Despite its challenges throughout the year, demand grew in the majority of U.K. destinations. For 2012, STR Global forecasts a slight RevPAR increase for London and Regional U.K.

“Overall 2011 has been a good year for U.K. hoteliers thanks to positive demand growth”, commented Elizabeth Randall, managing director at STR Global. “However, to reflect the uncertainty in the economy, our latest forecast for 2012 was downgraded, expecting RevPAR growth in London to reach 1.9 percent and 0.6 percent across Regional U.K.”

London saw RevPAR increase by 8.4 percent in 2011. Hotel performance showed that the events taking place in London and around the country, such as the royal wedding, the street protests and the riots in August had no significant impact on hotel performance. The royal wedding week in April 2011 saw actual RevPAR decline by 19.4 percent.

Across all segments in the capital, RevPAR growth benefited from increasing average daily rate (ADR) between 5.7 percent (Midscale and Economy) and 10.4 percent (Upscale and Upper Midscale).

RevPAR performance by hotel class year-end 2011

Source: STR Global

Regional U.K. RevPAR increased by 1.5 percent in 2011. In the regions, RevPAR growth resulted from improving occupancy, which increased modestly across all market classes, from 1.2 percent (Luxury and Upper Upscale) to 3.5 percent (Midscale and Economy). The Economy and Midscale class was the only segment in 2011 experiencing ADR decline (-2.1 percent).

Looking at regional cities, RevPAR growth was the result of a mixed growth between rate and occupancy. Amongst the best performers in 2011, Reading and Harrogate reported increases in occupancy, 7.6 percent and 6.0 percent, respectively, compared to the previous year. Oxford and Brighton, with ADR increases of 4.9 percent and 4.6 percent, respectively, were also the markets with the strongest ADR growth in the regions. Harrogate, with new supply growth in 2011 (+3.5 percent), gained from increased demand (+9.7 percent) supporting its RevPAR growth.

Across Regional U.K., the highest occupancy was achieved at Heathrow Airport (82.7 percent) followed by Edinburgh and York, both reaching 80.1 percent. In ADR terms, Bath, which reported the highest ADR in 2010, ended 2011 with the highest ADR in Regional U.K. at £87.33. Preston and Hull, on the other hand, saw double-digit RevPAR declines. In Preston, the decline was led by additional supply (+10.0 percent) whereas Hull’s RevPAR was led by a declining ADR of 9.0 percent to £44.84.

Regional UK cities sorted by percentage change, year end 2011

Source: STR Global

STR Global reports on 51 cities across the U.K., collecting performance data from more than 2,700 hotels.

