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): July 8, 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 July 8, 2010, United Air Lines, Inc. issued a press release reporting its June 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 July 8, 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: July 8, 2010

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EXHIBIT INDEX

 

Exhibit No.		Description
99.1*		Press Release issued by United Air Lines, Inc. dated July 8, 2010

 

*	Filed herewith electronically.

Exhibit 99.1

Worldwide Press Office:

Email: media.relations@united.com

United Airlines Reports June 2010 Operational Performance

CHICAGO, July 8, 2010 – United Airlines today reported its preliminary consolidated traffic results for June 2010. Total consolidated revenue passenger miles (RPMs) increased in June by 3.5% on an increase of 1.1% in available seat miles (ASMs) compared with the same period in 2009. This resulted in a reported June consolidated passenger load factor of 87.9%, an increase of 2.0 points compared to 2009.

For June 2010, consolidated passenger revenue per available seat mile (PRASM) is estimated to have increased 30.5% to 31.5% year over year, 2.7 percentage points of which is due to accounting adjustments booked in the month. Consolidated PRASM is estimated to have increased 5.0% to 6.0% for June 2010 compared to June 2008, 2.2 percentage points of which is due to accounting adjustments booked in the month.

United reported a U.S. Department of Transportation on-time arrival rate of 79.4% in June.

Average June 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 $2.34 per gallon. Including non-cash, mark-to-market fuel hedge gains and losses, the estimated fuel price is $2.23 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 1,172 destinations in 181 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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REVENUE PASSENGER MILES (‘000)**
		June 2010			June 2009			Change
North America		5,229,795			5,429,328			-3.7	%
Pacific		2,084,839			1,922,273			8.5	%
Atlantic		1,885,475			1,739,573			8.4	%
Latin America		255,852			229,498			11.5	%
Total International		4,226,166			3,891,344			8.6	%
Total Mainline		9,455,961			9,320,672			1.5	%
Regional Affiliates		1,483,671			1,250,532			18.6	%
Total Consolidated		10,939,632			10,571,204			3.5	%
AVAILABLE SEAT MILES (‘000)**
North America		5,857,248			6,131,651			-4.5	%
Pacific		2,344,058			2,321,014			1.0	%
Atlantic		2,108,673			1,995,938			5.6	%
Latin America		332,104			293,915			13.0	%
Total International		4,784,835			4,610,867			3.8	%
Total Mainline		10,642,083			10,742,518			-0.9	%
Regional Affiliates		1,801,212			1,564,506			15.1	%
Total Consolidated		12,443,295			12,307,024			1.1	%
LOAD FACTOR**
North America		89.3	%		88.5	%		0.8 pts
Pacific		88.9	%		82.8	%		6.1 pts
Atlantic		89.4	%		87.2	%		2.2 pts
Latin America		77.0	%		78.1	%		-1.1 pts
Total International		88.3	%		84.4	%		3.9 pts
Total Mainline		88.9	%		86.8	%		2.1 pts
Regional Affiliates		82.4	%		79.9	%		2.5 pts
Total Consolidated		87.9	%		85.9	%		2.0 pts
REVENUE PASSENGERS BOARDED (‘000)**
Mainline		4,916			5,158			-4.7	%
Regional Affiliates		2,543			2,263			12.4	%
Total Consolidated		7,459			7,421			0.5	%
CARGO TON MILES (‘000)**
Freight		150,647			111,324			35.3	%
Mail		13,874			15,107			-8.2	%
Total Mainline		164,521			126,431			30.1	%

 

