false--12-31 Q2 2019 0000100517 0000319687 P10Y 412000000 412000000 387000000 387000000 8000000 8000000 9000000 9000000 0.01 0.01 0.01 0.01 1000000000 1000 1000000000 1000 1000 1000 269914769 1000 257729166 1000 1380000000 1380000000 1410000000 1410000000 612000000 253000000 865000000 0000100517 2019-01-01 2019-06-30 0000100517 ual:UnitedAirLinesIncMember 2019-01-01 2019-06-30 0000100517 ual:UnitedAirLinesIncMember 2019-07-12 0000100517 2019-07-12 0000100517 2018-01-01 2018-06-30 0000100517 2018-04-01 2018-06-30 0000100517 2019-04-01 2019-06-30 0000100517 us-gaap:CargoAndFreightMember 2018-01-01 2018-06-30 0000100517 us-gaap:ProductAndServiceOtherMember 2019-04-01 2019-06-30 0000100517 us-gaap:CargoAndFreightMember 2019-01-01 2019-06-30 0000100517 us-gaap:PassengerMember 2019-01-01 2019-06-30 0000100517 us-gaap:ProductAndServiceOtherMember 2019-01-01 2019-06-30 0000100517 us-gaap:PassengerMember 2018-01-01 2018-06-30 0000100517 us-gaap:PassengerMember 2018-04-01 2018-06-30 0000100517 us-gaap:CargoAndFreightMember 2018-04-01 2018-06-30 0000100517 us-gaap:PassengerMember 2019-04-01 2019-06-30 0000100517 us-gaap:CargoAndFreightMember 2019-04-01 2019-06-30 0000100517 us-gaap:ProductAndServiceOtherMember 2018-01-01 2018-06-30 0000100517 us-gaap:ProductAndServiceOtherMember 2018-04-01 2018-06-30 0000100517 2019-06-30 0000100517 2018-12-31 0000100517 ual:FrequentFlyerProgramMember 2019-06-30 0000100517 ual:FrequentFlyerProgramMember 2018-12-31 0000100517 ual:AdvanceTicketSalesMember 2019-06-30 0000100517 ual:AdvanceTicketSalesMember 2018-12-31 0000100517 2018-06-30 0000100517 2017-12-31 0000100517 us-gaap:TreasuryStockMember 2018-01-01 2018-06-30 0000100517 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0000100517 us-gaap:CommonStockMember 2018-01-01 2018-06-30 0000100517 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0000100517 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0000100517 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0000100517 us-gaap:TreasuryStockMember 2019-04-01 2019-06-30 0000100517 2019-03-31 0000100517 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 0000100517 us-gaap:CommonStockMember 2018-06-30 0000100517 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000100517 us-gaap:RetainedEarningsMember 2019-06-30 0000100517 us-gaap:RetainedEarningsMember 2019-01-01 2019-06-30 0000100517 us-gaap:TreasuryStockMember 2019-06-30 0000100517 us-gaap:CommonStockMember 2018-03-31 0000100517 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0000100517 us-gaap:TreasuryStockMember 2018-12-31 0000100517 us-gaap:CommonStockMember 2019-01-01 2019-06-30 0000100517 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-06-30 0000100517 us-gaap:CommonStockMember 2018-12-31 0000100517 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-06-30 0000100517 us-gaap:RetainedEarningsMember 2018-01-01 2018-06-30 0000100517 us-gaap:RetainedEarningsMember 2018-01-01 0000100517 us-gaap:TreasuryStockMember 2018-03-31 0000100517 us-gaap:CommonStockMember 2019-03-31 0000100517 us-gaap:TreasuryStockMember 2018-06-30 0000100517 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0000100517 us-gaap:TreasuryStockMember 2017-12-31 0000100517 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-06-30 0000100517 2018-03-31 0000100517 us-gaap:RetainedEarningsMember 2017-12-31 0000100517 us-gaap:RetainedEarningsMember 2018-06-30 0000100517 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0000100517 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0000100517 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0000100517 us-gaap:RetainedEarningsMember 2019-03-31 0000100517 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0000100517 us-gaap:CommonStockMember 2019-06-30 0000100517 us-gaap:TreasuryStockMember 2018-04-01 2018-06-30 0000100517 us-gaap:RetainedEarningsMember 2018-03-31 0000100517 us-gaap:TreasuryStockMember 2019-03-31 0000100517 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0000100517 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000100517 us-gaap:CommonStockMember 2018-04-01 2018-06-30 0000100517 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0000100517 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0000100517 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000100517 us-gaap:CommonStockMember 2017-12-31 0000100517 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000100517 us-gaap:TreasuryStockMember 2019-01-01 2019-06-30 0000100517 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0000100517 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-06-30 0000100517 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0000100517 us-gaap:RetainedEarningsMember 2018-12-31 0000100517 ual:UnitedAirLinesIncMember 2018-01-01 2018-06-30 0000100517 ual:UnitedAirLinesIncMember 2019-04-01 2019-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:CargoAndFreightMember 2018-04-01 2018-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:CargoAndFreightMember 2019-01-01 2019-06-30 0000100517 ual:UnitedAirLinesIncMember 2018-04-01 2018-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:ProductAndServiceOtherMember 2018-04-01 2018-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:ProductAndServiceOtherMember 2018-01-01 2018-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:ProductAndServiceOtherMember 2019-01-01 2019-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:ProductAndServiceOtherMember 2019-04-01 2019-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:CargoAndFreightMember 2018-01-01 2018-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:CargoAndFreightMember 2019-04-01 2019-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:PassengerMember 2019-04-01 2019-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:PassengerMember 2018-01-01 2018-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:PassengerMember 2018-04-01 2018-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:PassengerMember 2019-01-01 2019-06-30 0000100517 ual:UnitedAirLinesIncMember 2018-12-31 0000100517 ual:UnitedAirLinesIncMember 2019-06-30 0000100517 ual:UnitedAirLinesIncMember ual:AdvanceTicketSalesMember 2019-06-30 0000100517 ual:UnitedAirLinesIncMember ual:FrequentFlyerProgramMember 2018-12-31 0000100517 ual:UnitedAirLinesIncMember ual:FrequentFlyerProgramMember 2019-06-30 0000100517 ual:UnitedAirLinesIncMember ual:AdvanceTicketSalesMember 2018-12-31 0000100517 ual:UnitedAirLinesIncMember 2017-12-31 0000100517 ual:UnitedAirLinesIncMember 2018-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:ReceivablesFromStockholderMember 2018-01-01 2018-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:ReceivablesFromStockholderMember 2019-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:ReceivablesFromStockholderMember 2018-03-31 0000100517 ual:UnitedAirLinesIncMember us-gaap:ReceivablesFromStockholderMember 2019-04-01 2019-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:RetainedEarningsMember 2019-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:RetainedEarningsMember 2019-01-01 2019-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:RetainedEarningsMember 2018-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:ReceivablesFromStockholderMember 2018-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:ReceivablesFromStockholderMember 2019-01-01 2019-06-30 0000100517 ual:UnitedAirLinesIncMember 2018-03-31 0000100517 ual:UnitedAirLinesIncMember us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:RetainedEarningsMember 2018-12-31 0000100517 ual:UnitedAirLinesIncMember us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:RetainedEarningsMember 2019-03-31 0000100517 ual:UnitedAirLinesIncMember us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000100517 ual:UnitedAirLinesIncMember us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:RetainedEarningsMember 2018-03-31 0000100517 ual:UnitedAirLinesIncMember us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000100517 ual:UnitedAirLinesIncMember us-gaap:RetainedEarningsMember 2017-12-31 0000100517 ual:UnitedAirLinesIncMember us-gaap:ReceivablesFromStockholderMember 2018-12-31 0000100517 ual:UnitedAirLinesIncMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000100517 ual:UnitedAirLinesIncMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000100517 ual:UnitedAirLinesIncMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0000100517 ual:UnitedAirLinesIncMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0000100517 ual:UnitedAirLinesIncMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0000100517 ual:UnitedAirLinesIncMember us-gaap:ReceivablesFromStockholderMember 2019-03-31 0000100517 ual:UnitedAirLinesIncMember us-gaap:ReceivablesFromStockholderMember 2017-12-31 0000100517 ual:UnitedAirLinesIncMember us-gaap:RetainedEarningsMember 2018-01-01 2018-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0000100517 ual:UnitedAirLinesIncMember 2019-03-31 0000100517 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201602Member 2018-12-31 0000100517 srt:ScenarioPreviouslyReportedMember 2018-12-31 0000100517 srt:ScenarioPreviouslyReportedMember 2018-01-01 2018-06-30 0000100517 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201602Member 2018-01-01 2018-06-30 0000100517 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201602Member 2018-04-01 2018-06-30 0000100517 srt:ScenarioPreviouslyReportedMember 2018-04-01 2018-06-30 0000100517 us-gaap:DomesticDestinationMember 2019-01-01 2019-06-30 0000100517 us-gaap:PacificDestinationMember 2018-04-01 2018-06-30 0000100517 us-gaap:PacificDestinationMember 2018-01-01 2018-06-30 0000100517 us-gaap:DomesticDestinationMember 2018-01-01 2018-06-30 0000100517 us-gaap:PacificDestinationMember 2019-01-01 2019-06-30 0000100517 us-gaap:LatinAmericaDestinationMember 2019-01-01 2019-06-30 0000100517 us-gaap:AtlanticDestinationMember 2019-04-01 2019-06-30 0000100517 us-gaap:DomesticDestinationMember 2018-04-01 2018-06-30 0000100517 us-gaap:DomesticDestinationMember 2019-04-01 2019-06-30 0000100517 us-gaap:AtlanticDestinationMember 2018-01-01 2018-06-30 0000100517 us-gaap:AtlanticDestinationMember 2018-04-01 2018-06-30 0000100517 us-gaap:LatinAmericaDestinationMember 2018-04-01 2018-06-30 0000100517 us-gaap:PacificDestinationMember 2019-04-01 2019-06-30 0000100517 us-gaap:LatinAmericaDestinationMember 2019-04-01 2019-06-30 0000100517 us-gaap:AtlanticDestinationMember 2019-01-01 2019-06-30 0000100517 us-gaap:LatinAmericaDestinationMember 2018-01-01 2018-06-30 0000100517 ual:FrequentFlyerProgramMember 2019-04-01 2019-06-30 0000100517 ual:FrequentFlyerProgramMember 2018-06-30 0000100517 ual:FrequentFlyerProgramMember 2018-01-01 2018-06-30 0000100517 ual:FrequentFlyerProgramMember 2019-01-01 2019-06-30 0000100517 ual:FrequentFlyerProgramMember 2018-04-01 2018-06-30 0000100517 ual:FrequentFlyerProgramMember 2017-12-31 0000100517 ual:FrequentFlyerProgramMember 2019-03-31 0000100517 ual:FrequentFlyerProgramMember 2018-03-31 0000100517 ual:PassengerAncillaryFeesMember 2019-01-01 2019-06-30 0000100517 ual:PassengerAncillaryFeesMember 2019-04-01 2019-06-30 0000100517 ual:AdvanceTicketSalesMember 2018-01-01 2018-06-30 0000100517 ual:AdvanceTicketSalesMember 2018-04-01 2018-06-30 0000100517 ual:AdvanceTicketSalesMember 2019-04-01 2019-06-30 0000100517 ual:AdvanceTicketSalesMember 2019-01-01 2019-06-30 0000100517 ual:PassengerAncillaryFeesMember 2018-01-01 2018-06-30 0000100517 ual:PassengerAncillaryFeesMember 2018-04-01 2018-06-30 0000100517 ual:OpenMarketRepurchaseMember 2019-01-01 2019-06-30 0000100517 ual:OpenMarketRepurchaseMember 2019-04-01 2019-06-30 0000100517 ual:OpenMarketRepurchaseMember 2019-06-30 0000100517 ual:July2019ShareRepurchaseProgramMember us-gaap:SubsequentEventMember 2019-07-15 0000100517 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-06-30 0000100517 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-06-30 0000100517 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-01-01 2019-06-30 0000100517 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-06-30 0000100517 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-03-31 0000100517 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-04-01 2019-06-30 0000100517 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2017-12-31 0000100517 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-04-01 2018-06-30 0000100517 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-01-01 2018-06-30 0000100517 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-01-01 2018-06-30 0000100517 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-03-31 0000100517 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-06-30 0000100517 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-06-30 0000100517 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-04-01 2019-06-30 0000100517 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-12-31 0000100517 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-03-31 0000100517 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-04-01 2018-06-30 0000100517 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-03-31 0000100517 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-12-31 0000100517 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 0000100517 2018-01-01 2018-03-31 0000100517 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-06-30 0000100517 ual:PerformanceBasedRestrictedStockUnitsRSUsMember 2019-01-01 2019-06-30 0000100517 us-gaap:PensionPlansDefinedBenefitMember 2019-01-01 2019-06-30 0000100517 us-gaap:PensionPlansDefinedBenefitMember 2019-04-01 2019-06-30 0000100517 ual:TimeVestedRestrictedStockUnitsRSUsMember 2019-01-01 2019-06-30 0000100517 us-gaap:PensionPlansDefinedBenefitMember 2018-04-01 2018-06-30 0000100517 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-04-01 2019-06-30 0000100517 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2018-04-01 2018-06-30 0000100517 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-01-01 2019-06-30 0000100517 us-gaap:PensionPlansDefinedBenefitMember 2018-01-01 2018-06-30 0000100517 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2018-01-01 2018-06-30 0000100517 ual:BRWAviationHoldingLLCAndBRWAviationLLCBRWMember 2018-11-30 0000100517 srt:MinimumMember us-gaap:AssetBackedSecuritiesMember 2019-01-01 2019-06-30 0000100517 srt:MaximumMember us-gaap:CertificatesOfDepositMember 2019-01-01 2019-06-30 0000100517 ual:AzulMember 2019-06-30 0000100517 srt:MaximumMember us-gaap:CorporateDebtSecuritiesMember 2019-01-01 2019-06-30 0000100517 ual:AzulMember us-gaap:PreferredStockMember 2019-06-30 0000100517 srt:MaximumMember us-gaap:FixedIncomeSecuritiesMember 2019-01-01 2019-06-30 0000100517 srt:MaximumMember us-gaap:AssetBackedSecuritiesMember 2019-01-01 2019-06-30 0000100517 srt:MinimumMember ual:UsGovernmentAgenciesDebtSecuritiesAndOtherFixedIncomeSecuritiesMember 2019-01-01 2019-06-30 0000100517 srt:MinimumMember us-gaap:CorporateDebtSecuritiesMember 2019-01-01 2019-06-30 0000100517 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-06-30 0000100517 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0000100517 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-06-30 0000100517 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-06-30 0000100517 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0000100517 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-06-30 0000100517 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0000100517 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-06-30 0000100517 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-06-30 0000100517 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000100517 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:FixedIncomeSecuritiesMember 2018-12-31 0000100517 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2019-06-30 0000100517 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:FixedIncomeSecuritiesMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember ual:OtherInvestmentsMeasuredAtNetAssetValueMember 2018-12-31 0000100517 us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000100517 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember ual:OtherInvestmentsMeasuredAtNetAssetValueMember 2019-06-30 0000100517 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-06-30 0000100517 us-gaap:FairValueMeasurementsRecurringMember ual:OtherInvestmentsMeasuredAtNetAssetValueMember 2019-06-30 0000100517 us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember ual:OtherInvestmentsMeasuredAtNetAssetValueMember 2019-06-30 0000100517 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember ual:OtherInvestmentsMeasuredAtNetAssetValueMember 2019-06-30 0000100517 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember 2019-06-30 0000100517 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember 2019-06-30 0000100517 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-06-30 0000100517 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:FixedIncomeSecuritiesMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000100517 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:FixedIncomeSecuritiesMember 2019-06-30 0000100517 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FixedIncomeSecuritiesMember 2019-06-30 0000100517 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember ual:OtherInvestmentsMeasuredAtNetAssetValueMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:FixedIncomeSecuritiesMember 2019-06-30 0000100517 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:FixedIncomeSecuritiesMember 2019-06-30 0000100517 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000100517 us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2019-06-30 0000100517 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-06-30 0000100517 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2019-06-30 0000100517 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FixedIncomeSecuritiesMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-06-30 0000100517 us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember 2019-06-30 0000100517 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-06-30 0000100517 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2019-06-30 0000100517 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-06-30 0000100517 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2018-12-31 0000100517 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember 2019-06-30 0000100517 us-gaap:FairValueMeasurementsRecurringMember ual:OtherInvestmentsMeasuredAtNetAssetValueMember 2018-12-31 0000100517 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember 2018-12-31 0000100517 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-06-30 0000100517 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember ual:OtherInvestmentsMeasuredAtNetAssetValueMember 2018-12-31 0000100517 us-gaap:MainlineMember srt:MaximumMember 2019-01-01 2019-06-30 0000100517 ual:NonAircraftMember srt:MinimumMember 2019-01-01 2019-06-30 0000100517 us-gaap:RegionalCarrierMember 2019-06-30 0000100517 us-gaap:MainlineMember srt:MinimumMember 2019-01-01 2019-06-30 0000100517 ual:EmbraerERJ145Member 2018-09-30 0000100517 srt:MaximumMember 2019-01-01 2019-06-30 0000100517 us-gaap:MainlineMember 2019-06-30 0000100517 ual:NonAircraftMember srt:MaximumMember 2019-01-01 2019-06-30 0000100517 ual:Boeing737MaxMember 2019-06-30 0000100517 ual:AirbusMember 2019-06-30 0000100517 ual:Boeing787Member 2019-06-30 0000100517 srt:B777300Member 2019-06-30 0000100517 ual:EmbraerE175Member 2019-06-30 0000100517 ual:KingslandHoldingsLimitedMember 2018-11-30 0000100517 ual:LoansAndLeasesFromNonUSEntitiesMember 2019-01-01 2019-06-30 0000100517 ual:LoansAndLeasesFromNonUSEntitiesMember 2019-06-30 0000100517 ual:Boeing737700Member 2019-06-30 0000100517 ual:EmbraerE175Member 2019-04-01 2019-06-30 0000100517 ual:AircraftMortgageDebtMember 2019-06-30 0000100517 ual:FixedRateDebtMember 2019-06-30 0000100517 ual:Boeing737MaxMember srt:ScenarioForecastMember 2019-12-31 0000100517 ual:EmbraerCRJ550Member 2019-06-01 2019-06-30 0000100517 ual:KingslandHoldingsLimitedMember 2018-12-31 0000100517 ual:Boeing737MaxMember 2019-03-13 0000100517 ual:AirbusA319sMember 2019-06-30 0000100517 ual:Boeing737MaxMember 2019-03-12 0000100517 ual:FloatingRateDebtMember 2019-06-30 0000100517 ual:TaxExemptBondsMember 2019-06-30 0000100517 2019-06-01 2019-06-30 0000100517 ual:A4.875SeniorNotesDue2025Member us-gaap:SeniorNotesMember 2019-05-31 0000100517 ual:A4.875SeniorNotesDue2025Member us-gaap:SeniorNotesMember 2019-05-01 2019-05-31 0000100517 2019-02-01 2019-02-28 0000100517 ual:UnitedAirLinesIncMember us-gaap:RevolvingCreditFacilityMember us-gaap:SecuredDebtMember 2019-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:EnhancedEquipmentTrustCertificateMember 2019-01-01 2019-06-30 0000100517 ual:UnitedAirLinesIncMember ual:February2019Member ual:ClassAAPassThroughCertificatesMember 2019-06-30 0000100517 ual:UnitedAirLinesIncMember ual:February2019Member ual:ClassAPassThroughCertificatesMember 2019-06-30 0000100517 ual:UnitedAirLinesIncMember ual:February2019Member ual:ClassAAPassThroughCertificatesMember 2019-01-01 2019-06-30 0000100517 ual:UnitedAirLinesIncMember us-gaap:EnhancedEquipmentTrustCertificateMember 2019-06-30 0000100517 ual:UnitedAirLinesIncMember ual:February2019Member ual:ClassAPassThroughCertificatesMember 2019-01-01 2019-06-30 0000100517 ual:UalAndUnitedMember 2019-06-30 0000100517 ual:AircraftEnginesMember 2019-04-01 2019-06-30 0000100517 ual:InternationalBrotherhoodOfTeamstersMember ual:VoluntaryEarlyOutProgramMember 2019-01-01 2019-06-30 0000100517 ual:InternationalBrotherhoodOfTeamstersMember ual:VoluntaryEarlyOutProgramMember 2018-04-01 2018-06-30 0000100517 ual:InternationalBrotherhoodOfTeamstersMember ual:VoluntaryEarlyOutProgramMember 2017-03-31 0000100517 srt:ManagementMember 2018-01-01 2018-06-30 0000100517 srt:ManagementMember 2018-04-01 2018-06-30 0000100517 ual:InternationalBrotherhoodOfTeamstersMember ual:VoluntaryEarlyOutProgramMember 2018-01-01 2018-06-30 0000100517 srt:ManagementMember 2019-01-01 2019-06-30 0000100517 ual:InternationalBrotherhoodOfTeamstersMember ual:VoluntaryEarlyOutProgramMember 2017-01-01 2017-03-31 0000100517 srt:ManagementMember 2019-04-01 2019-06-30 0000100517 ual:AzulMember 2018-01-01 2018-06-30 0000100517 ual:AzulMember 2019-04-01 2019-06-30 0000100517 ual:AzulMember 2018-04-01 2018-06-30 0000100517 ual:AzulMember 2019-01-01 2019-06-30 0000100517 us-gaap:UseRightsMember 2018-05-01 2018-05-31 iso4217:USD iso4217:USD xbrli:shares xbrli:shares ual:Aircraft xbrli:pure ual:Employee ual:flight ual:employee ual:commitment ual:aircraft ual:trust
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