HIGHLIGHTS

• LAN reported net income of US$320.2 million for full year 2011. Results in 2011 were driven by solid demand, strong yields and high load factors in both passenger and cargo operations. Nevertheless, net income decreased 23.7% compared to the US$419.7 million reported in full year 2010, mainly due to the impact of the startup of LAN’s operations in Colombia and the volcanic ash cloud that disrupted air traffic throughout the region, as well as higher fuel prices, a portion of which was not recovered via the fuel surcharge mechanism.
• For full year 2011, operating income reached US$539.7 million, a 13.4% decrease compared to the US$622.9 million in full year 2010. Operating margin reached 9.4% a decrease of 4.3 points compared to 13.8% in 2010.
• For fourth quarter 2011, LAN reported net income of US$112.5 million, a decrease of 31.6% compared to the US$164.6 million reported in fourth quarter 2010. Results in the fourth quarter 2011 reflected costs related to the startup of LAN’s operations in Colombia and the ongoing effects of the volcanic ash cloud on domestic operations in Chile and Argentina, as well as the 28.8% increase in fuel prices, a portion of which was not recovered via the fuel surcharge mechanism. Nevertheless, LAN continued to show solid traffic growth and yield increases in both passenger and cargo operations.
• Operating income reached US$169.5 million in fourth quarter 2011, a 19.6% decrease compared to US$210.7 million in fourth quarter 2010. Operating margin reached 11.0% compared to 16.2% in fourth quarter 2010.
• Total revenues in fourth quarter 2011 reached US$1,535.3 million compared to US$1,302.5 million in fourth quarter 2010 due to a 20.8% increase in passenger revenues and a 15.8% increase in cargo revenues. Revenue increases continue to reflect solid demand trends in both passenger and cargo operations. Passenger and cargo revenues accounted for 69.9% and 27.9% of total revenues, respectively, in fourth quarter 2011.
• In December 2011, the Company launched the LAN brand in Colombia, a significant step in the successful turnaround of the Colombian domestic passenger operations undertaken in 2011. In fourth quarter 2011, LAN recognized a US$21 million operating loss from its Colombian passenger operations. This loss includes significant costs related to the rebranding process, migration of LAN Colombia to LAN’s IT systems, marketing initiatives aimed at integrating Colombia into LAN’s regional network, and one-time maintenance costs.
• In line with the Company’s expansion, the Company received 1 Airbus A319, 5 Airbus A320 and 2 Boeing 767-300 passenger aircraft in fourth quarter 2011.
• During fourth quarter 2011, LAN and TAM S.A. (“TAM”) continued to advance on the merger transaction to create LATAM Airlines Group S.A. (“LATAM Group”). The companies have obtained all required anti-trust and shareholder approvals and are currently in the process of registering the transaction with the relevant securities authorities. LAN will launch the exchange offer promptly after all required registrations with securities authorities are complete and the Supreme Court of Chile has resolved LAN’s pending appeal regarding the carve-outs imposed by the TDLC (Tribunal de Defensa de la Libre Competencia, Chile’s antitrust authority). The Company expects this will occur before the end of first quarter 2012.
• In January 2012, LAN and TAM announced a revised estimate of expected synergies to be achieved through the merger of the two airlines. LAN and TAM estimated that the combined synergies arising from the proposed combination could increase LATAM Group’s annual operating income over time to between US$600 million and US$700 million, before depreciation and taxes, beginning four years after completion of the transaction. This represents a 50% to 75% increase over the initial synergy estimate of US$400 million per year, announced in August 2010.

For a full version of this release, please visit www.lan.com

Adjusted for economic fuel expense, the Company reported net income of $16.3 million, or $0.31 per diluted share for the three months ended December 31, 2011. This compares with adjusted net income of $11.3 million, or $0.21 per diluted share, for the three months ended December 31, 2010, reflecting economic fuel expense and excluding non-recurring beneficial tax adjustments.

For the full year 2011, the Company reported consolidated net loss of $2.6 million, or $0.05 per diluted share, on total operating revenue of $1.65 billion. This compares with net income of $110.3 million, or $2.10 per diluted share, on total operating revenue of $1.31 billion for the full year 2010. Reflecting economic fuel expense and excluding non-recurring lease termination charges related to the purchase of 15 Boeing 717-200 aircraft previously under lease agreements, the Company reported adjusted net income of $43.2 million, or $0.85 per diluted share. This compares with adjusted net income of $45.4 million, or $0.87 per diluted share, for the full year 2010. Table 4 sets forth a reconciliation of net income and diluted net income per share on a GAAP basis and non-GAAP net income and diluted net income per share reflecting economic fuel

expense and excluding non-recurring lease termination charges and beneficial tax adjustments. The Company believes that the presentation of economic fuel expense most closely approximates the net cash outflow associated with the purchase of fuel for its operations in a period, and that removal of the non-recurring lease termination charges and beneficial tax adjustments provides useful information.

Mark Dunkerley, the Company’s President and Chief Executive Officer, commented that “We are pleased with the fourth quarter results which continue the trend of improvement that began midyear.

Good cost control and fare increases enabled us to offset the 35% increase in the price of fuel. It is particularly noteworthy that these results were posted during a period in which our operations grew rapidly.

The hard work and dedication of all my colleagues gives us confidence in our plans for the year ahead. 2012 will be a year in which our long haul fleet transition to the Airbus A330 continues while we inaugurate new service to a number of new destinations at home and abroad.”

Fourth Quarter Financial Results

The Company reported operating income of $34.5 million in the fourth quarter of 2011, compared to $22.4 million in the prior year period.

