SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: June 4, 1999
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(Date of earliest event reported)
UAL CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 1-6033 36-2675207
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1200 Algonquin Road, Elk Grove Township, Illinois 60007
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (847) 700-4000
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Not Applicable
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(Former name or former address, if changed since last report)
ITEM 5. OTHER EVENTS.
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UAL Corporation (the "Company") is filing herewith a press
release issued by the Company as Exhibit 99.1 which is
incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
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Exhibit No. Description
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99.1 Press Release
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
UAL CORPORATION
By: /s/ Francesca M. Maher
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Name: Francesca M. Maher
Title: Senior Vice President,
General Counsel & Secretary
Dated: June 4, 1999
Exhibit 99.1
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Corporate Communications Contacts:
Main Line (847) 700-5538
Night/Weekend (847) 700-4088
Investor Relations Contact:
John Springer (847) 700-7501
UNITED AIRLINES MAY TRAFFIC DECLINES 1.3%
CHICAGO, June 4, 1999 -- United Airlines' total scheduled
revenue passenger miles (RPMs) declined 1.3 percent in May versus
the comparable month in 1998.
"Domestic performance in May was weaker than anticipated,"
said Jim Goodwin, president and chief operating officer. "Our
restrictive competitive response to broad-based sale fares from
low-cost competitors resulted in lower than expected domestic
traffic. Additionally, we encountered implementation problems
with the switchover to our new yield management system (ORION cut-
over was on April 6). In light of these developments, revenue
performance for the second quarter and full year 1999 will be
below our original expectations."
As a result, United now anticipates second quarter earnings
to range between $2.40 to $2.80 per fully distributed share. The
company forecasts 1999 fully distributed earnings per share to
range between $9.00 and $11.00, while its internal goal remains
to earn $11.00 per fully distributed share. The forecasted
ranges of fully distributed earnings per share exclude any impact
of UAL's sale of up to 17.5 million shares of Galileo.
Safe Harbor Statement under the Private Securities
Litigation Reform Act of 1995: Information regarding revenue and
fully distributed earnings per share is forward-looking, and
actual results could differ materially from expected results.
Factors that could significantly affect revenue and fully
distributed earnings per share include: industry capacity
decisions, the airline pricing environment, fuel prices, the
success of the Company's cost control efforts, actions of the
U.S., foreign and local governments, willingness of customers to
travel, the Asian economic environment and travel patterns,
foreign currency exchange rate fluctuations, the economic
environment of the airline industry and the general economic
environment.
n.b.: While UAL Corporation reports its earnings under GAAP -
- - Generally Accepted Accounting Principles -- a more complete
understanding of UAL Corporation's performance may be gained by
viewing the results on a pro forma, fully distributed basis.
This presentation considers all ESOP shares that will be issued
to employees over the course of the ESOP period to be immediately
outstanding, thus "fully distributed." Consistent with this
presentation, the "ESOP compensation expense" -- which reflects
the commitment of stock to employees -- is excluded from fully
distributed expenses and ESOP convertible preferred stock
dividends are not deducted from earnings attributable to common
stockholders. No adjustments are made to fully distributed
earnings to reflect future salary increases.
As the largest air carrier in the world and the largest
majority employee-owned company, United Airlines offers nearly
2,370 flights a day to 138 airports in 27 countries and one U.S.
territory. United is a founding member of the Star Alliance, a
global network of airlines including Air Canada, Air New Zealand,
Ansett Australia, Lufthansa, SAS, Thai Airways International and
Varig. All Nippon Airways of Japan will join the Star Alliance
in October of 1999. United Airlines' Internet address is
http://www.ual.com.
