Installation of Cabin System Equipment
|
|
Page
2
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1801619
|
|
SA-10
|
Installation of Cabin System Equipment
|
|
Page
3
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
UAL-PA-03776-LA-1801619
|
|
SA-10
|
Installation of Cabin System Equipment
|
|
Page
4
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
(ii)
|
evaluating Supplier's program management and developmental plans to meet Boeing’s production schedule;
|
(iv)
|
scheduling and conducting program design and schedule reviews with Customer and Suppliers, as needed;
|
(vi)
|
evaluating and approving any recovery plans or plan revisions which may be required of either Suppliers or Customer;
|
(vii)
|
managing the joint development of the CSE system specification; and
|
(viii)
|
leading the development of a joint CSE project management plan (
Project Plan
).
|
(i)
|
as required, assist Suppliers in defining their system specifications for the CSE, approve such specifications and develop an overall system functional specification;
|
(ii)
|
Coordinate Boeing, Customer and Supplier teams to ensure the Project Plan includes sufficient Supplier testing, Supplier sub-system testing, and an overall CSE system acceptance test; and
|
(i)
|
Boeing will coordinate the interface requirements between seat suppliers and Suppliers. Interface requirements are defined in Boeing Document No’s. D6-36230, "Passenger Seat Design and Installation"; D6-36238, "Passenger Seat Structural Design and Interface Criteria"; D222W232, "Seat Wiring and Control Requirements"; and D222W013-4, "Seat Assembly Functional Test Plan", as amended and superseded from time to time.
|
|
|
Exhibit 10.3
|
UAL-PA-3860
|
SA-9
|
Page
1
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
(i)
|
Confirm all Customer Configuration Changes;
|
(ii)
|
Revise Table 1 entitled “787-*** Aircraft with GENX-1B*** Engines Delivery, Description, Price and ***” to reflect such Customer Configuration Changes; and
|
(iii)
|
Replace existing Exhibit A-3 with a revised Exhibit A-3 reflecting the Customer Configuration Changes for the 787-*** Customer Configured Aircraft;
|
UAL-PA-3860
|
SA-9
|
Page
2
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
1.
|
Table of Contents
.
|
2.
|
Tables.
|
3.
|
Exhibits
.
|
4.
|
Letter Agreements
.
|
UAL-PA-3860
|
SA-9
|
Page
3
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
5.
|
Miscellaneous
.
|
(i)
|
*** of *** from Purchase Agreement No. 2484;
|
(ii)
|
An *** relating to *** Aircraft in the amount of *** from Purchase Agreement No. 2484; and
|
(iii)
|
*** of *** from this Purchase Agreement
|
UAL-PA-3860
|
SA-9
|
Page
4
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
|
|
Exhibit 10.3
|
ARTICLES
|
SA
NUMBER
|
|
Article 1.
|
Quantity, Model and Description
|
SA-1
|
Article 2.
|
Delivery Schedule
|
SA-1
|
Article 3.
|
Price
|
SA-1
|
Article 4.
|
Payment
|
SA-1
|
Article 5.
|
Additional Terms
|
SA-1
|
TABLE
|
|
|
1
|
787-*** Aircraft Delivery, Description, Price and ***
|
SA-7
|
1A.
|
*** 787-*** with GENX-1B*** Engines Aircraft Information Table
|
SA-9
|
EXHIBITS
|
|
|
|
|
|
A2*
|
787-*** Aircraft Configuration
|
SA-9
|
A3.
|
787-*** Aircraft Configuration
|
SA-9
|
B.
|
Aircraft Delivery Requirements and Responsibilities
|
|
* - Note: There is no Exhibit A1 in this Purchase Agreement
|
|
|
SUPPLEMENTAL EXHIBITS
|
|
|
AE1.
|
***/Airframe and *** Features
|
|
BFE1.
|
BFE Variables for the 787-*** Aircraft
|
SA-7
|
CS1.
|
Customer Support Document
|
|
EE1.
|
Engine ***/Engine Warranty ***
|
|
SLP1.