Fourth quarter 2011 operating revenue was $434.0 million, a 26.2% increase compared with the fourth quarter of 2010. Capacity for the quarter increased 16.7% year-over-year to 3.1 billion available seat miles (ASMs), resulting in operating revenue per ASM (RASM) of 13.98 cents, up 8.2% from the fourth quarter a year ago. Fourth quarter scheduled passenger load factor decreased 1.6 percentage points to 84.1% compared to the same period a year ago, while passenger yield (passenger revenue per revenue passenger mile) increased 11.9% to 14.96 cents and PRASM increased 9.8% to 12.58 cents. Selected Statistical Data is included in Table 2.

Total operating expenses for the fourth quarter of 2011 increased 24.3% year-over-year to $399.5 million, resulting in an operating cost per available seat mile (CASM) of 12.87 cents, up 6.5% versus the same period a year ago. Fourth quarter CASM excluding fuel decreased 1.3% to 8.60 cents when compared to the same period a year ago. A reconciliation of GAAP and non-GAAP financial measures is included in Tables 3, 4 and 6.

Aircraft fuel costs in the fourth quarter increased 47.8% year-over-year to $132.5 million and represented 33.2% of operating expenses. Hawaiian’s average cost per gallon of jet fuel increased 28.3% year-over-year to $3.13 (including taxes and delivery). The financial impact of hedging activities is included in nonoperating income/expenses, and as such is not reflected in fuel expense. Nonoperating income in the fourth quarter reflects $4.9 million in gains from Hawaiian’s fuel hedging activity.

The Company believes that economic fuel expense is the best measure of the effect of fuel prices on its business as it most closely approximates the net cash outflow associated with the purchase of fuel for its operations in a period. The Company defines economic fuel expense as GAAP fuel expense plus (gains)/losses realized through actual cash (receipts)/payments received from or paid to hedge counterparties for fuel hedge derivative contracts settled during the period. For the three months ended December 31, 2011, economic fuel expense was $135.2 million ($3.20 per gallon), compared with $89.7 million ($2.45 per gallon) in the prior year period. An analysis of economic fuel expense for the three months ended December 31, 2011 and 2010 and pro-forma net income and diluted net income per share reflecting economic fuel expense is included in Tables 3 and 4.

Fourth quarter 2011 nonoperating expense totaled $1.8 million, compared with nonoperating income of $1.1 million in the fourth quarter of 2010. During the fourth quarter 2011, the Company recognized nonoperating income of $4.9 million related to fuel hedging activities compared to $4.0 million in the prior year period. In the fourth quarter 2011, hedging income reflects $2.7 million of realized losses on derivative contracts settling in the quarter, the reversal of $3.5 million of previously recorded losses on these same contracts, and $4.1 million in unrealized gains related to fuel derivative contracts settling in future periods.

2011 Full Year Financial Results

For the full year 2011, the Company reported operating income of $20.3 million compared with $91.3 million for the full year 2010. Excluding lease termination charges of $70.0 million recorded during the quarter ended June 30, 2011, the Company reported operating income of $90.3 million for the full year 2011. Table 6 sets forth a reconciliation of operating income on a GAAP basis and non-GAAP operating income excluding non-recurring lease termination charges.

Full year 2011 operating revenue was $1.65 billion, a 26.0% increase compared with full year 2010. Capacity for the year increased 18.6% year-over-year to 12.0 billion ASMs, resulting in RASM of 13.71 cents, up 6.2% from 12.91 cents in 2010. Load factor decreased 1.2 percentage points to 84.3% from 85.5% in 2010, while passenger yield increased 9.5% to 14.60 cents and PRASM increased 8.1% to 12.32 cents. Selected Statistical Data is included in Table 2.

Total operating expenses for 2011 increased 33.8% year-over-year to $1.63 billion. Operating expenses, excluding non-recurring lease termination charges of $70.0 million, for the full year increased 28.0% year-over-year to $1.56 billion. Excluding fuel and the lease termination charges, full year 2011 CASM decreased to 8.70 cents, down 1.5% compared to the same period a year ago. A reconciliation of GAAP and non-GAAP financial measures is included in Tables 3, 4, and 6.