**	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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REVENUE PASSENGER MILES (‘000)**
		QTD June 2010			QTD June 2009			Change
North America		14,817,057			15,197,036			-2.5	%
Pacific		5,870,034			5,295,832			10.8	%
Atlantic		4,934,139			4,842,806			1.9	%
Latin America		770,656			690,983			11.5	%
Total International		11,574,829			10,829,621			6.9	%
Total Mainline		26,391,886			26,026,657			1.4	%
Regional Affiliates		4,254,434			3,474,002			22.5	%
Total Consolidated		30,646,320			29,500,659			3.9	%
AVAILABLE SEAT MILES (‘000)**
North America		17,106,343			17,637,199			-3.0	%
Pacific		7,066,274			7,041,073			0.4	%
Atlantic		5,877,941			5,936,965			-1.0	%
Latin America		991,279			946,452			4.7	%
Total International		13,935,494			13,924,490			0.1	%
Total Mainline		31,041,837			31,561,689			-1.6	%
Regional Affiliates		5,322,577			4,417,206			20.5	%
Total Consolidated		36,364,414			35,978,895			1.1	%
LOAD FACTOR**
North America		86.6	%		86.2	%		0.4 pts
Pacific		83.1	%		75.2	%		7.9 pts
Atlantic		83.9	%		81.6	%		2.3 pts
Latin America		77.7	%		73.0	%		4.7 pts
Total International		83.1	%		77.8	%		5.3 pts
Total Mainline		85.0	%		82.5	%		2.5 pts
Regional Affiliates		79.9	%		78.6	%		1.3 pts
Total Consolidated		84.3	%		82.0	%		2.3 pts
REVENUE PASSENGERS BOARDED (‘000)**
Mainline		13,980			14,608			-4.3	%
Regional Affiliates		7,344			6,456			13.8	%
Total Consolidated		21,324			21,064			1.2	%
CARGO TON MILES (‘000)**
Freight		464,301			333,351			39.3	%
Mail		43,468			48,111			-9.7	%
Total Mainline		507,769			381,462			33.1	%

 

**	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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REVENUE PASSENGER MILES (‘000)**
		YTD June 2010			YTD June 2009			Change
North America		27,914,661			28,648,428			-2.6	%
Pacific		11,039,953			10,261,087			7.6	%
Atlantic		8,675,063			8,358,763			3.8	%
Latin America		1,654,788			1,630,675			1.5	%
Total International		21,369,804			20,250,525			5.5	%
Total Mainline		49,284,465			48,898,953			0.8	%
Regional Affiliates		7,841,558			6,410,035			22.3	%
Total Consolidated		57,126,023			55,308,988			3.3	%
AVAILABLE SEAT MILES (‘000)**
North America		33,160,167			34,629,054			-4.2	%
Pacific		13,187,428			13,832,188			-4.7	%
Atlantic		10,770,433			10,887,957			-1.1	%
Latin America		2,084,605			2,203,735			-5.4	%
Total International		26,042,466			26,923,880			-3.3	%
Total Mainline		59,202,633			61,552,934			-3.8	%
Regional Affiliates		10,110,234			8,499,308			19.0	%
Total Consolidated		69,312,867			70,052,242			-1.1	%
LOAD FACTOR**
North America		84.2	%		82.7	%		1.5 pts
Pacific		83.7	%		74.2	%		9.5 pts
Atlantic		80.5	%		76.8	%		3.7 pts
Latin America		79.4	%		74.0	%		5.4 pts
Total International		82.1	%		75.2	%		6.9 pts
Total Mainline		83.2	%		79.4	%		3.8 pts
Regional Affiliates		77.6	%		75.4	%		2.2 pts
Total Consolidated		82.4	%		79.0	%		3.4 pts
REVENUE PASSENGERS BOARDED (‘000)**
Mainline		26,406			27,754			-4.9	%
Regional Affiliates		13,736			11,978			14.7	%
Total Consolidated		40,142			39,732			1.0	%
CARGO TON MILES (‘000)**
Freight		878,012			618,678			41.9	%
Mail		91,998			101,071			-9.0	%
Total Mainline		970,010			719,749			34.8	%

 

**	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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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 June hedge settlements.

 

		June 2010
Mainline fuel price per gallon excluding non-cash, net mark-to-market gains and losses		2.34
Add: Non-cash, net mark-to-market (gains) and losses per gallon		(0.11	)
Mainline fuel price per gallon		2.23

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 June 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