United Airlines Holdings, Inc. · NASDAQ:UAL
United Airlines — United Continental Holdings — Investor Day (November 2016)
104 slides from United Airlines's investor day presentation, Nov 15, 2016
Slide 1: Investor Day
Investor Day November 15, 2016
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements included in this presentation are forward-looking and thus reflect our current expectations and beliefs with respect to certain future events and anticipated financial and operating performance. Such forward-looking statements are and will be subject to many
Slide 3: Today's Agenda
Today’s Agenda Commercial Operations Technology Finance Optimize network to achieve full potential Continue re-fleeting and upgauge initiatives Improve products and segmentation Enhance revenue management systems Ensure safety in all things we do Increase efficiency while maintaining reliability Pro
Slide 4: Oscar Munoz
Oscar Munoz Chief Executive Officer
Slide 5: We have great assets in place to realize our full potential
We have great assets in place to realize our full potential Engaged workforce Flexible fleet Global network Healthy balance sheet
Slide 6: And we have made a lot of progress already…
And we have made a lot of progress already… Extended contracts with pilots, dispatchers, IAM-represented employees Ratified JCBA with flight attendants Paid down ~$6B of debt since 2010 Introduced United Polaris business class Best-ever on-time performance YTD 2016 Established new leadership team La
Slide 7: Goal:
Goal: Make United the best airline for employees, customers and investors.
Slide 8: Scott Kirby / Julia Haywood
Scott Kirby President Julia Haywood Executive Vice President & Chief Commercial Officer
Slide 9: Great opportunities to improve our product
Great opportunities to improve our product Great network potential Re-fleeting and upgauge Product segmentation Airport and onboard experience Yield management upside Top-tier reliability Exceptional customer service Further leverage best international network; incremental opportunity in domestic hu
Slide 10: We have great network potential in the biggest markets
We have great network potential in the biggest markets United has hubs in the five largest markets Pacific SFO (#3) LAX (#2) DEN (#9) Latin IAH (#12) ORD (#4) EWR (#1) IAD (#5) Atlantic Note: Ranked by origin and destination passengers (2015)
Slide 11: However, we had de-emphasized domestic flying
However, we had de-emphasized domestic flying Historical network profitability Domestic International Low High High Low High Medium This led to United de-emphasizing domestic through: Smaller gauge Low frequency Less connectivity Over the last 5 years, domestic has become more profitable for the ind
Slide 12: Newark should be leading airport in New York and across the Atlantic
Newark should be leading airport in New York and across the Atlantic Newark is the only true potential connecting hub in NY So it should be the best Atlantic gateway New York share has fallen from 30% to 26% Why has that happened?
Slide 13: Newark lacks connectivity
Newark lacks connectivity Philadelphia: Grouping departures and arrivals in banks allows more connections Departures Arrivals Early morning 45% connecting traffic Late night Departures Arrivals Newark: Rolling departures and arrivals create less connectivity 35% connecting traffic
Slide 14: Newark has less competitive schedules for the local market
Newark has less competitive schedules for the local market Newark to Atlanta 2004 201320162016 Dept Aircraft GaugeDeptAircraftGaugeDeptAircraftGaugeDeptAircraftGauge 7:00 737-300 1246:00ERJ506:203201506:00M88149 9:45 737-500 1129:42E-170707:523201507:00319132 12:00 737-300 12412:39ERJ5010:35737-7001
Slide 15: Chicago O'Hare
Chicago O’Hare Well positioned geographically for connecting passengers Additional cities in Chicago catchment that remain unserved by United Less banked schedule than American Airlines Opportunity to improve bank structure Introduce omni-directional banks
Slide 16: Denver
Denver Most profitable hub Declining cost per passenger Highest connecting percentage of any United hub Continue Denver growth plan
Slide 17: Houston
Houston Strong Latin gateway Current energy weakness Gate capacity to also re-bank Houston
Slide 18: San Francisco