Aircraft fuel costs for 2011 increased 58.9% year-over-year to $513.3 million and represented 31.5% of operating expenses (32.9% of operating expenses excluding the lease termination charges). Hawaiian’s average cost per gallon of jet fuel increased 36.7% year-over-year to $3.13 (including taxes and delivery). The financial impact of hedging activities is included in nonoperating income/expenses, and as such is not reflected in fuel expense. Nonoperating income for the full year 2011 reflects $6.9 million in losses from Hawaiian’s fuel hedging activity.

For the full year 2011, economic fuel expense was $513.7 million ($3.13 per gallon), compared with $326.2 million ($2.31 per gallon) in the full year 2010. An analysis of economic fuel expense for the years ended December 31, 2011 and 2010 and pro-forma net income and diluted net income per share reflecting economic fuel expense is included in Tables 3 and 4.

For the full year of 2011, nonoperating expense totaled $21.4 million, compared with $9.3 million in full year 2010. The increase in nonoperating expense from 2010 to 2011 is primarily related to an increase in interest expense and amortization of debt discounts and issuance costs due to the additional financings entered into in 2011 and losses recognized on fuel derivatives, offset by increases in capitalized interest costs for the pre-delivery payments for the upcoming Airbus A330-200 aircraft deliveries. During 2011, the Company recognized nonoperating expense totaling $6.9 million related to fuel hedging activities compared to nonoperating income of $0.6 million related to fuel hedging activities during 2010. In full year 2011, fuel hedging expenses included $0.4 million of realized losses on derivative contracts settling in the year, the reversal of $3.9 million of previously recorded gains on these same contracts, and $2.5 million in unrealized losses related to fuel derivative contracts settling in future periods. An analysis of economic fuel expense for the years ended December 31, 2011 and 2010 and pro-forma net income and diluted net income per share reflecting economic fuel expense is included in Tables 3 and 4.

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The SAS Group reported the following as of the third quarter 2011; “Our assessment made in conjunction with the report for the first quarter of 2011 remains valid, but it should be noted that the conditions for fulfilling this
forecast have deteriorated. On condition that nothing unexpected occurs, it is our opinion that there is still the potential for SAS to achieve marginally Spanair has also increased due to the difficult economic situation in Spain.”

SAS has continuously been clear about the risk a possible Spanair bankruptcy could imply and that the risk has increased. The write down affects the result before tax for 2011 with SEK 1.7 billion and the SAS Group expects a negative result for the full year 2011. SAS expects however a marginally positive result before non-recurring items for the full year 2011.

For further information, Sture Stølen, Head of SAS Group Investor Relations, +46 70 997 1451 SAS Group Investor Relations SAS discloses this information pursuant to the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. The information was provided for publication on 30 January 2012 at 11.45 a.m. CET.

Operating revenues for the first nine months of the fiscal year 2011 rose three per cent to 1,069.8 billion yen, while operating income increased by 17.3 per cent to 91.1 billion yen and recurring profit by 22.5 per cent to 71.4 billion yen. Net income for the period was 33.7 billion yen compared with 37.5 billion yen the previous year.

Although economic conditions domestically and internationally remain challenging, ANA is working strenuously to stimulate demand, reduce costs and improve its competitiveness as a network carrier and in October became the first airline in the world to operate the new Boeing 787 Dreamliner. As a result of these different initiatives and the strength of the yen, ANA has revised upwards its forecast for operating income and recurring profit for fiscal year 2011, although operating revenues are expected to remain flat.

Japan’s economy continues to recover gradually from the Great East Japan Earthquake on March 11 last year, but the outlook globally remains uncertain owing to rising oil prices, the government bond crisis affecting the Eurozone and exchange rate fluctuations. ANA has responded to this challenging economic environment by working to stimulate demand for both its domestic and international routes, and has rolled out approximately 30.0 billion yen in emergency cost improvement measures to minimize the impact on revenues. From November 1 last year, ANA began flying the Boeing 787, as a world’s first regularly scheduled service, and from January 21, began service on a new international route, Haneda-Frankfurt, further enhancing its competitiveness as a network carrier.

