f110510form8k.htm


 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K
CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):   November 5, 2010
 
UNITED CONTINENTAL HOLDINGS, INC.
UNITED AIR LINES, INC.
CONTINENTAL AIRLINES, INC.
(Exact name of registrant as specified in its charter)

Delaware
 
001-06033
 
36-2675207
Delaware
 
001-11355
 
36-2675206
Delaware
 
001-10323
 
74-2099724
(State or other jurisdiction
 
(Commission File Number)
 
(IRS Employer
of incorporation)
     
Identification Number)

77 W. Wacker Drive, Chicago, IL
 
60601
(Address of principal executive offices)
 
(Zip Code)

(312) 997-8000
Registrant’s telephone number, including area code 


(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


 

 

 

 
 

 

Item 8.01   Other Events

On November 5, 2010, United Continental Holdings, Inc. issued a press release reporting the October 2010 operational performance of United Air Lines, Inc. and Continental Airlines, Inc., its wholly owned subsidiaries.  The press release is filed herewith as Exhibit 99.1 and is incorporated herein by reference.


Item 9.01   Financial Statements and Exhibits.

Exhibit No.
 
Description
     
99.1*
 
Press Release issued by United Continental Holdings, Inc. dated November 5, 2010


* Filed herewith electronically.




 
 

 



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
UNITED CONTINENTAL HOLDINGS, INC.
 
 
UNITED AIR LINES, INC.
 
 
CONTINENTAL AIRLINES, INC.
 
       
       
       
 
By:
 /s/ Chris Kenny
 
 
Name:
Chris Kenny
 
 
Title:
Vice President and Controller
 
       
       
Date:  November 5, 2010
     






 
 
 

 

 
EXHIBIT INDEX

Exhibit No.
 
Description
     
99.1*
 
Press Release issued by United Continental Holdings, Inc. dated November 5, 2010


* Filed herewith electronically.


exhibit991.htm


 
Exhibit 99.1
News Release
 
United Continental Holdings, Inc.
 
Worldwide Media Relations
 
312.997.8640
713.324.5080
 
media.relations@united.com
media.relations@coair.com
 

UNITED CONTINENTAL HOLDINGS REPORTS OCTOBER 2010 OPERATIONAL PERFORMANCE FOR
UNITED AIRLINES AND CONTINENTAL AIRLINES

CHICAGO, Nov. 5, 2010 – United Continental Holdings, Inc. (NYSE: UAL) today reported October 2010 and year-to-date 2010 operational results for United Air Lines, Inc. and Continental Airlines, Inc.
On a combined basis, United and Continental’s consolidated traffic (revenue passenger miles) in October 2010 increased 5.9 percent versus October 2009 on a consolidated capacity increase of 5.0 percent. The carriers’ combined consolidated load factor increased 0.7 points compared to the same period last year.
October 2010 passenger revenue per available seat mile (RASM) estimates for United and Continental are presented based on historical income statement revenue classifications. For October 2010, United’s consolidated RASM increased an estimated 13.0 to 14.0 percent compared to October 2009, while United’s mainline RASM increased an estimated 14.0 to 15.0 percent compared to the same period last year. Continental’s October consolidated RASM increased an estimated 15.5 to 16.5 percent compared to October 2009, while Continental’s mainline RASM increased an estimated 17.0 to 18.0 percent compared to the same period last year.
In December, United Continental Holdings, Inc. will report United and Continental’s November 2010 RASM estimate on a combined basis using an aligned presentation for passenger revenue based on final income statement classifications.  
About United Continental Holdings, Inc.
United Continental Holdings, Inc. (NYSE: UAL) is the holding company for both United Airlines and Continental Airlines. Together with United Express, Continental Express and Continental Connection, these airlines operate a total of approximately 5,800 flights a day to 371 airports on six continents from their hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York/Newark Liberty, San Francisco, Tokyo and Washington, D.C. United and Continental are members of Star Alliance, which offers 21,000 daily flights to 1,160 airports in 181 countries. United’s and Continental’s more than 80,000 employees reside in every U.S. state and in many countries around the world. For more information about United Continental Holdings, Inc., go to UnitedContinent alHoldings.com. For more information about the airlines, see united.com and continental.com, and follow each company on Twitter and Facebook.
-tables attached-
(more)
 

 
 

 