| FORM | 10-Q |

(Mark One)

☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019
OR

☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

| Commission File Number |  | Exact Name of Registrant as Specified in its Charter, Principal Executive Office Address and Telephone Number |  | State of Incorporation |  | I.R.S. Employer Identification No. |  | Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report
| 001-06033 |  | United Airlines Holdings, Inc. |  | Delaware |  | 36-2675207 |  | United Continental Holdings, Inc.
|  |  | 233 South Wacker Drive, | Chicago | Illinois | 60606 |  |  |  |  |  |
|  |  | (872) | 825-4000 |  |  |  |  |  |  |  |  |  |
| 001-10323 |  | United Airlines, Inc. |  | Delaware |  | 74-2099724 |  | N/A
|  |  | 233 South Wacker Drive, | Chicago | Illinois | 60606 |  |  |  |  |  |
|  |  | (872) | 825-4000 |  |  |  |  |  |  |  |  |  |

Securities registered pursuant to Section 12(b) of the Act
Registrant |  | Title of Each Class |  | Trading Symbol |  | Name on Each Exchange on Which Registered
United Airlines Holdings, Inc. |  | Common Stock, | $0.01 par value |  | UAL |  | The Nasdaq Stock Market LLC
United Airlines, Inc. |  | None |  |  | None |  | None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

United Airlines Holdings, Inc. |  | Yes | ☒ | No | ☐ |  | United Airlines, Inc. |  | Yes | ☒ | No | ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

United Airlines Holdings, Inc. |  | Yes | ☒ | No | ☐ |  | United Airlines, Inc. |  | Yes | ☒ | No | ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

United Airlines Holdings, Inc. | Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐
United Airlines, Inc. | Large accelerated filer | ☐ | Accelerated filer | ☐ | Non-accelerated filer | ☒ | Smaller reporting company | ☐ | Emerging growth company | ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

United Airlines Holdings, Inc. |  | ☐
United Airlines, Inc. |  | ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

United Airlines Holdings, Inc. |  | Yes | ☐ | No | ☒
United Airlines, Inc. |  | Yes | ☐ | No | ☒

The number of shares outstanding of each of the issuer's classes of common stock as of July 12, 2019 is shown below:

United Airlines Holdings, Inc. |  | 256,921,469 |  | shares of common stock ($0.01 par value)
United Airlines, Inc. |  | 1,000 |  | shares of common stock ($0.01 par value) (100% owned by United Airlines Holdings, Inc.)

OMISSION OF CERTAIN INFORMATION
This combined Quarterly Report on Form 10-Q is separately filed by United Airlines Holdings, Inc. and United Airlines, Inc. United Airlines, Inc. meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this form with the reduced disclosure format allowed under that General Instruction.

United Airlines Holdings, Inc.
United Airlines, Inc.
Quarterly Report on Form 10-Q
For the Quarterly Period Ended June 30, 2019

| Page
PART I. FINANCIAL INFORMATION |
Item 1. Financial Statements |
United Airlines Holdings, Inc.: |
Statements of Consolidated Operations | 3
Statements of Consolidated Comprehensive Income | 4
Consolidated Balance Sheets | 5
Condensed Statements of Consolidated Cash Flows | 7
Statement of Consolidated Stockholders' Equity | 8
United Airlines, Inc.: |
Statements of Consolidated Operations | 9
Statements of Consolidated Comprehensive Income | 10
Consolidated Balance Sheets | 11
Condensed Statements of Consolidated Cash Flows | 13
Statement of Consolidated Stockholder's Equity | 14
Combined Notes to Condensed Consolidated Financial Statements (United Airlines Holdings, Inc. and United Airlines, Inc.) | 15
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | 28
Item 3. Quantitative and Qualitative Disclosures About Market Risk | 37
Item 4. Controls and Procedures | 37
PART II. OTHER INFORMATION |
Item 1. Legal Proceedings | 38
Item 1A. Risk Factors | 38
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 39
Item 6. Exhibits | 40
Exhibit Index | 40
Signatures | 41

Table of Contents |  |

PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
UNITED AIRLINES HOLDINGS, INC.
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)
(In millions, except per share amounts)

| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2019 |  | 2018 (a) |  | 2019 |  | 2018 (a)
Operating revenue: |  |  |  |  |  |  |
Passenger revenue | $ | 10,486 |  |  | $ | 9,880 |  |  | $ | 19,211 |  |  | $ | 18,030 |
Cargo | 295 |  |  | 314 |  |  | 581 |  |  | 607 |
Other operating revenue | 621 |  |  | 583 |  |  | 1,199 |  |  | 1,172 |
Total operating revenue | 11,402 |  |  | 10,777 |  |  | 20,991 |  |  | 19,809 |
Operating expense: |  |  |  |  |  |  |
Salaries and related costs | 3,057 |  |  | 2,878 |  |  | 5,930 |  |  | 5,604 |
Aircraft fuel | 2,385 |  |  | 2,390 |  |  | 4,408 |  |  | 4,355 |
Regional capacity purchase | 715 |  |  | 693 |  |  | 1,403 |  |  | 1,323 |
Landing fees and other rent | 660 |  |  | 625 |  |  | 1,248 |  |  | 1,204 |
Depreciation and amortization | 560 |  |  | 538 |  |  | 1,107 |  |  | 1,062 |
Aircraft maintenance materials and outside repairs | 421 |  |  | 438 |  |  | 829 |  |  | 878 |
Distribution expenses | 442 |  |  | 393 |  |  | 802 |  |  | 735 |
Aircraft rent | 73 |  |  | 119 |  |  | 154 |  |  | 246 |
Special charges | 71 |  |  | 129 |  |  | 89 |  |  | 169 |
Other operating expenses | 1,546 |  |  | 1,429 |  |  | 3,054 |  |  | 2,826 |
Total operating expenses | 9,930 |  |  | 9,632 |  |  | 19,024 |  |  | 18,402 |
Operating income | 1,472 |  |  | 1,145 |  |  | 1,967 |  |  | 1,407 |
Nonoperating income (expense): |  |  |  |  |  |  |
Interest expense | (191 | ) |  | (163 | ) |  | (379 | ) |  | (325 | )
Interest capitalized | 21 |  |  | 12 |  |  | 43 |  |  | 30 |
Interest income | 38 |  |  | 25 |  |  | 67 |  |  | 42 |
Miscellaneous, net | 14 |  |  | (164 | ) |  | 23 |  |  | (117 | )
Total nonoperating expense, net | (118 | ) |  | (290 | ) |  | (246 | ) |  | (370 | )
Income before income taxes | 1,354 |  |  | 855 |  |  | 1,721 |  |  | 1,037 |
Income tax expense | 302 |  |  | 172 |  |  | 377 |  |  | 209 |
Net income | $ | 1,052 |  |  | $ | 683 |  |  | $ | 1,344 |  |  | $ | 828 |
Earnings per share, basic | $ | 4.03 |  |  | $ | 2.48 |  |  | $ | 5.09 |  |  | $ | 2.96 |
Earnings per share, diluted | $ | 4.02 |  |  | $ | 2.48 |  |  | $ | 5.07 |  |  | $ | 2.95 |

(a) Amounts adjusted due to the adoption of Accounting Standards Update No. 2016-02, Leases (Topic 842). See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information.
The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
3

Table of Contents |  |

UNITED AIRLINES HOLDINGS, INC.
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (UNAUDITED)
(In millions)

| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2019 |  | 2018 (a) |  | 2019 |  | 2018 (a)
Net income | $ | 1,052 |  |  | $ | 683 |  |  | $ | 1,344 |  |  | $ | 828 |
Other comprehensive income (loss), net of tax: |  |  |  |  |  |  |
Employee benefit plans | (17 | ) |  | 12 |  |  | (10 | ) |  | 42 |
Investments and other | 3 |  |  | — |  |  | 6 |  |  | (4 | )
Total other comprehensive income (loss), net of tax | (14 | ) |  | 12 |  |  | (4 | ) |  | 38 |
Total comprehensive income, net | $ | 1,038 |  |  | $ | 695 |  |  | $ | 1,340 |  |  | $ | 866 |

(a) Amounts adjusted due to the adoption of Accounting Standards Update No. 2016-02, Leases (Topic 842). See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information.
The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
4

Table of Contents |  |

UNITED AIRLINES HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In millions, except shares)

| June 30, 2019 |  | December 31, 2018 (a)
ASSETS |  |  |
Current assets: |  |  |
Cash and cash equivalents | $ | 3,221 |  |  | $ | 1,694 |
Short-term investments | 2,223 |  |  | 2,256 |
Receivables, less allowance for doubtful accounts (2019 — $9; 2018 — $8) | 1,762 |  |  | 1,426 |
Aircraft fuel, spare parts and supplies, less obsolescence allowance (2019 — $387; 2018 — $412) | 996 |  |  | 985 |
Prepaid expenses and other | 708 |  |  | 733 |
Total current assets | 8,910 |  |  | 7,094 |
Operating property and equipment: |  |  |
Flight equipment | 33,890 |  |  | 32,599 |
Other property and equipment | 7,371 |  |  | 6,889 |
Purchase deposits for flight equipment | 1,351 |  |  | 1,177 |
Total operating property and equipment, at cost | 42,612 |  |  | 40,665 |
Less — Accumulated depreciation and amortization | (13,694 | ) |  | (13,266 | )
Total operating property and equipment, net | 28,918 |  |  | 27,399 |
Operating lease right-of-use assets | 4,908 |  |  | 5,262 |
Other assets: |  |  |
Goodwill | 4,523 |  |  | 4,523 |
Intangibles, less accumulated amortization (2019 — $1,410; 2018 — $1,380) | 3,129 |  |  | 3,159 |
Restricted cash | 105 |  |  | 105 |
Notes receivable, net | 518 |  |  | 516 |
Investments in affiliates and other, net | 1,139 |  |  | 966 |
Total other assets | 9,414 |  |  | 9,269 |
Total assets | $ | 52,150 |  |  | $ | 49,024 |

(continued on next page)
5

Table of Contents |  |

UNITED AIRLINES HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In millions, except shares)

| June 30, 2019 |  | December 31, 2018 (a)
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |
Current liabilities: |  |  |
Advance ticket sales | $ | 6,126 |  |  | $ | 4,381 |
Accounts payable | 3,033 |  |  | 2,363 |
Frequent flyer deferred revenue | 2,435 |  |  | 2,286 |
Accrued salaries and benefits | 1,871 |  |  | 2,184 |
Current maturities of long-term debt | 1,255 |  |  | 1,230 |
Current maturities of finance leases | 117 |  |  | 123 |
Current maturities of operating leases | 637 |  |  | 719 |
Other | 604 |  |  | 553 |
Total current liabilities | 16,078 |  |  | 13,839 |
Long-term debt | 12,938 |  |  | 12,215 |
Long-term obligations under finance leases | 202 |  |  | 224 |
Long-term obligations under operating leases | 5,034 |  |  | 5,276 |
Other liabilities and deferred credits: |  |  |
Frequent flyer deferred revenue | 2,763 |  |  | 2,719 |
Postretirement benefit liability | 1,277 |  |  | 1,295 |
Pension liability | 1,366 |  |  | 1,576 |
Deferred income taxes | 1,192 |  |  | 828 |
Other | 980 |  |  | 1,010 |
Total other liabilities and deferred credits | 7,578 |  |  | 7,428 |
Commitments and contingencies |  |  |
Stockholders' equity: |  |  |
Preferred stock | — |  |  | — |
Common stock at par, $0.01 par value; authorized 1,000,000,000 shares; outstanding 257,729,166 and 269,914,769 shares at June 30, 2019 and December 31, 2018, respectively | 3 |  |  | 3 |
Additional capital invested | 6,096 |  |  | 6,120 |
Retained earnings | 8,050 |  |  | 6,715 |
Stock held in treasury, at cost | (3,022 | ) |  | (1,993 | )
Accumulated other comprehensive loss | (807 | ) |  | (803 | )
Total stockholders' equity | 10,320 |  |  | 10,042 |
Total liabilities and stockholders' equity | $ | 52,150 |  |  | $ | 49,024 |

(a) Amounts adjusted due to the adoption of Accounting Standards Update No. 2016-02, Leases (Topic 842). See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information.
The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
6

Table of Contents |  |

UNITED AIRLINES HOLDINGS, INC.
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)
(In millions)

| Six Months Ended June 30,
| 2019 |  | 2018 (a)
Cash Flows from Operating Activities: |  |  |
Net cash provided by operating activities | $ | 4,625 |  |  | $ | 4,152 |
Cash Flows from Investing Activities: |  |  |
Capital expenditures | (2,467 | ) |  | (1,671 | )
Purchases of short-term and other investments | (1,443 | ) |  | (1,326 | )
Proceeds from sale of short-term and other investments | 1,484 |  |  | 1,455 |
Investment in affiliates | (27 | ) |  | (139 | )
Loans made to others | — |  |  | (10 | )
Other, net | 17 |  |  | 38 |
Net cash used in investing activities | (2,436 | ) |  | (1,653 | )
Cash Flows from Financing Activities: |  |  |
Proceeds from issuance of long-term debt | 996 |  |  | 1,241 |
Payments of long-term debt | (473 | ) |  | (1,294 | )
Repurchases of common stock | (1,062 | ) |  | (969 | )
Principal payments under finance leases | (63 | ) |  | (35 | )
Capitalized financing costs | (30 | ) |  | (25 | )
Other, net | (30 | ) |  | (17 | )
Net cash used in financing activities | (662 | ) |  | (1,099 | )
Net increase in cash, cash equivalents and restricted cash | 1,527 |  |  | 1,400 |
Cash, cash equivalents and restricted cash at beginning of the period | 1,799 |  |  | 1,591 |
Cash, cash equivalents and restricted cash at end of the period (b) | $ | 3,326 |  |  | $ | 2,991 |
Investing and Financing Activities Not Affecting Cash: |  |  |
Property and equipment acquired through the issuance of debt | $ | 220 |  |  | $ | 125 |
Operating lease conversions to finance lease | 36 |  |  | — |
Right-of-use assets acquired through operating leases | 99 |  |  | 103 |
Property and equipment acquired through finance leases | 8 |  |  | — |

(a) Amounts adjusted due to the adoption of Accounting Standards Update No. 2016-02, Leases (Topic 842). See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information.
(b) The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheet:

Cash and cash equivalents | $ | 3,221 |  |  | $ | 2,884 |
Restricted cash (included in Prepaid expenses and other) | — |  |  | 13 |
Restricted cash | 105 |  |  | 94 |
Total cash, cash equivalents and restricted cash | $ | 3,326 |  |  | $ | 2,991 |