San Francisco Best gateway from the United States to Asia Positioned for continued China and Asia growth
Slide 19: Los Angeles
Los Angeles Second largest local market Profitable international gateway, though difficult to connect to Star carriers Working to get more gates and improve connectivity with Star carriers
Slide 20: Washington Dulles
Washington Dulles Profitable international gateway High cost airport Remain committed to Washington Dulles airport
Slide 21: Expect earnings improvement to come from all areas of the business
Expect earnings1 improvement to come from all areas of the business Earnings initiatives by year (vs.2015) ($M) Commercial enhancements 2016E 2017E2018E2019E2020E Network initiatives - 1Effect on pre-tax earnings expected from initiatives
Slide 22: Re-fleeting and upgauge
_ Re-fleeting and upgauge
Slide 23: Re-fleeting through upgauge, slimline and incremental premium seats
Re-fleeting through upgauge, slimline and incremental premium seats Change in gauge driven by upgauge and slimline programs Front cabin and Economy Plus seat growth Seats per departure % of total seats 120 119 119 +0.9 pts 117 117 115 111 +1.7 pts 13.3% 110 105 105 100 FY15 FY16E FY17E FY18E FY19E F
Slide 24: Updating prior outlook based on fleet changes and assumptions
Updating prior outlook based on fleet changes and assumptions Prior valuation implied a marginal RASM of ~80% with a total value of: 2016E2017E2018E Slimline and upgauge 300700800 Addition of front cabin and Economy Plus 200450750 Total 5001,1501,550 Revised our analysis using more conservative assu
Slide 25: Expect earnings improvement to come from all areas of the business
Expect earnings1 improvement to come from all areas of the business Earnings initiatives by year (vs. 2015) ($M) Commercial enhancements 2016E 2017E2018E2019E2020E Network initiatives - Re-fleeting and upgauge 400 7008009001,000 1Effect on pre-tax earnings expected from initiatives 24
Slide 26: Segmentation
Segmentation
Slide 27: Customers have increasing choice in today's world
Customers have increasing choice in today’s world Customers have increasing choice when they make a purchase… …and greater ability to customize to meet their needs and budget Expectations and behaviors are changing because of increased choice
Slide 28: Airlines have historically segmented on three dimensions
Airlines have historically segmented on three dimensions Brand Experience of full service vs. low-cost carriers Network reach and geography Customer service and experience Fare rules Advance purchase requirements and Saturday stays Refunds / change fees Class of service First class vs. economy
Slide 29: But now, segmentation is changing
But now, segmentation is changing Brand Consolidation has created fewer brands with broader offerings Fare rules Fare rules eroding: U/LCCs offering one-way, no advance purchase fares Class of service Airlines now expanding offering beyond two classes of service
Slide 30: Industry is moving toward more product options for a trip
Industry is moving toward more product options for a trip, e.g. Domestic Basic Economy Basic product, without attributes not valued: Lowest price No seat choice No status or upgrades Not changeable Economy Core product, including: Able to choose seat Competitive price Earn credit toward Premier stat
Slide 31: Today, we are announcing United Basic Economy
Today, we are announcing United Basic Economy We will continue to offer the same great United onboard product for the price sensitive segment We will offer customers greater choice: the option to purchase the core product at the lowest price… …with the ability to pay for access to the features and b
Slide 32: Basic Economy is meaningfully differentiated from Economy
Basic Economy is meaningfully differentiated from Economy Price Onboard product Seat selection Fare restrictions Carry-on bags Boarding priority Upgrades Loyalty Benefits Basic Economy United’s lowest available price Same as economy; better than U/LCCs Seat assignment only at check-in Flight changes
Slide 33: We are now evaluating Premium Economy
We are now evaluating Premium Economy Basic EconomyPremiumFirst Class Domestic Economy Economy International Basic EconomyPremiumUnited Polaris Economy Economy
Slide 34: Segmentation is part of a broader focus on personalization
