United Airlines Holdings, Inc. · NASDAQ:UAL
United Airlines — FY2019 Earnings Presentation
24 slides from United Airlines's earnings presentation, Jan 22, 2020
Slide 1: 4Q / FY 2019 Earnings Call
4Q / FY 2019 Earnings Call January 22, 2020
Slide 2: Forward-looking statements
2 Certain statements included in this presentation are forward - looking and thus reflect our current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance . Such forward - looking statements are and will be subject to many ris
Slide 3: Opening Remarks
Opening Remarks Oscar Munoz Chief Executive Officer
Slide 4: 4Q19 diluted earnings per share grew 50% YOY
4 4Q19 diluted earnings per share grew 50% YOY; 11 % on an adjusted basis ▪ Reported pre - tax earnings of $844M with a pre - tax margin of 7.8%, up 250bps versus 4Q18 ▪ Reported adjusted pre - tax earnings 1 of $889M with an adjusted pre - tax margin 1 of 8.2%, up 50bps versus 4Q18 ▪ Achieved fourt
Slide 5: FY 2019 diluted earnings per share grew 51% YOY; 32% adjusted
5 FY 2019 diluted earnings per share grew 51% YOY; 32% on an adjusted basis ▪ Reported pre - tax earnings of $3.9B with a pre - tax margin of 9.0%, up 260bps versus FY18 ▪ Reported adjusted pre - tax earnings 1 of $4.1B with an adjusted pre - tax margin 1 of 9.4%, up 170bps versus FY18 1 Excludes sp
Slide 6: Reached 2020 adjusted EPS target one year ahead of schedule
6 Reached 2020 adjusted EPS target one year ahead of schedule ▪ Raised full year 2019 adjusted EPS guidance twice throughout 2019 despite an unusually high number of significant headwinds $12.05 October Update 2019E Initial Guidance 2019E July Update 2019E 2019 A 2 $10.00 - $12.00 $10.50 - $12.00 $1
Slide 7: Business Update
Business Update Scott Kirby President
Slide 8: Customer Update
Customer Update Toby Enqvist Senior Vice President and Chief Customer Officer
Slide 9: Improving customer experience across the travel journey
9 Improving customer experience across the travel journey CRJ - 550 1:1 bins Enhanced gate areas
Slide 10: Commercial Update
Commercial Update Andrew Nocella Executive Vice President and Chief Commercial Officer
Slide 11: Geographic region overview – consolidated 4Q PRASM up 0.8%
11 Geographic region overview – consolidated 4Q PRASM up 0.8% year - over - year Domestic Latin Pacific Atlantic 1 Based on full year 2019 capacity . 2 During the third quarter of 2019 , United implemented a new revenue accounting software system which allowed it to more precisely determine the geog
Slide 12: Commercial initiatives expected to drive long-term impact
12 Commercial initiatives expected to drive long - term impact Product ▪ Expect ~90% of widebody aircraft will have Polaris seats by year - end 2020 Network ▪ Continued Premium Plus rollout, which created a 60 basis point tailwind for system PRASM in the fourth - quarter of 2019 ▪ Expect to grow bus
Slide 13: Financial Update
Financial Update Gerry Laderman Executive Vice President and Chief Financial Officer
Slide 14: FY 2019 diluted earnings per share up 51% year-over-year
14 FY 2019 diluted earnings per share up 51% year - over - year 1 Includes non - fuel operating expense and non - operating expense. $M 4Q19 4Q18 H/(L) FY19 FY18 H/(L) Total revenue $10,888 $10,491 3.8% $43,259 $41,303 4.7% Fuel expense 2,249 2,380 (5.5%) 8,953 9,307 (3.8%) Non - fuel expense 1 7,79
Slide 15: FY 2019 adjusted diluted earnings per share up 32% year-over-year
15 FY 2019 adjusted diluted earnings per share up 32% year - over - year Note: For a GAAP to non - GAAP reconciliation, see Appendix A. 1 Includes non - fuel operating expense and non - operating expense. 2 Excludes special charges, unrealized gains/losses on investments and imputed interest on cert
Slide 16: Total CASM decreased 1.3% in 4Q19 and 1.2% for FY 2019
16 Total CASM decreased 1.3% in 4Q19 and 1.2% for FY 2019 Total CASM 1 YOY H/(L) (1.3%) (1.2%) FY19 4Q19 1Q20E 2 ~1.8% 1 CASM (operating expense per available seat mile). 2 Excludes special charges. While the company anticipates that it will record special charges throughout the year, at this time t
Slide 17: Non-fuel CASM increased 2.7% in 4Q19 and 1.0% for FY 19
17 Non - fuel CASM increased 2.7% in 4Q19 and 1.0% for FY 2019 2.7% 1.0% FY19 4Q19 1Q20E 2 1.0% - 2.0% 1 Non - fuel CASM (operating expense per available seat mile) excludes fuel, profit sharing, third - party business expenses and special charges. F or a GAAP to non - GAAP reconciliation, see Appen
Slide 18: Balance sheet and fleet update
18 Balance sheet and fleet update ▪ Repurchased $216M worth of shares in the fourth quarter of 2019 ▪ Approximately $3.1B remaining under current share repurchase program as of year - end 2019 ▪ During the quarter, took delivery of ― Two new Boeing 777 - 300ER aircraft ― Two new Boeing 787 - 10 airc
Slide 19: First-quarter and full-year 2020 guidance summary
19 First - quarter and full - year 2020 guidance summary 1Q20 FY20 PRASM 0.0% – 2.0% CASMex 1 1.0% - 2.0% Fuel price 2 $2.04 - $2.14 Adjusted diluted EPS 3 $0.75 - $1.25 $11.00 - $13.00 Adjusted capex 4 ($B) ~$7.0 1 Non - fuel CASM (operating expense per available seat mile) excludes fuel, profit sh
Slide 20: Question & Answer Session
Question & Answer Session
Slide 21: UNITED SY
UNITED SY
Slide 22: Appendix A: reconciliation of GAAP to Non-GAAP financial measures
22 Appendix A: reconciliation of GAAP to Non - GAAP financial measures UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of Am eri ca (GAAP) and Non - GAAP financial measures, including adjusted pre - tax income (loss), adjusted p
Slide 23: Appendix A: reconciliation of GAAP to Non-GAAP financial measures (continued)
23 Appendix A: reconciliation of GAAP to Non - GAAP financial measures (continued) (in millions) Three Months Ended December 31, Year Ended December 31, Adjusted Non - Fuel Expense 2019 2018 2019 2018 Operating expenses (GAAP) $10,027 $9,856 $38,958 $38,074 Less: Aircraft fuel (2,249) (2,380) (8,953
Slide 24: Appendix A: reconciliation of GAAP to Non-GAAP financial measures (continued)
24 Appendix A: reconciliation of GAAP to Non - GAAP financial measures (continued) CASM is a common metric used in the airline industry to measure an airline’s cost structure and efficiency. UAL reports CASM exc luding special charges, third - party business expenses, fuel and profit sharing. UAL be
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