The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
7

Table of Contents |  |

UNITED AIRLINES HOLDINGS, INC.
STATEMENTS OF CONSOLIDATED STOCKHOLDERS' EQUITY
(In millions)

| Common Stock |  | Additional Capital Invested |  | Treasury Stock |  | Retained Earnings |  | Accumulated Other Comprehensive Income (Loss) |  | Total
| Shares |  | Amount |  |  |  |  |
Balance at March 31, 2019 | 264.3 |  |  | $ | 3 |  |  | $ | 6,080 |  |  | $ | (2,487 | ) |  | $ | 6,999 |  |  | $ | (793 | ) |  | $ | 9,802 |
Net income | — |  |  | — |  |  | — |  |  | — |  |  | 1,052 |  |  | — |  |  | 1,052 |
Other comprehensive loss | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (14 | ) |  | (14 | )
Stock settled share-based compensation | — |  |  | — |  |  | 17 |  |  | — |  |  | — |  |  | — |  |  | 17 |
Repurchases of common stock | (6.6 | ) |  | — |  |  | — |  |  | (536 | ) |  | — |  |  | — |  |  | (536 | )
Net treasury stock issued for share-based awards | — |  |  | — |  |  | (1 | ) |  | 1 |  |  | (1 | ) |  | — |  |  | (1 | )
Balance at June 30, 2019 | 257.7 |  |  | $ | 3 |  |  | $ | 6,096 |  |  | $ | (3,022 | ) |  | $ | 8,050 |  |  | $ | (807 | ) |  | $ | 10,320 |
Balance at December 31, 2018 (a) | 269.9 |  |  | $ | 3 |  |  | $ | 6,120 |  |  | $ | (1,993 | ) |  | $ | 6,715 |  |  | $ | (803 | ) |  | $ | 10,042 |
Net income | — |  |  | — |  |  | — |  |  | — |  |  | 1,344 |  |  | — |  |  | 1,344 |
Other comprehensive loss | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (4 | ) |  | (4 | )
Stock settled share-based compensation | — |  |  | — |  |  | 31 |  |  | — |  |  | — |  |  | — |  |  | 31 |
Repurchases of common stock | (12.7 | ) |  | — |  |  | — |  |  | (1,063 | ) |  | — |  |  | — |  |  | (1,063 | )
Net treasury stock issued for share-based awards | 0.5 |  |  | — |  |  | (55 | ) |  | 34 |  |  | (9 | ) |  | — |  |  | (30 | )
Balance at June 30, 2019 | 257.7 |  |  | $ | 3 |  |  | $ | 6,096 |  |  | $ | (3,022 | ) |  | $ | 8,050 |  |  | $ | (807 | ) |  | $ | 10,320 |
Balance at March 31, 2018 (a) | 279.4 |  |  | $ | 3 |  |  | $ | 6,077 |  |  | $ | (1,314 | ) |  | $ | 4,736 |  |  | $ | (1,114 | ) |  | $ | 8,388 |
Net income (a) | — |  |  | — |  |  | — |  |  | — |  |  | 683 |  |  | — |  |  | 683 |
Other comprehensive income | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 12 |  |  | 12 |
Stock settled share-based compensation | — |  |  | — |  |  | 14 |  |  | — |  |  | — |  |  | — |  |  | 14 |
Repurchases of common stock | (6.4 | ) |  | — |  |  | — |  |  | (407 | ) |  | — |  |  | — |  |  | (407 | )
Net treasury stock issued for share-based awards | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 1 |
Balance at June 30, 2018 (a) | 273.0 |  |  | $ | 3 |  |  | $ | 6,091 |  |  | $ | (1,720 | ) |  | $ | 5,419 |  |  | $ | (1,102 | ) |  | $ | 8,691 |
Balance at December 31, 2017 (a) | 287.0 |  |  | $ | 3 |  |  | $ | 6,098 |  |  | $ | (769 | ) |  | $ | 4,603 |  |  | $ | (1,147 | ) |  | $ | 8,788 |
Net income (a) | — |  |  | — |  |  | — |  |  | — |  |  | 828 |  |  | — |  |  | 828 |
Other comprehensive income | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 38 |  |  | 38 |
Stock settled share-based compensation | — |  |  | — |  |  | 29 |  |  | — |  |  | — |  |  | — |  |  | 29 |
Repurchases of common stock | (14.2 | ) |  | — |  |  | — |  |  | (976 | ) |  | — |  |  | — |  |  | (976 | )
Net treasury stock issued for share-based awards | 0.2 |  |  | — |  |  | (36 | ) |  | 25 |  |  | (5 | ) |  | — |  |  | (16 | )
Adoption of accounting standard related to equity investments | — |  |  | — |  |  | — |  |  | — |  |  | (7 | ) |  | 7 |  |  | — |
Balance at June 30, 2018 (a) | 273.0 |  |  | $ | 3 |  |  | $ | 6,091 |  |  | $ | (1,720 | ) |  | $ | 5,419 |  |  | $ | (1,102 | ) |  | $ | 8,691 |

(a) Amounts adjusted due to the adoption of Accounting Standards Update No. 2016-02, Leases (Topic 842). See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information.
The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
8

Table of Contents |  |

UNITED AIRLINES, INC.
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)
(In millions)

| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2019 |  | 2018 (a) |  | 2019 |  | 2018 (a)
Operating revenue: |  |  |  |  |  |  |
Passenger revenue | $ | 10,486 |  |  | $ | 9,880 |  |  | $ | 19,211 |  |  | $ | 18,030 |
Cargo | 295 |  |  | 314 |  |  | 581 |  |  | 607 |
Other operating revenue | 621 |  |  | 583 |  |  | 1,199 |  |  | 1,172 |
Total operating revenue | 11,402 |  |  | 10,777 |  |  | 20,991 |  |  | 19,809 |
Operating expense: |  |  |  |  |  |  |
Salaries and related costs | 3,057 |  |  | 2,878 |  |  | 5,930 |  |  | 5,604 |
Aircraft fuel | 2,385 |  |  | 2,390 |  |  | 4,408 |  |  | 4,355 |
Regional capacity purchase | 715 |  |  | 693 |  |  | 1,403 |  |  | 1,323 |
Landing fees and other rent | 660 |  |  | 625 |  |  | 1,248 |  |  | 1,204 |
Depreciation and amortization | 560 |  |  | 538 |  |  | 1,107 |  |  | 1,062 |
Aircraft maintenance materials and outside repairs | 421 |  |  | 438 |  |  | 829 |  |  | 878 |
Distribution expenses | 442 |  |  | 393 |  |  | 802 |  |  | 735 |
Aircraft rent | 73 |  |  | 119 |  |  | 154 |  |  | 246 |
Special charges | 71 |  |  | 129 |  |  | 89 |  |  | 169 |
Other operating expenses | 1,546 |  |  | 1,428 |  |  | 3,053 |  |  | 2,825 |
Total operating expense | 9,930 |  |  | 9,631 |  |  | 19,023 |  |  | 18,401 |
Operating income | 1,472 |  |  | 1,146 |  |  | 1,968 |  |  | 1,408 |
Nonoperating income (expense): |  |  |  |  |  |  |
Interest expense | (191 | ) |  | (163 | ) |  | (379 | ) |  | (325 | )
Interest capitalized | 21 |  |  | 12 |  |  | 43 |  |  | 30 |
Interest income | 38 |  |  | 25 |  |  | 67 |  |  | 42 |
Miscellaneous, net | 14 |  |  | (164 | ) |  | 23 |  |  | (117 | )
Total nonoperating expense, net | (118 | ) |  | (290 | ) |  | (246 | ) |  | (370 | )
Income before income taxes | 1,354 |  |  | 856 |  |  | 1,722 |  |  | 1,038 |
Income tax expense | 302 |  |  | 173 |  |  | 377 |  |  | 210 |
Net income | $ | 1,052 |  |  | $ | 683 |  |  | $ | 1,345 |  |  | $ | 828 |

(a) Amounts adjusted due to the adoption of Accounting Standards Update No. 2016-02, Leases (Topic 842). See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information.
The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
9

Table of Contents |  |

UNITED AIRLINES, INC.
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (UNAUDITED)
(In millions)

| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2019 |  | 2018 (a) |  | 2019 |  | 2018 (a)
Net income | $ | 1,052 |  |  | $ | 683 |  |  | $ | 1,345 |  |  | $ | 828 |
Other comprehensive income (loss), net of tax: |  |  |  |  |  |  |
Employee benefit plans | (17 | ) |  | 12 |  |  | (10 | ) |  | 42 |
Investments and other | 3 |  |  | — |  |  | 6 |  |  | (4 | )
Total other comprehensive income (loss), net of tax | (14 | ) |  | 12 |  |  | (4 | ) |  | 38 |
Total comprehensive income, net | $ | 1,038 |  |  | $ | 695 |  |  | $ | 1,341 |  |  | $ | 866 |

(a) Amounts adjusted due to the adoption of Accounting Standards Update No. 2016-02, Leases (Topic 842). See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information.
The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
10

Table of Contents |  |

UNITED AIRLINES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In millions, except shares)

| June 30, 2019 |  | December 31, 2018 (a)
ASSETS |  |  |
Current assets: |  |  |
Cash and cash equivalents | $ | 3,215 |  |  | $ | 1,688 |
Short-term investments | 2,223 |  |  | 2,256 |
Receivables, less allowance for doubtful accounts (2019 — $9; 2018 — $8) | 1,762 |  |  | 1,426 |
Aircraft fuel, spare parts and supplies, less obsolescence allowance (2019 — $387; 2018 — $412) | 996 |  |  | 985 |
Prepaid expenses and other | 708 |  |  | 733 |
Total current assets | 8,904 |  |  | 7,088 |
Operating property and equipment: |  |  |
Flight equipment | 33,890 |  |  | 32,599 |
Other property and equipment | 7,371 |  |  | 6,889 |
Purchase deposits for flight equipment | 1,351 |  |  | 1,177 |
Total operating property and equipment, at cost | 42,612 |  |  | 40,665 |
Less — Accumulated depreciation and amortization | (13,694 | ) |  | (13,266 | )
Total operating property and equipment, net | 28,918 |  |  | 27,399 |
Operating lease right-of-use assets | 4,908 |  |  | 5,262 |
Other assets: |  |  |
Goodwill | 4,523 |  |  | 4,523 |
Intangibles, less accumulated amortization (2019 — $1,410; 2018 — $1,380) | 3,129 |  |  | 3,159 |
Restricted cash | 105 |  |  | 105 |
Notes receivable, net | 518 |  |  | 516 |
Investments in affiliates and other, net | 1,139 |  |  | 966 |
Total other assets | 9,414 |  |  | 9,269 |
Total assets | $ | 52,144 |  |  | $ | 49,018 |

(continued on next page)
11

Table of Contents |  |

UNITED AIRLINES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In millions, except shares)

| June 30, 2019 |  | December 31, 2018 (a)
LIABILITIES AND STOCKHOLDER'S EQUITY |  |  |
Current liabilities: |  |  |
Advance ticket sales | $ | 6,126 |  |  | $ | 4,381 |
Accounts payable | 3,033 |  |  | 2,363 |
Frequent flyer deferred revenue | 2,435 |  |  | 2,286 |
Accrued salaries and benefits | 1,871 |  |  | 2,184 |
Current maturities of long-term debt | 1,255 |  |  | 1,230 |
Current maturities of finance leases | 117 |  |  | 123 |
Current maturities of operating leases | 637 |  |  | 719 |
Other | 608 |  |  | 558 |
Total current liabilities | 16,082 |  |  | 13,844 |
Long-term debt | 12,938 |  |  | 12,215 |
Long-term obligations under finance leases | 202 |  |  | 224 |
Long-term obligations under operating leases | 5,034 |  |  | 5,276 |
Other liabilities and deferred credits: |  |  |
Frequent flyer deferred revenue | 2,763 |  |  | 2,719 |
Postretirement benefit liability | 1,277 |  |  | 1,295 |
Pension liability | 1,366 |  |  | 1,576 |
Deferred income taxes | 1,220 |  |  | 855 |
Other | 980 |  |  | 1,010 |
Total other liabilities and deferred credits | 7,606 |  |  | 7,455 |
Commitments and contingencies |  |  |
Stockholder's equity: |  |  |
Common stock at par, $0.01 par value; authorized 1,000 shares; issued and outstanding 1,000 shares at both June 30, 2019 and December 31, 2018 | — |  |  | — |
Additional capital invested | — |  |  | 598 |
Retained earnings | 11,230 |  |  | 10,319 |
Accumulated other comprehensive loss | (807 | ) |  | (803 | )
Receivable from related parties | (141 | ) |  | (110 | )
Total stockholder's equity | 10,282 |  |  | 10,004 |
Total liabilities and stockholder's equity | $ | 52,144 |  |  | $ | 49,018 |

(a) Amounts adjusted due to the adoption of Accounting Standards Update No. 2016-02, Leases (Topic 842). See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information.
The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
12

Table of Contents |  |

UNITED AIRLINES, INC.
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)
(In millions)

| Six Months Ended June 30,
| 2019 |  | 2018 (a)
Cash Flows from Operating Activities: |  |  |
Net cash provided by operating activities | $ | 4,596 |  |  | $ | 4,135 |
Cash Flows from Investing Activities: |  |  |
Capital expenditures | (2,467 | ) |  | (1,671 | )
Purchases of short-term investments and other investments | (1,443 | ) |  | (1,326 | )
Proceeds from sale of short-term and other investments | 1,484 |  |  | 1,455 |
Investment in affiliates | (27 | ) |  | (139 | )
Loans made to others | — |  |  | (10 | )
Other, net | 17 |  |  | 38 |
Net cash used in investing activities | (2,436 | ) |  | (1,653 | )
Cash Flows from Financing Activities: |  |  |
Proceeds from issuance of long-term debt | 996 |  |  | 1,241 |
Payments of long-term debt | (473 | ) |  | (1,294 | )
Dividend to UAL | (1,062 | ) |  | (969 | )
Principal payments under finance leases | (63 | ) |  | (35 | )
Capitalized financing costs | (30 | ) |  | (25 | )
Other, net | (1 | ) |  | — |
Net cash used in financing activities | (633 | ) |  | (1,082 | )
Net increase in cash, cash equivalents and restricted cash | 1,527 |  |  | 1,400 |
Cash, cash equivalents and restricted cash at beginning of the period | 1,793 |  |  | 1,585 |
Cash, cash equivalents and restricted cash at end of the period (b) | $ | 3,320 |  |  | $ | 2,985 |
Investing and Financing Activities Not Affecting Cash: |  |  |
Property and equipment acquired through the issuance of debt | $ | 220 |  |  | $ | 125 |
Operating lease conversions to finance lease | 36 |  |  | — |
Right-of-use assets acquired through operating leases | 99 |  |  | 103 |
Property and equipment acquired through finance leases | 8 |  |  | — |

(a) Amounts adjusted due to the adoption of Accounting Standards Update No. 2016-02, Leases (Topic 842). See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information.
(b) The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheet:

Cash and cash equivalents | $ | 3,215 |  |  | $ | 2,878 |
Restricted cash (included in Prepaid expenses and other) | — |  |  | 13 |
Restricted cash | 105 |  |  | 94 |
Total cash, cash equivalents and restricted cash | $ | 3,320 |  |  | $ | 2,985 |

The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
13

Table of Contents |  |

UNITED AIRLINES, INC.
STATEMENTS OF CONSOLIDATED STOCKHOLDER'S EQUITY
(In millions)

| Additional Capital Invested |  | Retained Earnings |  | Accumulated Other Comprehensive Income (Loss) |  | Receivable from Related Parties, Net |  | Total
Balance at March 30, 2019 | $ | 84 |  |  | $ | 10,612 |  |  | $ | (793 | ) |  | $ | (140 | ) |  | $ | 9,763 |
Net income | — |  |  | 1,052 |  |  | — |  |  | — |  |  | 1,052 |
Other comprehensive loss | — |  |  | — |  |  | (14 | ) |  | — |  |  | (14 | )
Dividend to UAL | (102 | ) |  | (434 | ) |  | — |  |  | — |  |  | (536 | )
Share-based compensation | 17 |  |  | — |  |  | — |  |  | — |  |  | 17 |
Other | 1 |  |  | — |  |  | — |  |  | (1 | ) |  | — |
Balance at June 30, 2019 | $ | — |  |  | $ | 11,230 |  |  | $ | (807 | ) |  | $ | (141 | ) |  | $ | 10,282 |
Balance at December 31, 2018 (a) | $ | 598 |  |  | $ | 10,319 |  |  | $ | (803 | ) |  | $ | (110 | ) |  | $ | 10,004 |
Net income | — |  |  | 1,345 |  |  | — |  |  | — |  |  | 1,345 |
Other comprehensive loss | — |  |  | — |  |  | (4 | ) |  | — |  |  | (4 | )
Dividend to UAL | (629 | ) |  | (434 | ) |  | — |  |  | — |  |  | (1,063 | )
Stock settled share-based compensation | 31 |  |  | — |  |  | — |  |  | — |  |  | 31 |
Other | — |  |  | — |  |  | — |  |  | (31 | ) |  | (31 | )
Balance at June 30, 2019 | $ | — |  |  | $ | 11,230 |  |  | $ | (807 | ) |  | $ | (141 | ) |  | $ | 10,282 |
Balance at March 31, 2018 (a) | $ | 1,233 |  |  | $ | 8,339 |  |  | $ | (1,114 | ) |  | $ | (108 | ) |  | $ | 8,350 |
Net income | — |  |  | 683 |  |  | — |  |  | — |  |  | 683 |
Other comprehensive income | — |  |  | — |  |  | 12 |  |  | — |  |  | 12 |
Dividend to UAL | (407 | ) |  | — |  |  | — |  |  | — |  |  | (407 | )
Share-based compensation | 14 |  |  | — |  |  | — |  |  | — |  |  | 14 |
Other | 1 |  |  | — |  |  | — |  |  | — |  |  | 1 |
Balance at June 30, 2018 (a) | $ | 841 |  |  | $ | 9,022 |  |  | $ | (1,102 | ) |  | $ | (108 | ) |  | $ | 8,653 |
Balance at December 31, 2017 (a) | $ | 1,787 |  |  | $ | 8,201 |  |  | $ | (1,147 | ) |  | $ | (90 | ) |  | $ | 8,751 |
Net income (a) | — |  |  | 828 |  |  | — |  |  | — |  |  | 828 |
Other comprehensive income | — |  |  | — |  |  | 38 |  |  | — |  |  | 38 |
Dividend to UAL | (976 | ) |  | — |  |  | — |  |  | — |  |  | (976 | )
Stock settled share-based compensation | 29 |  |  | — |  |  | — |  |  | — |  |  | 29 |
Other | 1 |  |  | (7 | ) |  | 7 |  |  | (18 | ) |  | (17 | )
Balance at June 30, 2018 (a) | $ | 841 |  |  | $ | 9,022 |  |  | $ | (1,102 | ) |  | $ | (108 | ) |  | $ | 8,653 |

(a) Amounts adjusted due to the adoption of Accounting Standards Update No. 2016-02, Leases (Topic 842). See Note 1 to the financial statements contained in Part I, Item 1 of this report for additional information.
The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
14

