United Airlines Holdings, Inc. Common Stock

Market position and competition · Pricing pressure and margin compression

The Company's U.S. operations are subject to competition from traditional network carriers, national point-to-point carriers and discount carriers, including low-cost carriers and ultra-low-cost carriers, that may have lower costs and provide service at lower fares to destinations also served by the Company. The significant presence of low-cost carriers and ultra-low-cost carriers, which engage in substantial price discounting, may diminish our ability to achieve sustained profitability on domestic and international routes and has also caused us to reduce fares for certain routes, resulting in lower yields on many domestic markets.

Market position and competition · Market cyclicality and demand volatility

The 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. Due to greater demand for air travel during the spring and summer months, revenues in the airline industry in the second and third quarters of the year are generally stronger than revenues in the first and fourth quarters of the year.

Strategic execution · Joint venture and partnership risks

An important part of the Company's strategy to expand its global network and operate an environmentally sustainable, responsible and innovative airline has included making significant investments in other airlines and other aviation industry participants. These investments are inherently risky and may not be successful in meeting the Company's expectations.

Corporate governance · Internal controls and risk management

Regulators, customers, investors, employees and other stakeholders are focusing more on Corporate Citizenship impacts of operations, disequence processes and related disclosures. This scrutiny and the associated legislation, regulations, standards and accords also involve internal controls and processes that continue to evolve and are not uniform.

Legal and litigation · Employment and labor law compliance

There is rising litigation in the airline industry over the application of state and local employment and labor laws that purport to govern benefits and duties of certain employee groups but are increasingly in conflict with our negotiated collective bargaining agreements. Adverse decisions in these cases could negatively impact our operational flexibility and ability to apply our collective bargaining agreements as negotiated.

Tax and financial reporting · Financial reporting and accounting standards

New or revised accounting standards, rules and interpretations could result in changes to the recognition of income and expense that may materially and adversely affect our financial results.

Cybersecurity and data protection · Data privacy and protection regulations

The Company must manage increasing legislative, regulatory and consumer focus on privacy issues, data security and cybersecurity risk management in a variety of jurisdictions domestically and across the globe. For example, the EU's General Data Protection Regulation imposes significant privacy and data security requirements, as well as potential for substantial penalties for non-compliance that have resulted in substantial adverse financial consequences to non-compliant companies.

Digital transformation and innovation · Technology implementation and upgrades

The Company depends on technology and automated systems, including artificial intelligence, to operate its business. These systems could suffer substantial or repeated disruptions due to various events, some of which are beyond the Company's control. Substantial or repeated systems failures or disruptions may adversely affect the Company's business, operating results, financial condition and business strategy.

Cybersecurity and data protection · Third party data security and vendors

Our network, systems and storage applications, and those systems and applications maintained by our third-party commercial partners (such as aircraft and engine suppliers, cloud computing companies, credit card companies, regional airline carriers and international airline partners) have been and likely will continue to be subject to attempts to gain unauthorized access, breaches, malfeasance or other system disruptions.

Project and contract management · Service level and performance guarantees

Although generally the Company enters into agreements that define expected service performance and compliance requirements, there can be no assurance that our third-party service providers will adhere to these requirements. Accordingly, any of these third-party service providers may materially fail to meet their service performance commitments to the Company or may suffer disruptions to their systems, labor groups or supply chains that could impact their services.

Project and contract management · Large contract concentration

The Company currently sources substantially all of its aircraft and many related aircraft parts from The Boeing Company or Airbus S.A.S. In addition, our aircraft suppliers are dependent on other suppliers for certain other aircraft parts. The Company is also dependent on a limited number of suppliers for engines and certain other aircraft parts.

Human capital and workforce · Key personnel dependence and succession

If we are unable to effectively provide for the smooth transition of senior management or other key employees, despite our robust management succession planning process, our business, ability to execute our strategic operating plan and company culture may be adversely affected.

Human capital and workforce · Talent acquisition and retention

Much of our future success is largely dependent on our continued ability to recruit, hire, develop and retain highly-qualified personnel with industry experience and knowledge, including our senior management team and other key employees. Competition for the best-qualified talent in the aviation industry is intense. Labor market constraints may arise in the future, including as a result of an intensely competitive labor market. If these or other constraints lead to a sustained shortage of skilled labor, the cost of hiring and retaining quality talent could materially increase and our operations and service levels may be impacted.

Core operations · Operational disruption and business continuity

Extended interruptions or disruptions in service at major airports where we operate could have a material adverse impact on our operations, including our ability to operate our existing flight schedule and to expand or change our route network in the future. An extended interruption or disruption at one of our hubs or other airports where we have a significant presence resulting from ATC delays and disruptions, weather conditions, natural disasters, growth constraints, relationships with or the performance of third-party service providers, cybersecurity incidents and other failures of computer systems could result in the cancellation or delay of a significant portion of our flights.

Supply chain and procurement · Supplier operation and dependance

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. The Company currently sources substantially all of its aircraft and many related aircraft parts from The Boeing Company or Airbus S.A.S. If the Company is unable to acquire additional aircraft, engines or aircraft parts at acceptable prices, or if the suppliers fail to make timely deliveries, the Company's operations could be materially and adversely affected.

Credit and liquidity · Debt service and covenant compliance

Agreements governing our debt include financial and other covenants. Certain of these covenants require UAL or United, as applicable, to maintain minimum liquidity and/or minimum collateral coverage ratios. If we fail to comply with these covenants and are unable to remedy or obtain a waiver or amendment, an event of default would result. If an event of default were to occur, the lenders could declare outstanding amounts immediately due and payable.

Credit and liquidity · Liquidity and cash flow constraints

The Company has a significant amount of financial leverage from fixed obligations. If the Company's liquidity is materially diminished, the Company's substantial level of indebtedness, the Company's non-investment grade credit ratings and the lack of availability of Company assets as collateral for loans or other indebtedness may make it difficult for the Company to raise additional capital if needed to meet its liquidity needs on acceptable terms, or at all.

Market and investment · Interest rate and yield curve risk

We are exposed to increased interest rate risk given that a portion of our indebtedness obligations are at variable interest rates. Our flexibility in planning for, or reacting to, changes in the markets in which we compete may be limited and we may be at a competitive disadvantage relative to our competitors with less indebtedness.

Market and investment · Asset valuation and impairment

The Company may be required to recognize losses in the future due to, among other factors, extreme fuel price volatility, tight credit markets, government regulatory changes, decline in the fair values of certain tangible or intangible assets, such as our aircraft, route authorities, airport slots and frequent flyer database, unfavorable trends in historical or forecasted results of operations and cash flows and an uncertain economic environment.

Social and demographic · Stakeholder activism and pressure

Public pressure, which can be varied and conflicting, from investors or policy groups to change our Corporate Citizenship goals, policies and strategies or our position on political, public policy or other sensitive issues could damage our reputation or brand image.