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Contact: Ryosei Nomura and Megumi Tezuka, ANA Public Relations TEL (0)3-6735-1111 Please refer to the following URL for the detailed report;

http://www.ana.co.jp/eng/aboutana/corporate/ir/pdf/tan_120131_e.pdf

3 per diluted share. Net profit excluding net special charges for the fourth quarter 2010 was $28 million or $0.17 per diluted share. On a GAAP basis, the Company reported a net profit of $18 million for its fourth quarter 2011 or $0.11 per diluted share, compared to a net profit of $28 million or $0.17 per diluted share for the same period in 2010.

For full year 2011, the Company reported a net profit of $111 million or $0.68 per diluted share, which excludes net special charges totaling $40 million. This compares to a full year 2010 profit excluding net special credits of $447 million or $2.34 per diluted share. On a GAAP basis, the Company reported a net profit of $71 million or $0.44 per diluted share for 2011, compared to a net profit of $502 million or $2.61 per share in 2010.

US Airways Group, Inc. Chairman and CEO Doug Parker stated, “We are very pleased to report a profit for both the fourth quarter and full year of 2011, particularly given the extraordinarily high cost of jet fuel.

“Strong demand for our product and outstanding operations performance by the US Airways team resulted in numerous records set by our airline. Passenger revenue, total revenue, and passenger revenue per available seat mile all set new Company records for both the fourth quarter and the full year. We also had our best fourth quarter ever in terms of operating reliability, including our best on-time performance, highest completion factor and lowest mishandled baggage ratio. Looking forward, we are encouraged by the continued strength in demand and believe US Airways is well positioned for success in 2012 and beyond.”

A robust demand environment and record passenger yields led to improved revenue performance. Total revenues in the fourth quarter were a record $3.2 billion, up 8.5% versus the fourth quarter 2010 on a 1.3% decrease in total available seat miles (ASMs). Total revenue per ASM was a record 15.20 cents, up 9.9% versus the same period last year driven primarily by a 9.4% increase in passenger yields.

For the full year 2011, total revenues were a record $13.1 billion, up 9.6% versus 2010. Total revenue per ASM increased 8.5% to a record 15.06 cents, driven by a 7.8% increase in passenger yield and a record load factor of 82.3%, up from 81.1% in 2010.

Total operating expenses in the fourth quarter were $3.0 billion, up 8.7% over the same period last year due primarily to a $232 million increase in consolidated fuel expense. Mainline cost per available seat mile (CASM) was 13.18 cents, up 9.3% on flat mainline ASMs. Excluding special charges, fuel and profit sharing, mainline CASM was 8.49 cents, up 1.1% versus the same period last year. Express CASM excluding special charges and fuel was 14.94 cents, up 8.2% on a 7.2% decrease in ASMs.  This increase is due primarily to the previously announced increase in maintenance costs related to our PSA CRJ-200 aircraft.

For the full year 2011, total operating expenses were $12.6 billion, up 13.5% versus 2010 due primarily to a 40% increase in fuel expense. Excluding special charges, fuel and profit sharing, mainline CASM increased 0.6% to 8.35 cents. Express CASM excluding special charges and fuel increased 6.7% to 14.71 cents.

As of December 31, 2011, the Company had $2.31 billion in total cash and investments, of which $365 million was restricted, up from $2.28 billion, of which $364 million was restricted on December 31, 2010.

The Company recognized $3 million of net special charges in the fourth quarter. Special charges included a $2 million charge related to auction rate securities arbitration and $1 million in other charges incurred at its Express subsidiary.

Remarkable accomplishments for the airline during the year include, closing an agreement with Delta Air Lines to transfer takeoff and landing rights at New York’s LaGuardia and Washington D.C.’s Reagan National airports. The first new flights from Washington start March 25th with service to 11 new cities and additional service in other existing communities. The airline took delivery of the remaining nine of 12 A321 aircraft deliveries scheduled for 2011. The Company expects to take delivery of an additional 12 A321 aircraft in 2012. The new aircraft, replacing 24 legacy Boeing 737 aircraft, will feature more First Class seats and will be equipped with Gogo Inflight Internet.