Table of Contents |  |

UNITED AIRLINES HOLDINGS, INC. AND UNITED AIRLINES, INC.
COMBINED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
United Airlines 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"). Effective June 27, 2019, the Company amended its Certificate of Incorporation to change its name to "United Airlines Holdings, Inc." This Quarterly Report on Form 10-Q is a combined report of UAL and United, including their respective consolidated financial statements. 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.
The UAL and United unaudited condensed consolidated financial statements shown here have been prepared as required by the U.S. Securities and Exchange Commission (the "SEC"). Some information and footnote disclosures normally included in financial statements that comply with accounting principles generally accepted in the United States ("GAAP") have been condensed or omitted as permitted by the SEC. The financial statements include all adjustments, including normal recurring adjustments and other adjustments, which are considered necessary for a fair presentation of the Company's financial position and results of operations. The UAL and United financial statements should be read together with the information included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018. The Company's quarterly financial data is subject to seasonal fluctuations and historically its second and third quarter financial results, which reflect higher travel demand, are better than its first and fourth quarter financial results.
NOTE 1 - RECENTLY ISSUED ACCOUNTING STANDARDS
The Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 842, Leases (the "New Lease Standard"), effective January 1, 2019. The Company used the modified retrospective approach for all leases existing at or commencing after January 1, 2017 and elected the package of transition practical expedients for expired or existing contracts, which does not require reassessment of: (1) whether any of our contracts are or contain leases, (2) lease classification and (3) initial direct costs. The New Lease Standard prescribes that an entity should recognize a right-of-use asset and a lease liability for all leases at the commencement date of each lease and recognize expenses on their income statements similar to the prior FASB Accounting Standards Codification Topic 840, Leases ("Topic 840").
The adoption of the New Lease Standard had the same impact on the financial statements of United as it had on the financial statements of UAL. The table below presents the impact of the adoption of the New Lease Standard on select accounts and captions of UAL's statement of consolidated operations (in millions, except per share amounts):

| Three Months Ended June 30, 2018 |  | Six Months Ended June 30, 2018
| As Reported |  | New Lease Standard Adjustments |  | As Adjusted |  | As Reported |  | New Lease Standard Adjustments |  | As Adjusted
Regional capacity purchase | $ | 681 |  |  | $ | 12 |  |  | $ | 693 |  |  | $ | 1,300 |  |  | $ | 23 |  |  | $ | 1,323 |
Landing fees and other rent | 603 |  |  | 22 |  |  | 625 |  |  | 1,161 |  |  | 43 |  |  | 1,204 |
Depreciation and amortization | 557 |  |  | (19 | ) |  | 538 |  |  | 1,098 |  |  | (36 | ) |  | 1,062 |
Interest expense | (177 | ) |  | 14 |  |  | (163 | ) |  | (353 | ) |  | 28 |  |  | (325 | )
Interest capitalized | 14 |  |  | (2 | ) |  | 12 |  |  | 33 |  |  | (3 | ) |  | 30 |
Net income | 684 |  |  | (1 | ) |  | 683 |  |  | 831 |  |  | (3 | ) |  | 828 |
Earnings per share, basic | 2.49 |  |  | (0.01 | ) |  | 2.48 |  |  | 2.97 |  |  | (0.01 | ) |  | 2.96 |
Earnings per share, diluted | 2.48 |  |  | — |  |  | 2.48 |  |  | 2.96 |  |  | (0.01 | ) |  | 2.95 |

The expense for leases under the New Lease Standard will continue to be classified in their historical income statement captions (primarily in Aircraft rent, Landing fees and other rent and Regional capacity purchase in our statements of consolidated operations). The adoption of the New Lease Standard resulted in the recharacterization of certain leases from capital leases under Topic 840 to operating leases under the New Lease Standard. This change resulted in less depreciation and amortization and interest expense associated with capital leases offset by higher lease expense associated with operating leases.
15

Table of Contents |  |

The recharacterization is associated with leases of certain airport facilities that were derecognized as part of the build-to-suit transition guidance under the New Lease Standard. The reduction in capitalized interest is also associated with the same airport facilities leases.
The table below presents the impact of the adoption of the New Lease Standard on UAL's balance sheet accounts and captions (in millions):

| December 31, 2018
| As Reported |  | New Lease Standard Adjustments |  | As Adjusted
Receivables, less allowance for doubtful accounts | $ | 1,346 |  |  | $ | 80 |  |  | $ | 1,426 |
Prepaid expenses and other | 913 |  |  | (180 | ) |  | 733 |
Flight equipment, owned and finance leases (a) | 32,636 |  |  | (37 | ) |  | 32,599 |
Other property and equipment, owned and finance leases (a) | 7,930 |  |  | (1,041 | ) |  | 6,889 |
Accumulated depreciation and amortization, owned and finance leases (a) | (13,414 | ) |  | 148 |  |  | (13,266 | )
Operating lease right-of-use assets | — |  |  | 5,262 |  |  | 5,262 |
Current maturities of finance leases (a) | 149 |  |  | (26 | ) |  | 123 |
Current maturities of operating leases | — |  |  | 719 |  |  | 719 |
Other current liabilities | 619 |  |  | (66 | ) |  | 553 |
Long-term obligations under finance leases (a) | 1,134 |  |  | (910 | ) |  | 224 |
Long-term obligations under operating leases | — |  |  | 5,276 |  |  | 5,276 |
Deferred income taxes | 814 |  |  | 14 |  |  | 828 |
Other long-term liabilities | 1,832 |  |  | (822 | ) |  | 1,010 |
Retained earnings | 6,668 |  |  | 47 |  |  | 6,715 |

(a) Finance leases, under the New Lease Standard, are the equivalent of capital leases under Topic 840.
The table below presents the impact of the adoption of the New Lease Standard on select line items of UAL's statement of consolidated cash flows (in millions):

| Six Months Ended June 30, 2018
| As Reported |  | New Lease Standard Adjustments |  | As Adjusted
Cash Flows from Operating Activities: |  |  |  |  |
Net cash provided by operating activities | $ | 4,175 |  |  | $ | (23 | ) |  | $ | 4,152 |
Cash Flows from Investing Activities: |  |  |  |  |
Capital expenditures | (1,734 | ) |  | 63 |  |  | (1,671 | )
Cash Flows from Financing Activities: |  |  |  |  |
Proceeds from issuance of long-term debt | 1,308 |  |  | (67 | ) |  | 1,241 |
Principal payments under finance leases | (62 | ) |  | 27 |  |  | (35 | )

The adoption of the New Lease Standard primarily resulted in the recording of assets and liabilities of our operating leases on our consolidated balance sheets. Certain amounts recorded for prepaid and accrued rent associated with historical operating leases were reclassified to the newly captioned Operating lease right-of-use assets in the consolidated balance sheets. Also, certain leases designated under Topic 840 as owned assets and capital leases are not considered to be assets under the New Lease Standard and have been removed from the consolidated balance sheets, along with the related capital lease liability, due to the leases having variable lease payments.
In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses ("ASU 2016-13"). The main objective is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date.
16

Table of Contents |  |

The amendments in this update replace the incurred loss methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. For trade receivables, loans and held-to-maturity debt securities, entities will be required to estimate lifetime expected credit losses. For available-for-sale debt securities, entities will be required to recognize an allowance for credit losses rather than a reduction to the carrying value of the asset. The amendments are effective for public business entities for fiscal years and interim periods beginning after December 15, 2019 and early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is evaluating the impact the adoption of ASU 2016-13 will have on its consolidated financial statements.
NOTE 2 - REVENUE
Revenue by Geography. The following table presents operating revenue by geographic region (in millions):

| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Domestic (U.S. and Canada) | $ | 7,087 |  |  | $ | 6,689 |  |  | $ | 12,962 |  |  | $ | 12,165 |
Atlantic | 2,066 |  |  | 1,965 |  |  | 3,524 |  |  | 3,354 |
Pacific | 1,306 |  |  | 1,285 |  |  | 2,587 |  |  | 2,516 |
Latin America | 943 |  |  | 838 |  |  | 1,918 |  |  | 1,774 |
Total | $ | 11,402 |  |  | $ | 10,777 |  |  | $ | 20,991 |  |  | $ | 19,809 |

Advance Ticket Sales. All tickets sold at any given point of time have travel dates extending up to 12 months. The Company defers amounts related to future travel in its Advance ticket sales liability account. As a result, the balance of the Company's Advance ticket sales liability represents activity that will be recognized in the next 12 months. In the three and six months ended June 30, 2019, the Company recognized approximately $3.9 billion and $3.2 billion, respectively, and in the three and six months ended June 30, 2018, the Company recognized approximately $3.5 billion and $2.9 billion, respectively, of passenger revenue for tickets that were included in Advance ticket sales at the beginning of those periods.
Ancillary Fees. The Company charges fees, separately from ticket sales, for certain ancillary services that are directly related to passengers' travel, such as ticket change fees, baggage fees, inflight amenities fees, and other ticket-related fees. These ancillary fees are part of the travel performance obligation and, as such, are recognized as passenger revenue when the travel occurs. The Company recorded $636 million and $1.2 billion of ancillary fees within passenger revenue in the three and six months ended June 30, 2019, respectively. The Company recorded $555 million and $1.1 billion of ancillary fees within passenger revenue in the three and six months ended June 30, 2018, respectively.
Frequent Flyer Accounting. The table below presents a roll forward of Frequent flyer deferred revenue (in millions):

| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Total Frequent flyer deferred revenue - beginning balance | $ | 5,138 |  |  | $ | 4,937 |  |  | $ | 5,005 |  |  | $ | 4,783 |
Miles awarded | 682 |  |  | 607 |  |  | 1,289 |  |  | 1,210 |
Travel miles redeemed (Passenger revenue) | (589 | ) |  | (519 | ) |  | (1,027 | ) |  | (928 | )
Non-travel miles redeemed (Other operating revenue) | (33 | ) |  | (36 | ) |  | (69 | ) |  | (76 | )
Total Frequent flyer deferred revenue - ending balance | $ | 5,198 |  |  | $ | 4,989 |  |  | $ | 5,198 |  |  | $ | 4,989 |

In the three and six months ended June 30, 2019, the Company recognized, in Other operating revenue, $499 million and $972 million, respectively, related to the marketing, advertising, non-travel miles redeemed (net of related costs) and other travel-related benefits of the mileage revenue associated with our various partner agreements including, but not limited to, our Chase co-brand agreement. The Company recognized $480 million and $974 million, respectively, in the three and six months ended June 30, 2018, related to those revenues. The portion related to the MileagePlus miles awarded of the total amounts received from our various partner agreements is deferred and presented in the table above as an increase to the frequent flyer liability.
17

Table of Contents |  |

NOTE 3 - EARNINGS PER SHARE
The computations of UAL's basic and diluted earnings per share are set forth below (in millions, except per share amounts):

| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Earnings available to common stockholders | $ | 1,052 |  |  | $ | 683 |  |  | $ | 1,344 |  |  | $ | 828 |
Basic weighted-average shares outstanding | 260.8 |  |  | 274.7 |  |  | 263.9 |  |  | 279.3 |
Effect of employee stock awards | 0.8 |  |  | 0.9 |  |  | 1.0 |  |  | 0.9 |
Diluted weighted-average shares outstanding | 261.6 |  |  | 275.6 |  |  | 264.9 |  |  | 280.2 |
Earnings per share, basic | $ | 4.03 |  |  | $ | 2.48 |  |  | $ | 5.09 |  |  | $ | 2.96 |
Earnings per share, diluted | $ | 4.02 |  |  | $ | 2.48 |  |  | $ | 5.07 |  |  | $ | 2.95 |

In the three and six months ended June 30, 2019, UAL repurchased approximately 6.4 million and 12.7 million shares, respectively, of UAL common stock in open market transactions for $0.5 billion and $1.1 billion, respectively. As of June 30, 2019, the Company had approximately $0.7 billion remaining to purchase shares under its December 2017 repurchase authorization. On July 15, 2019, UAL’s Board of Directors authorized a new $3.0 billion share repurchase program to acquire UAL’s common stock. UAL may repurchase shares through the open market, privately negotiated transactions, block trades or accelerated share repurchase transactions from time to time in accordance with applicable securities laws. UAL will repurchase shares of UAL common stock subject to prevailing market conditions, and may discontinue such repurchases at any time. See Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds of this report for additional information.
NOTE 4 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The tables below present the components of the Company's accumulated other comprehensive income (loss), net of tax ("AOCI") (in millions):

| UAL |  | Pension and Other Postretirement Liabilities |  | Investments and Other |  | Deferred Taxes |  | Total
| Balance at March 31, 2019 |  | $ | (654 | ) |  | $ | 1 |  |  | $ | (140 | ) |  | $ | (793 | )
| Changes in value |  | (29 | ) |  | 2 |  |  | 7 |  |  | (20 | )
| Amounts reclassified to earnings |  | 8 |  |  | — |  |  | (2 | ) |  | 6 |
| Balance at June 30, 2019 |  | $ | (675 | ) |  | $ | 3 |  |  | $ | (135 | ) |  | $ | (807 | )
| Balance at December 31, 2018 |  | $ | (663 | ) |  | $ | (4 | ) |  | $ | (136 | ) |  | $ | (803 | )
| Changes in value |  | (24 | ) |  | 7 |  |  | 4 |  |  | (13 | )
| Amounts reclassified to earnings |  | 12 |  | (a) | — |  |  | (3 | ) |  | 9 |
| Balance at June 30, 2019 |  | $ | (675 | ) |  | $ | 3 |  |  | $ | (135 | ) |  | $ | (807 | )
| Balance at March 31, 2018 |  | $ | (1,063 | ) |  | $ | (3 | ) |  | $ | (48 | ) |  | $ | (1,114 | )
| Changes in value |  | 1 |  |  | 1 |  |  | — |  |  | 2 |
| Amounts reclassified to earnings |  | 14 |  |  | — |  |  | (4 | ) |  | 10 |
| Balance at June 30, 2018 |  | $ | (1,048 | ) |  | $ | (2 | ) |  | $ | (52 | ) |  | $ | (1,102 | )
| Balance at December 31, 2017 |  | $ | (1,102 | ) |  | $ | (6 | ) |  | $ | (39 | ) |  | $ | (1,147 | )
| Changes in value |  | 24 |  |  | (3 | ) |  | (6 | ) |  | 15 |
| Amounts reclassified to earnings |  | 30 |  | (a) | — |  |  | (7 | ) |  | 23 |
| Amounts reclassified to retained earnings |  | — |  |  | 7 |  |  | — |  |  | 7 |
| Balance at June 30, 2018 |  | $ | (1,048 | ) |  | $ | (2 | ) |  | $ | (52 | ) |  | $ | (1,102 | )

(a) This AOCI component is included in the computation of net periodic pension and other postretirement costs (See Note 6 to the financial statements included in Part I, Item 1 for additional information).
18

Table of Contents |  |

NOTE 5 - INCOME TAXES
The Company's effective tax rate for the three and six months ended June 30, 2019 was 22.3% and 21.9%, respectively. The effective tax rate for the three and six months ended June 30, 2018 was 20.1% and 20.2%, respectively. The effective tax rate represents a blend of federal, state and foreign taxes and includes the impact of certain nondeductible items and the impact of a change in the Company's mix of domestic and foreign earnings.
NOTE 6 - EMPLOYEE BENEFIT PLANS
Defined Benefit Pension and Other Postretirement Benefit Plans. The Company's net periodic benefit cost includes the following components for the three months ended June 30 (in millions):

|  | Pension Benefits |  | Other Postretirement Benefits |  | Affected Line Item in the Statements of Consolidated Operations
|  | 2019 |  | 2018 |  | 2019 |  | 2018 |  |
Service cost |  | $ | 46 |  |  | $ | 57 |  |  | $ | 3 |  |  | $ | 3 |  |  | Salaries and related costs
Interest cost |  | 57 |  |  | 54 |  |  | 14 |  |  | 15 |  |  | Miscellaneous, net
Expected return on plan assets |  | (73 | ) |  | (73 | ) |  | (1 | ) |  | — |  |  | Miscellaneous, net
Amortization of unrecognized (gain) loss |  | 29 |  |  | 32 |  |  | (15 | ) |  | (8 | ) |  | Miscellaneous, net
Amortization of prior service credit |  | — |  |  | — |  |  | (9 | ) |  | (10 | ) |  | Miscellaneous, net
Settlement loss |  | 3 |  |  | — |  |  | — |  |  | — |  |  | Miscellaneous, net
Total |  | $ | 62 |  |  | $ | 70 |  |  | $ | (8 | ) |  | $ | — |  |  |

The Company's net periodic benefit cost includes the following components for the six months ended June 30 (in millions):

|  | Pension Benefits |  | Other Postretirement Benefits |  | Affected Line Item in the Statements of Consolidated Operations
|  | 2019 |  | 2018 |  | 2019 |  | 2018 |  |
Service cost |  | $ | 92 |  |  | $ | 114 |  |  | $ | 5 |  |  | $ | 6 |  |  | Salaries and related costs
Interest cost |  | 114 |  |  | 108 |  |  | 29 |  |  | 30 |  |  | Miscellaneous, net
Expected return on plan assets |  | (145 | ) |  | (146 | ) |  | (1 | ) |  | — |  |  | Miscellaneous, net
Amortization of unrecognized (gain) loss |  | 58 |  |  | 65 |  |  | (30 | ) |  | (16 | ) |  | Miscellaneous, net
Amortization of prior service credit |  | — |  |  | — |  |  | (19 | ) |  | (19 | ) |  | Miscellaneous, net
Settlement loss |  | 3 |  |  | — |  |  | — |  |  | — |  |  | Miscellaneous, net
Total |  | $ | 122 |  |  | $ | 141 |  |  | $ | (16 | ) |  | $ | 1 |  |  |

During the three and six months ended June 30, 2019, the Company contributed $150 million and $300 million, respectively, to its U.S. domestic tax-qualified defined benefit pension plans.
Share-Based Compensation. In the six months ended June 30, 2019, UAL granted share-based compensation awards pursuant to the United Continental Holdings, Inc. 2017 Incentive Compensation Plan. These share-based compensation awards include 1.1 million restricted stock units ("RSUs"), consisting of 0.8 million time-vested RSUs and 0.3 million performance-based RSUs. The time-vested RSUs vest pro-rata, on February 28th of each year, over a period of three years from the date of grant. The amount of performance-based RSUs vest based on the Company's relative improvement in pre-tax margin, as compared to a group of industry peers, for the three years ending December 31, 2021. RSUs are generally equity awards settled in stock for domestic employees and liability awards settled in cash for international employees. The cash payments are based on the 20-day average closing price of UAL common stock immediately prior to the vesting date.
19

