United Airlines Holdings, Inc., the parent company of United Airlines, Inc., is traded on the Nasdaq under the symbol "UAL". Alaska Air Group's revenues are expected to be $2.56 billion, up 67.9% from the year-ago quarter. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. In connection with the delivery of each aircraft from Boeing, United assigned its right to purchase such aircraft to the buyer, and simultaneous with the buyer's purchase from Boeing, United entered into a long-term lease for such aircraft with the buyer as lessor. Additionally, even as the industry faced several, well-documented operational challenges throughout the quarter, United performed well and with the exception of Newark had operating results largely in line with 2019. To skip our detailed analysis of Leon Coopermans hedge fund profile, investment strategy, and 13F holdings, you can go directly to see the 3 Best Energy Stocks to Buy Now According to Billionaire Leon []. The number of seats available for passengers multiplied by the number of scheduled miles those seats are flown. UAL also believes that excluding third-party business expenses, such as maintenance, flight academy, ground handling and catering services for third parties, provides more meaningful disclosure because these expenses are not directly related to UAL's core business. While United has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? (a) United entered into agreements with third parties to finance through sale and leaseback transactions new Boeing model 787 aircraft and Boeing model 737 MAX aircraft subject to purchase agreements between United and Boeing. The company achieved the highest second quarter revenue in its history, delivering its first profitable quarter since COVID-19 began, despite record-high fuel prices. We have historically calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate for the full fiscal year to income or loss for the reporting period. The answer isnt fully clear, though; markets have fallen for most of this year, but the last few days have seen the best trading in weeks. This airline is expected to post quarterly earnings of $1.85 per share in its upcoming report, which represents a year-over-year change of +716.7%. All forward-looking statements in this report are based upon information available to us on the date of this report. Launched a new, national advertising campaign "Good Leads The Way" that tells the story of United's leadership in areas like customer service, diversity and sustainability, and captures the optimism fueling the airline's large ambitions at a time of unprecedented demand in air travel. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. This press release should be read in conjunction with the company's Investor Update issued in connection with this quarterly earnings announcement, which provides additional information on the company's business outlook (including certain financial and operational guidance) and is furnished with this press release with the U.S. Securities and Exchange Commission on a Current Report on Form 8-K.
Ahead of this earnings release, the estimate revisions trend for United: mixed. These fundamental challenges have already led to higher costs, higher fuel prices but, also higher revenue, which means we're as confident as ever we will deliver on our 9 percent adjusted pre-tax margin target in 2023. CARES Act grant: During the six months ended June 30, 2021, the company received approximately $5.8 billion in funding pursuant to certain Payroll Support Programs ("PSP2" and "PSP3") under the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"), which included an approximately $1.7 billion unsecured loan. This quarterly report represents an earnings surprise of -23.12%. Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, 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. UAL believes that adjusting capital expenditures for assets acquired through the issuance of debt, finance leases and other financial liabilities is useful to investors in order to appropriately reflect the total amounts spent on capital expenditures. In addition, certain forward-looking outlook provided in this release relies on assumptions about the duration and severity of the COVID-19 pandemic, the timing of the return to a more stable business environment, the volatility of aircraft fuel prices, customer behavior changes and return in demand for air travel, among other things (together, the "Recovery Process"). ConnectionSaver tool helped save more than 150,000 connections, assisting more than 1,600 customers daily on average. The company also recorded $52 million and $99 million for the related warrants issued to the U.S. Treasury Department as part of the agreements related to PSP2 and PSP3, within stockholders' equity, as an offset to the grant income in the three and six months ended June 30, 2021, respectively. AT&T stock fell after the company added more wireless postpaid phone subscribers than expected in Q2 but lowered its full-year free cash flow outlook. Do the numbers hold clues to what lies ahead for the stock? The webcast will be available for replay within 24 hours of the conference call and then archived on the website for three months. UAL also believes that excluding fuel expense from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence. Special charges (credits) and unrealized (gains) and losses on investments, net include the following: (Gains) losses on sale of assets and other special charges, Total operating special charges (credits), Total nonoperating special charges and unrealized (gains) losses on investments, net, Total operating and nonoperating special charges (credits) and unrealized (gains) losses on investments, net, Income tax expense (benefit), net of valuation allowance, Total operating and non-operating special charges (credits) and unrealized (gains) losses on investments, net of income taxes. We may also use social media channels to communicate with our investors and the public about our company and other matters, and those communications could be deemed to be material information. Long-term liabilities and deferred credits: Long-term obligations under operating leases, Long-term obligations under finance leases, Total long-term liabilities and deferred credits, Total liabilities and stockholders' equity, UNITED AIRLINES HOLDINGS, INC.CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED), Net cash provided by operating activities, Capital expenditures, net of flight equipment purchase deposit returns, Purchases of short-term and other investments, Proceeds from sale of short-term and other investments, Proceeds from sale of property and equipment, Proceeds from issuance of debt, net of discounts and fees, Payments of long-term debt, finance leases and other financing liabilities, Net cash provided by (used in) financing activities, Net increase (decrease) in cash, cash equivalents and restricted cash, Cash, cash equivalents and restricted cash at beginning of the period, Cash, cash equivalents and restricted cash at end of the period. "It's nice to return to profitability but we must confront three risks that could grow over the next 6-18 months. UAL also believes that adjusting net cash provided by (used in) operating activities for capital expenditures, net of flight equipment purchase deposit returns, adjusted capital expenditures, and aircraft operating lease additions is useful to allow investors to evaluate the company's ability to generate cash that is available for debt service or general corporate initiatives.
