What the changes say
- United added operational risks regarding third-party service providers, airport congestion affecting United Next, and MileagePlus loyalty program competition.
What changed since the prior 10-K
New
- NewBusiness, Operational and Industry Risks
incur substantial losses from an accident, catastrophe or incident, which may result in a material adverse effect on the Company's business, operating results or financial condition
Accidents or catastrophes involving United, regional carriers, or codeshare partners could cause operational restrictions and voluntary or mandatory aircraft groundings.
- NewBusiness, Operational and Industry Risks
Our MileagePlus loyalty program plays a significant role in our business, and unfavorable developments affecting the program could adversely affect our business and results of operations
Competition from other airlines and financial services companies could hurt United's MileagePlus loyalty program customer acquisition and retention.
- NewBusiness, Operational and Industry Risks
provision of services to the Company, could have a material adverse effect on the Company's business, operating results and financial condition
Failures by third-party service providers handling regional operations, maintenance, fueling, or IT could disrupt United's business and operations.
- NewBusiness, Operational and Industry Risks
may have a negative impact on our business, operating results, financial condition and liquidity and may limit our ability to expand or change our route network and execute our United Next strategy
Airport congestion, infrastructure constraints, and capital improvement costs imposed by authorities could limit United Next route expansion and increase expenses.
- NewBusiness, Operational and Industry Risks
services has in the past adversely affected—and could in the future adversely affect—our business and financial results, as well as has in the past required—and could in the future require—additional resources to rebuild our reputation that may not be successful
Corporate Citizenship and ESG reporting compliance could increase administrative expenses and distract management if goals are revised or scrutinized.
- NewMarket, Liquidity, Accounting and Financial Risks
comply with material provisions of its contractual obligations, including covenants under its financing and credit card processing agreements
High indebtedness requires dedicating substantial cash flow to debt service, reducing operational flexibility and increasing interest rate and refinancing risks.
Dropped
- DroppedBusiness, Operational and Industry Risks
The Company is also dependent on a limited number of suppliers for engines and certain other aircraft parts and could, therefore, also be materially and adversely affected in the event of the unavailability or increased cost of these engines and other aircraft parts
- DroppedBusiness, Operational and Industry Risks
the future, and space, facility and infrastructure constraints at our hubs or other airports may prevent the Company from maintaining existing service and/or implementing new service in a commercially viable manner
- DroppedRegulatory, Tax, Litigation and Legal Compliance Risks
being required to do so by January 2028 if a regulatory framework to implement CORSIA within the United States is established. There is a risk that insufficient CORSIA-eligible carbon offsets will be available for purchase for CORSIA compliance
Reworded
- 92% rewrittenBusiness, Operational and Industry Risks
If we are not able to negotiate or renew agreements with third-party service providers, or if we renew existing agreements on less favorable terms, our operations and financial results may be adversely affected
Heading and text expanded to focus on third-party service provider agreement renewals and airport infrastructure constraints.
- 78% rewrittenBusiness, Operational and Industry Risks
Disruptions to our regional network and United Express flights provided by third-party regional carriers could adversely affect our business, operating results and financial condition
Added an explicit cross-reference to Information Technology, Cybersecurity and Data Privacy Risks for United Express regional operations.
- 72% rewrittenRegulatory, Tax, Litigation and Legal Compliance Risks
We are subject to many forms of environmental regulation and liability as well as risks associated with climate change and may incur substantial costs as a result
Expanded environmental regulations to include aircraft and ground-based carbon emissions, noise, plastic use, and PFAS remediation.
- 69% rewrittenBusiness, Operational and Industry Risks
Substantially all of the Company's aircraft, engines and certain parts are sourced from a limited number of suppliers; therefore, the Company would be materially and adversely affected if it were unable to obtain timely deliveries, additional equipment or support from any of these suppliers
Added specific dependency on a limited number of suppliers for engines and certain other aircraft parts alongside Boeing and Airbus.
- 65% rewrittenBusiness, Operational and Industry Risks
Managing our reputation and brand image is critical to our business success and if our reputation or brand image is damaged, it could adversely affect our business or financial results
Added risks regarding reassuring the traveling public of safety at major hub locations and erosion of brand image.
- 63% rewrittenHuman Capital Management Risks
If we are unable to recruit, hire, develop or retain skilled personnel, including our senior management team or other key employees, our business could be adversely affected
Refined language on skilled labor constraints emphasizing an intensely competitive labor market and potential service-level impacts.
Was: If we are unable to attract, train or retain skilled personnel, including our senior management team or other key employees, our business could be adversely affected
- 62% rewrittenMarket, Liquidity, Accounting and Financial Risks
The Company has a significant amount of financial leverage from fixed obligations and insufficient liquidity may have a material adverse effect on the Company's financial condition and business
Expanded fixed obligations to include unsecured loan facilities alongside secured facilities and leases.
- 57% rewrittenBusiness, Operational and Industry Risks
Unfavorable economic and political conditions, in the United States and globally, may have a material adverse effect on our business, operating results and financial condition
Minor phrasing adjustments regarding U.S. and global economic and political conditions impacting cyclical air travel demand.