|
Service Life Policy Components
|
|
UAL-PA-3860
|
TABLE OF CONTENTS, Page
1
of 4
|
SA-9
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
TABLE OF CONTENTS, CONTINUED
|
||
LETTER AGREEMENTS
|
SA
NUMBER
|
|
UAL-PA-03860-LA-1209247
|
787 e-Enabling
|
|
UAL-PA-03860-LA-1209264
|
Open Configuration Matters
Completed: No longer applicable |
SA-9
|
UAL-PA-03860-LA-1209409
|
Spare Parts Initial Provisioning
|
|
UAL-PA-03860-LA-1209410
|
Special Matters Relating to COTS Software and End User License Agreements
|
|
UAL-PA-03860-LA-1209411
|
Special Terms – Seats and In-flight Entertainment
|
|
UAL-PA-03860-LA-1209417
|
Model 787 Post-Delivery Software & Data Loading
|
|
CONFIDENTIAL LETTER AGREEMENTS
|
|
|
UAL-PA-03860-LA-1209236R1
|
Model ***
|
SA-1
|
|
Attachment A, 787-
***
Airframe Pricing of *** Aircraft with General Electric GEnx-1B***
|
SA-1
|
|
Attachment B, 787-*** with General Electric GEnx-1B***
|
SA-1
|
|
Attachment C, 787-*** with General Electric GEnx-1B***
|
SA-1
|
UAL-PA-03860-LA-1209412
|
Spare Parts Commitment
|
|
UAL-PA-03860-LA-1209413R3
|
Special Matters
|
SA-9
|
UAL-PA-03860-LA-1209413A1R3
|
Special Matters – Amendment 1
|
SA-7
|
UAL-PA-03860-LA-1209414
|
Other Special Matters
|
|
UAL-PA-03860-LA-1209413A1
|
Other Special Matters - Amendment 1
|
SA-1
|
UAL-PA-03860-LA-1209416R1
|
Promotional Support
|
SA-2
|
UAL-PA-03860-LA-1209430
|
***
|
|
UAL-PA-03860-LA-1209429
|
***
|
|
UAL-PA-3860
|
TABLE OF CONTENTS, Page
2
of 4
|
SA-9
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
TABLE OF CONTENTS, CONTINUED
|
||
CONFIDENTIAL LETTER AGREEMENTS, continued
|
SA
NUMBER
|
|
6-1162-ELP-0794
|
*** Program- ***
|
|
6-1162-ELP-0795
|
***- Boeing ***
|
|
UAL-PA-03860-LA-1301368
|
*** (787-***)
|
SA-1
|
UAL-PA-03860-LA-1301373
|
787-*** Aircraft Open Configuration and Other Matters
|
SA-1
|
UAL-PA-03860-LA-1301375R1
|
Provisions Relating to Customer’s *** for 787‑*** Aircraft
|
SA-7
|
UAL-PA-03860-LA-1301377
|
787-***
|
SA-1
|
UAL-PA-03860-LA-1301377A1
|
787-*** – Amendment 1
|
SA-4
|
UAL-PA-03860-LA-1301380
|
787-*** Program Launch
|
SA-1
|
UAL-PA-03860-LA-1500017
|
***
|
SA-4
|
UAL-PA-03860-LA-1500059
|
Installation of Cabin Systems Equipment
|
SA-4
|
UAL-PA-03860-LA-1703319
|
Privileged and Confidential Matters
|
SA-8
|
UAL-PA-03860-LA-1802899
|
Assignment Matters
|
SA-9
|
UAL-PA-03860-LA-1802900
|
*** Rights for Certain 787 Aircraft
|
SA-9
|
UAL-PA-3860
|
TABLE OF CONTENTS, Page
3
of 4
|
SA-9
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
SUPPLEMENTAL AGREEMENTS
|
DATED AS OF
|
Supplemental Agreement No. 1 . . . . . . . . . . . . .
|
. . . . . . . . . . . . . . . . . . . . . . June 17, 2013
|
Supplemental Agreement No. 2 . . . . . . . . . . . . .
