United Airlines 2008 Annual Report Download - page 41

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• The Company announced new daily service from Washington Dulles to Moscow and Geneva,
commencing in March and April 2009, respectively.
• The Company will reinstate daily seasonal service from Denver to London Heathrow effective
March 2009.
Financial Results. UAL and United adopted fresh-start reporting in accordance with SOP 90-7
upon emerging from bankruptcy. Thus, the consolidated financial statements before February 1, 2006
reflect results based upon the historical cost basis of the Company while the post-emergence
consolidated financial statements reflect the new basis of accounting, which incorporates fair value and
other adjustments recorded from the application of SOP 90-7. Therefore, financial statements for the
post-emergence periods are not comparable to the pre-emergence period financial statements.
References to “Successor Company” refer to UAL and/or United on or after February 1, 2006, after
giving effect to the adoption of fresh-start reporting. References to “Predecessor Company” refer to
UAL and/or United before their exit from bankruptcy on February 1, 2006.
For purposes of the discussion of financial results, management utilizes the combined results of the
Successor Company and Predecessor Company for the twelve months ended December 31, 2006. The
combined results for the twelve months ended December 31, 2006 are non-GAAP measures; however,
management believes that the combined results provide a more meaningful comparison to the years
ended December 31, 2008 and 2007.
The air travel business is subject to seasonal fluctuations and historically, the Company’s results of
operations are better in the second and third quarters as compared to the first and fourth quarters of
each year, since our first and fourth quarter results normally reflect weaker travel demand. The
Company’s results of operations can be impacted by adverse weather, air traffic control delays, fuel price
volatility and other factors in any period.
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