JumpStart 2017 Providence, RI
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 anticipated financial and operating performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as expects, will, plans, anticipates, indicates, believes, forecast, guidance, outlook and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this presentation are based upon information available to us on the date of this presentation. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: our ability to comply with the terms of our various financing arrangements; the costs and availability of financing; our ability to maintain adequate liquidity; our ability to execute our operational plans and revenue-generating initiatives, including optimizing our revenue; our ability to control our costs, including realizing benefits from our resource optimization efforts, revenue-generating initiatives, cost reduction initiatives and fleet replacement programs; our ability to utilize our net operating losses; our ability to attract and retain customers; demand for transportation in the markets in which we operate; an outbreak of a disease that affects travel demand or travel behavior; demand for travel and the impact that global economic conditions have on customer travel patterns; excessive taxation and the inability to offset future taxable income; general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aircraft fuel and energy refining capacity in relevant markets); economic and political instability and other risks of doing business globally; any potential realized or unrealized gains or losses related to fuel or currency hedging programs; the effects of any hostilities, act of war or terrorist attack; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; disruptions to our regional network; the costs and availability of aviation and other insurance; industry consolidation or changes in airline alliances; competitive pressures on pricing and on demand; our capacity decisions and the capacity decisions of our competitors; U.S. or foreign governmental legislation, regulation and other actions (including Open Skies agreements and environmental regulations); the impact of regulatory, investigative and legal proceedings and legal compliance risks; the impact of any management changes; labor costs; our ability to maintain satisfactory labor relations and the results of any collective bargaining agreement process with our union groups; any disruptions to operations due to any potential actions by our labor groups; weather conditions; and other risks and uncertainties set forth under Part I, Item 1A., Risk Factors, of UAL s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission. 1
JumpStart 2017 Update Operations Fleet / Product Network 2
JumpStart 2017 Update JumpStart 2017 Update Operations 3
Departure and completion performance top focus in 2017 Employee engagement Departure:00 1 63.6% Arrival:14 1 78.1% 81.3% 76.3% 56.0% 55.2% Tools & technology 2014 2015 2016 2014 2015 2016 Completion Factor 1 Mishandled bag ratio 2 Operational simplification 98.6% 98.7% 99.0% 3.67 3.21 2.60 Out and back flying 2014 2015 2016 2014 2015 2016 1 Mainline flights only 2 As reported to the Department of Transportation 4
Performance at industry leading levels heading into summer Mainline Operating Statistics April 1 through May 31 Rank UA AA DL WN Completion factor (%) 1 99.8 98.7 98.0 99.1 On-time departure D :00 (%) On-time arrival A :00 (%) On-time arrival A :14 (%) DOT MBR (April)* 1 69.7 68.0 60.6 52.5 1 68.9 64.8 61.5 52.1 1 82.1 77.7 73.6 67.5 1 2.12 2.81 3.04 2.43 * Based on April's preliminary Air Travel Consumer Report 5
JumpStart 2017 Update JumpStart 2017 Update Fleet / Product 6
Flexible fleeting helps match domestic capacity with demand +50% (7) CRJ/145 (5) CR7/E75 +70% (5) CR7/E75 (3) 319/73G +50% (3) 319/73G (2) 738/9/753 +100% (2) 738/9/753 (1) 777-HD 7
United is increasing gauge throughout the network Change in gauge driven by upgauge and slimline programs Seats per departure New mainline served stations: AVL, CID, FAT, FCA, MFR, MYR, SAV, SBA, SYR, TYS 120 117 119 119 117 115 111 13.3% 110 105 105 100 FY15 FY16E FY17E FY18E FY19E FY20E 8
Airport and onboard experience United Clubs United Polaris High-profile hubs Domestic First Class Renovating 12 clubs in 2017 including upgrades at all hubs Upgraded food and beverage service New modern interior designs Adding square footage in key markets Custom designed direct-aisle-access lieflat seats Dedicated international business class lounge in 9 markets with pre-flight dining New sleep-focused amenities featuring bedding products from Saks Fifth Avenue EWR to be the best airport experience in New York City - Premium Lobby - Upgraded food, beverage and retail - Consolidated security - New Polaris Lounge Major investment in Los Angeles terminal Completed new Houston terminal C North New custom seats for narrowbodies Improved meal service and expanded meal windows Upgraded first class offering on two-cabin regional jets Enhanced premium transcontinental service 9
Transcontinental premium service enhanced, expanded this summer United will operate B777s on select SFO-BOS flights Enhancements bring premium experience more in line with international flights 180 degree flat-bed seats for a more relaxing and sleep enhancing flight Amenity kits and pillows provided by Saks Fifth Avenue Seasonal refreshed menus developed in partnership with The Trotter Project Economy Plus customers will enjoy a complementary hot fresh entrée, dessert and fruit, a pre-arrival snack and alcoholic beverages SFO-BOS joins EWR-LAX and EWR-SFO as a premium transcontinental route 10
Basic Economy going well Basic Economy roll-out - Launched in Minneapolis non-stop markets on April 18 th ; being rolled out to significant portion of domestic market On United.com, customers choose Basic Economy 30%-35% of the time with majority of customers selecting the standard Economy product Basic fare available all the way up the economy fare structure - Approach is different than peers - This means Basic Economy will always be available as long as there is at least one seat in Economy 11
JumpStart 2017 Update JumpStart 2017 Update Network 12
Network Highlights Summer schedule includes fifteen new domestic markets and expanded seasonal destinations Cross country comfort: United s new transcontinental service rollout Expanded to include SFO-BOS Increased SFO service to 18 destinations Growing international including EWR-EZE (Buenos Aires, Argentina), LAX-SIN (Singapore), and SFO-MUC (Munich, Germany) Complete deployment of reconfigured high density 777-200 aircraft 13
Great network potential United has hubs in the five largest markets Pacific Atlantic SFO (#3) LAX (#2) DEN (#9) ORD (#4) IAD (#5) EWR (#1) IAH (#12) Note: Ranked by origin and destination passengers (2015) Latin 14
Summer 2017 schedule introduces many changes Fifteen new markets start this summer including four new destinations Service additions at almost every hub Focus on improving network connectivity Uses regional feed to support mainline growth 15
Four new U.S. destinations from three hubs Champaign (CMI) Colombia (COU) Rochester (RST) Santa Rosa (STS) Illinois Missouri Minnesota California Chicago (ORD) 3X Begins June 8 EMB-145 Chicago (ORD) 2X Denver (DEN) 1X Begins August 1 CRJ-200 Chicago (ORD) 3X Begins June 8 EMB-145 San Francisco (SFO) 3X Begins June 8 CRJ-200 16
2017 consolidated capacity expected to grow 2.5% to 3.5% Consolidated capacity growth Year-over-year H/(L) FY17 capacity outlook Year-over-year H/(L) 2.5% - 3.5% 3.5% - 4.5% 2.5% - 3.5% 1.6% 1.4% 1.0% - 2.0% 0.3% (0.2%) Domestic International Consolidated (1.5%) (1.4%) 2011 2012 2013 2014 2015 2016 2017E 17