United Airlines Holdings, Inc. · NASDAQ:UAL
United Airlines — Continental Airlines — Deutsche Bank 2012 Airline Conference
21 slides from United Airlines's conference presentation, Sep 6, 2012
Slide 1: Deutsche Bank 2012 Airline Conference
Deutsche Bank 2012 Airline Conference United Continental Holdings, Inc. September 6, 2012 Exhibit 99.1
Slide 2: Jeff Smisek, President and Chief Executive Officer
Jeff Smisek President and Chief Executive Officer
Slide 3: 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 current and future events and financial performance. Such forward-looking statements are and will be subject to many risks and unce
Slide 4: United is transforming
United is transforming 4 We are building a new airline Broad, business-centric network Capacity discipline and business flexibility Creating economic value over the business cycle Investing in our people, customers, product and technology Strengthening the balance sheet
Slide 5: The world's best network
The world’s best network Serving the most destinations of any global carrier Hubs in the four largest U.S. cities 50 of the Fortune 100 companies headquartered in hubs Note: Rankings for US carriers by ASMs as of Source: Earnings releases and SEC filings Best Network for Business Customers
Slide 6: Driving strong revenue from business-centric network
Driving strong revenue from business-centric network 1. Consolidated PRASM numbers for carriers other than UAL adjusted for length of haul versus UAL’s length of haul Source: Earnings releases and SEC filings TME 2Q 2012 PRASM (in cents) 8.86 10.60 11.94 12.06 13.12
Slide 7: Generating solid earnings despite elevated fuel prices
1. Source: Kiodex – Platts US Gulf Coast Jet 2. Source: Earnings releases and SEC filings; Excludes special, one-time items. See non-GAAP reconciliation in Appendix; Results prior to 4Q10 proforma Pre-tax Earnings/(Loss) ($B) $1.1 ($2.3) TME 2Q12 Average Jet A ($/bbl) TME 2Q12 $127.4 $124.7 Generati
Slide 8: Making steady progress integrating two airlines
Making steady progress in complex process of integrating two airlines Operating a safe, clean and reliable airline Delivering highlevel of customer service Investing in our onboard product Improving our reliability and maintenance programs Building our Working Together culture Focused on Getting the
Slide 9: Generating economic value
Generating economic value Giving co-workers the tools to do their job Investing in products our customers value Improving the efficiency of our fleet Managing capacity for returns Growing high margin businesses Enhancing customer service Setting the foundation for the future
Slide 10: ROIC embedded in business decisions
10 ROIC embedded in business decisions Fleet Strategy Network / Route Analysis Product Investment Balance Sheet Source: Earnings releases and SEC filings Economic Value Added UAL 2010, 2011 Return on invested capital in excess of 10% over the business cycle Return on Invested Capital (ROIC) Lower (-
Slide 11: Maintaining capacity discipline is core to our long-term success
Note: Rolling consolidated capacity for prior twelve months; industry includes AMR, DAL, LUV and LCC; capacity proforma for merged carriers Source: Earnings releases and SEC filings 4Q09 4Q08 4Q07 4Q06 4Q10 Industry ex-UAL 2Q12 4Q11 Maintaining capacity discipline is core to our long-term success (1
Slide 12: Further reducing 2012 capacity in response to economic outlook
(1.75%) (0.75%) Source: SEC filings and investor updates 1. Results prior to 4Q 2010 pro forma 2. Capacity guidance from UAL form 8-K filed September 5, 2012 Further reducing 2012 capacity in response to economic outlook Consolidated Capacity Trend Year-over-Year % Change in ASMs (0.2%) 2012E 1.1% E
Slide 13: Serving customers as a single airline
Serving customers as a single airline Single 13 Loyalty program: MileagePlus Customer service procedures Website: united.com Passenger service system Operating certificate
Slide 14: Giving co-workers the tools to do their jobs
Giving co-workers the tools to do their jobs Native SHARES New Interface for SHARES
Slide 15: We are a customer service business
We are a customer service business Getting the basics right Working Together culture Direct, open & honest communication Dignity & respect
Slide 16: Investing in our product and technology at our airports
Global Services New United Club in ORD T-2 Mobile App Investing in our product and technology at our airports
Slide 17: Improving our customers' onboard experience
International Flat-Bed Seats Global Satellite Wi-Fi Boeing Sky Interior Improving our customers’ onboard experience
Slide 18: Launching game-changing aircraft
Launching game-changing aircraft
Slide 19: Growing high margin components of our business
Growing high margin components of our business 90 million members worldwide 100+ partnerships to earn Unmatched redemption opportunities Up to 5 more inches of space in coach Ancillary Revenue Economy Plus Value-add products & services Dynamic pricing Improved CRM targeting
Slide 20: Building our foundation for the future
20 Building our foundation for the future Broad, business-centric network Capacity discipline and business flexibility Creating economic value over the business cycle Investing in our people, customers, product and technology Strengthening the balance sheet
Slide 21: Appendix: Non-GAAP Financial Reconciliation
Appendix: Non-GAAP Financial Reconciliation ($ millions) S-UA S-CO UCH UCH Pre-tax Margin Earnings / (Loss) Before Income Taxes ($5,427) ($695) ($6,122) $407 Add: Special Items 3,654 3,835 Adjusted Earnings / (Loss) Before Income Taxes (1,773) (514) (2,287) 1,146 Total Operating Revenue 20,194 15,24
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