Combined United and Continental Pro Forma Preliminary Operational Results
                     
   
October
 
Year-to-Date
   
2010
2009
Change
 
2010
2009
Change
REVENUE PASSENGER MILES (000)
               
 
North America
8,298,787
8,264,709
0.4
%
 
81,846,298
83,197,637
-1.6
%
                     
 
International
7,391,028
6,642,240
11.3
%
 
73,553,683
68,808,045
6.9
%
 
Atlantic
3,594,319
3,225,731
11.4
%
 
33,935,880
32,279,448
5.1
%
 
Pacific
2,761,033
2,466,377
11.9
%
 
26,648,100
24,217,308
10.0
%
 
Latin America
1,035,676
950,132
9.0
%
 
12,969,703
12,311,289
5.3
%
                     
 
Mainline
15,689,815
14,906,949
5.3
%
 
155,399,981
152,005,682
2.2
%
 
Regional
2,239,243
2,026,698
10.5
%
 
21,862,558
19,235,112
13.7
%
 
Consolidated
17,929,058
16,933,647
5.9
%
 
177,262,539
171,240,794
3.5
%
                     
AVAILABLE SEAT MILES (000)
               
 
North America
9,682,695
9,694,657
-0.1
%
 
95,965,128
98,494,748
-2.6
%
                     
 
International
8,991,119
8,164,238
10.1
%
 
88,488,777
87,228,395
1.4
%
 
Atlantic
4,368,780
3,793,434
15.2
%
 
40,815,547
40,268,017
1.4
%
 
Pacific
3,313,341
3,185,506
4.0
%
 
31,636,463
31,614,914
0.1
%
 
Latin America
1,308,998
1,185,298
10.4
%
 
16,036,767
15,345,464
4.5
%
                     
 
Mainline
18,673,814
17,858,895
4.6
%
 
184,453,905
185,723,143
-0.7
%
 
Regional
2,798,319
2,583,006
8.3
%
 
27,683,445
25,067,112
10.4
%
 
Consolidated
21,472,133
20,441,901
5.0
%
 
212,137,350
210,790,255
0.6
%
                     
PASSENGER LOAD FACTOR
               
 
North America
85.7%
85.3%
0.4
pts
85.3%
84.5%
0.8
pts
                     
 
International
82.2%
81.4%
0.8
pts
83.1%
78.9%
4.2
pts
 
Atlantic
82.3%
85.0%
-2.7
pts
 
83.1%
80.2%
2.9
pts
 
Pacific
83.3%
77.4%
5.9
pts
 
84.2%
76.6%
7.6
pts
 
Latin America
79.1%
80.2%
-1.1
pts
 
80.9%
80.2%
0.7
pts
                     
 
Mainline
84.0%
83.5%
0.5
pts
84.2%
81.8%
2.4
pts
 
Regional
80.0%
78.5%
1.5
pts
79.0%
76.7%
2.3
pts
 
Consolidated
83.5%
82.8%
0.7
pts
83.6%
81.2%
2.4
pts
                     
ONBOARD PASSENGERS (000)
               
 
Mainline
8,427
8,320
1.3
%
 
83,462
85,871
-2.8
%
 
Regional
4,001
3,750
6.7
%
 
38,784
35,557
9.1
%
 
Consolidated
12,428
12,070
3.0
%
 
122,246
121,428
0.7
%
                     
CARGO REVENUE TON MILES (000)
               
 
Total
266,974
256,666
4.0
%
 
2,511,703
2,049,696
22.5
%
                     
(more)


 
 

 


United Preliminary Operational Results
                     
   
October
 
Year-to-Date
   
2010
2009
Change
 
2010
2009
Change
REVENUE PASSENGER MILES (000)
                 
 
North America
4,897,230
4,821,391
1.6
%
 
48,268,771
49,232,185
-2.0
%
                     
 
International
3,960,587
3,611,550
9.7
%
 
38,022,135
35,710,947
6.5
%
 
Pacific
2,014,503
1,819,380
10.7
%
 
19,309,604
17,929,194
7.7
%
 
Atlantic
1,697,820
1,581,667
7.3
%
 
15,999,487
15,209,278
5.2
%
 
Latin America
248,264
210,503
17.9
%
 
2,713,044
2,572,475
5.5
%
                     
 
Mainline
8,857,817
8,432,941
5.0
%
 
86,290,906
84,943,132
1.6
%
 
Regional
1,448,973
1,244,706
16.4
%
 
13,785,724
11,468,865
20.2
%
 
Consolidated
10,306,790
9,677,647
6.5
%
 
100,076,630
96,411,997
3.8
%
                     
AVAILABLE SEAT MILES (000)
                 
