UAL Corporation Reports Improved First Quarter Results

Much creative writing time was also devoted to the new Mileage Plus accounting system: "The negative effect of the change to a deferred revenue method for the company's frequent flyer accounting depressed first quarter revenue by $107 million. ... United now applies the same deferred revenue accounting, previously used for miles sold to third parties, to also account for miles earned for flight activity." The new method "...also leads to greater revenue volatility, increases revenue seasonality, and lowers the amount of passengers revenue recognized in the current period."

In short, United reported $107 million of it's loss because passengers earned miles for flying. I estimate you'll be seeing statements like this one until United can figure out how to utilize the new accounting method for a profit:

"If the company had continued to account for Mileage Plus under the old incremental cost method, first quarter passenger revenue is estimated to have been $107 million higher."

For more of the non-accountant view on this, check out: "How does Fresh Start Accounting effect Mileage Plus".

For the complete filing, go to united.com.

Good Friday -- Good Start

Inspired by a recent article in WIRED, I've taken it upon myself to push United Airlines and myself into the 21st century. While the article, and much of the issue, is dedicated to transparency, I haven't received any official approval from United to begin this blog, nor can I guarantee that they won't shut me down. With that said, I'll continue.

I post anonymously for the reason expressed above. If, or when, anyone ventures to this blog, that may change. For now, I will tell you that I am a United employee with slightly over 5 years of experience with the company. I work in the Marketing division and have little-to-no understanding of how we get planes off the ground each day. In fact, based on United's level, or lack of, technical advancement on the internet, the fact that our planes depart at all is mind boggling to me. Obviously there are a great deal of things about the company that I don't know, but I hope to expand my knowledge as I begin this blog. I look forward to feedback from other employees, frequent flyers and anyone with any interest in how our company works.