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): May 10, 2010

 

 

UAL CORPORATION

UNITED AIR LINES, INC.

(Exact name of registrant as specified in its charter)

 

 

 

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

 

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

 

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

 

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

 

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

 

 

 

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Item 8.01

Other Events

On May 10, 2010, United Air Lines, Inc. issued a press release reporting its April 2010 traffic performance. 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 Air Lines, Inc. dated May 10, 2010

 

*	Filed herewith electronically.

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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.

 

Date: May 10, 2010

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EXHIBIT INDEX

 

Exhibit No.		Description
99.1*		Press Release issued by United Air Lines, Inc. dated May 10, 2010

 

*	Filed herewith electronically.

		News Release

Worldwide Press Office:

Email: media.relations@united.com

United Airlines Reports April 2010 Operational Performance

CHICAGO, May 10, 2010 – United Airlines today reported its preliminary consolidated traffic results for April 2010. Total consolidated revenue passenger miles (RPMs) increased in April by 0.6% on a decrease of 1.2% in available seat miles (ASMs) compared with the same period in 2009. This resulted in a reported April consolidated passenger load factor of 81.4%, an increase of 1.5 points compared to 2009.

For April 2010, consolidated passenger revenue per available seat mile (PRASM) is estimated to have increased 23.0% to 24.0% year over year. Consolidated PRASM is estimated to have increased 5.5% to 6.5% for April 2010 compared to April 2008, 2.6 percentage points of which were due to growth in ancillary revenues.

The company estimates that volcanic ash related cancellations in April reduced April revenue by approximately $35 million and resulted in a 2.8 point decline in capacity for the month.

United reported a U.S. Department of Transportation on-time arrival rate of 88.5% in April.

Average April 2010 mainline fuel price, including gains or losses on settled fuel hedges and excluding non-cash, mark-to-market fuel hedge gains and losses, is estimated to be $2.21 per gallon. Including non-cash, mark-to-market fuel hedge gains and losses, the estimated fuel price is $2.07 per gallon for the month.

About United

United Airlines, a wholly-owned subsidiary of UAL Corporation (Nasdaq: UAUA), operates approximately 3,300* flights a day on United and United Express to more than 230 U.S. domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C. With key global air rights in the Asia-Pacific region, Europe and Latin America, United is one of the largest international carriers based in the United States. United also is a founding member of Star Alliance, which provides connections for our customers to 1,077 destinations in 175 countries worldwide. United’s 46,000 employees reside in every U.S. state and in many countries around the world. United ranked No. 1 in on-time performance for domestic scheduled flights for 2009 among America’s five largest global carriers, as measured by the Department of Transportation and published in the Air Travel Consumer Report for 2009. News releases and other information about United can be found at the company’s Web site at united.com, and follow United on Twitter @UnitedAirlines.

 

*	Based on United’s forward-looking flight schedule for January 2010 to December 2010

The United Building, 77 West Wacker Drive, Chicago, Illinois 60601

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		News Release

 

