United Airlines Holdings, Inc. · NASDAQ:UAL
United Airlines — Continental Airlines — J.P. Morgan Aviation, Transportation & Defense Conference 2012
17 slides from United Airlines's conference presentation, Mar 13, 2012
Slide 1: J.P. Morgan Aviation, Transportation & Defense Conference
J.P. Morgan Aviation, Transportation & Defense Conference United Continental Holdings, Inc. March 13, 2012 Exhibit 99.1
Slide 2: Jeff Smisek, President and Chief Executive Officer
Jeff Smisek President and Chief Executive Officer
Slide 3: U.S. airline industry is transforming
U.S. airline industry is transforming Then (1980s to Mid-2000s) Now (Late 2000s to today) Highly fragmented industry; 8+ major carriers Returns focused management teams Market share oriented management teams Fewer major carriers due to consolidation Rapid capacity growth Disciplined capacity deploym
Slide 4: United is transforming
Investing In Our People, Products and Technology Flexibility in the Business Strengthening the Balance Sheet Creating Economic Value Broad, Business- centric Network United is transforming Driving towards sufficient, sustained profitability
Slide 5: United service to all major regions ranks #1 or #2
United service to all major regions ranks #1 or #2 • Serving the most destinations of any global carrier • Hubs in the 4 largest U.S. cities • 40 of Fortune 100 companies headquartered in UA hubs Rankings for US carriers by ASMs as of 2011. 1. Consolidated PRASM numbers for carriers other than UAL a
Slide 6: United's broad network and leading revenue result in pre-tax margin premium
United’s broad network and leading revenue result in pre-tax margin premium versus U.S. industry average 1. Excludes special, one-time items and non-cash MTM hedge gains/losses. See non-GAAP reconciliation in Appendix A Source: Earnings releases and SEC filings. Majors ex UA Pre-tax Margin Pre-tax M
Slide 7: Focus on strengthening the balance sheet
Focus on strengthening the balance sheet Net Debt at Year End ($B) • Reduced net debt by nearly 20% since Annual Interest Expense ($B) • 2012 interest expense expected to be ~$200M lower than 2010 $16.3 $17.2 $20.2 $0.6 $0.8 $1.2 $1.0 2012E Guidance Note: Results prior to 4Q 2010 pro forma. Source:
Slide 8: Investing in a fuel efficient fleet
Investing in a fuel efficient fleet
Slide 9: Fleet variety provides flexibility
Fleet variety provides flexibility B747 B777 A319 B787 B737-700 A320 Range (Miles) B737-800 B737-900/ER B757 B767 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000
Slide 10: We will continue to respond to changing market conditions
-0.5% 1.0% We will continue to respond to changing market conditions -0.5% 0.5% Current 2012 Guidance -1.5% Original 2012 Guidance -0.2% 2011 Actuals Original 2011 Guidance 2.0% 2012 Capacity Guidance Year-over-Year % Change in ASMs 2011 Capacity Guidance and Actuals Year-over-Year % Change in ASMs
Slide 11: Revenue capabilities growing through technology investments
Revenue capabilities growing through technology investments
Slide 12: Investing in our people and product improve the customer experience
Investing in our people and product improve the customer experience
Slide 13: Growing high margin businesses like our leading loyalty program
Growing high margin businesses like our leading loyalty program Retain and grow high value flyers for the airline Grow / strengthen network of core partners Innovate new ways for members to engage, earn and redeem with program
Slide 14: Economic Value Added UAL 2010, 2011
Economic Value Added UAL 2010, 2011 Focused on generating returns in excess of our cost of capital over the business cycle Return on Invested Capital Lower (-) Higher (+) UAL UAL 2006-2009 Fleet Strategy Network / Route Analysis ROIC imbedded in business decisions Product Investment Balance Sheet
Slide 15: Working together drives business results
Working together drives business results Direct, Open & Honest Communication Dignity & Respect Working Together
Slide 16: United Continental Holdings, Inc.
United Continental Holdings, Inc.
Slide 17: Appendix: Non-GAAP Financial Reconciliation
Appendix: Non-GAAP Financial Reconciliation ($ millions) FY 2010 FY 2011 Pre-tax Margin Earnings Before Income Taxes $955 $845 Add: Special Items Adjusted Pre-tax Income 1,631 1,330 Total Operating Revenue $34,109 $37,110 Less: Special Items - Adjusted Total Operating Revenue 34,109 37,003 Adjusted
Continental Airlines — J.P. Morgan Aviation, Transportation & Defense Conference 2012 on 6ix