- 56% rewrittenHuman Capital Management Risks
Union disputes, employee strikes or slowdowns and other labor-related disruptions as well as increased employee and retiree health, pension, labor and regulatory compliance costs could adversely affect the Company's business, operations and results of operations
Was: Union disputes, employee strikes or slowdowns and other labor-related disruptions as well as increased labor and regulatory compliance costs could adversely affect the Company's business, operations and results of operations
- 30% rewrittenMarket, Liquidity, Accounting and Financial Risks
Agreements governing our debt include financial and other covenants. Failure to comply with these covenants could result in events of default
- 25% rewrittenMarket, Liquidity, Accounting and Financial Risks
High and/or volatile fuel prices or significant disruptions in the supply of aircraft fuel could have a material adverse impact on the Company's strategic plans, operating results, financial condition and liquidity
- 20% rewrittenBusiness, Operational and Industry Risks
The global airline industry is highly competitive and susceptible to price discounting and changes in capacity, which could have a material adverse effect on our business, operating results and financial condition
All 30 risk factors
Headings as the filing states them, in filing order.
Strategic and Business Development Risks
- 01We may not be successful in executing elements of our strategic operating plan, which may have a material adverse impact on our business, financial results and market capitalization
Business, Operational and Industry Risks
- 02incur substantial losses from an accident, catastrophe or incident, which may result in a material adverse effect on the Company's business, operating results or financial conditionNew
- 03The global airline industry is highly competitive and susceptible to price discounting and changes in capacity, which could have a material adverse effect on our business, operating results and financial condition20% rewritten
- 04Our MileagePlus loyalty program plays a significant role in our business, and unfavorable developments affecting the program could adversely affect our business and results of operationsNew
- 05Substantially all of the Company's aircraft, engines and certain parts are sourced from a limited number of suppliers; therefore, the Company would be materially and adversely affected if it were unable to obtain timely deliveries, additional equipment or support from any of these suppliers69% rewritten
- 06Unfavorable economic and political conditions, in the United States and globally, may have a material adverse effect on our business, operating results and financial condition57% rewritten
- 07provision of services to the Company, could have a material adverse effect on the Company's business, operating results and financial conditionNew
- 08If we are not able to negotiate or renew agreements with third-party service providers, or if we renew existing agreements on less favorable terms, our operations and financial results may be adversely affected92% rewritten
- 09may have a negative impact on our business, operating results, financial condition and liquidity and may limit our ability to expand or change our route network and execute our United Next strategyNew
- 10Geopolitical conflict, terrorist attacks or security events may adversely affect our business, financial condition and results of operations
- 11Managing our reputation and brand image is critical to our business success and if our reputation or brand image is damaged, it could adversely affect our business or financial results65% rewritten
- 12services has in the past adversely affected—and could in the future adversely affect—our business and financial results, as well as has in the past required—and could in the future require—additional resources to rebuild our reputation that may not be successfulNew
- 13Disruptions to our regional network and United Express flights provided by third-party regional carriers could adversely affect our business, operating results and financial condition78% rewritten
- 14The Company relies heavily on technology and automated systems to operate its business and any significant failure or disruption of, or failure to effectively integrate and implement, these technologies or systems could materially harm its business or business strategy
- 15In our regular business operations, we collect, process, store and transmit to commercial partners sensitive data, including personal information of our customers and employees, such as payment processing information, and information of our business partners to provide our services and operate our business
- 16Increased use of social media platforms present risks and challenges
Human Capital Management Risks
- 17Union disputes, employee strikes or slowdowns and other labor-related disruptions as well as increased employee and retiree health, pension, labor and regulatory compliance costs could adversely affect the Company's business, operations and results of operations56% rewritten
- 18If we are unable to recruit, hire, develop or retain skilled personnel, including our senior management team or other key employees, our business could be adversely affected63% rewritten
Regulatory, Tax, Litigation and Legal Compliance Risks
- 19Moreover, any legislation that would result in a reshaping of the benefits that the Company is able to provide to its consumers through the co-branded credit cards issued by our partner could also materially negatively affect the Company's profitability and competitive position
- 20Current or future litigation and regulatory actions, or failure to comply with the terms of any settlement, order or agreement relating to these actions, could have a material adverse impact on the Company
- 21We are subject to many forms of environmental regulation and liability as well as risks associated with climate change and may incur substantial costs as a result72% rewritten
Market, Liquidity, Accounting and Financial Risks
- 22High and/or volatile fuel prices or significant disruptions in the supply of aircraft fuel could have a material adverse impact on the Company's strategic plans, operating results, financial condition and liquidity25% rewritten
- 23The Company has a significant amount of financial leverage from fixed obligations and insufficient liquidity may have a material adverse effect on the Company's financial condition and business62% rewritten
- 24comply with material provisions of its contractual obligations, including covenants under its financing and credit card processing agreementsNew
- 25Agreements governing our debt include financial and other covenants. Failure to comply with these covenants could result in events of default30% rewritten
- 26The Company may never realize the full value of its intangible assets or its long-lived assets causing it to record impairments that may negatively affect its financial condition and operating results
- 27The price of our common stock may fluctuate significantly
- 28The Company's operating results fluctuate due to seasonality and other factors associated with the airline industry, many of which are beyond the Company's control
- 29Increases in insurance costs or inadequate insurance coverage may materially and adversely impact our business, operating results and financial condition
- 30We cannot guarantee that our share repurchase program will enhance long-term stockholder value
Other United Airlines Holdings 10-Ks
- FY2024 10-K risk factors27 risks
United Airlines is heavily dependent on Boeing and Airbus for aircraft and engine supply chains, facing significant operational risks from supplier delays and inflationary pressures. The airline's massive labor force of approximately 107,300 employees is 82% unionized, exposing operations to potential union disputes and rising labor costs. Fuel expenses totaled approximately $11.8 billion, making the company exceptionally vulnerable to volatile aircraft fuel prices and supply disruptions.
Filed Feb 27, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.