Segmentation is part of a broader focus on personalization We will continue to learn from our customers’ behavior… Travel patterns Product choice (travel occasion) Operational reliability …to offer personalized experiences Tailored promotions Personalized booking and on-board experiences Real-time r
Slide 35: MileagePlus will continue to enhance revenue
MileagePlus will continue to enhance revenue New credit card deal Rate escalation due to new agreement Next-gen redemption platform Enhancements to improve customers’ ability to redeem miles
Slide 36: Expect earnings improvement to come from all areas of the business
Expect earnings1 improvement to come from all areas ofthe business Earnings initiatives by year (vs. 2015) ($M) Commercial enhancements 2016E 2017E2018E2019E2020E Network initiatives - Re-fleeting and upgauge 400 7008009001,000 Segmentation - 2005507001,000 MileagePlus enhancements 250 100300300300
Slide 37: Other product improvements
Other product improvements
Slide 38: Improvements to ground and onboard experience coming
Improvements to ground and onboard experience coming United Clubs Renovating 12 clubs in 2017 including upgrades at all hubs Upgraded food and beverage service New modern interior designs Adding square footage in key markets Domestic First United Polaris High-profile hubs Class
Slide 39: Improvements to ground and onboard experience coming
Improvements to ground and onboard experience coming United Clubs United Polaris Custom designed direct-aisle-access lie-flat seats Dedicated international business class lounge in 9 markets with pre-flight dining New sleep-focused amenities featuring bedding products from Saks Fifth Avenue Domestic
Slide 40: Improvements to ground and onboard experience coming
Improvements to ground and onboard experience coming United Clubs United Polaris High-profile hubs EWR to be the best airport experience in New York City - Premium Lobby - Upgraded food, beverage and retail - Consolidated security - New Polaris Lounge Major investment in Los Angeles terminal Constru
Slide 41: Improvements to ground and onboard experience coming
Improvements to ground and onboard experience coming United Clubs UnitedPolarisHigh-profilehubsDomestic First Class New custom seats for narrowbodies Improved meal service and expanded meal windows Upgraded first class offering on two-cabin regional jets
Slide 42: Improvements to ground and onboard experience coming
Improvements to ground and onboardexperience coming United Clubs United PolarisHigh-profile hubsDomestic First Class
Slide 43: Revenue Management
Revenue Management
Slide 44: Orion, our RM system, built in 1997 and has some known shortcomings
Orion, our RM system, built in 1997 and has some known shortcomings Independence of demand Small numbers No forecast evaluation Limited history Orion still assumes independence of demand Mostly true 20 years ago… almost never true today Which leads to spiral down Average forecast standard deviation
Slide 45: Demand today is no longer independent
Demand today is no longer independent Historical New York/Newark to Indianapolis 21 AP Non-ref Sat night stay$154S 14 AP Non-ref Sat night stay$199V 7 AP Non-ref Sat night stay$288H 0 AP Refundable One-way$764B Today New York/Newark to Indianapolis 21 AP Non-ref One-way$94 K $114 L 14 AP Non-ref One
Slide 46: Demand dependence leads to spiral down
Demand dependence leads to spiral down Historical observed demand Advance Price when lowestwhen lowestwhen twowhen threeOrion expectsReal purchase class is openclass islowestlowestwillingness closedclasses areclasses areto pay is closedclosed (60%)(20%)(15%)(5%) 0 AP $81900070.47 0 AP $5260012-1.812
Slide 47: We have a problem with forecasting small numbers
We have a problem with forecasting small numbers Example of a distributionof passengersflyingbetween two cities Most of the time, Orion is 100% wrong when 0 passengers show up Total number of instances ~5% of the time, 1-2 passengers show up – OrionOccasionally, a big group is 200-500% wrongshows up
Slide 48: Have no ability to evaluate our forecast quality, so difficult to improve
Have no ability to evaluate our forecast quality, so difficult to improve Orion makes nearly 8 million forecasts every day Nearly all have <1 passenger forecasted Impractical to compare actual bookings to forecast So forecast error never improves
