United Airlines Holdings, Inc. · NASDAQ:UAL
United Airlines — United Continental Holdings — Investor Presentation (March 2014)
18 slides from United Airlines's investor presentation, Mar 10, 2014
Slide 1: Whatever it takes friendly UNITED
Exhibit 99.1 Whatever it takes friendly UNITED A STAR ALLIANCE MEMBER Jim Compton Vice Chairman & Chief Revenue Officer John Rainey EVP & Chief Financial Officer
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements included in this release are forward - looking and thus reflect our current expectations and beliefs with respect to certain current and future events and financial performance. Such forward - looking statements are and will be subject to many risks and uncer
Slide 3: Committed to running a great airline and improving returns
Committed to running a great airline and improving returns Deliver Improve efficiency Strengthen Expand revenue reliability and quality balance sheet
Slide 4: Operational investments have paid off
Operational investments have paid off Implemented new arrival and departure procedures to reduce aircraft turn times Enhanced boarding process and new agent interface to improve speed and experience Implemented programs to improve fleet reliability On-time departures (D:0) YOY mainline on-time arriv
Slide 5: Historically severe weather caused significant cancellations
Historically severe weather caused significant cancellations January -February 2014 weather-related cancellations (year-over-year increase) EWR ORD 3x 4x CLE 6x IAD 4x Circle size represents amount of weather-related cancellations More than 28,000 cancellations in Jan-Feb 2014, including 23,000 rela
Slide 6: Efficient capacity growth in 2014
Efficient capacity growth in 2014 2014 estimated capacity change (% pts. year-over-year) + 1 – 2% Other Upgauging regional fleet Pacific new routes / 787 downgauges Slimline seats 10% 15% 25% 50% Introducing 27 E-175s in 2014 Improved fuel efficiency, ancillary revenue opportunity and customer exper
Slide 7: Taking action to improve our unit revenue
Taking action to improve our unit revenue Improve value Invest in revenue Grow high quality of network management tools corporate partnerships Leveraging benefits of new Made phased recalibrations to Reduced number of non- aircraft demand forecast compliant corporate contracts Optimizing 747 deploym
Slide 8: Strengthening our powerful digital tools
Strengthening our powerful digital tools
Slide 9: Expect to make meaningful progress in 2014 toward $3.5B ancillary revenue goal
Expect to make meaningful progress in 2014 toward $3.5B ancillary revenue goal Ancillary revenue Comprehensive and ($B) relevant portfolio Dynamic pricing $3.5+ +7%CAGR capabilities $3.0 $2.8 $2.4 $2.5 $2.2 Powerful and nimble technology platforms Expand availability through other channels 1 2010 20
Slide 10: Expect to achieve $2 billion in annual cost savings by 2017
Expect to achieve $2 billion in annual cost savings by 2017 Fuel Maintenance Productivity Sourcing Distribution consumption ~$100M ~$500M ~$150M ~$100M ~$1B Efficiency benefit Realign work with Reduce overtime, Reduce sourcing Shift traffic from new aircraft, our strengths and improve efficiency cos
Slide 11: Fuel efficiency to drive $1 billion in annual savings by 2017
Fuel efficiency to drive $1 billion in annual savings by 2017 Firm aircraft deliveries 6 B787 46 B737 10 E175 Average: 25 23 mainline AC per year 16 15 6 17 14 13 9 2 2014E 2015E 2016E 2017E
Slide 12: Improving efficiency and quality throughout the business
Improving efficiency and quality throughout the business SFO Maintenance Base transformation EWR airport lobby redesign Work increasing: Work decreasing: Airbus heavy checks 777 heavy checks Composites APUs Engines Wheels/tires Landing gear
Slide 13: Expect 2014 CASM ex-fuel to grow between 1% and 2% YOY
Expect 2014 CASM ex-fuel to grow between 1 and 2% YOY 8.0% 6.3% 6.0% 2010-2013 Expect 4.0% 3.4% avg. CASM 2015 – 2017 ex-fuel growth 2 non-fuelunit 2.0% 2.0% 1.7% 1% -2% costs to grow less than 00% inflation -2.0% 2010 2011 2012 2013 2014E YOY capacity growth YOY CASM ex-fuel 2 1: 2010 data is pro f
Slide 14: Made $9B of debt payments since 2009; upcoming scheduled debt payments manageable
Made $9B of debt payments since 2009; upcoming scheduled debt payments manageable Actual debt payments 1 Future debt payments 1 ($B) ($B) 2.6 2.5 2.3 2.0 1.5 1.5 0.9 0.4 1.2 0.7 1.1 1.1 1.2 0.7 2010 2011 2012 2013 2014 2015 2016 2017 Non aircraft Aircraft Notes: - Convertible notes with maturity or
Slide 15: Improving balance sheet
Improving balance sheet Total debt outstanding1 ($B) $23.8 $20.1 $19.0 2009 2 Unfunded pension liability ($B) $1.5 $1.8 $2.4 $1.6 2010 2 1: Includes aircraft rent capitalized at 7x 2: 2009 and 2010 data is pro forma UNITED
Slide 16: Our cash flow allocation continues to evolve
Our cash flow allocation continues to evolve High-return product and technology Integration investment Debt reduction Balance sheet optimization Product & infrastructure investments Allocate capital to shareholders Metered, disciplined fleet replacement
Slide 17: Improving long-term shareholder value
Improving long-term shareholder value Generate ROIC greater than 10% Increase earnings by 2-4x Improve capital structure Balance free cash flow allocation
Slide 18: Slide 18
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