United Airlines Holdings, Inc. · NASDAQ:UAL
United Airlines — Q4 2022 Earnings Presentation
14 slides from United Airlines's earnings presentation, Jan 18, 2023
Slide 1: UAL 4Q22/FY22 Earnings Call
Exhibit 99.3 UAL 4Q22/FY22 Earnings Call January 18, 2023
Slide 2: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information This presentation contains statements about United Airlines Holdings, Inc.'s (the "Company”) future financial position, results of operations, market position, capacity, fleet, product development and business strategy that constitute “fo
Slide 3: The post-pandemic airline industry
The post-pandemic airline industry Cost convergence/ Demand environment Unprecedented opportunity Supply constraints Demand is different, but we Cost convergence and United took truly unique expect demand to grow at supply challenges may drive steps to turn the crisis into least to 2019 levels of st
Slide 4: Expect revenue to GDP relationship to recover to at least 2019 levels
Expect revenue to GDP relationship to recover to at least 2019 levels Industry domestic revenue as % of GDP1 0.71% Implies 0.54% ~15% revenue 0.49% 0.49% 0.49% growth YOY 0.45% 0.30% 0.19% 1990-2000 2001-2010 2011-2018 2019 2020 2021 2022E 2023E ▪ 2023 nominal GDP expected to be up ~24% versus 2019
Slide 5: Current industry capacity outlook for 2023 is unachievable, similar to 2022
Current industry capacity outlook for 2023 is unachievable, similar to 20221 Multiple constraints restricting industry capacity Pilot shortage continues2 Sick calls elevated3 OEMs are behind Many airlines and ATC have outgrown tech infrastructure ~19% 2,000 6,600 “We've talked a little bit over the
Slide 6: High cancellations are proof of the real-world constraints on growth
High cancellations are proof of the real-world constraints on growth The air traffic system is stressed and cannot handle the growth and …but United was ready, absorbing pre-pandemic utilization… external impacts and quickly 39% Flight Cancellations recovering after irregular operations 16% Holiday1
Slide 7: Global long-haul margins expected to grow in 2023 with industry capacity reset to 2019 levels
Global long-haul margins expected to grow in 2023 with industry capacity reset to 2019 levels United was the only major airline1 to not retire widebody …and is now set up to take advantage of strong aircraft or downgrade pilots during the pandemic… market fundamentals 36% Widebody fleet count YE22E
Slide 8: United invested when others did not
United invested when others did not Infrastructure / Technology People Aircraft ▪ Additional buffers in the schedule ▪ Only airline in the world to keep all ▪ Orderbook in place for the next ~10 pilots current and in their position years to address known retirement ▪ Significant improvements and nee
Slide 9: Inflation higher for all airlines, including United
Inflation higher for all airlines, including United FY22E CASM-ex1 Industry domestic revenue as % of GDP vs. 2019 % 29% 0.71% 22% +? 20% 19% 18% 0.54% 15% 0.49% 0.49% 14% 0.45% 12% 1990-2000 2001-2010 2011-2018 2019 2022E Future Every basis point of improvement is ~1 point of margin2 Our baseline fo
Slide 10: Favorable macroenvironment for all airlines – United's investments give us a strong head start
Favorable macroenvironment for all airlines – United’s investments give us a strong head start ▪ Domestic revenue to GDP expected to be at 2019 levels, at least Supply/Demand ▪ Global long-haul environment looks particularly strong ▪ Industry capacity plans expected to be slower than advertised...on
Slide 11: These structural factors underpin our confidence in achieving FY23 guidance
These structural factors underpin our confidence in achieving FY23 guidance Guidance 1Q23 FY23 ASMs YOY ~20% High teens Total revenue YOY ~50% High teens TRASM YOY ~25% ~Flat CASM-ex1 YOY (3%)-(4%)2 ~Flat2 Average fuel price per gallon3 $3.19 $2.85-$2.90 Adjusted pre-tax margin1 ~3% ~9% Adjusted dil
Slide 12: Appendix
Appendix ASTAR ALLIANCE MEMBER Ay
Slide 13: Reconciliation of Certain GAAP to Certain Non-GAAP Measures
United Airlines Holdings, Inc. Reconciliation of Certain GAAP to Certain Non- GAAP Measures UNITED AIRLINES HOLDINGS, INC. NON-GAAP FINANCIAL INFORMATION UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and non-
Slide 14: Reconciliation of Certain GAAP to Certain Non-GAAP Measures, continued
United Airlines Holdings, Inc. Reconciliation of Certain GAAP to Certain Non- GAAP Measures, continued UNITED AIRLINES HOLDINGS, INC. NON-GAAP FINANCIAL INFORMATION CASM is a common metric used in the airline industry to measure an airline's cost structure and efficiency. UAL reports CASM excluding
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