- more -
1999 1998
May May PERCENT
(000) (000) CHANGE
SCHEDULED SERVICE ONLY:
REVENUE PLANE MILES 78,063 73,881 5.7
NUMBER OF DEPARTURES 69,145 66,255 4.4
REVENUE PASSENGERS 7,099 7,227 -1.8
REVENUE PASSENGER MILES:
NORTH AMERICA 6,480,397 6,517,773 -.6
PACIFIC 1,710,175 2,014,534 -15.1
ATLANTIC 1,554,514 1,353,725 14.8
LATIN AMERICA 440,347 434,498 1.3
TOTAL 10,185,433 10,320,530 -1.3
AVAILABLE SEAT MILES:
NORTH AMERICA 9,703,273 9,030,628 7.4
PACIFIC 2,656,414 2,885,375 -7.9
ATLANTIC 2,007,144 1,638,012 22.5
LATIN AMERICA 750,377 784,549 -4.4
TOTAL 15,117,208 14,338,564 5.4
PASSENGER LOAD FACTOR (PERCENT):
NORTH AMERICA 66.8 72.2 -5.4pts
PACIFIC 64.4 69.8 -5.4pts
ATLANTIC 77.4 82.6 -5.2pts
LATIN AMERICA 58.7 55.4 3.3pts
TOTAL 67.4 72.0 -4.6pts
CARGO TON MILES:
FREIGHT 211,245 190,847 10.7
MAIL 49,069 48,109 2.0
TOTAL 260,314 238,956 8.9
TOTAL SYSTEM INCLUDING CHARTER:
REVENUE PASSENGER MILES 10,190,513 10,324,028 -1.3
AVAILABLE SEAT MILES 15,124,001 14,344,731 5.4
REVENUE PSGR. KM. 16,399,593 16,614,458 -1.3
AVAILABLE SEAT KM. 24,339,055 23,084,976 5.4
TOTAL REVENUE TON MILES 1,279,365 1,271,365 .6
TOTAL AVAIL. TON MILES 2,311,054 2,171,032 6.4
TOTAL REV. TON KM. 1,856,021 1,844,177 .6
TOTAL AVAIL. TON KM. 3,374,139 3,169,707 6.4
(more)
YEAR TO YEAR TO PERCENT
DATE DATE CHANGE
1999 1998
SCHEDULED SERVICES ONLY (000):
REVENUE PLANE MILES 371,485 357,863 3.8
NUMBER OF DEPARTURES 330,359 324,245 1.9
REVENUE PASSENGERS 34,160 33,503 2.0
REVENUE PASSENGER MILES:
NORTH AMERICA 31,356,797 30,119,918 4.1
PACIFIC 9,742,873 -6.8
9,084,877
ATLANTIC 5,495,398 17.4
6,451,604
LATIN AMERICA 2,349,062 2,389,243 -1.7
TOTAL 49,242,340 47,747,432 3.1
AVAILABLE SEAT MILES:
NORTH AMERICA 45,958,502 43,644,859 5.3
PACIFIC 13,195,520 14,602,237 -9.6
ATLANTIC 8,793,183 7,437,512 18.2
LATIN AMERICA 3,826,615 3,937,881 -2.8
TOTAL 71,773,820 69,622,489 3.1
PASSENGER LOAD FACTOR (PERCENT):
NORTH AMERICA 68.2 69.0 -.8pts
PACIFIC 68.8 66.7 2.1pts
ATLANTIC 73.4 73.9 -.5pts
LATIN AMERICA 61.4 60.7 .7pts
TOTAL 68.6 68.6 .0pts
CARGO TON MILES
FREIGHT 955,780 935,142 2.2
MAIL 253,037 251,809 .5
TOTAL 1,208,817 1,186,951 1.8
TOTAL SYSTEM INCLUDING CHARTER
REVENUE PASSENGER MILES 49,276,625 47,772,243 3.1
AVAILABLE SEAT MILES 71,828,902 69,664,203 3.1
REVENUE PSGR. KM. 79,300,873 76,879,871 3.1
AVAILABLE SEAT KM. 115,594,252 112,110,602 3.1
TOTAL REVENUE TON MILES 6,136,485 5,964,190 2.9
TOTAL AVAIL. TON MILES 10,955,952 10,495,100 4.4
TOTAL REV. TON KM. 8,901,951 8,652,136 2.9
TOTAL AVAIL. TON KM. 15,995,690 15,322,846 4.4
-UA-