|
. . . . . . . . . . . . . . . . . . . . . . December 16, 2013
|
Supplemental Agreement No. 3 . . . . . . . . . . . . .
|
. . . . . . . . . . . . . . . . . . . . . . July 22, 2014
|
Supplemental Agreement No. 4 . . . . . . . . . . . . .
|
. . . . . . . . . . . . . . . . . . . . . . January 14, 2015
|
Supplemental Agreement No. 5 . . . . . . . . . . . . .
|
. . . . . . . . . . . . . . . . . . . . . . May 12, 2015
|
Supplemental Agreement No. 6 . . . . . . . . . . . . .
|
. . . . . . . . . . . . . . . . . . . . . . December 31, 2015
|
Supplemental Agreement No. 7 . . . . . . . . . . . . .
|
. . . . . . . . . . . . . . . . . . . . . . March 7, 2016
|
Supplemental Agreement No. 8 . . . . . . . . . . . . .
|
. . . . . . . . . . . . . . . . . . . . . . June 7, 2017
|
Supplemental Agreement No. 9 . . . . . . . . . . . . .
|
. . . . . . . . . . . . . . . . . . . . . . May 31, 2018
|
UAL-PA-3860
|
TABLE OF CONTENTS, Page
4
of 4
|
SA-9
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
Airframe Model/MTOW:
|
787-***
|
*** pounds
|
#
|
|
Detail Specification:
|
|
***
|
||||
Engine Model/Thrust:
|
GENX-1B***
1
|
*** pounds
|
|
|
Airframe Price Base Year/*** Formula:
|
|
***
|
***
|
|||
Airframe Price:
|
|
$***
|
|
|
Engine Price Base Year/*** Formula:
|
|
***
|
***
|
|||
*** Features:
|
|
$***
|
|
|
Airframe *** Data:
|
|
|
|
|||
Sub-Total of Airframe and Features:
|
|
$***
|
|
|
Base Year Index (ECI):
|
|
***
|
||||
Engine Price (Per Aircraft) :
|
|
$***
1
|
|
|
Base Year Index (CPI):
|
|
***
|
||||
Aircraft Basic Price (Excluding BFE/SPE):
|
|
$***
|
|
|
Engine *** Data:
|
|
|
|
|||
Buyer Furnished Equipment (BFE) Estimate:
|
|
$***
|
|
|
Base Year Index (ECI):
|
|
***
|
||||
In-Flight Entertainment (IFE) Estimate:
|
|
$***
|
|
|
Base Year Index (CPI):
|
|
***
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
# of Aircraft
|
Delivery Date
|
Number of
Aircraft
|
***
Factor |
***
Factor |
See footnote for *** forecast being used
|
Serial
Number + |
*** Estimate ***
Base Price Per
A/P
|
*** Per Aircraft (Amts. Due/*** Prior to Delivery):
|
|
||
|
|
|
|
Factor
|
|
|
|
***
|
***
|
***
|
***
|
|
|
|
(Airframe)
|
(Engine)
|
|
|
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
$***
|
$***
|
$***
|
$***
|
$***
|
|
Total:
|
***
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
1 Pursuant to GE agreement: GEnx-1B*** thrust rating at GEnx-1B*** price in ***.
|
|
|
|
|||||||
|
* ** *** Factors ***
|
|
|
|
|||||||
|
# Purchased MTOW is *** pounds. Aircraft are eligible for the provisions of Letter Agreement UAL-PA-03860- LA-1301375R1
entitled "Provisions Relating to Customer's *** for 787-*** Aircraft" |
|
|
||||||||
|
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|
|
+ Serial Numbers Identified are for informational purposes only and subject to change
|
|
|
APR-109147
|
BOEING / UNITED AIRLINES PROPRIETARY
|
787-*** with GE Engines Table 1 (SA-9), Page 1
|
P.A. No. 3860
|
A2
BOEING PROPERITARY
|
SA-9
|
P.A. No. 3860
|
A2-
2
BOEING PROPERITARY
|
SA-9
|
Option Number
|
Title
|
Price Per Aircraft ***
|
*** Price Per Aircraft ***
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***
|
P.A. No. 3860
|
A2-
3
BOEING PROPERITARY
|
SA-9
|
Option Number
|
Title
|
Price Per Aircraft ***
|
*** Price Per Aircraft ***
|
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|
P.A. No. 3860
|
A2-
4
BOEING PROPERITARY
|
SA-9
|
Option Number
|
Title
|
Price Per Aircraft ***
|
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|
P.A. No. 3860
|
A2-
5
BOEING PROPERITARY
|
SA-9
|
Option Number
|
Title
|
Price Per Aircraft ***
|
*** Price Per Aircraft ***
|
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TOTAL
|
***
|
***
|
P.A. No. 3860
|
A2-
6
BOEING PROPERITARY
|
SA-9
|
P.A. No. 3860
|
A3
BOEING PROPERITARY
|
SA-9
|
P.A. No. 3860
|
A3-
2
BOEING PROPERITARY
|
SA-9
|
Option Number
|
Title
|
***
Price/787-*** Aircraft *** |
***
Price/787-*** Aircraft *** |
***
|
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|
P.A. No. 3860
|
A3-
3
BOEING PROPERITARY
|
SA-9
|
Option Number
|
Title
|
***
Price/787-*** Aircraft *** |
***
Price/787-*** Aircraft *** |
***
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***
|
P.A. No. 3860
|
A3-
4
BOEING PROPERITARY
|
SA-9
|
Option Number
|
Title
|
***
Price/787-*** Aircraft *** |
***
Price/787-*** Aircraft *** |
***
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P.A. No. 3860
|
A3-
5
BOEING PROPERITARY
|
SA-9
|
Option Number
|
Title
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***
Price/787-*** Aircraft *** |
***
Price/787-*** Aircraft *** |
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|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
OPTIONS: ***
|
TOTALS:
|
***
|
***
|
P.A. No. 3860
|
A3-
6
BOEING PROPERITARY
|
SA-9
|
|
The Boeing Company
P.O. Box 3707
Seattle, WA 98124 2207
|
Reference:
|
Purchase Agreement No. 3860 (
Purchase Agreement
) between The Boeing Company (
Boeing
) and United Airlines, Inc. relating to Model 787 aircraft (
Aircraft
)
|
UAL-PA-03860-LA-1209413
R3
Specials Matters
|
|
SA-9
Page
1
|
BOEING / UNITED AIRLIENS, INC. PROPRIETARY
|
***
|
***
*** |
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
Total
|
***%
|
UAL-PA-03860-LA-1209413
R3
Specials Matters
|
|
SA-9
Page
2
|
BOEING / UNITED AIRLIENS, INC. PROPRIETARY
|
UAL-PA-03860-LA-1209413
R3
Specials Matters
|
|
SA-9
Page
3
|
BOEING / UNITED AIRLIENS, INC. PROPRIETARY
|
UAL-PA-03860-LA-1209413
R3
Specials Matters
|
|
SA-9
Page
4
|
BOEING / UNITED AIRLIENS, INC. PROPRIETARY
|
THE BOEING COMPANY
|
||
|
||
By
|
/s/ Irma L. Krueger
|
|
|
||
Its
|
Attorney-In-Fact
|
|
|
||
ACCEPTED AND AGREED TO this
|
||
|
||
Date:
|
May 31, 2018
|
|
|
||
UNITED AIRLINES, INC.