 
North America
5,676,910
5,663,358
0.2
%
 
56,537,073
58,497,282
-3.4
%
                     
 
International
4,816,594
4,396,710
9.5
%
 
45,590,549
45,308,929
0.6
%
 
Pacific
2,403,855
2,301,698
4.4
%
 
22,791,902
23,222,944
-1.9
%
 
Atlantic
2,111,618
1,832,001
15.3
%
 
19,420,991
18,724,058
3.7
%
 
Latin America
301,121
263,011
14.5
%
 
3,377,656
3,361,927
0.5
%
                     
 
Mainline
10,493,504
10,060,068
4.3
%
 
102,127,622
103,806,211
-1.6
%
 
Regional
1,813,426
1,583,086
14.6
%
 
17,480,188
14,922,494
17.1
%
 
Consolidated
12,306,930
11,643,154
5.7
%
 
119,607,810
118,728,705
0.7
%
                     
PASSENGER LOAD FACTOR
                 
 
North America
86.3%
85.1%
1.2
pts
85.4%
84.2%
1.2
pts
                     
 
International
82.2%
82.1%
0.1
pts
83.4%
78.8%
4.6
pts
 
Pacific
83.8%
79.0%
4.8
pts
 
84.7%
77.2%
7.5
pts
 
Atlantic
80.4%
86.3%
-5.9
pts
 
82.4%
81.2%
1.2
pts
 
Latin America
82.4%
80.0%
2.4
pts
 
80.3%
76.5%
3.8
pts
                     
 
Mainline
84.4%
83.8%
0.6
pts
84.5%
81.8%
2.7
pts
 
Regional
79.9%
78.6%
1.3
pts
78.9%
76.9%
2.0
pts
 
Consolidated
83.7%
83.1%
0.6
pts
83.7%
81.2%
2.5
pts
                     
ONBOARD PASSENGERS (000)
                 
 
Mainline
4,664
4,668
-0.1
%
 
45,612
47,601
-4.2
%
 
Regional
2,517
2,281
10.4
%
 
23,965
21,156
13.3
%
 
Consolidated
7,181
6,949
3.3
%
 
69,577
68,757
1.2
%
                     
CARGO REVENUE TON MILES (000)
                 
 
Total
165,383
161,185
2.6
%
 
1,587,157
1,289,446
23.1
%
                     
(more)


 
 

 


United Preliminary Operational and Financial Results
             
Change
September 2010 year-over-year consolidated RASM change
     
 13.8
 Percent
September 2010 year-over-year mainline RASM change
     
 14.5
 Percent
October 2010 estimated year-over-year consolidated RASM change
   
 13.0 - 14.0
 Percent
October 2010 estimated year-over-year mainline RASM change
   
 14.0 - 15.0
 Percent
                 
October
   
2010
2009
Change
On-Time Performance 1
   
89.9%
81.7%
   8.2
 Points
Completion Factor 2
   
99.5%
98.7%
   0.8
 Points
                 
1 Department of Transportation Arrivals within 14 minutes
         
2 Mainline Segment Completion Percentage
           
                 
(more)


 
 

 


Continental Preliminary Operational Results
                     
   
October
 
Year-to-Date
   
2010
2009
Change
 
2010
2009
Change
REVENUE PASSENGER MILES (000)
               
 
North America
3,401,557
3,443,318
-1.2
%
 
33,577,527
33,965,452
-1.1
%
                     
 
International
3,430,441
3,030,690
13.2
%
 
35,531,548
33,097,098
7.4
%
 
Atlantic
1,896,499
1,644,064
15.4
%
 
17,936,393
17,070,170
5.1
%
 
Latin America
787,412
739,629
6.5
%
 
10,256,659
9,738,814
5.3
%
 
Pacific
746,530
646,997
15.4
%
 
7,338,496
6,288,114
16.7
%
                     
 
Mainline
6,831,998
6,474,008
5.5
%
 
69,109,075
67,062,550
3.1
%
 
Regional & Other
790,270
781,992
1.1
%
 
8,076,834
7,766,247
4.0
%
 
Consolidated
7,622,268
7,256,000
5.0
%
 
77,185,909
74,828,797
3.2
%
                     
AVAILABLE SEAT MILES (000)
                 