Also, the airline completed the installation of first class seating on 110 US Airways Express regional jets including the Embraer 175 and 170 and Canadair Regional Jet 700 and 900 fleets. The Company has also begun installation of Envoy Suite service fully lie-flat business-class seats with advanced on-demand in-flight entertainment systems – on its fleet of wide-body Airbus A330-300 aircraft. Other product enhancements include renovations to airport clubs and new meals for the Company’s domestic First Class and Envoy products together with the previously announced launch of the new Interactive Voice Response System (IVR), creating 400 new jobs at its Phoenix, Reno, Nev. and Winston-Salem, N.C. reservations centers for work that was previously handled outside of the United States.

Another achievement was the airline added SkyWest Airlines to a portfolio of partners operating as US Airways Express. SkyWest Airlines now operates six daily Express flights from US Airways’ hub in Phoenix and by spring 2012, will operate approximately 49 flights to 19 destinations. SkyWest will serve US Airways’ Phoenix-based Express operation with 14 50-passenger Bombardier CRJ200 regional jet aircraft, replacing the CRJ200 and Dash 8 Express service previously operated by Mesa Airlines. The launch of a new redesign of the Company’s in-flight magazine, the US Airways Magazine has a fresh new look and presents readers with stories about the airline, its employees and the people who fly it. The magazine will also include a collection of features and stories about US Airways and Star Alliance destinations.

As part of its annual “Hope Takes Flight” campaign to benefit the United Way, US Airways’ 32,000 employees pledged more than $1.3 million annually. The campaign, which ran between Sept. 23 and Nov. 13, contributed to the nearly $9.5 million US Airways employees have raised for United Way since 2000. The United Way works to address health and human needs in more than 1,300 communities across the country.

Edited by: Kanchana Ganglani

In year-over-year comparisons for the week, occupancy was up 3.9 percent to 51.4 percent, average daily rate increased 3.7 percent to US$99.96 and revenue per available room was up 7.8 percent to US$51.39.

Among the Top 25 Markets, Anaheim-Santa Ana, California, achieved the largest occupancy increase, up 29.5 percent to 73.1 percent, followed by New York, New York (+14.8 percent to 69.1 percent) and New Orleans, Louisiana (+14.0 percent to 62.1 percent). St. Louis, Missouri-Illinois, posted the only occupancy decrease of more than 5 percent, falling 7.9 percent to 40.2 percent.

Anaheim-Santa Ana increased 16.0 percent in ADR to US$123.73, reporting the largest increase in that metric, followed by New Orleans (+15.7 percent to US$126.87) and Oahu Island, Hawaii (+11.0 percent to US$179.21). Washington, D.C. (-3.8 percent to US$129.14), and Atlanta, Georgia (-1.1 percent to US$86.04) reported the largest ADR decreases for the week.

Four markets reported RevPAR increases of more than 15 percent: Anaheim-Santa Ana (+50.2 percent to US$90.39); New Orleans (+31.9 percent to US$78.74); San Francisco/San Mateo, California (+17.1 percent to US$110.14); and Oahu Island (+16.6 percent to US$160.62). Washington, D.C., fell 6.2 percent in RevPAR to US$61.94, posting the largest decrease in that metric, followed by St. Louis with a 4.9-percent decrease to US$31.25.

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UAL 2011 consolidated passenger revenue increased 9.0% compared to the pro forma results for 2010. Consolidated passenger revenue per available seat mile (PRASM) increased 9.2% in 2011 compared to the pro forma results for 2010. UAL consolidated passenger revenue increased 5.6% in the fourth quarter compared to the same period in 2010. Fourth-quarter 2011 consolidated PRASM increased 8.2% year-over-year.

Consolidated fuel expense for 2011, excluding the impact of hedges, increased 36.5% or $3.4 billion year-over-year on a pro forma basis. UAL ended 2011 with $8.3 billion in unrestricted cash, cash equivalents and short term investments and undrawn lines of credit. Co-workers earned $265 million in profit sharing for full-year 2011, which will be distributed on Feb. 14, 2012. The consolidated network operated more than two million flights and had 142 million passengers in 2011, carrying the most traffic of any airline in the world.

“We made significant progress in 2011 building the world’s leading airline, while running a clean, safe and reliable operation,” said Jeff Smisek, UAL’s president and chief executive officer. “I am proud of the results we achieved by working together at the new United, and I look forward to seeing my co-workers share in our success when we distribute more than a quarter billion dollars of profit sharing on Valentine’s Day.”