|
||
|
||
By
|
/s/ Gerald Laderman
|
|
|
||
Its
|
Senior Vice President Finance and
acting Chief Financial Officer |
UAL-PA-03860-LA-1209413
R3
Specials Matters
|
|
SA-9
Page
5
|
BOEING / UNITED AIRLIENS, INC. PROPRIETARY
|
|
The Boeing Company
P.O. Box 3707
Seattle, WA 98124 2207
|
Subject:
|
Assignment Matters
|
References:
|
1) Purchase Agreement No. 03860 (
Purchase Agreement
) between The Boeing Company (
Boeing
) and United Airlines, Inc. (
Customer
) relating to Model 787 aircraft (
Aircraft
); and
|
2)
|
Aircraft General Terms Agreement dated as of October 10, 1997 between the parties, identified as AGTA-CAL (AGTA)
|
UAL-PA-03860-LA-1802899
Assignment Matters
|
|
SA-9
Page
1
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
THE BOEING COMPANY
|
|
|
|
By:
|
/s/ Irma L. Krueger
|
|
|
Its:
|
Attorney-in-Fact
|
|
UAL-PA-03860-LA-1802899
Assignment Matters
|
|
SA-9
Page
2
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
|
||
ACCEPTED AND AGREED TO this
|
||
|
||
Date:
|
May 31, 2018
|
|
|
||
UNITED AIRLINES, INC.
|
||
|
||
By:
|
/s/ Gerald Laderman
|
|
|
||
Its:
|
Senior Vice President Finance and acting Chief Financial Officer
|
UAL-PA-03860-LA-1802899
Assignment Matters
|
|
SA-9
Page
3
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
|
The Boeing Company
P.O. Box 3707
Seattle, WA 98124 2207
|
Subject:
|
*** Rights for Certain 787 Aircraft
|
Reference:
|
Purchase Agreement No. 03860 (
Purchase Agreement
) between The Boeing Company (
Boeing
) and United Airlines, Inc. (
Customer
) relating to Model 787 aircraft (
Aircraft
)
|
UAL-PA-03860-LA-1802900
*** Rights: Certain 787 Aircraft
|
|
SA-9
Page
1
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
THE BOEING COMPANY
|
|
|
|
By:
|
/s/ Irma L. Krueger
|
|
|
Its:
|
Attorney-in-Fact
|
UAL-PA-03860-LA-1802900
*** Rights: Certain 787 Aircraft
|
|
SA-9
Page
2
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
|
|
||
ACCEPTED AND AGREED TO this
|
|
||
|
|
||
Date:
|
May 31, 2018
|
|
|
|
|
||
UNITED AIRLINES, INC.
|
|
||
|
|
||
By:
|
/s/ Gerald Laderman
|
||
|
|
||
|
|
||
Its:
|
Senior Vice President Finance and
acting Chief Financial Officer |
UAL-PA-03860-LA-1802900
*** Rights: Certain 787 Aircraft
|
|
SA-9
Page
3
|
BOEING / UNITED AIRLINES, INC. PROPRIETARY
|
Airframe Model/MTOW:
|
787-***
|
*** pounds
|
#
|
|
Detail Specification:
|
|
***
|
||||
Engine Model/Thrust:
|
GENX-1B***
1
|
*** pounds
|
|
|
Airframe Price Base Year/*** Formula:
|
|
***
|
***
|
|||
Airframe Price:
|
|
$***
|
|
|
Engine Price Base Year/*** Formula:
|
|
***
|
***
|
|||
*** Features:
|
|
$***
|
|
|
Airframe *** Data:
|
|
|
|
|||
Sub-Total of Airframe and Features:
|
|
$***
|
|
|
Base Year Index (ECI):
|
|
***
|
||||
Engine Price (Per Aircraft) :
|
|
$***
1
|
|
|
Base Year Index (CPI):
|
|
***
|
||||
Aircraft Basic Price (Excluding BFE/SPE):
|
|
$***
|
|
|
Engine *** Data:
|
|
|
|
|||
Buyer Furnished Equipment (BFE) Estimate:
|
|
$***
|
|
|
Base Year Index (ECI):
|
|
***
|
||||
In-Flight Entertainment (IFE) Estimate:
|
|
$***
|
|
|
Base Year Index (CPI):
|
|
***
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
# of Aircraft
|
Delivery Date
|
Number of
Aircraft
|
***
Factor
(Airframe)
|
***
Factor
(Engine)
|
See footnote for *** forecast being used
|
Serial
Number + |
*** Estimate ***
Base Price Per
A/P
|
*** Per Aircraft (Amts. Due/*** Prior to Delivery):
|
|
||
***
|
***
|
***
|
***
|
||||||||
***
|
***
|
***
|
***
|
||||||||
***
|
***
|
***
|
***
|
***
|
***
|
***
|
$***
|
$***
|
$***
|
$***
|
$***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
$***
|
$***
|
$***
|
$***
|
$***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
$***
|
$***
|
$***
|
$***
|
$***
|
|
Total:
|
***
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Pursuant to GE agreement: GEnx-1B*** thrust rating at GEnx-1B*** price in ***.
