This week the company reported its 4th Quarter and Full Year Financial information and announced employee eligibility for profit sharing payouts for 2019.
| Q1 | Q2 | Q3 | Q4 |
Pre-tax Earnings 2019 | $367 million | $1.4 billion | $1.3 billion | $844 million |
Net Income 2019 | $292 million | $1.1 billion | $1.0 billion | $641 million |
Pre-tax Earnings 2018 | $184 million | $875 million | $1.1 billion | $556 million |
Net Income 2018 | $147 million | $684 million | $836 million | $462 million |
For the full year, United reported net income of $3.0 billion, diluted EPS of $11.58, up 51% versus full year 2018, pre-tax earnings of $3.9 billion and pre-tax margin of 9.0%, expanding pre-tax margin 2.6 points versus full year 2018.
Finally, United also reported full-year adjusted net income of $3.1 billion, adjusted diluted EPS of $12.05, up 32% versus full year 2018, adjusted pre-tax earnings of $4.1 billion, adjusted pre-tax margin of 9.4%, expanding adjusted pre-tax margin 1.7 points versus the full year 2018.
* Excludes special charges, unrealized gains and losses on investments and imputed interest on certain finance leases. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in the tables accompanying our earnings press release.
Our Contractual Profit Sharing Program is set forth in Section 4.N. of our JCBA and provides that all Flight Attendants who have completed one full year of service as of December 31st of the year for which pre-tax earnings are being measured are eligible to participate in a pre-tax profit sharing program.
As a result of United’s 2019 financial performance, employees earned $491 million in Profit Sharing for the full year (compared to $334 million last year). Employees in participating workgroups share a portion of United's profits when the Company earns more than $10 million in adjusted pre-tax earnings for the year. The percentage of profits set aside for Profit Sharing varies by workgroup, and for Flight Attendants, is based on our Contract.
Work Group | 2019 | 2018 |
Flight Qualified Management International Employees Maintenance Instructors Management & Administrative Reservations Representatives Simulator Technicians Storekeepers Technicians Dispatchers Fleet Service Employees | 3.8362% | 2.7785% |
Pilots | 7.6724% | 5.5571% |
Flight Attendants | 6.9311% | 4.6115% |
For 2019, the Flight Attendant’s Profit-Sharing percentage for eligible earnings is 6.9311% based on $4,598 million adjusted pre-tax profit;which is $1,013 million greater than 2018’s adjusted pre-tax profit of $3,585. As a result, the higher tier profit percentage (20%) is applicable in 2019; pursuant to the terms of our Contract.
Our personalized profit sharing statements can be seen by logging in to Flying Together, Employee Services, Compensation & Incentives, click on Your 2019 Statement under the Profit Sharing header. To view the details of the calculation, click directly on the “6,9311%” in the personalized profit-sharing statement.
Keep in mind, you may elect to contribute a portion of your Profit Sharing payment into any combination of your company-sponsored retirement plan accounts and/or cash:
1. Pre-tax to your 401(k) plan or U.K. Stakeholder Account
2. Roth 401(k)
3. Post tax 401(k)
The sum of the percentage allocations to any combination of the company sponsored retirement plan accounts may be less than or equal to 100% however, it cannot be greater. Any unallocated amount will be paid in cash. We have until 11:59PM CT on February 9, 2020 to make these elections.
Distribution of Profit Sharing checks will begin February 26, 2020 and will be disbursed by direct deposit or physical check. Flight Attendants at international domiciles will receive their profit-sharing payments on their February 28, 2020 on cycle pay check.
For additional information please review the profit sharing FAQ.