United Airlines Holdings, Inc. · NASDAQ:UAL
United Airlines — UAL — Calyon Airline Conference 2008
18 slides from United Airlines's conference presentation, Sep 18, 2008
Slide 1: UAL Corporation – Calyon Airline Conference 2008
p. 1 UAL Corporation UAL Corporation Calyon Airline Conference 2008 September 18, 2008 Exhibit 99.1
Slide 2: United Performed Well In 2007
United Performed Well In 2007 p. United Performed Well In 2007 2007 was the most profitable year since 1999 – Over $1 billion of operating income – Over $600 million of pre-tax profit $2.1 billion in operating cash flow – 37% higher than 2006 $2.3 billion in debt reduction Competitive Pre-Tax Margin
Slide 3: Unprecedented Rise In Jet Fuel Prices Has Put Severe Pressure on Financial Performance
Unprecedented Rise In Jet Fuel Prices Has Put Severe Pressure on Financial Performance p. $40 $60 $80 $100 $120 $140 $160 $180 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 $0.95 $1.45 $1.95 $2.45 $2.95 $3.45 $3.95 $4.45 United Consolidated Fuel Expense Reflects Jet A and WTI crude prices from Ja
Slide 4: Pre-Tax Margin and Cash Flow Generation
Pre-Tax Margin Twelve Months Ended June 30, 2008 Pre-Tax Margin and Cash Flow Generation Free Cash Flow/Total Revenue Twelve Months Ended June 30, 2008 p. Pre-Tax Margin Twelve Months Ended June 30, 2008 Adjusted for Unrealized Hedge Gains Pre-Tax Margin and Cash Flow Generation Free Cash Flow/Total
Slide 5: Over $3 Billion Of Unencumbered Hard Assets Includes High Quality Collateral
Over $3 Billion Of Unencumbered Hard Assets Includes High Quality Collateral p. Over $3 Billion Of Unencumbered Hard Assets Includes High Quality Collateral Spare Parts 18% Other 8% Engines 10% Aircraft 64%
Slide 6: Unencumbered Aircraft Are Valued At Over $2 Billion
Wide-Body Narrow-Body # Unencumbered Average Age Unencumbered Aircraft Are Valued At Over $2 Billion p. 15.7 10.9 13.7 12.6 17.1 16.5 20.5 10.8 10.4 B777-200 TOTAL A320-200 A319-100 B747-400 B767-300 B757-200 B737-500 B737-300 Unencumbered Aircraft Are Valued At Over $2 Billion
Slide 7: Organization Is Focused On The Core Elements That Drive Success
Organization Is Focused On The Core Elements That Drive Success Outcomes, Matter Most To Employees, Customers, Shareholders 1 2 3 4 5 p. Organization Is Focused On The Core Elements That Drive Success Outcomes, Matter Most To Employees, Customers, Shareholders Industry-leading margin and cash flow U
Slide 8: Leading Necessary Capacity Reductions
Leading Necessary Capacity Reductions • Reducing fourth quarter mainline domestic capacity by 15.5% to 16.5% • Permanently grounding 100 aircraft, including entire 737 fleet Year over Year 4Q 2008 FY 2009 Capacity (ASMs) (vs. 4Q 2007) (vs. FY 2007) p. 10 Leading Necessary Capacity Reductions Reducin
Slide 9: Aggressively Reducing Non-Fuel Costs
Aggressively Reducing Non-Fuel Costs Since January, When We Forecasted Flat Capacity Growth, Non-Fuel CASM Guidance has Remained Unchanged Despite 4% to 5% Capacity Reduction p. 12 Aggressively Reducing Non-Fuel Costs $500 Million in 2008 Operating Expense Savings Strategic Sourcing Transformation D
Slide 10: Improving Fuel Efficiency
Improving Fuel Efficiency • B737 fleet retirement • Engine Washing • Improved climb/descent profiles • Flight Planning System replacement • Winglets • Single engine taxi • Streamlining fuel supply chain p. 13 Improving Fuel Efficiency B737 fleet retirement Engine Washing Improved climb/descent profi
Slide 11: Ramping Up Hedge Coverage
Ramping Up Hedge Coverage • As of Sept 15th, United had hedged 51% of forecasted Mainline fuel consumption for the second half of 2008 • Using combination of three-way collars, collars, and other structures, primarily on crude oil p. 14 Ramping Up Hedge Coverage As of Sept 15th, United had hedged 51
Slide 12: Increased Focus on Performance and Execution
p. 15 Increased Focus on Performance and Execution Adding Ground Time Increasing by 7 minutes domestically Adding Gate Rest Time Increasing by 5 minutes at hubs Increasing Spare Aircraft Increasing from 2.5% to 5% of scheduled fleet New O’Hare Runway to Open in November Improving On-Time Performance
Slide 13: Investing in Key Products And Services To Drive Customer Satisfaction
Investing in Key Products And Services To Drive Customer Satisfaction, Margin Improvement • 2008 Capital Expenditure plan reduced by $200M from $650M to $450M • Installing new United First Suite and full lie-flat seats in Business Class – Customer surveys show that customer satisfaction has doubled
Slide 14: Taking UA/CO Alliance Beyond a Traditional Partnership
Taking UA/CO Alliance Beyond a Traditional Partnership • Comprehensive Plan For Global Cooperation – Broad domestic and international bilateral code share along with reciprocal frequent flyer and lounge programs – Continental joining the Star Alliance – Establishing a 4 carrier trans-Atlantic joint
Slide 15: UAL Corporation
@MuUAL CORPORATION
Slide 16: Non-GAAP To GAAP Reconciliation
p. 21 Non-GAAP To GAAP Reconciliation
Slide 17: Free Cash Flow Metrics Reconciliation
Free Cash Flow Metrics Reconciliation p. 22 Free Cash Flow Metrics Reconciliation ($ in Millions) Cash Flow from Operations $ Less: Capital Expenditures (547) Free Cash Flow $ Total Revenue 20,639 FCF/Total Revenue 0.5% Twelve Months Ended 6/30/08 Less: Proceeds from litigation on advance deposits N
Slide 18: Pre-Tax Margin Reconciliation
Pre-Tax Margin Reconciliation p. 23 Pre-Tax Margin Reconciliation Twelve Months Ended 6/30/08 ($ in Millions) Consolidated Operating Revenue 20,639 $ Less: Specials (45) Consolidated Operating Revenue Ex Specials 20,594 Less: Fresh Start Consolidated Operating Revenue Ex Specials & Fresh Start 20,62