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: January 13, 2000
---------------------------------
(Date of earliest event reported)
UAL CORPORATION
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 1-6033 36-2675207
- ---------------------------- ------------ -------------------
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1200 Algonquin Road, Elk Grove Township, Illinois 60007
- --------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (847) 700-4000
--------------
Not Applicable
--------------
(Former name or former address, if changed since last report)
ITEM 5. OTHER EVENTS.
------------
UAL Corporation (the "Company") is filing herewith a press
release issued today by the Company as Exhibit 99.1, which is
incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
---------------------------------
Exhibit No. Description
- ---------- -----------
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
----------------------
Name: Francesca M. Maher
Title: Senior Vice President,
General Counsel & Secretary
Dated: January 13, 2000
Exhibit 99.1
------------
UNITED AIRLINES HOLDS AIRLINE ANALYST BRIEFING;
PROVIDES FINANCIAL GUIDANCE FOR 2000
* Higher fuel and labor expenses expected to drive above-
trend unit cost growth.
* System unit revenues expected to benefit from stronger
global economic growth in 2000 and the full roll-out of
Economy Plus.
* Fully distributed earnings per share expected to range
between $7.00 and $9.00 in 2000.
NEW YORK, Jan. 13, 2000 - In a presentation this
morning to the Society of Airline Analysts in New York,
United Airlines' Chairman and Chief Executive Officer James
E. Goodwin will preview the company's outlook for 2000. The
presentation will include details on:
Costs in 2000
- -------------
The company expects to face two major cost challenges during
the year:
* Material wage increases consistent with its commitment
to provide competitive compensation to its employees after
the ESOP allocation period comes to a close.
* Higher fuel prices, expected to average 25 percent
above 1999 levels.
While the company will continue its successful and
disciplined cost-control program, United will tell analysts
it expects the program's benefits will probably not offset
the impact of both of these factors. In addition, the
introduction of Economy Plus, while expected to produce
revenue enhancement, will reduce available capacity in 2000.
"If we were only dealing with the challenge of higher
labor costs in 2000, unit cost growth would actually be
consistent with recent trends. However, we also face the
industry-wide issue of higher fuel costs for the year,"
Goodwin says. "And while Economy Plus is also expected to
affect our unit cost performance, this product should be a
clear win for United, enabling us to attract an even higher
share of the premium, high-yield market."
Revenues in 2000
- ----------------
On the revenue side, the company's outlook is highlighted by
the following factors:
* Continued economic improvement in the Pacific.
* United has the most geographically diverse route
network of all the major U.S. airlines, and expects to
benefit from stronger global economic growth in 2000. The
company anticipates unit revenue improvement in three of its
four global regions: Latin America, Pacific and North
America.
EPS Estimate for 2000
- ---------------------
United will tell analysts that it anticipates a 2 to 4
percent increase in total unit revenue that will likely be
outweighed by the expected 6 percent growth in unit costs.
Therefore, United expects 2000 fully distributed earnings
per share to range between $7.00 and $9.00.
Company E-Commerce Developments
- -------------------------------
At the meeting with analysts, United will also discuss its
plans to provide greater visibility to two of its fastest
growing business segments, e-commerce and Mileage Plus(R). In
a separate announcement earlier today, United disclosed its
intention to create an e-commerce subsidiary, enabling the
company to better capitalize on the rapid convergence of the
travel industry and Internet commerce.
Safe Harbor Statement: Some of the information included in
this news release is forward-looking and involves risks and
uncertainties that could result in actual results differing
materially from expected results. It is not reasonably
possible to itemize all of the many factors and specific
events that could affect the outlook of an airline operating
in the global economy. Some factors that could
significantly impact expected capacity, traffic, revenues,
unit revenues, expenses, fully distributed unit costs, fuel
prices and fully distributed earnings per share include: the
success of the company's cost-control efforts, Year 2000
readiness, wage rates of employee peer groups at the
company's competitors, compensation levels in the industry,
the outcome of negotiations on new contracts with the union
groups, industry capacity decisions, the airline pricing
environment, the economic environment of the airline
industry, fuel prices, actions of the U.S., foreign and
local governments, the price of UAL common stock, the
Pacific economic environment and travel patterns, foreign
currency exchange rate fluctuations and the general economic
environment.