Slide 49: Limited history
Limited history Current Orion system only stores two years of full data Therefore, when unusual calendar events occur, Orion has no reliable forecast to predict demand For example, Christmas 2016 shifts from Friday to Sunday which hasn’t happened in five years This requires revenue management analys
Slide 50: Orion functions as a black box
Orion functions as a black box Analysts hand manage 2/3 of all managed flights1 They do a great job… but only so much people can do with thousands of data points Hand management can lead to management bias 1 Managed flights are those that have fare buckets closed at any time
Slide 51: What are we doing about it
What are we doing about it Phase I Conditional demand forecasting (solving for independence of demand) Demand aggregation (solving for small numbers) Begin forecast vs actual assessment capability Further adaptivity to schedule and pricing changes Rolls out between summer 2017 and summer 2018 PRASM
Slide 52: Expect earnings improvement to come from all areas of the business
Expect earnings1 improvement to come from all areas ofthe business Earnings initiatives by year (vs. 2015) ($M) Commercial enhancements 2016E 2017E2018E2019E2020E Network initiatives - Re-fleeting and upgauge 400 7008009001,000 Segmentation - 2005507001,000 MileagePlus enhancements 250 100300300300
Slide 53: Q&A
Q&A Scott Kirby President Julia Haywood Executive Vice President & Chief Commercial Officer
Slide 54: UNITED
UNITED
Slide 55: Greg Hart
Greg Hart Executive Vice President & Chief Operations Officer
Slide 56: Focused on safety, reliability, efficiency and service
Focused on safety, reliability, efficiency and service Ensure safety in all things we do Continue to improve reliability Increase efficiency of operation Provide excellent customer service
Slide 57: Significant and sustained reliability improvement
Significant and sustained reliability improvement Consolidated D:001 67.5% 59.8% 55.8% 2014 2015 2016 Consolidated A:001 66.7% 58.2% 52.5% 2014 2015 2016 Consolidated completion factor1 97.9% 97.5% 95.7% 2014 2015 2016 Mishandled bag ratio2 3.59 3.18 2.53 2014 2015 2016 1 Jan-Oct for each year; Incl
Slide 58: Opportunity to improve reliability and efficiency
Opportunity to improve reliability and efficiency Aircraft turn times Aircraft maintenance Cancellations and long-delays
Slide 59: Redesigning our turn processes to turn aircraft quicker
Redesigning our turn processes to turn aircraft quicker Narrowbody turn time1 (6%) United Peer Avg2 1 Normal turn defined as having available ground time between 55 min and 70 min 2 Includes AA, DL and WN Improve turn times by: Minimize handling/processing of gate bags near the end of the turn Focus
Slide 60: Improving our aircraft maintenance processes
Improving our aircraft maintenance processes Initiatives underway to drive fleet health Redesigning maintenance programs Improve supply chain Reliability modifications
Slide 61: Continue to reduce long-delays and cancellations
Continue to reduce long-delays and cancellations Disruptive events2016 vs 20141 (57%) (27%) 2014 2016 20142016 Long-delays2 Cancellations 1 Jan-Oct for each year; Includes both mainline and regional 2 Long-delays defined as flights delayed two or more hours from scheduled departure time Long-delays
Slide 62: New organization structure elevates focus on customers
New organization structure elevates focus on customers Chief Customer Officer Airport Operations Contact Centers Customer Food Services Experience Ops Strategy, Inflight Services Planning and Design Primary emphasis areas A consistent, integrated and—most importantly -positive experience across ever
Slide 63: Expect earnings improvement to come from all areas of the business
Expect earnings1 improvement to come from all areas of the business Earnings initiatives by year (vs. 2015) ($M) Commercial enhancements 2016E 2017E2018E2019E2020E Network initiatives - Re-fleeting and upgauge 400 7008009001,000 Segmentation - 2005507001,000 MileagePlus enhancements 250 100300300300
Slide 64: Linda Jojo
Linda Jojo Executive Vice President & Chief Information Officer
Slide 65: Our technology supports a large and complex operation today
