United Airlines Holdings, Inc. · NASDAQ:UAL
United Airlines — United Continental Holdings — Q3 2016 Earnings Presentation
22 slides from United Airlines's earnings presentation, Oct 18, 2016
Slide 1: 3Q 2016 Earnings Call
Exhibit 99.1 3Q 2016October Officer Earnings 18,Call 2016Oscar Munoz Chief Executive Officer Scott Kirby President Julia Haywood Executive Vice President and Chief Commercial Officer Andrew Levy Executive Vice President and Chief Financial
Slide 2: Safe Harbor Statement
SafeU.S. performance. future intended this information, without operational fleet travel economic currency arrangements and regulations); results under the possible political on investor replacement Harbor demand Part results of demand; limitation, Securities to hedging the conditions I,identify pla
Slide 3: Executive Summary
Executive Oscar Chief Executive Munoz Summary Officer
Slide 4: Executive Summary highlights
Meaningful Joint Tentative Solidified Best Achieved 15.7% Pre-tax $1.6 $1.7 on-time contract when earnings Excluding Including$1.5 agreement GAAP leadership $1.6 steps excluding performance ratified special ($B) specialpre-tax forward reached team for charges special charges margin flight in for wit
Slide 5: Operations and Commercial Update
Operations Scott President Kirbyand Commercial Update
Slide 6: Reliability
Reliability Consolidated Mishandled 97.2 58.5% 3Q15 98.4 3Q16 continues bag 62.1%A:14 98.1 D:00 completion 3Q14ratio 3Q15 65.5% to73.3% improve 3Q16 factor 3Q14 78.6% 6.50 5.45 5.04 78.4%
Slide 7: PRASM year-over-year drivers
1/(7.4%)(6.6%)(5.8%) 2( )H/(L) Year-over-year 3Q16 1Q16 2Q16 PRASM 4Q16E Surcharges( Foreign drivers exchange /pts. 13Q161/4flat )4Q16E pts. ()holiday pts. ( 111/4flat -5 4)pts. )pts. pt. ( /2/n/a pts. ( 1/(41)n/a Energy Timing sector of 4holidays /2pts. ) pts. Timing Total /4)July ( 3of pts.4th(1)
Slide 8: Domestic and international industry capacity and demand
Positive Domestic Industry Persistent “Brexit” China Japan Early Very 3Q16 (1.5%) 2%-5% (4.1%) (3.5%)-(6.5%) (7.5%)-(10.5%) moderate but 4Q16E year-over-year capacity close-in capacity and pronounced capacity related (5.3%) industry growth corporate growth growth currency positive signs (10.7%) cont
Slide 9: Commercial Opportunities
Commercial Julia Executive Chief Haywood Commercial Vice Opportunities President Officerand
Slide 10: Commercial Revenue Initiatives
Commercial Revenue Product Segmentation Network management preview for investor day
Slide 11: Financial Update
Financial Andrew Executive Chief Financial Levy Update Vice President Officer and
Slide 12: GAAP Results
GAAP $B Total Fuel Non-fuel Net Earnings Pre-tax 21In 3Q15, 3Q16 income expense revenue 3Q16 margin earnings Includes per the expense1 3Q15 $1.0 $3.2Bcompany share earnings $1.6 $9.9 15.2% ?down $1.5 $4.8 taxH/(L) non-fuel $1.9 $3.01 $10.3 $6.8 $1.6 ($3.8) 15.6% per recorded 6% ($0.3) $6.8 benefit$1
Slide 13: Adjusted Results
Adjusted $B Total Fuel Non-fuel Net Tax Earnings Pre-tax Year-over- Grew ~15% 321Note: 3Q16 income2 adjusted expense revenue tax-adjusted For reduction earnings2 margin2 Includes per expense1 3Q16 3Q15 ayear GAAP EPS2,3 share2 $1.0 $1.6 $9.9 Excludes 3Q15 earnings ?non-fuel in 15.7% H/(L) non-fuel $
Slide 14: 4Q16E CASM
34Total Non-fuel 1(3.3%) 14 CASM1 & 75%-5 4Q16E Year-over-year Labor 0.0%-1.0% ~2.0% 3.4% ~4.0% 4.75%-5.75% 1,2,3 Core 3Q16 2certainty. severance While Non-fuel unit 4Q16E agreements the Excludes CASM For cost and CASM 75% unit Company 3Q16 costs aexcluding other H/(L) GAAP impact ratified (operatin
Slide 15: Full Year 2016E CASM
Higher Total Non-fuel 2.75%-3.25% Year-over-year (2.0%) (0.7%) 2.3% 1,2,3 Labor Core FY15 1(11.9%) 15 2certainty. 3severance While Non-fuel unit CASM1 FY16E agreements –FY16E the Excludes (3.0%) CASM For cost and CASM Company aFY15 excluding other unit H/(L) GAAP impact ratified (operating costs sim
Slide 16: Balanced Capital Allocation
Balanced 3Q16 Adjusted Expect $679M1 expenditures Financed Investments FY16E Shareholder 1Ended 16 For Including a GAAP Capital third adjusted Debt capital ~50% capital assets quarter returns in to and of expenditures the non-GAAP ~$3.2B1; of capital expenditures allocation capital acquired business
Slide 17: Concluding Remarks
Concluding Oscar Chief Executive MunozRemarks Officer
Slide 18: Question & Answer Session
Question & Answer Session
Slide 19: Appendix: Non-GAAP financial measures
Appendix Non-GAAP adjusted, that and understand parties, measures profit UAL appropriately using tax 8-K. 104 special asset losses adjusting Income (in also the sharing charges. items fuel millions) valuation among effective is believes A: from the useful sales financial before reconciliation 15.7%
Slide 20: Appendix: Non-GAAP reconciliation (continued)
Appendix 2015 rate related per share for %to3Q15—(608) Change excluding special A: reconciliation Net items special income NM(0.05)—NM Tax items, of(GAAP) GAAP adjusted diluted Diluted to $965 Net Non-GAAP (Non-GAAP) $4,816 income earnings (80%) excluding financial per$3.11 share, Less:measures $2.9
Slide 21: Appendix: Non-GAAP reconciliation (continued)
Appendix (in (continued) Three September Total add: Non-fuel less: Non-Fuel 21 millions) Total Aircraft Special Nonoperating Mark-to-market Prior operating Months expense Expense A: nonoperating period 30, charges fuel reconciliation Ended expense gains 1,603 $6,800 2016 excluding special 45 losses
Slide 22: Appendix: Non-GAAP reconciliation (continued)
Appendix (Decrease) (3.0) 2.35 excluding $689 meaningful 2.90 12.95 plus:(19.0) A: special Property 2015 14.67 reconciliation 3.01 2014 (11.7) charges, and 4.75 Increase/ less: equipment (36.6) third-party ofThird-party GAAP (Decrease) CASM, acquired to business Non-GAAP business excluding Cost thro
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