From our U.S. hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C., United operates the most comprehensive global route network among North American carriers. It is routine for our internal projections and expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that the internal projections, beliefs and assumptions upon which we base our expectations may change. For additional information about the reconciling items and their significance, see "Non-GAAP Financial Information" below. Investing and Financing Activities Not Affecting Cash: Property and equipment acquired through the issuance of debt, finance leases and other, Lease modifications and lease conversions, Right-of-use assets acquired through operating leases, Equity investment interest received in exchange for aircraft, Notes receivable and warrants received for entering into agreements, UNITED AIRLINES HOLDINGS, INC.NOTES (UNAUDITED). Total operating revenue up 6% over same quarter 2019; expects increase of 11% in third quarter versus the same quarter in 2019, Record TRASM of up 24% over same quarter 2019; expects sequential improvement in third quarter versus the same quarter in 2019, Operating margin of 7.2% and adjusted operating margin of 8.2% marking first quarter of profitability since COVID-19 began. In discussing financial results and guidance, the company refers to financial measures that are not in accordance with U.S. Generally Accepted Accounting Principles (GAAP). Announced new three times weekly service between. Most readers would already be aware that Urstadt Biddle Properties' (NYSE:UBA) stock increased significantly by 10 United Bancorp, Inc. ( NASDAQ:UBCP ) shareholders might be concerned after seeing the share price drop 23% in the last Yahoo Finance Live anchors report that Carnival Cruise Line is set to sell $1 billion in stock. Reported second quarter 2022 TRASM of up 24% compared to second quarter 2019. During the six months ended June 30, 2019, the company recorded $2 million of severance and benefit costs primarily related to a voluntary early-out program for its technicians and related employees represented by the International Brotherhood of Teamsters. ", Environmental, Social and Governance (ESG). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Such forward-looking statements are based on historical performance and current expectations, estimates, forecasts and projections about the company's future financial results, goals, plans and objectives and involve inherent risks, assumptions and uncertainties, known or unknown, including internal or external factors that could delay, divert or change any of them, that are difficult to predict, may be beyond the company's control and could cause the company's future financial results, goals, plans and objectives to differ materially from those expressed in, or implied by, the statements. UAL reports CASM excluding special charges (credits), third-party business expenses, fuel expense and profit sharing. We believe that, at this time, the use of the discrete method for the three and six months ended June 30, 2022 is more appropriate than the estimated annual effective tax rate method as the estimated annual effective tax rate method is not reliable due to a high degree of uncertainty in estimating annual pretax earnings. Urstadt Biddle Properties Inc.'s (NYSE:UBA) Stock is Soaring But Financials Seem Inconsistent: Will The Uptrend Continue? Within the financial tables presented, certain columns and rows may not add due to the use of rounded numbers. UAL excludes profit sharing because it believes that this exclusion allows investors to better understand and analyze UAL's operating cost performance and provides a more meaningful comparison of our core operating costs to the airline industry. United Airlines Holdings Inc (UAL) : Free Stock Analysis Report, Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report. A live, listen-only webcast of the conference call will be available at ir.united.com. Interest expense related to finance leases of Embraer ERJ 145 aircraft: During the third quarter of 2018, United entered into an agreement with the lessor of 54 Embraer ERJ 145 aircraft to purchase those aircraft in 2019. The company recognized $25 million and $46 million of additional interest expense in the three and six months ended June 30, 2019, respectively, as a result of this change. Words such as "should," "could," "would," "will," "may," "expects," "plans," "intends," "anticipates," "indicates," "remains," "believes," "estimates," "projects," "forecast," "guidance," "outlook," "goals", "targets", "confident", "dedicated" and other words and terms of similar meaning and expression are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. CASM is a common metric used in the airline industry to measure an airline's cost structure and efficiency. HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American, Reported second quarter 2022 net income of. 