Our technology supports a large and complex operation today 27,000 $12B 1.5M14M+ Flight plans Annual revenue Baggage scansMobile app generated daily (E-commerce) dailydownloads 500K 700K 56K1M United.com visitors Tickets soldWorkforce Flight messages daily staffing events per day dailydaily
Slide 66: We have strengthened and aligned our technology team
We have strengthened and aligned our technology team Leadership team realigned and revamped in last two years Previous industry experience includes: Airlines, Telecom, Energy, Healthcare, Government, Technology, Logistics Model supports alignment and faster delivery Improve reliability Reduce incide
Slide 67: Reliability and stability have improved meaningfully
Reliability and stability have improved meaningfully Critical incidents remain at record lows (63%) 2012 2013 201420152016 IT-related flight delays at lowest level since 2012 (57%) 2015 2016 Continue to improve root cause analysis and delivery Meaningful reductions in volume/length of technology “gl
Slide 68: Technical Operations integration is large and complex …
Technical Operations integration is large and complex … …and has been executed with no impact on the operation SCEPTRE (Aug 2015) Created a single system No flight delays during planned 14 hour cutover Converted $1 billion in parts (>7M records across ~300K part numbers) 7,000 Tech Ops employees tra
Slide 69: Mobile application continues to win awards and lead the market
Mobile application continues to win awards and lead the market First to offer Passport scanning for check-in Location-based airport maps Media streaming onboard aircraft On-demand Uber integration Touch ID sign-in Proactive travel disruption messaging and ability to modify travel plans Award flight
Slide 70: …and is an integral part of our customers' experience every day
…and is an integral part of our customers’ experience every day App downloads & average daily visits Daily averages 37 7 2012 2013201420152016 App downloads (M) Average daily visits (000s) 56,000 $37M Bookings Digital Revenue (Reservations) (Booking & Ancillary) 550,000 577,000 Flight Status Self-Se
Slide 71: Untethering our workforce…
Untethering our workforce… …with role-based, context-driven mobile tools and apps Pilots Flight Attendants Customer Service Ramp Electronic Flight Bag—iPad that provides pilots with access to schedules and flight plans in real time Link—iPhone with in-flight service, all flight manuals and customer
Slide 72: The power of mobile technology is connectivity in real time
The power of mobile technology is connectivity in real time Improving collaboration for faster aircraft turns Distribute contact list of individuals working a flight for easy communication across workgroups Send event-driven alerts and notifications Consolidate system messages and employee communica
Slide 73: Andrew Levy
Andrew Levy Executive Vice President & Chief Financial Officer
Slide 74: Focused on creating long-term value
Focused on creating long-term value Revenue growth and cost control Disciplined capital investment Capital allocation
Slide 75: Commercial and operational improvements critical to financial success
Commercial and operational improvements critical to financial success Commercial enhancements drive $3.8B in earnings benefit by 2020 Operational improvements drive $300M in earnings benefit by 2020
Slide 76: Cost savings initiatives
Cost savings initiatives Expected run-rate savings1 ($M) $700 $600 $500 $400 $200 2016 2017 201820192020 Key cost levers Increasing operational efficiency Better utilizing assets & people Strategic purchasing New technology Controlling costs with the goal of growing expense at a slower rate than cap
Slide 77: Expect to grow non-fuel unit costs less than 1% from 2018-2020
Expect to grow non-fuel unit costs less than 1% from 2018—2020 Non-fuel CASM outlook1 Year-over-year H/(L) 3.5%—4.5% 1.5%—2.0% 1.5%—2.0% Less than 1.0% ~0.5% FY17E Avg annual FY18E—FY20E IBT and pilot market reset estimate Recently ratified labor agreements Core unit cost growth Core unit cost growt
Slide 78: Focused on creating long-term value
Focused on creating long-term value Earnings growth and cost control Disciplined capital investment Capital allocation
Slide 79: Reviewing fleet plan
Reviewing fleet plan Undertaking bottoms-up review of our fleet commitments in 2H17 and beyond Focus on capital efficiency Made two changes to the fleet plan….