Table of Contents |  |

The table below presents information related to share-based compensation (in millions):

| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Share-based compensation expense | $ | 21 |  |  | $ | 27 |  |  | $ | 37 |  |  | $ | 44 |
| June 30, 2019 |  | December 31, 2018 |  |  |  |
Unrecognized share-based compensation | $ | 110 |  |  | $ | 68 |  |  |  |  |

NOTE 7 - BRW TERM LOAN
In November 2018, United, as lender, entered into a Term Loan Agreement (the "BRW Loan Agreement") with, among others, BRW Aviation Holding LLC and BRW Aviation LLC (“BRW”), as guarantor and borrower, respectively, affiliates of Synergy Aerospace Corporation (“Synergy”), the majority shareholder of Avianca Holdings S.A. (“AVH”), as guarantor and borrower, respectively. Pursuant to the BRW Loan Agreement, United provided a $456 million term loan to BRW (the "BRW Term Loan"), secured by a pledge of BRW's equity, as well as BRW's 516 million shares of common stock of AVH (having an implied value equivalent to 64.5 million American Depositary Receipts ("ADRs"), the class of AVH securities that trades on the New York Stock Exchange (the "NYSE")), the parent company of Aerovías del Continente Americano S.A. BRW is currently in default under the BRW Loan Agreement.
On May 13, 2019, S&P Global Ratings downgraded its AVH issuer level credit ratings from B to CCC+, together with accompanying downgrades for AVH’s frequent flyer subsidiary LifeMiles Ltd. ("LifeMiles") and for certain outstanding debt of both AVH and LifeMiles. Following these downgrades, and in order to protect the value of its collateral, on May 24, 2019, United began to exercise remedies available to it under the terms of the BRW Loan Agreement and related documents. In connection with the delivery by United of a notice of default to BRW, Kingsland Holdings Limited ("Kingsland"), AVH’s largest minority shareholder, was granted, in accordance with the agreements related to the BRW Loan Agreement, independent authority to manage BRW, which remains the majority shareholder of AVH. As a result of these developments, United evaluated the $489 million carrying value of the BRW Term Loan as of June 30, 2019 using the fair value of the collateral and determined that the value of the collateral is sufficient to recover the carrying value of the loan and, accordingly, concluded that the BRW Term Loan is not impaired.
The fair market value of AVH equity was estimated using an income approach and a market approach with equal weight applied to each approach. Under the income approach, the value was estimated by discounting expected future cash flows at a weighted average cost of capital to a single present value amount. Under the market approach, the value was estimated by reference to multiples of enterprise value to earnings before interest, taxes, depreciation, amortization and rent ("EBITDAR") for a group of publicly-traded market comparable companies, along with AVH's own EBITDAR levels.
20

Table of Contents |  |

NOTE 8 - FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS
The table below presents disclosures about the financial assets and liabilities measured at fair value on a recurring basis in UAL's financial statements (in millions):

| June 30, 2019 |  | December 31, 2018
| Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3
Cash and cash equivalents | $ | 3,221 |  |  | $ | 3,221 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,694 |  |  | $ | 1,694 |  |  | $ | — |  |  | $ | — |
Short-term investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt | 1,053 |  |  | — |  |  | 1,053 |  |  | — |  |  | 1,023 |  |  | — |  |  | 1,023 |  |  | — |
Asset-backed securities | 697 |  |  | — |  |  | 697 |  |  | — |  |  | 746 |  |  | — |  |  | 746 |  |  | — |
U.S. government and agency notes | 116 |  |  | — |  |  | 116 |  |  | — |  |  | 108 |  |  | — |  |  | 108 |  |  | — |
Certificates of deposit placed through an account registry service ("CDARS") | 59 |  |  | — |  |  | 59 |  |  | — |  |  | 75 |  |  | — |  |  | 75 |  |  | — |
Other fixed-income securities | 107 |  |  | — |  |  | 107 |  |  | — |  |  | 116 |  |  | — |  |  | 116 |  |  | — |
Other investments measured at net asset value ("NAV") | 191 |  |  | — |  |  | — |  |  | — |  |  | 188 |  |  | — |  |  | — |  |  | — |
Restricted cash | 105 |  |  | 105 |  |  | — |  |  | — |  |  | 105 |  |  | 105 |  |  | — |  |  | — |
Long-term investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities | 301 |  |  | 301 |  |  | — |  |  | — |  |  | 249 |  |  | 249 |  |  | — |  |  | — |
Enhanced equipment trust certificates ("EETC") | 16 |  |  | — |  |  | — |  |  | 16 |  |  | 18 |  |  | — |  |  | — |  |  | 18 |
AVH Derivative Assets (defined below) | 10 |  |  | — |  |  | — |  |  | 10 |  |  | 11 |  |  | — |  |  | — |  |  | 11 |

Available-for-sale investment maturities - The short-term investments shown in the table above are classified as available-for-sale, with the exception of investments measured at NAV. As of June 30, 2019, asset-backed securities have remaining maturities of less than one year to approximately 15 years, corporate debt securities have remaining maturities of less than one year to approximately three years and CDARS have maturities of less than one year. U.S. government and agency notes have maturities of approximately three years or less and other fixed-income securities have maturities of two years or less. The EETC securities mature in July 2019.
Restricted cash - Restricted cash primarily includes collateral for letters of credit and collateral associated with facility leases and other insurance-related obligations.
Equity securities - Equity securities represent United's investment in Azul Linhas Aéreas Brasileiras S.A. ("Azul"), consisting of a preferred equity stake of approximately 8% (approximately 2% of the total capital stock of Azul). The Company recognizes changes to the fair market value of its equity investment in Azul in Miscellaneous, net in its statements of consolidated operations.
AVH Derivative Assets - As part of the BRW Loan Agreement and related agreements with Kingsland, United obtained AVH share call options, AVH share appreciation rights, and an AVH share-based upside sharing agreement (collectively, the "AVH Derivative Assets"). The AVH Derivative Assets are recorded at fair value as Other assets on the Company's balance sheet and are included in the table above. Changes in the fair value of the AVH Derivative Assets are recorded as part of Nonoperating income (expense): Miscellaneous, net on the Company's statements of consolidated operations.
Investments presented in the table above have the same fair value as their carrying value. The table below presents the carrying values and estimated fair values of financial instruments not presented in the tables above (in millions):

| June 30, 2019 |  | December 31, 2018
| Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
|  |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  |  |  | Total |  | Level 1 |  | Level 2 |  | Level 3
Long-term debt | $ | 14,193 |  |  | $ | 14,691 |  |  | $ | — |  |  | $ | 10,915 |  |  | $ | 3,776 |  |  | $ | 13,445 |  |  | $ | 13,450 |  |  | $ | — |  |  | $ | 9,525 |  |  | $ | 3,925 |

21

Table of Contents |  |

Fair value of the financial instruments included in the tables above was determined as follows:

Description | Fair Value Methodology
Cash and cash equivalents | The carrying amounts approximate fair value because of the short-term maturity of these assets.
Short-term investments, Equity securities, EETC and Restricted cash | Fair value is based on (a) the trading prices of the investment or similar instruments, (b) an income approach, which uses valuation techniques to convert future amounts into a single present amount based on current market expectations about those future amounts when observable trading prices are not available, or (c) broker quotes obtained by third-party valuation services.
Other investments measured at NAV | In accordance with the relevant accounting standards, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. The investments measured using NAV are shares of mutual funds that invest in fixed-income instruments including bonds, debt securities, and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities. The Company can redeem its shares at any time at NAV subject to a three-day settlement period.
Long-term debt | Fair values were based on either market prices or the discounted amount of future cash flows using our current incremental rate of borrowing for similar liabilities or assets.
AVH Derivative Assets | Fair values are calculated using a Monte Carlo simulation approach. Unobservable inputs include expected volatility, expected dividend yield and control and acquisition premiums.

NOTE 9 - LEASES
United leases aircraft, airport passenger terminal space, aircraft hangars and related maintenance facilities, cargo terminals, other airport facilities, other commercial real estate, office and computer equipment and vehicles, among other items. Certain of these leases include provisions for variable lease payments which are based on several factors, including, but not limited to, relative leased square footage, available seat miles, enplaned passengers, passenger facility charges, terminal equipment usage fees, departures, and airports’ annual operating budgets. Due to the variable nature of the rates, these leases are not recorded on our balance sheet as a right-of-use asset and lease liability.
For leases with terms greater than 12 months, we record the related asset and lease liability at the present value of lease payments over the lease term. Leases with an initial term of 12 months or less with purchase options or extension options that are not reasonably certain to be exercised are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the term of the lease. We combine lease and non-lease components, such as common area maintenance costs, in calculating the right-of-use assets and lease liabilities for all asset groups except for our capacity purchase agreements ("CPAs"), which contain embedded leases for regional aircraft. In addition to the lease component cost for regional aircraft, our CPAs also include non-lease components primarily related to the regional carriers’ operating costs incurred in providing regional aircraft services. We allocate consideration separately for the lease components and non-lease components of each CPA based on their relative standalone values.
Lease Cost. The Company's lease cost for the three and six months ended June 30 included the following components (in millions):

|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2019 |  | 2018 |  | 2019 |  | 2018
Operating lease cost |  | $ | 259 |  |  | $ | 312 |  |  | $ | 531 |  |  | $ | 638 |
Variable and short-term lease cost |  | 661 |  |  | 669 |  |  | 1,267 |  |  | 1,280 |
Amortization of finance lease assets |  | 18 |  |  | 17 |  |  | 36 |  |  | 40 |
Interest on finance lease liabilities |  | 32 |  |  | 4 |  |  | 59 |  |  | 9 |
Sublease income |  | (9 | ) |  | (11 | ) |  | (17 | ) |  | (21 | )
Total lease cost |  | $ | 961 |  |  | $ | 991 |  |  | $ | 1,876 |  |  | $ | 1,946 |

22

Table of Contents |  |

Lease terms and commitments. United's leases include aircraft leases for aircraft that are directly leased by United and aircraft that are operated by regional carriers on United's behalf under CPAs (but excluding aircraft owned by United) and non-aircraft leases. Aircraft operating leases relate to leases of 121 mainline and 339 regional aircraft while finance leases relate to leases of 26 mainline and 47 regional aircraft. United's aircraft leases have remaining lease terms of 1 month to 10 years with expiration dates ranging from 2019 through 2029. Under the terms of most aircraft leases, United has the right to purchase the aircraft at the end of the lease term, in some cases at fair market value, and in others, at a percentage of cost.
Non-aircraft leases have remaining lease terms of 1 month to 34 years, with expiration dates ranging from 2019 through 2053.
The table below summarizes the Company's scheduled future minimum lease payments under operating and finance leases, recorded on the balance sheet, as of June 30, 2019 (in millions):

|  | Operating Leases |  | Finance Leases
Last six months of 2019 |  | $ | 428 |  |  | $ | 157 |
2020 |  | 989 |  |  | 58 |
2021 |  | 766 |  |  | 54 |
2022 |  | 634 |  |  | 44 |
2023 |  | 621 |  |  | 33 |
After 2023 |  | 4,331 |  |  | 70 |
Minimum lease payments |  | 7,769 |  |  | 416 |
Imputed interest |  | 2,098 |  |  | 97 |
Present value of minimum lease payments |  | 5,671 |  |  | 319 |
Less: current maturities of lease obligations |  | (637 | ) |  | (117 | )
Long-term lease obligations |  | $ | 5,034 |  |  | $ | 202 |

As of June 30, 2019, we have additional leases of approximately $570 million for regional jets under a CPA and a maintenance facility that have not yet commenced. These leases will commence between 2019 and 2020 with lease terms of up to 34 years.
To the extent a lease agreement includes an extension option that is reasonably certain to be exercised, we have recognized those amounts as part of our right-of-use assets and lease liabilities.
Our lease agreements do not provide a readily determinable implicit rate nor is it available to us from our lessors. Instead, we estimate United's incremental borrowing rate based on information available at lease commencement in order to discount lease payments to present value. The table below presents additional information related to our leases as of June 30:

|  | 2019 |  | 2018
Weighted-average remaining lease term - operating leases |  | 10 years |  |  | 10 years |
Weighted-average remaining lease term - finance leases |  | 5 years |  |  | 5 years |
Weighted-average discount rate - operating leases |  | 5.3 | % |  | 5.1 | %
Weighted-average discount rate - finance leases |  | 53.2 | % | (a) | 6.7 | %

(a) 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 provisions of these lease agreements resulted in a change in accounting classification of these leases from operating leases to finance leases up until the purchase date. The discount rates used for these leases were adjusted so that the present value of lease payments did not exceed the fair value of the asset being recognized.
The table below presents supplemental cash flow information related to leases during the six months ended June 30 (in millions):

| 2019 |  | 2018
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows for operating leases | $ | 507 |  |  | $ | 552 |
Operating cash flows for finance leases | 47 |  |  | 9 |
Financing cash flows for finance leases | 63 |  |  | 35 |

23

Table of Contents |  |

NOTE 10 - COMMITMENTS AND CONTINGENCIES
Commitments. As of June 30, 2019, United had firm commitments and options to purchase aircraft from The Boeing Company ("Boeing"), Airbus S.A.S. ("Airbus") and Embraer S.A. ("Embraer") presented in the table below:

|  |  |  | Scheduled Aircraft Deliveries
Aircraft Type |  | Number of Firm Commitments (a) |  | Last Six Months of 2019 |  | 2020 |  | After 2020
Airbus A350 |  | 45 |  |  | — |  |  | — |  |  | 45 |
Boeing 737 MAX |  | 171 |  |  | 16 |  |  | 28 |  |  | 127 |
Boeing 777-300ER |  | 4 |  |  | 2 |  |  | 2 |  |  | — |
Boeing 787 |  | 18 |  |  | 2 |  |  | 15 |  |  | 1 |
Embraer E175 |  | 38 |  |  | 18 |  |  | 20 |  |  | — |
(a) United also has options and purchase rights for additional aircraft. |  |  |  |  |  |  |  |

The aircraft listed in the table above are scheduled for delivery through 2027. To the extent the Company and the aircraft manufacturers with whom the Company has existing orders for new aircraft agree to modify the contracts governing those orders, the amount and timing of the Company's future capital commitments could change. United also has agreements to purchase 20 used Airbus A319 aircraft with expected delivery dates through 2022 and 19 used Boeing 737-700 aircraft with expected delivery dates in 2019 through 2021.
On March 13, 2019, the Federal Aviation Administration issued an emergency order prohibiting the operation of Boeing 737 MAX series airplanes by U.S. certificated operators (the "FAA Order"). As a result, the Company grounded all 14 Boeing 737 MAX 9 aircraft in its fleet. Prior to the grounding, the Company operated approximately 50 flights a day on these aircraft, and expected, given the anticipated delivery schedule, to operate approximately 110 flights a day by the end of the year. The FAA Order also resulted in Boeing suspending delivery of new Boeing 737 MAX series aircraft. The extent of the delay to the scheduled deliveries of the 737 MAX aircraft included in the table above is expected to be impacted by the length of time the FAA Order remains in place, Boeing's production rate and the pace at which Boeing can deliver aircraft following the lifting of the FAA Order, among other factors.
During the second quarter of 2019, the Company placed an order for 20 additional Embraer E175 aircraft which will be operated by a regional carrier.
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. As of June 30, 2019, United had purchased 17 of those aircraft.
The table below summarizes United's commitments as of June 30, 2019, which include aircraft and related spare engines, aircraft improvements and all non-aircraft capital commitments:

|  | (in billions)
Last six months of 2019 |  | $ | 2.2 |
2020 (a) |  | 5.9 |
2021 |  | 4.0 |
2022 |  | 3.3 |
2023 |  | 2.0 |
After 2023 |  | 6.9 |
|  | $ | 24.3 |

(a) Commitments for 2020 are expected to be higher than other years displayed in the table above due to the large number of wide-body aircraft deliveries (17 new aircraft) scheduled in that year. Amounts are not adjusted for any potential changes in the delivery schedule of the Boeing 737 MAX aircraft.
Regional CPAs. In June 2019, United entered into a ten-year CPA with GoJet Airlines for regional service under the United Express brand to operate 54 CRJ-550 aircraft commencing in the second half of 2019.
The table below summarizes the Company's expected future payments through the end of the terms of our CPAs, excluding aircraft ownership costs and variable pass-through costs such as fuel and landing fees, among others.
24

Table of Contents |  |

|  | (in billions)
Last six months of 2019 |  | $ | 1.1 |
2020 |  | 2.1 |
2021 |  | 2.1 |
2022 |  | 1.7 |
2023 |  | 1.1 |
After 2023 |  | 4.4 |
|  | $ | 12.5 |

Guarantees. As of June 30, 2019, United is the guarantor of approximately $1.9 billion in aggregate principal amount of tax-exempt special facilities revenue bonds and interest thereon. These bonds, issued by various airport municipalities, are payable solely from rentals paid under long-term agreements with the respective governing bodies. The leasing arrangements associated with these obligations are accounted for as operating leases recognized on the Company's balance sheet with the associated expense recorded on a straight-line basis resulting in ratable accrual of the lease obligation over the expected lease term. The obligations associated with these tax-exempt special facilities revenue bonds are included in our lease commitments disclosed in Note 9 of this report. All of these bonds are due between 2019 and 2038.
In connection with funding the BRW Loan Agreement, the Company entered into an agreement with Kingsland, pursuant to which, in return for Kingsland's pledge of its 144.8 million shares of AVH common stock (having an implied value equivalent to 18.1 million ADRs) and its consent to Synergy's pledge of its AVH common stock to United under the BRW Loan Agreement and related agreements, United (1) granted to Kingsland the right to put its shares of AVH common stock to United at market price on the fifth anniversary of the BRW Loan Agreement, and (2) guaranteed Synergy's obligation to pay Kingsland (which amount, if paid by United, will increase United's secured loan to Synergy by such amount) if the market price of AVH common stock on the fifth anniversary is less than $12 per ADR on the NYSE, for an aggregate maximum possible combined put payment and guarantee amount on the fifth anniversary of $217 million. In 2018, the Company recorded a liability of $31 million for the fair value of its guarantee to loan additional funds to Synergy if required. Any such additional loans to Synergy would be collateralized by BRW's shares of AVH stock and other collateral.
Increased Cost Provisions. In United's financing transactions that include loans in which United is the borrower, United typically agrees to reimburse lenders for any reduced returns with respect to the loans due to any change in capital requirements and, in the case of loans with respect to which the interest rate is based on the London Interbank Offered Rate, for certain other increased costs that the lenders incur in carrying these loans as a result of any change in law, subject, in most cases, to obligations of the lenders to take certain limited steps to mitigate the requirement for, or the amount of, such increased costs. At June 30, 2019, the Company had $3.4 billion of floating rate debt and $9 million of fixed rate debt with remaining terms of up to 11 years that are subject to these increased cost provisions. In several financing transactions involving loans or leases from non-U.S. entities, with remaining terms of up to 11 years and an aggregate balance of $3.2 billion, the Company bears the risk of any change in tax laws that would subject loan or lease payments thereunder to non-U.S. entities to withholding taxes, subject to customary exclusions.
As of June 30, 2019, United is the guarantor of $139 million of aircraft mortgage debt issued by one of United's regional carriers. The aircraft mortgage debt is subject to similar increased cost provisions as described above for the Company's debt, and the Company would potentially be responsible for those costs under the guarantees.
Labor Negotiations. As of June 30, 2019, the Company had approximately 95,000 employees, of whom approximately 84% were represented by various U.S. labor organizations. On February 1, 2019, the collective bargaining agreement with the Air Line Pilots Association ("ALPA"), the labor union representing United’s pilots, became amendable. The Company and ALPA are in negotiations for an amended agreement. The Company and UNITE HERE, the labor union representing United's Catering Operations employees, started negotiations for a first collective bargaining agreement in March 2019.
NOTE 11 - DEBT
As of June 30, 2019, UAL and United were in compliance with their respective debt covenants. As of June 30, 2019, United had its entire capacity of $2.0 billion available under the revolving credit facility of the Amended and Restated Credit and Guaranty Agreement.
EETCs. In February 2019, United created two new EETC pass-through trusts, each of which issued pass-through certificates (such certificates, the "2019-1 Pass Through Certificates"). The proceeds from the issuance of the pass-through certificates are used to purchase equipment notes issued by United and secured by its aircraft financed with the proceeds of such notes. The
25