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, except as required by applicable law or regulation. Information is as follows (in millions, except for percentage changes): Select operating statistics are as follows: Revenue passenger miles ("RPMs") (millions) (b), Available seat miles ("ASMs") (millions) (c), Passenger revenue per available seat mile (cents), Total revenue per available seat mile ("TRASM") (cents), Average yield per revenue passenger mile (cents) (e), Employee headcount, as of June 30 (in thousands) (h). UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and non-GAAP financial measures, including adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), adjusted EBITDA margin, adjusted operating income (loss), adjusted operating expenses, adjusted operating margin, adjusted pre-tax income (loss), adjusted pre-tax margin, adjusted net income (loss), adjusted diluted earnings (loss) per share, CASM, excluding special charges, third-party business expenses, fuel, and profit sharing (CASM-ex), operating expenses excluding special charges, adjusted capital expenditures, free cash flow, and free cash flow, net of financings, among others. This compares to loss of $3.91 per share a year ago.
So, the shares are expected to perform in line with the market in the near future. The COVID-19 pandemic and the measures taken in response may continue to impact many aspects of our business, operating results, financial condition and liquidity in a number of ways, including labor shortages (including reductions in available staffing and related impacts to the company's flight schedules and reputation), facility closures and related costs and disruptions to the company's and its business partners' operations, reduced travel demand and consumer spending, increased operating costs, supply chain disruptions, logistics constraints, volatility in the price of our securities, our ability to access capital markets and volatility in the global economy and financial markets generally. Operating expenses, excluding special charges (credits), Adjusted operating income (loss) (Non-GAAP), Unrealized (gains) losses on investments, net, Debt extinguishment and modification fees, Interest expense on ERJ 145 finance leases, Adjusted pre-tax income (loss) (Non-GAAP), Income tax expense (benefit) on adjustments, net, Adjusted diluted income (loss) per share (Non-GAAP), UNITED AIRLINES HOLDINGS, INCCONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED), Receivables, less allowance for credit losses (2022 $31; 2021 $28), Aircraft fuel, spare parts and supplies, less obsolescence allowance (2022 $578; 2021 $546), Total operating property and equipment, net, Intangibles, less accumulated amortization (2022 $1,451; 2021 $1,544), Investments in affiliates and other, less allowance for credit losses (2022 $623; 2021 $622), Current maturities of other financial liabilities. Cost per available seat mile (CASM) (GAAP), Interest expense, net of capitalized interest and interest income, Nonoperating unrealized (gains) losses on investments, net, Nonoperating debt extinguishment and modification fees, Nonoperating special termination benefits. ET. UAL believes that adjusting for special charges (credits) is useful to investors because special charges (credits) are not indicative of UAL's ongoing performance. In good news, United reported the highest second-quarter revenue in its history, and delivered its first profitable quarter since Covid-19 began, despite record-high fuel prices. United's shared purpose is "Connecting People. The company's business outlook is subject to risks and uncertainties applicable to all forward-looking statements as described elsewhere in this press release. For the same reasons, the company is unable to address the probable significance of the unavailable information. This compares to year-ago revenues of $5.47 billion. UAL believes that adjusting for interest expense related to finance leases of Embraer ERJ 145 aircraft in certain non-GAAP measures is useful to investors because of the accelerated recognition of interest expense. For additional information about the non-GAAP measures used in this press release, see "Non-GAAP Financial Information" below. Capital expenditures, net of flight equipment purchase deposit returns (GAAP), Property and equipment acquired through the issuance of debt, finance leases, and other financial liabilities, Adjustment to property and equipment acquired through other financial liabilities (a), Net cash provided by operating activities (GAAP), Less capital expenditures, net of flight equipment purchase deposit returns, Free cash flow, net of financings (Non-GAAP), Less adjusted capital expenditures (Non-GAAP).