Slide 80: Restructuring order placed in early 2016
Restructuring 737 order placed in early 2016 Converting four 737-700s to four 737-800s to be delivered in second half of 2017 Deferring remaining 61 aircraft and converting to 737-MAX with delivery dates to be determined Will continue to leverage order book flexibility to adjust fleet plan as needed
Slide 81: Changing ownership structure for E175s
Changing ownership structure for 24 E175s In 2014 UAL entered into CPA commitment with RJET for 24 E175s During RJET Chapter 11 reorganization, UAL modified the agreement and will now purchase all 24 aircraft Utilize United’s strong balance sheet lower cost of capital to drive better economics Captu
Slide 82: Continuing to review and refine fleet strategy
Continuing to review and refine fleet strategy Fleet initiatives underway Densifying both narrowbodies and widebodies Maximizing regional scope provisions (ability to fly 255 70/76 seaters under current scope provision) Refurbishing existing aircraft to improve product and extend life of aircraft Re
Slide 83: Fleet plan has significant flexibility
Fleet plan has significant flexibility Mainline aircraft (at year end) Current fleet including 250 unencumbered Does not include aircraft option positions Includes: - 330 unencumbered 250 count 450 aircraft - 120 aircraft eligible Aircraft to return to lessor 2016 2017 2018 2019 2020 Current fleet p
Slide 84: Non-aircraft capital expenditures
Non-aircraft capital expenditures Reliability Spare parts Competitive product United Polaris business class Infrastructure Consolidate flight training centres Regulatory, safety & security Nitrogen inerting system (FAA requirement) Financial return Slimline seats 83
Slide 85: Lowering capital expenditures
84 Lowering capital expenditures Capital expenditures ($B) FY18E $3.3 - $3.5 $2.2 - $2.4 $1.1 FY17E $3.1 - $3.3 $1.1 $4.2 - $4.4 Aircraft Non-aircraft Reducing 2017 2018 planned capital expenditures by $1B
Slide 86: Focused on creating long-term value
Focused on creating long-term value Earnings growth and cost control Disciplined capital investment Capital allocation
Slide 87: Strong liquidity position
Strong liquidity position Quarter-end unrestricted liquidity ($B) $5B-$6B is the optimal liquidity level Why 5B - $6B is optimal liquidity level $6.5 $6.2 Absorb seasonality of the business $6.0 $1.35 $5.3 $1.35 (~$1.5B peak to trough) $1.35 Minimum target balance $1.35 $5.0B Meets debt and capital
Slide 88: Unencumbered asset base is source of additional liquidity
Unencumbered asset base is source of additional liquidity Unencumbered assets1 ($B) ~$13 +262%~$5 $8.7 $3.6 ~$8 $2.4 $5.1 $ 1.4 $0.7 YE11 YE16E YE20E AircraftNon-aircraft 1 Company estimates as of September 2016. Non-aircraft includes spare parts, spare engines, routes and other property YE20 assume
Slide 89: Strong balance sheet
Strong balance sheet Adjusted debt Debt, pension & post-retirement obligations1 ($B) ~20% $24.1 $4.3 $19.5 $3.1 $7.1 $4.9 $12.7 $11.5 YE11 3Q16 Pension & post-retirement Aircraft rent, capitalized1 Debt and capital lease obligations 1 Aircraft rent capitalized at 7x 2 Trailing twelve months 3 For a
Slide 90: Manageable debt payments going forward
Manageable debt payments going forward Scheduled debt and capital lease payments ($B) ~$1.8 ~$1.4 Avg Annual Avg annual FY12—FY16E FY17EX—FY20E1 Expect to finance 50%—75% of aircraft capital expenditures EETCs are a highly efficient source of aircraft funding PrincipalInterest EETC Tranche ($M)rate