UAL results for the fourth quarter include the financial results of its two operating subsidiaries, United Airlines and Continental Airlines. Prior to the closing of the merger on Oct. 1, 2010, UAL results included only the financial results of United. Pro forma results that consolidate the financial results for Continental for periods prior to the merger are included for meaningful year-over-year comparisons.

For the fourth quarter of 2011, total revenue was $8.9 billion, an increase of 5.5% year-over-year. Fourth-quarter consolidated passenger revenue rose 5.6% to $7.8 billion, compared to the same period in 2010.

Consolidated revenue passenger miles (RPMs) for the fourth quarter of 2011 decreased 3.2% year-over-year, while capacity (available seat miles or ASMs) decreased 2.5% year-over-year, resulting in a fourth-quarter consolidated load factor of 81.5%.

Consolidated yield for the fourth quarter of 2011 increased 9.0% year-over-year.  Fourth-quarter 2011 consolidated PRASM increased 8.2% compared to the same period in 2010.

Mainline RPMs in the fourth quarter of 2011 decreased 3.6% on a mainline capacity decrease of 2.7% year-over-year, resulting in a fourth-quarter mainline load factor of 81.9%. Mainline yield for the fourth quarter of 2011 increased 8.3% compared to the same period in 2010.  Fourth-quarter 2011 mainline PRASM increased 7.4% year-over-year.

“Our strong revenue performance is a direct result of offering customers an unmatched global route network and competitive products, and our co-workers’ focus on service,” said Jim Compton, UAL’s executive vice president and chief revenue officer. “Our momentum will help deliver the revenue and profitability necessary for us to continue to invest in a great product for our customers.”

Fourth-Quarter Costs includes total operating expenses, including special items, increased $337 million, or 3.9%, in the fourth quarter compared to the same period of 2010. Fourth-quarter fuel costs increased $660 million year-over-year. Fourth-quarter 2011 operating expenses, excluding fuel, profit sharing and special items, decreased $86 million, or 1.5%, year-over-year.

Consolidated costs per available seat mile (CASM), excluding special items and ancillary business expense, increased 10.1% and mainline CASM, excluding special items and ancillary business expense, increased 10.5% in the fourth quarter of 2011 compared to the same period of 2010. Fourth-quarter consolidated and mainline CASM, including special items, increased 6.6 and 6.2% year-over-year, respectively.

In the fourth quarter, consolidated and mainline CASM, excluding special items and ancillary business expense and holding fuel rate and profit sharing constant, increased 0.5% and 0.7%, respectively, compared to the results for the same period of 2010.

“Our results reflect the work of our entire team to operate our airline in a cost effective manner and help deliver a strong profit during our first full year as a merged company,” said Zane Rowe, UAL’s executive vice president and chief financial officer. “We are well positioned to reach our integration milestones and synergy goals in 2012.”

During the fourth quarter, UAL entered into a new $500 million revolving credit facility. UAL ended 2011 with $8.3 billion in unrestricted liquidity, comprised of $7.8 billion of cash, cash equivalents and short-term investments and $500 million of undrawn commitments under the new revolving credit facility. During the fourth quarter, the company generated $265 million of operating cash flow and had gross capital expenditures of $204 million. The company made scheduled debt and net capital lease payments of $423 million and prepaid $71 million of debt and capital leases in the fourth quarter. For the full year, the company made $2.6 billion of debt and capital lease payments, including prepayments.

In 2011, United accomplished several milestones toward completing full integration, including obtaining a single operating certificate from the Federal Aviation Administration. United announced several product improvements in 2011, including a $550 million investment in its onboard product, and aligned meal, snack and beverage services on board flights and in airport club lounges. The company also introduced MileagePlus as its loyalty program and unveiled its 2012 benefits and services for United’s most-frequent flyers.

The company has co-located check-in, ticket counter and gate facilities at 66 airports since closing the merger and now has a single area for check-in at 291 airports system wide. More than 800 aircraft are now rebranded in the new United livery.