 
North America
4,005,785
4,031,299
-0.6
%
 
39,428,055
39,997,466
-1.4
%
                     
 
International
4,174,525
3,767,528
10.8
%
 
42,898,228
41,919,466
2.3
%
 
Atlantic
2,257,162
1,961,433
15.1
%
 
21,394,556
21,543,959
-0.7
%
 
Latin America
1,007,877
922,287
9.3
%
 
12,659,111
11,983,537
5.6
%
 
Pacific
909,486
883,808
2.9
%
 
8,844,561
8,391,970
5.4
%
                     
 
Mainline
8,180,310
7,798,827
4.9
%
 
82,326,283
81,916,932
0.5
%
 
Regional & Other
984,893
999,920
-1.5
%
 
10,203,257
10,144,618
0.6
%
 
Consolidated
9,165,203
8,798,747
4.2
%
 
92,529,540
92,061,550
0.5
%
                     
PASSENGER LOAD FACTOR
                 
 
North America
84.9%
85.4%
-0.5
pts
 
85.2%
84.9%
0.3
pts
                     
 
International
82.2%
80.4%
1.8
pts
 
82.8%
79.0%
3.8
pts
 
Atlantic
84.0%
83.8%
0.2
pts
 
83.8%
79.2%
4.6
pts
 
Latin America
78.1%
80.2%
-2.1
pts
 
81.0%
81.3%
-0.3
pts
 
Pacific
82.1%
73.2%
8.9
pts
 
83.0%
74.9%
8.1
pts
                     
 
Mainline
83.5%
83.0%
0.5
pts
 
83.9%
81.9%
2.0
pts
 
Regional & Other
80.2%
78.2%
2.0
pts
 
79.2%
76.6%
2.6
pts
 
Consolidated
83.2%
82.5%
0.7
pts
 
83.4%
81.3%
2.1
pts
                     
ONBOARD PASSENGERS (000)
                 
 
Mainline
3,763
3,652
3.0
%
 
37,850
38,270
-1.1
%
 
Regional & Other
1,484
1,469
1.0
%
 
14,819
14,401
2.9
%
 
Consolidated
5,247
5,121
2.5
%
 
52,669
52,671
0.0
%
                     
CARGO REVENUE TON MILES (000)
               
 
Total
101,591
95,482
6.4
%
 
924,546
760,250
21.6
%
                     
(more)


 
 

 


Continental Preliminary Operational and Financial Results
             
Change
September 2010 year-over-year consolidated RASM change
     
            19.3
 Percent
September 2010 year-over-year mainline RASM change
     
            21.1
 Percent
October 2010 estimated year-over-year consolidated RASM change 1
   
 15.5 - 16.5
 Percent
October 2010 estimated year-over-year mainline RASM change 1
   
 17.0 - 18.0
 Percent
                 
October
   
2010
2009
Change
On-Time Performance 2
   
87.5%
75.1%
            12.4
 Points
Completion Factor 3
   
99.9%
99.8%
              0.1
 Points
                 
1 Does not reflect the impact of the purchase accounting adjustments to be made in conjunction with the merger that closed on Oct. 1, 2010
2 Department of Transportation Arrivals within 14 minutes
         
3 Mainline Segment Completion Percentage
           
                 
(more)


 
 

 


Combined United and Continental Pro Forma Preliminary Financial Results
             
Change
October 2010 consolidated estimated average price per gallon of fuel, including fuel taxes1
   
2.40
 Dollars
Fourth Quarter 2010 consolidated estimated average price per gallon of fuel, including fuel taxes1
 
 2.42
 Dollars
                 
1 Excluding non-cash, net mark-to-market gains and losses
       
                 

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

Combined United and Continental Pro Forma
   
         
October 2010
4Q 2010
Consolidated fuel price per gallon (GAAP)
 2.41
Dollars
 2.43
 Dollars
Less: Non-cash, net mark-to-market gains and (losses) per gallon
 (0.01)
Dollars
 (0.01)
 Dollars
Consolidated fuel price per gallon excluding non-cash, net mark-to-market gains and losses
 2.40
Dollars
 2.42
 Dollars
                 
                 
###