United Airlines 2013 Annual Report Download - page 31

Table of Contents
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United Continental Holdings, Inc. (together with its consolidated subsidiaries, “UAL” or the “Company”) is a holding company and its principal, wholly-
owned subsidiary is United Airlines, Inc. (together with its consolidated subsidiaries, “United”). As UAL consolidates United for financial statement
purposes, disclosures that relate to activities of United also apply to UAL, unless otherwise noted. United’s operating revenues and operating expenses
comprise nearly 100% of UAL’s revenues and operating expenses. In addition, United comprises approximately the entire balance of UAL’s assets, liabilities
and operating cash flows. When appropriate, UAL and United are named specifically for their individual contractual obligations and related disclosures and
any significant differences between the operations and results of UAL and United are separately disclosed and explained. We sometimes use the words “we,”
“our,” “us,” and the “Company” in this report for disclosures that relate to all of UAL and United.
On May 2, 2010, UAL Corporation, Continental Airlines, Inc. (together with its consolidated subsidiaries, “Continental”) and JT Merger Sub Inc., a wholly-
owned subsidiary of UAL Corporation, entered into an Agreement and Plan of Merger. On October 1, 2010, JT Merger Sub Inc. merged with and into
Continental, with Continental surviving as a wholly-owned subsidiary of UAL Corporation (the “Merger”). Upon closing of the Merger, UAL Corporation
became the parent company of both United Air Lines, Inc. and Continental and UAL Corporation’s name was changed to United Continental Holdings, Inc.
On March 31, 2013, the Company merged United Air Lines, Inc. into Continental to form one legal entity, and Continental’s name was changed to United
Airlines, Inc. The financial statements of United Air Lines, Inc. and Continental are now combined at their historical cost for all periods presented beginning
on October 1, 2010, the date on which Continental became a wholly-owned subsidiary of UAL.
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• The Company recorded net income of $571 million for 2013, as compared to net loss of $723 million for 2012. Excluding special charges, the
Company recorded net income of $1.1 billion for 2013, compared to net income of $589 million for 2012. See Part II, Item 6 of this report for a
reconciliation of GAAP to non-GAAP net income.
• Unrestricted cash, cash equivalents and short-term investments at December 31, 2013 was $5.1 billion as compared to $6.5 billion at
December 31, 2012.
• 2013 consolidated passenger revenue increased approximately $539 million, or 1.7%, as compared to 2012. Consolidated passenger revenue per
available seat mile (“PRASM”) increased 3.1% in 2013 compared to 2012.
• Full-year 2013 cost per available seat mile (“CASM”) increased 1.2% year-over-year.
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• For the years ended December 31, 2013 and 2012, the Company recorded a U.S. Department of Transportation on-time arrival rate of 79.3% and
77.4%, respectively, and a system completion factor of 99.0% and 98.6%, respectively.
• Consolidated traffic (“RPMs”) for 2013 decreased 0.2% as compared to 2012, while consolidated capacity (“ASMs”) decreased 1.4% from the prior
year, resulting in a consolidated load factor of 83.6% in 2013 versus a consolidated load factor of 82.6% in 2012.
• The Company took delivery of two new Boeing 787-8 Dreamliners in 2013, bringing its total Dreamliner fleet to eight aircraft. The Company also
took delivery of 24 new Boeing 737-900ERs in 2013. United exited from scheduled service 23 Boeing 757-200s and the last of its Boeing 737-500s
and Boeing 767-200s.
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