United remained focused on building its Working Together culture to ensure that co-workers share in the success they help create. During the year, United introduced new perfect-attendance, on-time bonus, profit-sharing and pass-travel programs for co-workers.

Remarkable accomplishments in 2011 include United and Continental recorded U.S. Department of Transportation domestic on-time arrival rates of 80.2% and 77.1%, respectively, and system completion factors of 98.5% and 98.6%, respectively, for the year.  For international flights, United and Continental both recorded on-time arrival rates of 77.4%. The on-time arrival rates are based on flights arriving within 14 minutes of scheduled arrival time.

Co-workers of the combined company earned cash incentive payments for on-time performance totaling $40 million during 2011.Technicians at the company’s United subsidiary ratified a new labor agreement, and professional engineers at United and Continental rejected union representation. The company also made substantial progress on a new agreement with the United flight attendants in 2011, which led to a tentative agreement in January 2012.

The company recieved five Next Generation Boeing narrowbody aircraft into its fleet and continued to retire older, less-efficient models, including six Boeing 737 classics, three Boeing 757-200s, two Boeing 767-200ERs and one Boeing747-400.

The company expanded its global route network, launching nonstop flights to several international destinations including Lagos, Nigeria; Stuttgart, Germany; Providenciales, Turks and Caicos Islands; Port-au-Prince, Haiti;Guadalajara, Mexico; and Shanghai, China. The company also announced new daily nonstop international flights beginning in 2012 to Manchester, England; Dublin, Ireland; Buenos Aires, Argentina; and Doha, Qatar via Dubai, United Arab Emirates.

The company announced its intent to install satellite based WiFi on its entire mainline fleet and continued to install flat-bed seats in first and business class on its international fleet, and now has the new seats on 136 aircraft, more than any other U.S. carrier. United and its partner Chase introduced the new United MileagePlus Explorer Card, offering a wide range of benefits for cardmembers. Also, the company operated the first U.S. commercial flight powered by advanced biofuels.

Edited by: Kanchana Ganglani

By the summer, hotel inventory is expected to increase by 9.4 percent in Wroclaw, Poland, 8.7 percent in Kiev, Ukraine, and 1.7 percent in Warsaw, Poland, compared to the previous year. No additional branded supply is expected in Gdańsk and Poznań, both in Poland, before the start of the tournament. The daily room inventory of the hotel cities will stay below that of the past host cities such as Amsterdam, Vienna, Brussels, Belgium, and Lisbon, Portugal.

Host cities daily room inventory (at the time of the event)

Source: STR Global

“The limited supply increase, the media coverage of the event and the hospitality experienced by the teams and the supporters should benefit the host cities”, commented Elizabeth Randall, managing director of STR Global. “This is highlighted in our latest forecast for Warsaw, predicting occupancy to reach 80.1 percent in June 2012 compared to 77.7 percent the previous year, and average daily rate to reach PLN 350.41”.

The average price per key in 2011 was US$200,000, compared with US$179,000 in 2010, an increase of 11.7 percent.

“Despite all of the market volatility in 2011, with the debt ceiling debacle and global economic uncertainty, the hotel industry has continued to rebound and investors have obviously taken note,” said Steve Hennis, director at STR Analytics. “Investors are hoping to take advantage of the improving fundamentals, with average room rates on the rebound and supply growth negligible in most markets over the next couple of years.”

Overall in the U.S., the highest price per room was the Ocean House in Watch Hill, Rhode Island, which sold for US$747,000 per unit. Other high price per room sales included: Mondrian Los Angeles (US$578,000); the Huntington Hotel in San Francisco (US$535,000); and the Royalton in New York (US$525,000).

In 2011 there were more portfolio deals than in 2010 and 2009. Large portfolio deals in 2011 included the US$1.02 billion acquisition of Innkeepers USA Trust’s 64-property portfolio by Cerberus Capital Management LP and Chatham Lodging Trust, as well as Hyatt Hotel Corporation’s US$660 million acquisition of LodgeWorks.

New York accounted for US$2.6 billion in transaction activity, almost 20 percent of 2011 deal volume. Major deals in the market included: Park Central New York, the New York Palace, the Paramount Hotel, the Radisson Lexington Hotel and the New York Helmsley.