Table of Contents |  |

Company records the debt obligation upon issuance of the equipment notes rather than upon the initial issuance of the pass-through certificates. The pass-through certificates represent fractional undivided interests in the respective pass-through trusts and are not obligations of United. The payment obligations under the equipment notes are those of United. Proceeds received from the sale of pass-through certificates are initially held by a depositary in escrow for the benefit of the certificate holders until United issues equipment notes to the trust, which purchases such notes with a portion of the escrowed funds. These escrowed funds are not guaranteed by United and are not reported as debt on our consolidated balance sheet because the proceeds held by the depositary are not United's assets. Certain details of the pass-through trusts with proceeds received from issuance of debt in 2019 are as follows (in millions, except stated interest rate):

EETC Issuance Date |  | Class |  | Face Amount |  | Final expected distribution date |  | Stated interest rate |  | Total proceeds received from issuance of debt during 2019 and recorded as debt as of June 30, 2019 |  | Remaining proceeds from issuance of certificates to be received in future periods
February 2019 |  | AA |  | $ | 717 |  |  | August 2031 |  | 4.15% |  | $ | 612 |  |  | $ | 105 |
February 2019 |  | A |  | 296 |  |  | August 2031 |  | 4.55% |  | 253 |  |  | 43 |
|  |  |  | $ | 1,013 |  |  |  |  |  |  | $ | 865 |  |  | $ | 148 |

Certain of the proceeds from the issuance of the 2019-1 Pass Through Certificates were expected to be used to purchase equipment notes issued by United and secured by three Boeing 737 MAX aircraft, which aircraft were scheduled for delivery by Boeing in March, April and May of 2019. However, as a result of the FAA Order, United has not yet taken delivery of these three aircraft. If United is not in a position to take delivery of such 737 MAX aircraft on or prior to November 30, 2019, any funds remaining with the depositary in escrow at such time, together with accrued and unpaid interest thereon but without premium, will be distributed to the holders of the 2019-1 Pass Through Certificates.
4.875% Senior Note due 2025. In May 2019, UAL issued $350 million aggregate principal amount of 4.875% Senior Notes due January 15, 2025 (the "4.875% Senior Notes due 2025"), which are fully and unconditionally guaranteed and recorded by United on its balance sheet. The indenture for the 4.875% Senior Notes due 2025 requires that, if certain changes of control of UAL occur, UAL offer to repurchase the 4.875% Senior Notes due 2025 for cash at a purchase price equal to 101% of the principal amount of such notes repurchased plus accrued and unpaid interest.
The table below presents the Company's contractual principal payments (not including debt discount or debt issuance costs) at June 30, 2019 under then-outstanding long-term debt agreements (in millions):

Last six months of 2019 |  | $ | 757 |
2020 |  | 1,350 |
2021 |  | 1,344 |
2022 |  | 1,697 |
2023 |  | 747 |
After 2023 |  | 8,484 |
|  | $ | 14,379 |

26

Table of Contents |  |

NOTE 12 - SPECIAL CHARGES AND MARK-TO-MARKET ("MTM") ADJUSTMENTS
For the three and six months ended June 30, special charges and MTM adjustments consisted of the following (in millions):

| Three Months Ended June 30, |  | Six Months Ended June 30,
Operating: | 2019 |  | 2018 |  | 2019 |  | 2018
Impairment of assets | $ | 61 |  |  | $ | 111 |  |  | $ | 69 |  |  | $ | 134 |
Severance and benefit costs | 6 |  |  | 11 |  |  | 12 |  |  | 25 |
(Gains) losses on sale of assets and other special charges | 4 |  |  | 7 |  |  | 8 |  |  | 10 |
Total operating special charges | 71 |  |  | 129 |  |  | 89 |  |  | 169 |
Nonoperating MTM (gains) losses on financial instruments | (34 | ) |  | 135 |  |  | (51 | ) |  | 90 |
Total special charges and MTM (gains) losses on financial instruments | 37 |  |  | 264 |  |  | 38 |  |  | 259 |
Income tax benefit | (8 | ) |  | (59 | ) |  | (8 | ) |  | (58 | )
Total special charges and MTM (gains) losses on financial instruments, net of income tax | $ | 29 |  |  | $ | 205 |  |  | $ | 30 |  |  | $ | 201 |

2019
During the three months ended June 30, 2019, the Company recorded a $47 million impairment for aircraft engines removed from operations, a $6 million charge for the early termination of several regional aircraft finance leases and $8 million in other miscellaneous impairments. During the six months ended June 30, 2019, in addition to the charges described above, the Company recorded an $8 million f air value adjustment for aircraft purchased off lease.
During the three and six months ended June 30, 2019, the Company recorded management severance of $6 million and $10 million, respectively. During the six months ended June 30, 2019, the Company recorded $2 million of severance and benefit costs related to a voluntary early-out program for its technicians and related employees represented by the International Brotherhood of Teamsters (the "IBT"). In the first quarter of 2017, approximately 1,000 technicians and related employees elected to voluntarily separate from the Company and received a severance payment, with a maximum value of $100,000 per participant, based on years of service, with retirement dates through early 2019.
During the three and six months ended June 30, 2019, the Company recorded gains of $38 million and $52 million, respectively, for the change in market value of its investment in Azul. Also, during the three and six months ended June 30, 2019, the Company recorded losses of $4 million and $1 million, respectively, for the change in fair value of the AVH Derivative Assets. For equity investments and derivative assets subject to MTM accounting, the Company records gains and losses as part of Nonoperating income (expense): Miscellaneous, net in its statements of consolidated operations.
2018
In May 2018, the Brazil–United States open skies agreement was ratified, which provides air carriers with unrestricted access between the United States and Brazil. The Company determined that the approval of the open skies agreement impaired the entire value of its Brazil route authorities because the agreement removes all limitations or reciprocity requirements for flights between the United States and Brazil. Accordingly, the Company recorded a $105 million special charge to write off the entire value of the intangible asset associated with its Brazil routes.
During the three and six months ended June 30, 2018, the Company recorded $6 million and $29 million, respectively, of fair value adjustments for aircraft purchased off lease and impairments related to certain fleet types and international slots no longer in use.
During the three and six months ended June 30, 2018, the Company recorded $6 million and $14 million, respectively, of severance and benefit costs related to the early-out program described above and management severance of $5 million and $11 million, respectively.
During the three and six months ended June 30, 2018, the Company recorded losses of $135 million and $90 million, respectively, for the change in market value of its investment in Azul.
27

Table of Contents |  |

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Overview
United Airlines 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"). Effective June 27, 2019, the Company amended its Certificate of Incorporation to change its name to "United Airlines Holdings, Inc." This Quarterly Report on Form 10-Q is a combined report of UAL and United including their respective consolidated financial statements. 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.
The Company transports people and cargo through its mainline operations, which utilize jet aircraft with at least 126 seats, and regional operations, which utilize smaller aircraft that are operated under contract by United Express carriers. The Company serves virtually every major market around the world, either directly or through participation in Star Alliance®, the world's largest airline alliance. UAL, through United and its regional carriers, operates approximately 4,900 flights a day to 356 airports across five continents.
Second Quarter Highlights

• | Second quarter 2019 net income was $1.1 billion, or $4.02 diluted earnings per share, as compared to net income of $683 million, or diluted earnings per share of $2.48, in the second quarter of 2018.

• | Passenger revenue increased 6.1% to $10.5 billion during the second quarter of 2019 as compared to the second quarter of 2018.

• | Traffic increased 5.1% and capacity increased 3.6% during the second quarter of 2019 as compared to the second quarter of 2018. The Company's passenger load factor for the second quarter of 2019 was 86.0%.

Outlook
Set forth below is a discussion of matters that we believe could impact our financial and operating performance and cause our results of operations in future periods to differ materially from our historical operating results and/or from our anticipated results of operations described in the forward-looking statements in this report. See Part I, Item 1A., Risk Factors, of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (the "2018 Annual Report") and Part II, Item 1A., Risk Factors of this report for a detailed discussion of the risk factors affecting UAL and United, and the factors described under "Forward-Looking Information" below for additional discussion of these and other factors that could affect us.
Growth Strategy. Our priorities for 2019 are delivering top-tier operational reliability and customer service while continuing to execute on our growth plan by strengthening our domestic network through strategic and efficient growth and investing in our people and product.
Fuel. The price of jet fuel remains volatile. Based on projected fuel consumption in 2019, a one-dollar change in the price of a barrel of crude oil would change the Company's annual fuel expense by approximately $103 million.
28

Table of Contents |  |

RESULTS OF OPERATIONS
The following discussion provides an analysis of our results of operations and reasons for material changes therein for the three months ended June 30, 2019 as compared to the corresponding period in 2018.
Second Quarter 2019 Compared to Second Quarter 2018
The Company recorded net income of $1.1 billion in the second quarter of 2019 as compared to net income of $683 million in the second quarter of 2018. The Company considers a key measure of its performance to be operating income, which was $1.5 billion for the second quarter of 2019, as compared to $1.1 billion for the second quarter of 2018. Significant components of the Company's operating results for the three months ended June 30 are as follows (in millions, except percentage changes):

|  | 2019 |  | 2018 |  | Increase (Decrease) |  | % Change
Operating revenue |  | $ | 11,402 |  |  | $ | 10,777 |  |  | $ | 625 |  |  | 5.8 |
Operating expense |  | 9,930 |  |  | 9,632 |  |  | 298 |  |  | 3.1 |
Operating income |  | 1,472 |  |  | 1,145 |  |  | 327 |  |  | 28.6 |
Nonoperating income (expense) |  | (118 | ) |  | (290 | ) |  | (172 | ) |  | (59.3 | )
Income tax expense |  | 302 |  |  | 172 |  |  | 130 |  |  | 75.6 |
Net income |  | $ | 1,052 |  |  | $ | 683 |  |  | $ | 369 |  |  | 54.0 |

Certain consolidated statistical information for the Company's operations for the three months ended June 30 is as follows:

| 2019 |  | 2018 |  | Increase (Decrease) |  | % Change
Passengers (thousands) (a) | 42,592 |  |  | 41,058 |  |  | 1,534 |  |  | 3.7 |
Revenue passenger miles ("RPMs" or "traffic") (millions) (b) | 63,001 |  |  | 59,945 |  |  | 3,056 |  |  | 5.1 |
Available seat miles ("ASMs" or "capacity") (millions) (c) | 73,240 |  |  | 70,702 |  |  | 2,538 |  |  | 3.6 |
Passenger load factor (d) | 86.0 | % |  | 84.8 | % |  | 1.2 pts. |  |  | N/A |
Passenger revenue per available seat mile ("PRASM") (cents) | 14.32 |  |  | 13.97 |  |  | 0.35 |  |  | 2.5 |
Average yield per revenue passenger mile ("Yield") (cents) (e) | 16.64 |  |  | 16.48 |  |  | 0.16 |  |  | 1.0 |
Cargo ton miles ("CTM") (millions) (f) | 831 |  |  | 855 |  |  | (24 | ) |  | (2.8 | )
Cost per available seat mile ("CASM") (cents) | 13.56 |  |  | 13.62 |  |  | (0.06 | ) |  | (0.4 | )
Average price per gallon of fuel, including fuel taxes | $ | 2.16 |  |  | $ | 2.26 |  |  | $ | (0.10 | ) |  | (4.4 | )
Fuel gallons consumed (millions) | 1,102 |  |  | 1,058 |  |  | 44 |  |  | 4.2 |
Average full-time equivalent employees | 90,779 |  |  | 86,743 |  |  | 4,036 |  |  | 4.7 |
(a) The number of revenue passengers measured by each flight segment flown. |  |  |  |  |  |  |
(b) The number of scheduled miles flown by revenue passengers.
(c) The number of seats available for passengers multiplied by the number of scheduled miles those seats are flown.
(d) Revenue passenger miles divided by available seat miles.
(e) The average passenger revenue received for each revenue passenger mile flown.
(f) The number of cargo revenue tons transported multiplied by the number of miles flown. |  |  |  |  |  |  |

29

Table of Contents |  |

Operating Revenue. The table below shows year-over-year comparisons by type of operating revenue for the three months ended June 30 (in millions, except for percentage changes):

| 2019 |  | 2018 |  | Increase (Decrease) |  | % Change
Passenger revenue | $ | 10,486 |  |  | $ | 9,880 |  |  | $ | 606 |  |  | 6.1 |
Cargo | 295 |  |  | 314 |  |  | (19 | ) |  | (6.1 | )
Other operating revenue | 621 |  |  | 583 |  |  | 38 |  |  | 6.5 |
Total operating revenue | $ | 11,402 |  |  | $ | 10,777 |  |  | $ | 625 |  |  | 5.8 |

The table below presents selected second quarter passenger revenue and operating data, broken out by geographic region, expressed as year-over-year changes:

| Increase (decrease) from 2018:
| Domestic |  | Atlantic |  | Pacific |  | Latin |  | Total
Passenger revenue (in millions) | $ | 366 |  |  | $ | 103 |  |  | $ | 32 |  |  | $ | 105 |  |  | $ | 606 |
Passenger revenue | 5.9 | % |  | 5.6 | % |  | 2.9 | % |  | 13.6 | % |  | 6.1 | %
Average fare per passenger | 2.7 | % |  | (1.5 | )% |  | (2.1 | )% |  | 6.3 | % |  | 2.3 | %
Yield | 1.5 | % |  | (1.5 | )% |  | (1.1 | )% |  | 6.5 | % |  | 1.0 | %
PRASM | 1.9 | % |  | 0.6 | % |  | 2.8 | % |  | 9.1 | % |  | 2.5 | %
Passengers | 3.1 | % |  | 7.3 | % |  | 5.1 | % |  | 6.9 | % |  | 3.7 | %
RPMs (traffic) | 4.4 | % |  | 7.2 | % |  | 4.0 | % |  | 6.6 | % |  | 5.1 | %
ASMs (capacity) | 4.0 | % |  | 5.0 | % |  | 0.1 | % |  | 4.1 | % |  | 3.6 | %
Passenger load factor (points) | 0.4 |  |  | 1.8 |  |  | 3.1 |  |  | 2.0 |  |  | 1.2 |

Passenger revenue increased $606 million, or 6.1%, in the second quarter of 2019 as compared to the year-ago period primarily due to a 5.1% increase in traffic. Second quarter PRASM increased 2.5% compared to the second quarter of 2018 primarily as a result of increased close-in demand in the domestic markets and overall demand improvements in the Atlantic and Latin markets.
Other operating revenue increased $38 million, or 6.5%, in the second quarter of 2019 as compared to the year-ago period primarily due to increased revenue related to MileagePlus miles sales and one-time passes to the United Club. See Note 2 to the financial statements included in Item I, Part 1 of this report for additional information related to revenue.
Operating Expenses. The table below includes data related to the Company's operating expenses for the three months ended June 30 (in millions, except for percentage changes):

| 2019 |  | 2018 |  | Increase (Decrease) |  | % Change
Salaries and related costs | $ | 3,057 |  |  | $ | 2,878 |  |  | $ | 179 |  |  | 6.2 |
Aircraft fuel | 2,385 |  |  | 2,390 |  |  | (5 | ) |  | (0.2 | )
Regional capacity purchase | 715 |  |  | 693 |  |  | 22 |  |  | 3.2 |
Landing fees and other rent | 660 |  |  | 625 |  |  | 35 |  |  | 5.6 |
Depreciation and amortization | 560 |  |  | 538 |  |  | 22 |  |  | 4.1 |
Aircraft maintenance materials and outside repairs | 421 |  |  | 438 |  |  | (17 | ) |  | (3.9 | )
Distribution expenses | 442 |  |  | 393 |  |  | 49 |  |  | 12.5 |
Aircraft rent | 73 |  |  | 119 |  |  | (46 | ) |  | (38.7 | )
Special charges | 71 |  |  | 129 |  |  | (58 | ) |  | NM |
Other operating expenses | 1,546 |  |  | 1,429 |  |  | 117 |  |  | 8.2 |
Total operating expenses | $ | 9,930 |  |  | $ | 9,632 |  |  | $ | 298 |  |  | 3.1 |

Salaries and related costs increased $179 million, or 6.2%, in the second quarter of 2019 as compared to the year-ago period primarily due to contractually higher pay rates, higher benefit expenses (primarily healthcare-related) and a 4.7% increase in average full-time equivalent employees.
30

Table of Contents |  |

Aircraft fuel expense decreased by $5 million, or 0.2%, in the second quarter of 2019 as compared to the year-ago period. The table below presents the significant changes in aircraft fuel cost per gallon in the three month period ended June 30, 2019 as compared to the year-ago period:

| (In millions) |  |  |  | Average price per gallon
| 2019 |  | 2018 |  | % Change |  | 2019 |  | 2018 |  | % Change
Fuel expense | $ | 2,385 |  |  | $ | 2,390 |  |  | (0.2 | )% |  | $ | 2.16 |  |  | $ | 2.26 |  |  | (4.4 | )%
Total fuel consumption (gallons) | 1,102 |  |  | 1,058 |  |  | 4.2 | % |  |  |  |  |  |

