United Airlines Holdings, Inc. · NASDAQ:UAL
United Airlines — United Continental Holdings — Q2 2016 Earnings Presentation
20 slides from United Airlines's earnings presentation, Jul 20, 2016
Slide 1: 2Q 2016 Earnings Call
Exhibit 99.1 2Q Oscar President Jim Vice Gerry SVP aJuly star 2016 Compton 20, Finance Chairman alliance Laderman Munoz 2016 Earnings and and Chief member and acting Call Chief Executive united Exhibit Chief Revenue Financial Officer 99.1Officer Officer
Slide 2: Safe Harbor Statement
Safe Certain implied looking current upon circumstances our optimizing operating the exchange aircraft have airline (including ability weather December 2U nited impact ability Harbor alliances information alliances; to known fuel; statements in statements statements. conditions; maintain rates, loss
Slide 3: Executive Summary
Executive Oscar President Chief A star Executive Munoz alliance and Summary member Officerunited
Slide 4: 2Q16 highlights
Achieved oPre-tax ($B) ?Tentative Including On-time 67.9% 56.5% 97.4% 212Q15 United Tax-adjusted 2Q15 Consolidated 2Q16 98.3% oearnings1 earnings A:002 Additional pre-tax special agreement 2Q15 ?$694M EPS (mainline Completion2 per charges margin ?EPS 2Q16 $2B grew share reached ofincluding authoriza
Slide 5: Taking action to drive financial performance by 2018
Taking Driving ~$300M Combined 5U nited action incremental bythese 2018 to initiatives further ~$1.5B revenue improve byexpected 2018 Generating financial ~$1.3B to drive benefits performance byincremental 2018from through $3.1Bcommercial by 2018 Improving cost structure improved operations enhancem
Slide 6: Strategic priorities for each region and hub
?AsRefine 6UMaintain nited we look thestrong ahead mission reliability at United for eachwhile geographic improving region, efficiency hub and spoke ? Implement the profit maximizing product and segmentation strategy ? Further identify and address controllable cost gap to peers
Slide 7: Revenue
Revenue Jim Vice United Compton Chairman and Network and Chief Revenue Officer
Slide 8: PRASM outlook and drivers
1/ 4 ) pts. //2(4()1pts. Expect PRASM PRASM1 Year-over-year 3Q16 drivers PRASM 1/5.5% 4) pts. ( H/(L) 32Q16 Foreign exchange to 3Q16E decline to( 37.5% /4) pts. ( 1/2) pts. 2Q16 outlook (4.9%) Domestic (9.3%) (6.6%)4() pts. /(5.5%)—(7.5%) International results(pt.11Surcharges Consolidated /pts. 8) p
Slide 9: Shaping domestic and international network
Shaping Domestic FY16 frequency ?Reduced 2Q16 5.9% (0.4%) 2.7% 21UA United Monitoring Re-entered Consolidated Source Industry 10.1% capacity expectations (1.1%) network Q4 :Atlantic (Fall) OAG 3.2% capacity, UA Auckland, impact (1.2%) growth (mainline growth 9Industry strategy Pacific 7.7% weekend o
Slide 10: Capacity outlook
Now Capacity Year-over-year (~0.75) 1.0%—1.5% 1.0%—2.0% 11.5%—2.5% United Source: expect pts. outlook UAL full-year 3Q16E H/(L) Investor FY164Q16E Year-over-year capacity capacity Update Original to–outlook grow January H/(L) guidance 1.0% 21,to2016 1.5% 1 Current 10 guidance
Slide 11: Financial Update
Financial Gerry SVP United Finance Laderman Update and acting Chief Financial Officer
Slide 12: 2Q16 financial results
2Q16 $B Total Fuel Special Earnings Tax 21Pre-tax United Includes 2Q15 2Q16 adjusted expense revenue earnings earnings margin items per 2Q15 non-fuel EPS2 share $1.4 increased $9.4 per 9.9% H/(L) $0.9 per $2.1 share $1.78 $9.9 operating share 12.1% $1.2 ($0.7) $0.3B ($0.5) of $3.14 $1.98 adjusted ($
Slide 13: 2Q16 results excluding special items
2Q16 $B Total Fuel Non-fuel ?Net Tax recently Pre-tax 321Note: United 13 Non-fuel Includes Excludes 2Q15 2Q16 income2 adjusted expense revenue For earnings earnings2 margin2 earnings ratified expense1 2Q15 anon-fuel expense special GAAP EPS2,3 $0.9 $1.4 $9.4 per ?labor 14.5% per H/(L) $1.4 $1.3 $2.1
Slide 14: Non-fuel CASM outlook
Solid CASM (2.0%) ?(1.6%) Non-fuel Year-over-year 2.5% 2.5%—3.5% Expect 12Q16 the 32For United 14 Structural Operating Excluding Excludes Company a GAAP 2.0%—3.0% cost 3Q16E1 3Q16E –3Q16 including (3.0%) CASM management; special efficiency expense impact to pre-tax FY16E anticipates FY16E1 H/(L) non
Slide 15: Capital allocation and liquidity
Sustained 2Q16 Capital Expect Strengthen plans Shareholder 1Ended United Including contributions FY16 second adjusted minimal expenditures cash the assets returns quarter balance generation capital debt acquired Repurchased of prepayments with sheet $838M; allows unrestricted through andexpenditures
Slide 16: Concluding Remarks
Concluding Oscar President Chief A star Executive Munoz alliance andRemarks member Officerunited
Slide 17: Question & Answer Session
Question & Answer Session
Slide 18: Appendix A: Non-GAAP reconciliation
Appendix UAL taxes industry following charges prior period. meaningful measure understand acquired expenditures. Three (in Income Non-Fuel add: current Non-fuel Pre-Tax Total Pre-tax less: Net United 18 millions) income, Total special Nonoperating Income period evaluates operating revenue excluding
Slide 19: Appendix A: Non-GAAP reconciliation (continued)
Appendix Three (in Net Diluted adjustment Tax Weighted Effective United 19 millions, income income, adjusted Months earnings 2Q16 average A: using $588 excluding except earnings reconciliation Ended tax per 2Q16 $1,193 shares, rate per share per special share tax 36.9% less: diluted share, share $1.
Slide 20: Appendix A: Non-GAAP reconciliation (continued)
Appendix June Cost special available CASM, Three (in Capital Adjusted NM United 20 millions) Not 30, per Months charges Expenditures expenditures excluding % available meaningful seat capital A:(in June reconciliation mile Ended cents) and expenditures 30, seat special 0.33 third-party –Increase/ 20
United Continental Holdings — Q2 2016 Earnings Presentation on 6ix