Slide 91: Pension funded ratio
Pension funded ratio Pension funded ratio 75% 67% 50% YE11 YE15 YE20E Expect cash contributions of ~$400M annually 90
Slide 92: Credit ratings reflect strong balance sheet
Credit ratings reflect strong balance sheet UAL credit ratings BB Fitch upgraded UAL in October Ba3 BB- 2016; Moody’s under review Several balance sheet metrics at investment grade levels Able to raise debt through EETCs at investment grade interest rates Fitch Moody’s S&P Stable Positive Positive o
Slide 93: Lowest adjusted debt among peers
Lowest adjusted debt among peers Adjusted debt 3Q16 debt, pension and post-retirement obligations ($B) $39.2 $7.4 $8.5 $22.1 $19.5 $3.1 $12.6 $4.9 $23.3 $1.9 $11.5 $7.6 Pension & post-retirement Aircraft rent, capitalized1 Debt and capital lease obligations 1Aircraft rent capitalized at 7x Source: S
Slide 94: Have reduced share count by ~20% since 2014
Have reduced share count by ~20% since 2014 Will continue to return excess cash to shareholders $2B of current authorization remaining as of the end of 3Q16 Evaluating dividend strategy Will not compromise strength of balance sheet to fund shareholder return programs
Slide 95: Focused on creating long-term value
Focused on creating long-term value Revenue growth and cost control Disciplined capital investment Capital allocation Going forward we will manage our business to maximize operating margin and ROIC
Slide 96: Expect earnings improvement to come from all areas of the business
Expect earnings1 improvement to come from all areas of the business Earnings initiatives by year (vs. 2015) Unique United ($M)levers compared Commercial enhancements 2016E 2017E2018E2019E2020Eto Delta Network initiatives - 100300450600~100% Re-fleeting and upgauge 400 7008009001,000~50% Segmentation
Slide 97: Path to close the margin gap to Delta
Path to close the margin gap to Delta Operating margin gap 2016 consensus excluding fuel hedges1 UAL H/(L) vs. DAL ~1 pt ~1 pt ~1 pt ~5 pts (5.9 pts) 2016 UAL operating Commercial Improved operations Cost structure UAL estimated margin gap to DAL enhancements improvements premium to DAL by 2020 1Wal
Slide 98: Q&A
Q&A Andrew Levy Executive Vice President & Chief Financial Officer
Slide 99: Oscar Munoz
Oscar Munoz Chief Executive Officer
Slide 100: Executing on our plan to realize our full potential
Executing on our plan to realize our full potential Realize full network, product and segmentation potential Capture value by improving revenue management systems Improve efficiency while maintaining reliability Use technology to enable reliability, drive efficiency and improve revenue Secure our fu
Slide 101: Goal:
Goal: Make United the best airline for employees, customers and investors.
Slide 102: UNITED
UNITED
Slide 103: Appendix A: reconciliation of GAAP to Non-GAAP financial measures
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 America (GAAP) and Non-GAAP financial measures. CASM is a common metric used in the airline industry to measure
Slide 104: Appendix A: reconciliation of GAAP to Non-GAAP financial measures (continued)
Appendix A: reconciliation of GAAP to Non-GAAP financial measures (continued) UAL provides financial metrics, including earnings before interest, taxes (EBIT), and earnings before interest, taxes depreciation and amortization (EBITDA), that we believe provides useful supplemental information for man
United Continental Holdings — Investor Day (November 2016) on 6ix