Landing fees and other rent increased $35 million, or 5.6%, in the second quarter of 2019 as compared to the year-ago period primarily due to increased rates and capacity growth.
Distribution expenses increased $49 million, or 12.5%, in the second quarter of 2019 as compared to the year-ago period primarily due to higher credit card and travel agency booking fees as a result of the overall increase in passenger revenue.
Aircraft rent decreased $46 million, or 38.7%, in the second quarter of 2019 as compared to the year-ago period, primarily due to the purchase of leased aircraft and the conversion of certain operating leases to finance leases.
Details of the Company's special charges include the following for the three months ended June 30 (in millions):

| 2019 |  | 2018
Impairment of assets | $ | 61 |  |  | $ | 111 |
Severance and benefit costs | 6 |  |  | 11 |
(Gains) losses on sale of assets and other special charges | 4 |  |  | 7 |
Special charges | $ | 71 |  |  | $ | 129 |

See Note 12 to the financial statements included in Part I, Item 1 of this report for additional information.
Other operating expenses increased $117 million, or 8.2%, in the second quarter of 2019 as compared to the year-ago period, primarily due to an increase in purchased services related to our airport operations resulting from capacity growth and weather-related events, technology initiatives, facility projects and crew-related expenses.
Nonoperating Income (Expense). The following table illustrates the year-over-year dollar and percentage changes in the Company's nonoperating income (expense) for the three months ended June 30 (in millions, except for percentage changes):

| 2019 |  | 2018 |  | Increase (Decrease) |  | % Change
Interest expense | $ | (191 | ) |  | $ | (163 | ) |  | $ | 28 |  |  | 17.2 |
Interest capitalized | 21 |  |  | 12 |  |  | 9 |  |  | 75.0 |
Interest income | 38 |  |  | 25 |  |  | 13 |  |  | 52.0 |
Miscellaneous, net | 14 |  |  | (164 | ) |  | (178 | ) |  | (108.5 | )
Total | $ | (118 | ) |  | $ | (290 | ) |  | $ | (172 | ) |  | (59.3 | )

Interest expense increased $28 million, or 17.2%, in the second quarter of 2019 as compared to the year-ago period, primarily due to the conversion of certain operating leases to finance leases and debt issued for the acquisition of new aircraft.
Miscellaneous, net decreased $178 million, or 108.5%, in the second quarter of 2019 as compared to the year-ago period, primarily due to fluctuations in the mark-to-market of certain financial instruments.
I ncome Taxes. See Note 5 to the financial statements included in Part I, Item 1 of this report for information related to income taxes.
First Six Months 2019 Compared to First Six Months 2018
The Company recorded net income of $1.3 billion in the first six months of 2019 as compared to net income of $0.8 billion in the first six months of 2018. The Company considers a key measure of its performance to be operating income, which was $2.0 billion for the first six months of 2019, as compared to $1.4 billion for the first six months of 2018, a $560 million increase year-over-year. Significant components of the Company's operating results for the six months ended June 30 are as follows (in
31

Table of Contents |  |

millions, except percentage changes):

|  | 2019 |  | 2018 |  | Increase (Decrease) |  | % Change
Operating revenue |  | $ | 20,991 |  |  | $ | 19,809 |  |  | $ | 1,182 |  |  | 6.0 |
Operating expense |  | 19,024 |  |  | 18,402 |  |  | 622 |  |  | 3.4 |
Operating income |  | 1,967 |  |  | 1,407 |  |  | 560 |  |  | 39.8 |
Nonoperating income (expense) |  | (246 | ) |  | (370 | ) |  | (124 | ) |  | (33.5 | )
Income tax expense |  | 377 |  |  | 209 |  |  | 168 |  |  | 80.4 |
Net income |  | $ | 1,344 |  |  | $ | 828 |  |  | $ | 516 |  |  | 62.3 |

Certain consolidated statistical information for the Company's operations for the six months ended June 30 is as follows:

| 2019 |  | 2018 |  | Increase (Decrease) |  | % Change
Passengers (thousands) | 79,046 |  |  | 75,553 |  |  | 3,493 |  |  | 4.6 |
RPMs (millions) | 116,098 |  |  | 109,794 |  |  | 6,304 |  |  | 5.7 |
ASMs (millions) | 138,885 |  |  | 132,679 |  |  | 6,206 |  |  | 4.7 |
Passenger load factor | 83.6 | % |  | 82.8 | % |  | 0.8 pts. |  |  | N/A |
PRASM (cents) | 13.83 |  |  | 13.59 |  |  | 0.24 |  |  | 1.8 |
Yield (cents) | 16.55 |  |  | 16.42 |  |  | 0.13 |  |  | 0.8 |
CTM (millions) | 1,636 |  |  | 1,672 |  |  | (36 | ) |  | (2.2 | )
CASM (cents) | 13.70 |  |  | 13.87 |  |  | (0.17 | ) |  | (1.2 | )
Average price per gallon of fuel, including fuel taxes | $ | 2.11 |  |  | $ | 2.19 |  |  | $ | (0.08 | ) |  | (3.7 | )
Fuel gallons consumed (millions) | 2,087 |  |  | 1,990 |  |  | 97 |  |  | 4.9 |
Average full-time equivalent employees | 89,761 |  |  | 86,157 |  |  | 3,604 |  |  | 4.2 |

Operating Revenue
The table below shows year-over-year comparisons by type of operating revenue for the six months ended June 30 (in millions, except for percentage changes):

| 2019 |  | 2018 |  | Increase (Decrease) |  | % Change
Passenger revenue | $ | 19,211 |  |  | $ | 18,030 |  |  | $ | 1,181 |  |  | 6.6 |
Cargo | 581 |  |  | 607 |  |  | (26 | ) |  | (4.3 | )
Other operating revenue | 1,199 |  |  | 1,172 |  |  | 27 |  |  | 2.3 |
Total operating revenue | $ | 20,991 |  |  | $ | 19,809 |  |  | $ | 1,182 |  |  | 6.0 |

The table below presents selected passenger revenue and operating data, broken out by geographic region, expressed as year-over-year changes for the six months ended June 30, 2019 compared to the six months ended June 30, 2018:

| Domestic |  | Atlantic |  | Pacific |  | Latin |  | Consolidated
Increase (decrease) from 2018: |  |  |  |  |  |  |  |  |
Passenger revenue (in millions) | $ | 764 |  |  | $ | 182 |  |  | $ | 84 |  |  | $ | 151 |  |  | $ | 1,181 |
Passenger revenue | 6.9 | % |  | 5.9 | % |  | 3.9 | % |  | 9.3 | % |  | 6.6 | %
Average fare per passenger | 2.4 | % |  | (2.6 | )% |  | (0.8 | )% |  | 4.3 | % |  | 1.8 | %
Yield | 1.1 | % |  | (2.8 | )% |  | 0.5 | % |  | 4.3 | % |  | 0.8 | %
PRASM | 1.2 | % |  | (0.8 | )% |  | 3.7 | % |  | 5.7 | % |  | 1.8 | %
Passengers | 4.3 | % |  | 8.7 | % |  | 4.7 | % |  | 4.7 | % |  | 4.6 | %
RPMs (traffic) | 5.7 | % |  | 9.0 | % |  | 3.3 | % |  | 4.8 | % |  | 5.7 | %
ASMs (capacity) | 5.5 | % |  | 6.8 | % |  | 0.2 | % |  | 3.4 | % |  | 4.7 | %
Passenger load factor (points) | 0.1 |  |  | 1.6 |  |  | 2.4 |  |  | 1.1 |  |  | 0.8 |

32

Table of Contents |  |

Passenger revenue in the first six months of 2019 increased $1.2 billion, or 6.6%, as compared to the year-ago period primarily due to a 5.7% increase in traffic. Consolidated PRASM for the first six months of 2019 increased 1.8%, as compared to the first six months of 2018, as a result of increased close-in demand in the domestic markets and overall demand improvements in the Atlantic and Latin markets.
Operating Expenses
The table below includes data related to the Company's operating expenses for the six months ended June 30 (in millions, except for percentage changes):

| 2019 |  | 2018 |  | Increase (Decrease) |  | % Change
Salaries and related costs | $ | 5,930 |  |  | $ | 5,604 |  |  | $ | 326 |  |  | 5.8 |
Aircraft fuel | 4,408 |  |  | 4,355 |  |  | 53 |  |  | 1.2 |
Regional capacity purchase | 1,403 |  |  | 1,323 |  |  | 80 |  |  | 6.0 |
Landing fees and other rent | 1,248 |  |  | 1,204 |  |  | 44 |  |  | 3.7 |
Depreciation and amortization | 1,107 |  |  | 1,062 |  |  | 45 |  |  | 4.2 |
Aircraft maintenance materials and outside repairs | 829 |  |  | 878 |  |  | (49 | ) |  | (5.6 | )
Distribution expenses | 802 |  |  | 735 |  |  | 67 |  |  | 9.1 |
Aircraft rent | 154 |  |  | 246 |  |  | (92 | ) |  | (37.4 | )
Special charges | 89 |  |  | 169 |  |  | (80 | ) |  | NM |
Other operating expenses | 3,054 |  |  | 2,826 |  |  | 228 |  |  | 8.1 |
Total operating expenses | $ | 19,024 |  |  | $ | 18,402 |  |  | $ | 622 |  |  | 3.4 |

Salaries and related costs increased $326 million, or 5.8%, in the first six months of 2019 as compared to the year-ago period primarily due to contractually higher pay rates, higher benefit expenses (primarily healthcare-related), and a 4.2% increase in average full-time equivalent employees.
Aircraft fuel expense increased $53 million, or 1.2%, in the first six months of 2019 as compared to the year-ago period. The table below presents the significant changes in aircraft fuel cost per gallon in the six month period ended June 30, 2019 as compared to the year-ago period:

| (In millions) |  |  |  | Average price per gallon
| 2019 |  | 2018 |  | % Change |  | 2019 |  | 2018 |  | % Change
Fuel expense | $ | 4,408 |  |  | $ | 4,355 |  |  | 1.2 | % |  | $ | 2.11 |  |  | $ | 2.19 |  |  | (3.7 | )%
Total fuel consumption (gallons) | 2,087 |  |  | 1,990 |  |  | 4.9 | % |  |  |  |  |  |

Regional capacity purchase increased $80 million, or 6.0%, in the first six months of 2019 as compared to the year-ago period primarily due to a 5.2% increase in the 50-seat aircraft capacity and rate increases under various capacity purchase agreements with regional carriers.
Aircraft maintenance materials and outside repairs decreased $49 million, or 5.6%, in the first six months of 2019 as compared to the year-ago period primarily due to timing of maintenance events and rate changes under certain engine maintenance contracts.
Distribution expenses increased $67 million, or 9.1%, in the first six months of 2019 as compared to the year-ago period, primarily due to higher credit card and travel agency booking fees as a result of the overall increase in passenger revenue.
Aircraft rent decreased $92 million, or 37.4%, in the first six months of 2019 as compared to the year-ago period, primarily due to the purchase of leased aircraft and the conversion of certain operating leases to finance leases.
33

Table of Contents |  |

Details of the Company's special charges include the following for the six months ended June 30 (in millions):

| 2019 |  | 2018
Impairment of assets | $ | 69 |  |  | $ | 134 |
Severance and benefit costs | 12 |  |  | 25 |
(Gains) losses on sale of assets and other special charges | 8 |  |  | 10 |
Special charges | $ | 89 |  |  | $ | 169 |

See Note 12 to the financial statements included in Part I, Item 1 of this report for additional information.
Other operating expenses increased $228 million, or 8.1%, in the first six months of 2019 as compared to the year-ago period primarily due to an increase in purchased services related to our airport operations resulting from capacity growth and weather-related events, technology initiatives, facility projects and crew-related expenses.
Nonoperating Income (Expense). The following table illustrates the year-over-year dollar and percentage changes in the Company's nonoperating income (expense) for the six months ended June 30 (in millions, except for percentage changes):

| 2019 |  | 2018 |  | Increase (Decrease) |  | % Change
Interest expense | $ | (379 | ) |  | $ | (325 | ) |  | $ | 54 |  |  | 16.6 |
Interest capitalized | 43 |  |  | 30 |  |  | 13 |  |  | 43.3 |
Interest income | 67 |  |  | 42 |  |  | 25 |  |  | 59.5 |
Miscellaneous, net | 23 |  |  | (117 | ) |  | (140 | ) |  | (119.7 | )
Total | $ | (246 | ) |  | $ | (370 | ) |  | $ | (124 | ) |  | (33.5 | )

Interest expense increased $54 million, or 16.6%, in the first six months of 2019 as compared to the year-ago period, primarily due to the conversion of certain operating leases to finance leases and debt issued for the acquisition of new aircraft.
Miscellaneous, net decreased $140 million, or 119.7%, in the first six months of 2019 as compared to the year-ago period, primarily due to fluctuations in the mark-to-market of certain financial instruments.
Income Taxes. See Note 5 to the financial statements included in Part I, Item 1 of this report for information related to income taxes.
LIQUIDITY AND CAPITAL RESOURCES
Current Liquidity
As of June 30, 2019, the Company had $5.4 billion in unrestricted cash, cash equivalents and short-term investments, as compared to $4.0 billion at December 31, 2018. As of June 30, 2019, the Company had its entire commitment capacity of $2.0 billion under the revolving credit facility of the Amended and Restated Credit and Guaranty Agreement available for borrowings. At June 30, 2019, the Company also had $105 million of restricted cash and cash equivalents, which is primarily collateral for letters of credit and collateral associated with facility leases and other insurance-related obligations.
We have a significant amount of fixed obligations, including debt and leases of aircraft, airport and other facilities, and pension funding obligations. As of June 30, 2019, the Company had approximately $14.5 billion of debt and finance lease obligations, including $1.4 billion that will become due in the next 12 months. In addition, we have substantial noncancelable commitments for capital expenditures, including the acquisition of certain new aircraft and related spare engines. As of June 30, 2019, our current liabilities exceeded our current assets by approximately $7.2 billion. However, approximately $8.6 billion of our current liabilities are related to our advance ticket sales and frequent flyer deferred revenue, both of which largely represent revenue to be recognized for travel in the near future and not actual cash outlays. The deficit in working capital does not have an adverse impact to our cash flows, liquidity or operations.
As of June 30, 2019, United had firm commitments and options to purchase aircraft from The Boeing Company ("Boeing"), Airbus S.A.S. ("Airbus") and Embraer S.A. ("Embraer") presented in the table below:
34

Table of Contents |  |

|  |  |  | Scheduled Aircraft Deliveries
Aircraft Type |  | Number of Firm Commitments (a) |  | Last Six Months of 2019 |  | 2020 |  | After 2020
Airbus A350 |  | 45 |  |  | — |  |  | — |  |  | 45 |
Boeing 737 MAX |  | 171 |  |  | 16 |  |  | 28 |  |  | 127 |
Boeing 777-300ER |  | 4 |  |  | 2 |  |  | 2 |  |  | — |
Boeing 787 |  | 18 |  |  | 2 |  |  | 15 |  |  | 1 |
Embraer E175 |  | 38 |  |  | 18 |  |  | 20 |  |  | — |
(a) United also has options and purchase rights for additional aircraft. |  |  |  |  |  |  |  |

The aircraft listed in the table above are scheduled for delivery through 2027. To the extent the Company and the aircraft manufacturers with whom the Company has existing orders for new aircraft agree to modify the contracts governing those orders, the amount and timing of the Company's future capital commitments could change. United also has agreements to purchase 20 used Airbus A319 aircraft with expected delivery dates through 2022 and 19 used Boeing 737-700 aircraft with expected delivery dates in 2019 through 2021.
On March 13, 2019, the Federal Aviation Administration issued an emergency order prohibiting the operation of Boeing 737 MAX series airplanes by U.S. certificated operators (the "FAA Order"). As a result, the Company grounded all 14 Boeing 737 MAX 9 aircraft in its fleet. Prior to the grounding, the Company operated approximately 50 flights a day on these aircraft, and expected, given the anticipated delivery schedule, to operate approximately 110 flights a day by the end of the year. The FAA Order also resulted in Boeing suspending delivery of new Boeing 737 MAX series aircraft. The extent of the delay to the scheduled deliveries of the 737 MAX aircraft included in the table above is expected to be impacted by the length of time the FAA Order remains in place, Boeing's production rate and the pace at which Boeing can deliver aircraft following the lifting of the FAA Order, among other factors.
As of June 30, 2019, United had $148 million in financing available through a previously issued enhanced equipment trust certificates (“EETC”) transaction that it intends to use for the financing of certain aircraft delivered in the second half of 2019. Certain of these EETC proceeds were expected to be used to purchase equipment notes issued by United and secured by three Boeing 737 MAX aircraft, which aircraft were scheduled for delivery by Boeing in March, April and May of 2019. However, as a result of the FAA Order, United has not yet taken delivery of these three aircraft. If United is not in a position to take delivery of such 737 MAX aircraft on or prior to November 30, 2019, any funds remaining with the depositary in escrow at such time, together with accrued and unpaid interest thereon but without premium, will be distributed to the holders of the 2019-1 Pass Through Certificates. See Note 11 to the financial statements included in Part I, Item 1 of this report for additional information on aircraft financing.
As of June 30, 2019, UAL and United have total capital commitments related to the acquisition of aircraft and related spare engines, aircraft improvements and all non-aircraft capital commitments for approximately $24.3 billion, of which approximately $2.2 billion, $5.9 billion, $4.0 billion, $3.3 billion, $2.0 billion and $6.9 billion are due in the last six months of 2019 and for the full year for 2020, 2021, 2022, 2023 and thereafter, respectively. Commitments for 2020 are expected to be higher than other years due to the large number of wide-body aircraft deliveries (17 new aircraft) scheduled in that year. Amounts are not adjusted for any potential changes in the delivery schedule of the Boeing 737 MAX aircraft.
Financing may be necessary to satisfy the Company's capital commitments for its firm order aircraft and other related capital expenditures. The Company has backstop financing commitments available from certain of its aircraft manufacturers for a limited number of its future aircraft deliveries, subject to certain customary conditions. See Note 11 to the financial statements included in Part I, Item 1 of this report for additional information on aircraft financing.
As of June 30, 2019, a substantial portion of the Company's assets, principally aircraft, certain route authorities and airport slots, was pledged under various loan and other agreements. We must sustain our profitability and/or access the capital markets to meet our significant long-term debt and finance lease obligations and future commitments for capital expenditures, including the acquisition of aircraft and related spare engines.
Credit Ratings. As of the filing date of this report, UAL and United had the following corporate credit ratings:
35

Table of Contents |  |

| S&P |  | Moody's |  | Fitch
UAL | BB |  | Ba2 |  | BB
United | BB |  | * |  | BB
* The credit agency does not issue corporate credit ratings for subsidiary entities.