|
|
|
|
|||||||
|
* ** *** Factors ***
|
|
|
|
|||||||
|
# Purchased MTOW is *** pounds. Aircraft are eligible for the provisions of Letter Agreement UAL-PA-03860- LA-1301375R1
entitled "Provisions Relating to Customer's *** for 787-*** Aircraft" |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
+ Serial Numbers Identified are for informational purposes only and subject to change
|
|
|
APR-109147
|
BOEING / UNITED AIRLINES PROPRIETARY
|
Attachment 1 to UAL-PA-03860-LA-1802900, Page 1
|
(In millions, except ratios)
|
|
Six Months Ended
June 30, 2018 |
|
2017 (a)
|
|
2016 (a)
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings before income taxes
|
|
$
|
1,041
|
|
|
$
|
3,040
|
|
|
$
|
3,773
|
|
|
$
|
4,219
|
|
|
$
|
1,128
|
|
|
$
|
539
|
|
Add (deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed charges, from below
|
|
702
|
|
|
1,417
|
|
|
1,430
|
|
|
1,428
|
|
|
1,648
|
|
|
1,629
|
|
||||||
Amortization of capitalized interest
|
|
5
|
|
|
9
|
|
|
11
|
|
|
12
|
|
|
12
|
|
|
11
|
|
||||||
Distributed earnings of affiliates
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
—
|
|
||||||
Interest capitalized
|
|
(33
|
)
|
|
(84
|
)
|
|
(72
|
)
|
|
(49
|
)
|
|
(52
|
)
|
|
(49
|
)
|
||||||
Equity earnings in affiliates
|
|
(8
|
)
|
|
(4
|
)
|
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
|
(1
|
)
|
||||||
Earnings as adjusted
|
|
$
|
1,707
|
|
|
$
|
4,378
|
|
|
$
|
5,143
|
|
|
$
|
5,609
|
|
|
$
|
2,736
|
|
|
$
|
2,129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense
|
|
$
|
353
|
|
|
$
|
671
|
|
|
$
|
674
|
|
|
$
|
669
|
|
|
$
|
735
|
|
|
$
|
783
|
|
Portion of rent expense representative of the interest factor (b)
|
|
349
|
|
|
746
|
|
|
756
|
|
|
759
|
|
|
913
|
|
|
846
|
|
||||||
Fixed charges
|
|
$
|
702
|
|
|
$
|
1,417
|
|
|
$
|
1,430
|
|
|
$
|
1,428
|
|
|
$
|
1,648
|
|
|
$
|
1,629
|
|
Ratio of earnings to fixed charges
|
|
2.43
|
|
|
3.09
|
|
|
3.60
|
|
|
3.93
|
|
|
1.66
|
|
|
1.31
|
|
(In millions, except ratios)
|
|
Six Months Ended
June 30, 2018 |
|
2017 (a)
|
|
2016 (a)
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings before income taxes
|
|
$
|
1,041
|
|
|
$
|
3,042
|
|
|
$
|
3,775
|
|
|
$
|
4,221
|
|
|
$
|
1,110
|
|
|
$
|
637
|
|
Add (deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed charges, from below
|
|
702
|
|
|
1,417
|
|
|
1,430
|
|
|
1,429
|
|
|
1,655
|
|
|
1,627
|
|
||||||
Amortization of capitalized interest
|
|
5
|
|
|
9
|
|
|
11
|
|
|
12
|
|
|
12
|
|
|
11
|
|
||||||
Distributed earnings of affiliates
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
—
|
|
||||||
Interest capitalized
|
|
(33
|
)
|
|
(84
|
)
|
|
(72
|
)
|
|
(49
|
)
|
|
(52
|
)
|
|
(49
|
)
|
||||||
Equity earnings in affiliates
|
|
(8
|
)
|
|
(4
|
)
|
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
|
(1
|
)
|
||||||
Earnings as adjusted
|
|
$
|
1,707
|
|
|
$
|
4,380
|
|
|
$
|
5,145
|
|
|
$
|
5,612
|
|
|
$
|
2,725
|
|
|
$
|
2,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense
|
|
$
|
353
|
|
|
$
|
671
|
|
|
$
|
674
|
|
|
$
|
670
|
|
|
$
|
742
|
|
|
$
|
781
|
|
Portion of rent expense representative of the interest factor (b)
|
|
349
|
|
|
746
|
|
|
756
|
|
|
759
|
|
|
913
|
|
|
846
|
|
||||||
Fixed charges
|
|
$
|
702
|
|
|
$
|
1,417
|
|
|
$
|
1,430
|
|
|
$
|
1,429
|
|
|
$
|
1,655
|
|
|
$
|
1,627
|
|
Ratio of earnings to fixed charges
|
|
2.43
|
|
|
3.09
|
|
|
3.60
|
|
|
3.93
|
|
|
1.65
|
|
|
1.37
|
|
(1)
|
I have reviewed this quarterly report on Form 10-Q for the quarterly period ended
June 30, 2018
of United Continental Holdings, Inc. (the "Company");
|
(2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
(3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;
|
(4)
|
