United Airlines Holdings, Inc. · NASDAQ:UAL
United Airlines — UAL — J.P. Morgan Aviation and Transportation Conference 2010
21 slides from United Airlines's conference presentation, Mar 9, 2010
Slide 1: J.P. Morgan Aviation and Transportation Conference
Exhibit 99.1 J.P. Morgan Aviation and Transportation Conference Kathryn Mikells, Chief Financial Officer New York, NY March 9, 2010
Slide 2: Safe Harbor Statement And Non-GAAP Reconciliation
Safe Harbor Statement And Non-GAAP Reconciliation Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements included in this presentation are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future ev
Slide 3: On The Path To Reach Our Full Potential
On The Path To Reach Our Full Potential Focused On Achieving Margin Leadership p. 3
Slide 4: Our Revenue Recovery Is Outpacing The Industry
Our Revenue Recovery Is Outpacing The Industry United’s International Premium Cabin Bookings YOY 28% 25% PRASM Change – United and Industry 15% 18.0%* -1% -5% -18% -23% -23% 10.5%* -36% -35% -32% 7pts higher than -38% -38% -39% ATA industry 3.5% Jan- Mar- May- Jul- Sep- Nov- Jan- average 1.5% 09 09
Slide 5: We Made The Right Decisions During The Downturn
We Made The Right Decisions During The Downturn Strategic Capacity Reduced Premium Seats Reductions Maintained Network – New international – Grounded 6 747’s – Maintained network premium cabins contain breadth 20% fewer premium – Down-gauged flights to areas like London and – Serving approximately s
Slide 6: We Are Achieving Positive Results From Our Actions
We Are Achieving Positive Results From Our Actions 2009 International United 4Q 2009 YOY PRASM Capacity Changes B/(W) Than ATA Industry 8.8% 4.3 pts 3.3 pts 1.7 pts -3.0% -4.7% -7.4% -8.7% Atlantic Latin Pacific America We We Took Took More More Aggressive Aggressive Capacity Capacity Actions Action
Slide 7: Maximizing Our Alliance Opportunities Is Critical
Maximizing Our Alliance Opportunities Is Critical •• Addition Addition of of Continental Continental to to the the Star Star Alliance Alliance in in October October 2009 2009 Global Capacity Share By Alliance With Continental In Star •• Expanding Expanding Joint Joint Venture Venture 27% Structures
Slide 8: Our Network Improvements Are Continuing
Our Network Improvements Are Continuing Increasing Network Expanding International Improving United Breadth Joint Ventures Express Partnerships – First-ever service to Africa – Added Continental and Air – Extended our long-term (Accra, Ghana and Lagos, Canada to existing trans- partnership with Skyw
Slide 9: We Have Been A Leader In Creating New Revenue Streams
We Have Been A Leader In Creating New Revenue Streams - We Generate $13 Per Passenger – The Highest of Any US Airline - •• First First to to introduce introduce second second bag bag fee fee Ancillary Revenue Per Passenger ($) •• Unbundling Unbundling is is Here Here to to Stay Stay +22.2% –– First
Slide 10: Building The Industry's Best Loyalty Program
Building The Industry’s Best Loyalty Program Recent Improvements In The A Strong Loyalty Program Is Mileage Plus Program Good For Business • Improves the value proposition Hotel & Car Awards for All for our customers Members • Enhances our capture of Unlimited Domestic Upgrades for Elite Members pre
Slide 11: We Are Narrowing The Cost Gap To The Industry Leader
We Are Narrowing The Cost Gap To The Industry Leader Full Full Year Year 2007 2007 Mainline Mainline CASM CASM Ex Ex Fuel Fuel Full Full Year Year 2010 2010 Mainline Mainline CASM CASM Ex Ex Fuel Fuel Rank Rank vs. vs. United United Rank Rank vs. vs. United United 1st 8.5% Better 1st 7.3% Better 2nd
Slide 12: By Reducing Costs Across The Company
By Reducing Costs Across The Company Improved Asset Aggressively Reduced Increased Overhead Efficiency And Utilization Outside Service Costs Efficiency And Productivity – Retirement of older aircraft – Crew hotels – Streamlined processes and (737s) – Catering reduced complexity to drive – Improved r
Slide 13: And Removing Waste Through Operational Improvements
And Removing Waste Through Operational Improvements United Rises to First in On-Time Arrivals in 2009 Among the U.S. Five Largest Global Carriers* •• Reduces Reduces crew crew reserve reserve costs costs •• Allows Allows more more effective effective utilization utilization of of resources resources
Slide 14: Our Liquidity Is Among The Strongest In The Industry
Our Liquidity Is Among The Strongest In The Industry Liquidity Balance As a Percentage of Revenue – Year End 2009 •• More More than than $3.0 $3.0 billion billion in in unrestricted unrestricted cash cash atat end end of of Announced Transactions 2009 2009 24.4% 24.1% 22.1% •• Additional Additional
Slide 15: We Have Successfully Reduced Our Fixed Obligations
We Have Successfully Reduced Our Fixed Obligations United 2010 Debt and Capital 2010 Debt and Capital Lease Principal Payments Lease Principal Payments (In Millions) (In Millions) $1,166 $1,792 $449 Reduction $717 $1,108 Debt $986 $979 $717 $537 $511 Capital Leases $180 $180 Prior 2010 Restructured
Slide 16: Systematic Hedging Program Has Resulted In A Strong Hedge Book Relative To Peers
Systematic Hedging Program Has Resulted In A Strong Hedge Book Relative To Peers Fuel Hedge Coverage (%) 1Q 2010 75% FY 2010 •• We We continue continue to to maintain maintain aa strong strong hedge hedge book book with with 51% 50% 47% conservative conservative instruments instruments 35% 30% –– 75
Slide 17: We Will Use Future Operating Cash Flow To Improve Balance Sheet
We Will Use Future Operating Cash Flow To Improve Balance Sheet Net Debt Balance* •• United’s United’s debt debt levels levels have have been been $10.0 B managed managed prudently prudently through through the the business business cycle cycle -21.0% •• Aircraft Aircraft debt debt structured struct
Slide 18: Running A Better Company Has Allowed Us To Make Smart Investments In Our Future
Running A Better Company Has Allowed Us To Make Smart Investments In Our Future Next-Generation Aircraft Industry Leading First And Other Customer Facing Order Business Class Investments – Smart aircraft purchase at – Fully lie-flat first and – Leather seating in domestic the bottom of the cycle bus
Slide 19: On The Path To Achieve Our Full Potential
On The Path To Achieve Our Full Potential •• Our Our goal goal is is margin margin leadership leadership –– Recent Recent revenue revenue improvements improvements outpacing outpacing the the industry industry –– Narrowing Narrowing unit unit cost cost gap gap to to industry industry leader leader •
Slide 20: Non-GAAP Reconciliations
@UALCORPORATION Non-GAAP Reconciliations 7 o- r e <
Slide 21: GAAP To Non-GAAP Reconciliation
GAAP To Non-GAAP Reconciliation Operating Expense per ASM CASM - (cents) Twelve Months Ending December 31, December 31, December 31, 2009 Actual 2008 Actual 2007 Actual Mainline operating expense 11.05 15.74 11.39 Special items & other exclusions (0.33) (2.07) 0.03 Mainline operating expense excludi
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