These credit ratings are below investment grade levels; however, the Company has been able to secure financing with investment grade credit ratings for certain enhanced equipment trust certificates ("EETCs") and term loans. Downgrades from current rating levels, among other things, could restrict the availability and/or increase the cost of future financing for the Company.
Sources and Uses of Cash
Operating Activities. Cash flows provided by operations were $4.6 billion for the six months ended June 30, 2019 compared to $4.2 billion in the same period in 2018. The increase is primarily attributable to an increase in operating income which was $2.0 billion for the first six months of 2019 as compared to $1.4 billion in the same period in 2018.
Investing Activities. Capital expenditures were approximately $2.5 billion and $1.7 billion in the six months ended June 30, 2019 and 2018, respectively. Capital expenditures for the six months ended June 30, 2019 were primarily attributable to additions of new aircraft, aircraft improvements, and increases in facility and information technology assets.
Financing Activities. During the six months ended June 30, 2019, the Company made debt and finance lease payments of $536 million.
In the six months ended June 30, 2019, United received and recorded $865 million of proceeds as debt from the EETC pass-through trusts established in February 2019. See Note 11 to the financial statements included in Part I, Item 1 of this report for additional information.
In the six months ended June 30, 2019, United received and recorded $350 million of proceeds from the 4.875% Senior Notes due January 15, 2025.
Share Repurchase Programs. In the three and six months ended June 30, 2019, UAL repurchased approximately 6.4 million and 12.7 million shares, respectively, of UAL common stock in open market transactions for $0.5 billion and $1.1 billion, respectively. As of June 30, 2019, the Company had approximately $0.7 billion remaining to purchase shares under its December 2017 share repurchase program. On July 15, 2019, UAL's Board of Directors authorized a new $3.0 billion share repurchase program to acquire UAL's common stock. UAL may repurchase shares through the open market, privately negotiated transactions, block trades or accelerated share repurchase transactions from time to time in accordance with applicable securities laws. UAL will repurchase shares of UAL common stock subject to prevailing market conditions, and may discontinue such repurchases at any time. See Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds of this report for additional information.
Commitments, Contingencies and Liquidity Matters. As described in the 2018 Annual Report, the Company's liquidity may be adversely impacted by a variety of factors, including, but not limited to, pension funding obligations, reserve requirements associated with credit card processing agreements, guarantees, commitments and contingencies.
See the 2018 Annual Report and Notes 6, 7, 8, 9, 10 and 11 to the financial statements contained in Part I, Item 1 of this report for additional information.
CRITICAL ACCOUNTING POLICIES
See "Critical Accounting Policies" in Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations in the 2018 Annual Report.
FORWARD-LOOKING INFORMATION
Certain statements throughout Part I, Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations, and elsewhere in this report are forward-looking and thus reflect the Company's current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to the Company's 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," "estimates," "forecast," "guidance," "outlook," "goals", "targets" and similar expressions are intended to identify forward-looking statements.
Additionally, forward-looking statements include statements that 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 report are based upon information available to us on the date of this report. 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.
36

Table of Contents |  |

Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: our ability to execute our strategic operating plan, including our growth, revenue-generating and cost-control initiatives; general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aircraft fuel and energy refining capacity in relevant markets); risks of doing business globally, including instability and political developments that may impact our operations in certain countries; demand for travel and the impact that global economic and political conditions have on customer travel patterns; our capacity decisions and the capacity decisions of our competitors; competitive pressures on pricing and on demand; changes in aircraft fuel prices; disruptions in our supply of aircraft fuel; our ability to cost-effectively hedge against increases in the price of aircraft fuel, if we decide to do so; the effects of any technology failures or cybersecurity breaches; disruptions to services provided by third-party service providers; potential reputational or other impact from adverse events involving our aircraft or operations, the aircraft or operations of our regional carriers or our code share partners or the aircraft or operations of another airline; our ability to attract and retain customers; the effects of any terrorist attacks, international hostilities or other security events, or the fear of such events; the mandatory grounding of aircraft in our fleet; disruptions to our regional network; the impact of regulatory, investigative and legal proceedings and legal compliance risks; the success of our investments in other airlines, including in other parts of the world; industry consolidation or changes in airline alliances; 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; costs associated with any modification or termination of our aircraft orders; disruptions in the availability of aircraft, parts or support from our suppliers; our ability to maintain satisfactory labor relations and the results of any collective bargaining agreement process with our union groups; any disruptions to operations due to any potential actions by our labor groups; labor costs; an outbreak of a disease that affects travel demand or travel behavior; the impact of any management changes; extended interruptions or disruptions in service at major airports where we operate; U.S. or foreign governmental legislation, regulation and other actions (including Open Skies agreements, environmental regulations and the United Kingdom's withdrawal from the European Union); the seasonality of the airline industry; weather conditions; the costs and availability of aviation and other insurance; the costs and availability of financing; our ability to maintain adequate liquidity; our ability to comply with the terms of our various financing arrangements; our ability to realize the full value of our intangible assets and long-lived assets; and other risks and uncertainties set forth under Part I, Item 1A., Risk Factors, of our 2018 Annual Report, and Part II, Item 1A., Risk Factors, of this 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 (the "SEC").
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
There have been no material changes in market risk from the information provided in Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk, in our 2018 Annual Report.
ITEM 4. CONTROLS AND PROCEDURES.
Evaluation of Disclosure Control and Procedures
UAL and United each maintain controls and procedures that are designed to ensure that information required to be disclosed in the reports filed or submitted by UAL and United to the SEC is recorded, processed, summarized and reported, within the time periods specified by the SEC's rules and forms, and is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. The management of UAL and United, including the Chief Executive Officer and Chief Financial Officer, performed an evaluation to conclude with reasonable assurance that UAL's and United's disclosure controls and procedures were designed and operating effectively to report the information each company is required to disclose in the reports they file with the SEC on a timely basis. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer of UAL and United have concluded that as of June 30, 2019, disclosure controls and procedures were effective.
Changes in Internal Control over Financial Reporting during the Quarter Ended June 30, 2019
During the three months ended June 30, 2019, there were no changes in UAL's or United's internal control over financial reporting that materially affected, or are reasonably likely to materially affect, their internal control over financial reporting (as defined in rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934).
37

Table of Contents |  |

PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
See Part I, Item 3, Legal Proceedings, of the 2018 Annual Report for a description of legal proceedings.
ITEM 1A. RISK FACTORS
See Part I, Item 1A, Risk Factors, of the 2018 Annual Report for a detailed discussion of the risk factors affecting UAL and United, and as set forth below:
The mandatory grounding of our Boeing 737 MAX 9 aircraft may have a material adverse effect on our business, operating results and financial condition.
On March 13, 2019, the Federal Aviation Administration issued an emergency order prohibiting the operation of Boeing 737 MAX series airplanes by U.S. certificated operators (the "FAA Order"). As a result, the Company grounded all 14 Boeing 737 MAX 9 aircraft in its fleet. Prior to the grounding, the Company operated approximately 50 flights a day on these aircraft and expected, given the anticipated delivery schedule, to operate approximately 110 flights a day by the end of the year. The long-term operational and financial impact of this action is uncertain and could negatively affect the Company based on a number of factors, including, among others, the period of time the aircraft are unavailable, the availability of replacement aircraft, to the extent needed, and the circumstances of any reintroduction of the grounded aircraft to service. This grounding has affected the status of the scheduled delivery of the five Boeing 737 MAX 9 aircraft that were scheduled for delivery in the second quarter of 2019 and is also expected to affect the timing of future Boeing 737 MAX aircraft deliveries. The extent of the delay of future deliveries is expected to be impacted by the length of time the FAA Order remains in place, Boeing's production rate and the pace at which Boeing can deliver aircraft following the lifting of the FAA Order, among other factors.
Our significant investments in other airlines, including in other parts of the world, and the commercial relationships that we have with those carriers may not produce the returns or results we expect.
An important part of our strategy to expand our global network includes making significant investments in airlines in other parts of the world and expanding our commercial relationships with these carriers. For example, in November 2018, United entered into a revenue-sharing joint business agreement with Aerovías del Continente Americano S.A. ("Avianca"), Copa Airlines and several of their respective affiliates, subject to regulatory approval. Concurrently with this transaction, United, as lender, entered into a Term Loan Agreement (the "BRW Loan Agreement") with, among others, BRW Aviation Holding LLC and BRW Aviation LLC ("BRW"), as guarantor and borrower, respectively, affiliates of Synergy Aerospace Corporation, the majority shareholder of Avianca Holdings S.A. ("AVH"). Pursuant to the BRW Loan Agreement, United provided a $456 million term loan to BRW, secured by a pledge of BRW's equity, as well as BRW's 516 million shares of common stock of AVH (having an implied value equivalent to 64.5 million American Depositary Receipts, the class of AVH securities that trades on the New York Stock Exchange). BRW is currently in default under the BRW Loan Agreement. Additionally, on May 13, 2019, S&P Global Ratings downgraded its AVH issuer level credit ratings from B to CCC+, together with accompanying downgrades for AVH's frequent flyer subsidiary, LifeMiles Ltd. ("LifeMiles"), and for certain outstanding debt of both AVH and LifeMiles. Following these downgrades, and in order to protect the value of its collateral, on May 24, 2019, United began to exercise remedies available to it under the terms of the BRW Loan Agreement and related documents. In connection with the delivery by United of a notice of default to BRW, Kingsland Holdings Limited, AVH's largest minority shareholder, was granted, in accordance with the agreements related to the BRW Loan Agreement, independent authority to manage BRW, which remains the majority shareholder of AVH.
We also have an equity investment in Azul Linhas Aéreas Brasileiras S.A. ("Azul"). See Note 9 to the financial statements included in Part II, Item 8 of the Company's Annual Report on Form 10-K for the year ended December 31, 2018 and Note 7 and Note 8 to the financial statements included in Part I, Item 1 of this report for additional information regarding our investments in Avianca and Azul.
We also have investments in several domestic regional airlines. In January 2019, we completed the acquisition of a 49.9% interest in ManaAir LLC, which, as of immediately following the closing of that investment, owns 100% of the equity interests in ExpressJet Airlines, Inc., a domestic regional airline. We also have minority equity interests in Champlain Enterprises, LLC d/b/a CommutAir and Republic Airways Holdings, Inc. See Note 9 to the financial statements included in Part II, Item 8 of the Company's Annual Report on Form 10-K for the year ended December 31, 2018 for additional information regarding our investments in regional airlines.
38

Table of Contents |  |

We expect to continue exploring similar non-controlling investments in, and entering into JBAs, commercial agreements, loan transactions and strategic alliances with, other carriers as part of our regional and global business strategy. These transactions and relationships involve significant challenges and risks. We are dependent on these other carriers for significant aspects of our network in the regions in which they operate. While we work closely with these carriers, each is a separately certificated commercial air carrier and we do not have control over their operations, strategy, management or business methods. These airlines also are subject to a number of the same risks as our business, which are described in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 and Part II, Item 1A, Risk Factors, of this report, including competitive pressures on pricing, demand and capacity; changes in aircraft fuel pricing; and the impact of global and local political and economic conditions on operations and customer travel patterns, among others.
As a result of these and other factors, we may not realize a satisfactory return on our investment, and we may not receive repayment of any invested or loaned funds. Further, these investments may not generate the revenue or operational synergies we expect, and they may distract management focus from our operations or other strategic options. Finally, our reliance on these other carriers in the regions in which they operate may negatively impact our regional and global operations and results if those carriers are impacted by general business risks or perform below our expectations or needs. Any one or more of these events could have a material adverse effect on our operating results or financial condition.
We may also be subject to consequences from any improper behavior of JBA partners, including for failure to comply with anti-corruption laws such as the U.S. Foreign Corrupt Practices Act. Furthermore, our relationships with these carriers may be subject to the laws and regulations of non-U.S. jurisdictions in which these carriers are located or conduct business. Any political or regulatory change in these jurisdictions that negatively impact or prohibit our arrangements with these carriers could have an adverse effect on our operating results or financial condition. To the extent that the operations of any of these carriers are disrupted over an extended period of time or their actions subject us to the consequences of failure to comply with laws and regulations, our operating results may be adversely affected.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
(a) None
(b) None
(c) The following table presents repurchases of UAL common stock made in the second quarter of fiscal year 2019:

Period |  | Total number of shares purchased (a)(b) |  | Average price paid per share (b)(c) |  | Total number of shares purchased as part of publicly announced plans or programs (a) |  | Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions) (a)
April 2019 |  | 1,861,200 |  |  | $ | 85.91 |  |  | 1,861,200 |  |  | $ | 1,063 |
May 2019 |  | 2,471,287 |  |  | 82.49 |  |  | 2,471,287 |  |  | 859 |
June 2019 |  | 2,037,089 |  |  | 84.31 |  |  | 2,037,089 |  |  | 687 |
Total |  | 6,369,576 |  |  |  |  | 6,369,576 |  |  |

(a) In December 2017, UAL's Board of Directors authorized a $3.0 billion share repurchase program to acquire UAL's common stock. As of June 30, 2019, the Company had approximately $0.7 billion remaining to purchase shares under its December 2017 repurchase authorization. On July 15, 2019, UAL’s Board of Directors authorized a new $3.0 billion share repurchase program to acquire UAL’s common stock. UAL may repurchase shares through the open market, privately negotiated transactions, block trades or accelerated share repurchase transactions from time to time in accordance with applicable securities laws.
(b) The table does not include shares withheld from employees to satisfy certain tax obligations due upon the vesting of restricted stock awards and restricted stock units. The United Continental Holdings, Inc. 2017 Incentive Compensation Plan and the United Continental Holdings, Inc. 2008 Incentive Compensation Plan each provide for the withholding of shares to satisfy tax obligations due upon the vesting of restricted stock. However, these plans do not specify a maximum number of shares that may be withheld for this purpose. A total of 2,174 shares were withheld under these plans in the second quarter of 2019 at an average price per share of $83.97. These shares of common stock withheld to satisfy tax withholding obligations may be deemed to be "issuer purchases" of shares that are required to be disclosed pursuant to this Item.
(c) Average price paid per share is calculated on a settlement basis and excludes commission.
39

Table of Contents |  |

ITEM 6. EXHIBITS.
EXHIBIT INDEX

Exhibit No. | Registrant | Exhibit
3.1 | UAL | Amended and Restated Certificate of Incorporation of United Airlines Holdings, Inc. (filed as Exhibit 3.1 to UAL’s Form 8-K filed June 27, 2019, Commission file number 1-6033, and incorporated herein by reference)
3.2 | UAL | Amended and Restated Bylaws of United Airlines Holdings, Inc. (filed as Exhibit 3.2 to UAL’s Form 8-K filed June 27, 2019, Commission file number 1-6033, and incorporated herein by reference)
4.1 | UAL United | Fifth Supplemental Indenture, dated as of May 9, 2019, among United Continental Holdings, Inc., United Airlines, Inc. and The Bank of New York Mellon Trust Company, N.A., as Trustee (filed as Exhibit 4.2 to UAL’s Form 8-K filed May 10, 2019, Commission file 1-6033 and incorporated herein by reference)
4.2 | UAL United | Form of 4.875% Senior Notes due 2025 (filed as Exhibit A to Exhibit 4.2 to UAL’s Form 8-K filed May 10, 2019, Commission file 1-6033 and incorporated herein by reference)
4.3 | UAL United | Form of Notation of Note Guarantee (filed as Exhibit B to Exhibit 4.2 to UAL’s Form 8-K filed May 10, 2019, Commission file 1-6033 and incorporated herein by reference)
31.1 | UAL | Certification of the Principal Executive Officer of United Airlines Holdings, Inc. Pursuant to 15U.S.C. 78m(a) or 78o(d) (Section 302 of the Sarbanes-Oxley Act of 2002)
31.2 | UAL | Certification of the Principal Financial Officer of United Airlines Holdings, Inc. Pursuant to 15U.S.C. 78m(a) or 78o(d) (Section 302 of the Sarbanes-Oxley Act of 2002)
31.3 | United | Certification of the Principal Executive Officer of United Airlines, Inc. Pursuant to 15 U.S.C. 78m(a) or 78o(d) (Section 302 of the Sarbanes-Oxley Act of 2002)
31.4 | United | Certification of the Principal Financial Officer of United Airlines, Inc. Pursuant to 15 U.S.C. 78m(a) or 78o(d) (Section 302 of the Sarbanes-Oxley Act of 2002)
32.1 | UAL | Certification of the Chief Executive Officer and Chief Financial Officer of United Airlines Holdings, Inc. Pursuant to 18 U.S.C. 1350 (Section 906 of the Sarbanes-Oxley Act of 2002)
32.2 | United | Certification of the Chief Executive Officer and Chief Financial Officer of United Airlines, Inc. Pursuant to 18 U.S.C. 1350 (Section 906 of the Sarbanes-Oxley Act of 2002)
101.1 | UAL United | XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
101.2 | UAL United | XBRL Taxonomy Extension Schema Document
101.3 | UAL United | XBRL Taxonomy Extension Calculation Linkbase Document
101.4 | UAL United | XBRL Taxonomy Extension Definition Linkbase Document
101.5 | UAL United | XBRL Taxonomy Extension Labels Linkbase Document
101.6 | UAL United | XBRL Taxonomy Extension Presentation Linkbase Document

40

Table of Contents |  |

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

|  |  | United Airlines Holdings, Inc.
|  |  | (Registrant)
Date: | July 17, 2019 |  | By: | /s/ Gerald Laderman
|  |  |  | Gerald Laderman Executive Vice President and Chief Financial Officer (Principal Financial Officer)
Date: | July 17, 2019 |  | By: | /s/ Chris Kenny
|  |  |  | Chris Kenny Vice President and Controller (Principal Accounting Officer)
|  |  | United Airlines, Inc.
|  |  | (Registrant)
Date: | July 17, 2019 |  | By: | /s/ Gerald Laderman
|  |  |  | Gerald Laderman Executive Vice President and Chief Financial Officer (Principal Financial Officer)
Date: | July 17, 2019 |  | By: | /s/ Chris Kenny
|  |  |  | Chris Kenny Vice President and Controller (Principal Accounting Officer)

41