The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the Company's internal control over financial reporting that occurred during the Company's most recent fiscal quarter (the Company's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and
|
(5)
|
The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors and the audit committee of the Company's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.
|
|
/s/ Oscar Munoz
|
Oscar Munoz
Chief Executive Officer |
|
(1)
|
I have reviewed this quarterly report on Form 10-Q for the quarterly period ended
June 30, 2018
of United Continental Holdings, Inc. (the "Company");
|
(2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
(3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;
|
(4)
|
The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the Company's internal control over financial reporting that occurred during the Company's most recent fiscal quarter (the Company's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and
|
(5)
|
The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors and the audit committee of the Company's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.
|
|
/s/ Gerald Laderman
|
Gerald Laderman
|
Senior Vice President Finance and acting Chief Financial Officer
|
|
(1)
|
I have reviewed this quarterly report on Form 10-Q for the quarterly period ended
June 30, 2018
of United Airlines, Inc. (the "Company");
|
(2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
(3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;
|
(4)
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The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:
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(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
|
Evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
|
Disclosed in this report any change in the Company's internal control over financial reporting that occurred during the Company's most recent fiscal quarter (the Company's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and
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(5)
|
The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors and the audit committee of the Company's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and
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(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.
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/s/ Oscar Munoz
|
Oscar Munoz
Chief Executive Officer |
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(1)
|
I have reviewed this quarterly report on Form 10-Q for the quarterly period ended
June 30, 2018
of United Airlines, Inc. (the "Company");
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(2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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(3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;
|
(4)
|
The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the Company's internal control over financial reporting that occurred during the Company's most recent fiscal quarter (the Company's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and
|
(5)
|
The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors and the audit committee of the Company's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.
|
|
/s/ Gerald Laderman
|
Gerald Laderman
|
Senior Vice President Finance and acting Chief Financial Officer
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of United Continental Holdings, Inc.
|
|
/s/ Oscar Munoz
|
Oscar Munoz
|
Chief Executive Officer
|
|
/s/ Gerald Laderman
|
Gerald Laderman
|
Senior Vice President Finance and acting Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of United Airlines, Inc.
|
|
/s/ Oscar Munoz
|
Oscar Munoz
|
Chief Executive Officer
|
|
/s/ Gerald Laderman
|
Gerald Laderman
|
Senior Vice President Finance and acting Chief Financial Officer
|