UAL Q4 and Full Year 2014 Earnings.

Discussion in 'United Airlines | MileagePlus' started by davef139, Jan 22, 2015.  |  Print Topic

  1. davef139

    davef139 Gold Member

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    Link to press release
    http://ir.unitedcontinentalholdings.com/phoenix.zhtml?c=83680&p=irol-newsArticle&ID=2009546

    As usual will notate highlights.

    Some of the highlights from press release. Notable only a 250million loss on m2m hedges, expected about 400. Call at 10.30EST

    • UAL earned a 12.9 percent return on invested capital in 2014.
    • United's consolidated passenger revenue per available seat mile (PRASM) increased 1.6 percent for full-year 2014 compared to full-year 2013.
    • Full-year 2014 consolidated unit costs (CASM), excluding special charges, third-party business expenses, fuel and profit sharing, increased 1.3 percent year-over-year on a consolidated capacity increase of 0.3 percent. Full-year 2014 CASM, including those items, decreased 1.6 percent year-over-year.
    • In 2014, United returned approximately $320 million to shareholders as part of its previously announced $1 billionshare buyback program. In addition, throughout the year, United spent $310 million to retire convertible debt that was convertible into approximately 5.8 million shares of UAL common stock.
    • Employees earned $235 million in profit sharing for full-year 2014, which will be distributed on Feb. 13.
    • UAL ended the year with $5.7 billion in unrestricted liquidity.
     
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  2. davef139

    davef139 Gold Member

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    Call started.
     
  3. davef139

    davef139 Gold Member

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    Cap growth will be less then GDP, not dictated by low oil.
    Plans to return some cash to shareholders and reduce debt due to extra cash due to oil.
     
  4. Wandering Aramean
    Original Member

    Wandering Aramean Gold Member

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    E75s driving reliability and ancillary on RJ fleet. Up 15% ancillary with E+/F sales.
     
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  5. davef139

    davef139 Gold Member

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    Q4-2014 DEN/IAH rebanked, connecting yields increase YoY
    Q1-2015 ORD to be done

    Frequency consolitdation happened in Q4 from 50seat RJ.
    Gauge increase of 4%, departures decrease 6%
    6% gauge for 2015, and 4% departure decrease for 2015
    examlpes
    ORD-CLE
    ORD-PHL
    DEN-MSP

    39 50seat removed
    replaced by E175's Adding more ancilary revenue
    Ancil rev 15% greater on the 175 vs 50seater

    51 50seaters leaving by end of 15
    repalced by 39 E175
     
  6. Wandering Aramean
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    Wandering Aramean Gold Member

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    $3bn in Ancillary in 2014; 22% increase in E+ revenue in Q4 YoY
     
  7. davef139

    davef139 Gold Member

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    Corp Rev Up 4% YoY
    Ancilary rev up 10% per pax
    3bln in 2014 Ancilary Rev
    E+ sales up 22% from Q4-2013
    wifi should be mostly complete by summer and streaming video by end of year.
     
  8. Wandering Aramean
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    Wandering Aramean Gold Member

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    Cuts in Asia regional flying and redeployment of aircraft described by Compton as "margin acreetive." Seems they're happy w/o BKK.
     
  9. davef139

    davef139 Gold Member

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    300 aircraft have slimline, 85% complete by end of 2015. :rolleyes:
    Most of capacity growth on network is due to install of seats
     
  10. davef139

    davef139 Gold Member

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    2 initiatives are in place
    for departures and arrivals.

    Trying to create a way to allow pilots to park themselves, so no rampers are needed
    Creating a gate management tool to help make sure you have an open gate when you arrive
     
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  11. Wandering Aramean
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    Wandering Aramean Gold Member

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    Working on trial/deployment of system to guide airplanes into gates without rampers. One of several efforts to improve on-time performance.
     
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  12. davef139

    davef139 Gold Member

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    2014 was first full year of proj quality
    380mil savings of the 2bln, 25% better then expected

    improved productivity in Q4 3%
    15-20% improvement by 2017
     
  13. davef139

    davef139 Gold Member

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    Oil.

    237mil hedge loss in Q4, 80mil was 2015 futures closed early
    190mil loss expected for Q1-2015
    2015 open hedged past Q1 are at 680mil loss.
     
  14. davef139

    davef139 Gold Member

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    Aircraft deliveries expected 2015
    11x789
    23x739ER
    2x737
    Missed the 175 count
     
  15. Wandering Aramean
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    Wandering Aramean Gold Member

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    49

    The 73Gs are used.
     
  16. davef139

    davef139 Gold Member

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    Currency Hedging the Euro 60% at about 1.22
    No comments 773 except they have ability to sub planes on contracts. They would not be incremental aircraft
     
  17. Wandering Aramean
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    Wandering Aramean Gold Member

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    Says time to retire 2x 744s due to impending heavy mx checks.

    "The rumored 77s that we're looking at are NOT incremental aircraft."
     
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  18. Wandering Aramean
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    Wandering Aramean Gold Member

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    "We're going to run the airline for profit maximization and we're not going to make decisions on a short-term basis." -Smisek
     
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  19. davef139

    davef139 Gold Member

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    Hmm wow
    UA feels stock is still very undervalued, when asked about possible dividend and buybacks are best route.
     
  20. HeathrowGuy
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    HeathrowGuy Gold Member

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    About time! Here's hoping United and Boeing can get them in the fleet by next year at the latest.
     
  21. Wandering Aramean
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    Wandering Aramean Gold Member

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    I don't think there are many 77W delivery slots available that quickly, but I could be wrong.
     
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  22. rggale
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    rggale Gold Member

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    Someone just admitted they "could be wrong" on the Internet.

    Say it ain't so.

    (FWIW I don't think you're wrong, but if they're really desperate they could swap slots with someone who's in the opposite position and looking to defer.)
     
  23. Garp74

    Garp74 Gold Member

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    What does "incremental aircraft" mean in this context?? The term doesn't grok for me.
     
  24. genemk2

    genemk2 Gold Member

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    I think they mean that they won't add capacity -- replacements to current aircraft (i.e. the 747s).
     
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  25. Wandering Aramean
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    Wandering Aramean Gold Member

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    Basically they do not intend for these aircraft to grow the fleet size. If they take any new 77Ws they will be offset against some other planned future growth or by accelerating retirement of another plane.
     
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