REVENUE PASSENGER MILES (‘000)*
		April 2010			April 2009			Change
North America		4,725,694			4,858,381			-2.7	%
Pacific		1,828,850			1,688,770			8.3	%
Atlantic		1,280,897			1,475,361			-13.2	%
Latin America		261,513			283,463			-7.7	%
Total International		3,371,260			3,447,594			-2.2	%
Total Mainline		8,096,954			8,305,975			-2.5	%
Regional Affiliates		1,353,168			1,083,408			24.9	%
Total Consolidated		9,450,122			9,389,383			0.6	%
AVAILABLE SEAT MILES (‘000)*
North America		5,568,261			5,718,306			-2.6	%
Pacific		2,327,125			2,331,262			-0.2	%
Atlantic		1,653,617			1,920,472			-13.9	%
Latin America		325,979			378,380			-13.8	%
Total International		4,306,721			4,630,114			-7.0	%
Total Mainline		9,874,982			10,348,420			-4.6	%
Regional Affiliates		1,736,888			1,402,467			23.8	%
Total Consolidated		11,611,870			11,750,887			-1.2	%
LOAD FACTOR*
North America		84.9	%		85.0	%		-0.1 pts
Pacific		78.6	%		72.4	%		6.2 pts
Atlantic		77.5	%		76.8	%		0.7 pts
Latin America		80.2	%		74.9	%		5.3 pts
Total International		78.3	%		74.5	%		3.8 pts
Total Mainline		82.0	%		80.3	%		1.7 pts
Regional Affiliates		77.9	%		77.3	%		0.6 pts
Total Consolidated		81.4	%		79.9	%		1.5 pts
REVENUE PASSENGERS BOARDED (‘000)*
Mainline		4,402			4,706			-6.5	%
Regional Affiliates		2,345			2,045			14.7	%
Total Consolidated		6,747			6,751			-0.1	%
CARGO TON MILES (000)*
Freight		146,413			108,294			35.2	%
Mail		14,814			16,654			-11.0	%
Total Mainline		161,227			124,948			29.0	%

 

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

The United Building, 77 West Wacker Drive, Chicago, Illinois 60601

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		News Release

 

REVENUE PASSENGER MILES (‘000)*		YTD April 2010			YTD April 2009			Change
North America		17,823,298			18,309,773			-2.7	%
Pacific		6,998,769			6,654,025			5.2	%
Atlantic		5,021,821			4,991,318			0.6	%
Latin America		1,145,645			1,223,155			-6.3	%
Total International		13,166,235			12,868,498			2.3	%
Total Mainline		30,989,533			31,178,271			-0.6	%
Regional Affiliates		4,940,292			4,019,441			22.9	%
Total Consolidated		35,929,825			35,197,712			2.1	%
AVAILABLE SEAT MILES (‘000)*
North America		21,622,085			22,710,161			-4.8	%
Pacific		8,448,279			9,122,377			-7.4	%
Atlantic		6,546,109			6,871,464			-4.7	%
Latin America		1,419,305			1,635,663			-13.2	%
Total International		16,413,693			17,629,504			-6.9	%
Total Mainline		38,035,778			40,339,665			-5.7	%
Regional Affiliates		6,524,545			5,484,569			19.0	%
Total Consolidated		44,560,323			45,824,234			-2.8	%
LOAD FACTOR*
North America		82.4	%		80.6	%		1.8 pts
Pacific		82.8	%		72.9	%		9.9 pts
Atlantic		76.7	%		72.6	%		4.1 pts
Latin America		80.7	%		74.8	%		5.9 pts
Total International		80.2	%		73.0	%		7.2 pts
Total Mainline		81.5	%		77.3	%		4.2 pts
Regional Affiliates		75.7	%		73.3	%		2.4 pts
Total Consolidated		80.6	%		76.8	%		3.8 pts
REVENUE PASSENGERS BOARDED (‘000)*
Mainline		16,828			17,852			-5.7	%
Regional Affiliates		8,737			7,567			15.5	%
Total Consolidated		25,565			25,419			0.6	%
CARGO TON MILES (000)*
Freight		560,124			393,622			42.3	%
Mail		63,344			69,614			-9.0	%
Total Mainline		623,468			463,236			34.6	%

 

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

The United Building, 77 West Wacker Drive, Chicago, Illinois 60601

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		News Release

 

 

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 adjustment includes the reversal of prior period non-cash mark to market related to April hedge settlements and April mark to market gain related to hedges that will settle in May and June 2010, which were not designated as cash flow hedges.

 

		April 2010
Mainline fuel price per gallon excluding non-cash, net mark-to-market gains and losses		$	2.21
Add: Non-cash, net mark to market (gains) and losses per gallon			(0.14	)
Mainline fuel price per gallon		$	2.07

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

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The United Building, 77 West Wacker Drive, Chicago, Illinois 60601