United Airlines Q2 2013 Earnings Call

Discussion in 'United Airlines | MileagePlus' started by davef139, Jul 25, 2013.  |  Print Topic

  1. davef139

    davef139 Gold Member

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    Today July 25th United has a quarterly earnings call and earnings release. I will transcribe highlights as usual.

    You can also listen in via internet stream. via ir.united.com

    As earnings hit the wire here are some highlights from the news.

    • 76.7 ontime arrival rate, 4million in bonuses paid out
    • 75% of its customer svc training program is done (plans laid out earlier this year)
    • 3 new dots added (Dickinson ND, Ft McMurray, Alberta CA, Santa Fe NM)
    • Will be 787-10 Launch Customer Increasing order
    • A350s delivery expected in 2018
    • Six 739ERs recieved, removed two 752's last five 735's and last give 762's
    • 100% and only carrier to be lie flat and ondemand entertainment in premium cabins for long-haul intl flights from the US
    • 57 wifi enabled aircraft, installing at rate of 25/month in 2013
    • 200th aircraft with live tv introduced
    • 20yr lease for EWR signed and invest 150million in the hub.
    • 6months of 2013, UA recorded 18million charge for 787 grounding.
    Disclaimer: I hold put options against UAL on various strike points.
     
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  2. davef139

    davef139 Gold Member

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    Quick Rev and Pax Info (Quarterly) (over last quarter)
    Mainline
    Pax: 23592 - (-5%)
    Rev Pax Miles: 46720 - (-2.1%)
    ASM: 55009 - (-2.4%)
    Regional
    Pax: 12360 (+0.9%)
    Rev Pax Miles: 6861 (+1.3%)
    ASM: 8242 (-0.3%)
    Load Factor: 83.2% (+1.3pts)
    Cargo Ton Mile: 573 - (-9.2%)
    Loads
    Mainline: 84.9%
    Domestic: 86.8%
    International: 83.1%
    Pax Rev per ASM: 12.41c (+0.7%)
    CASM: holind fuel rate and profit sharing constant ex spec charges and 3rd party biz exp: 13.87c (+5.2%)
    Avg Fuel incl Hedges: 301.8c (-8.4%)
     
  3. davef139

    davef139 Gold Member

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    And it starts...
     
  4. davef139

    davef139 Gold Member

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    80% completed cust training called "its our job" done by Q4, doesn't match to 75% on news rls.
    resumed negociations this quarter with various unions.
     
  5. davef139

    davef139 Gold Member

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    7100 flat bed seats on air
    streaming video on aircraft starting end of year
    new PS will be all retrofitted by end of year
    26 airports use new boarding process all by end of year
    60% reduction in boarding delays
    next UC remodel is SAN
     
  6. davef139

    davef139 Gold Member

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    bad weather problems in Q2 42days?
    25% higher then avg on bad weather delays
    37% reduced mx cancels YoY
     
  7. davef139

    davef139 Gold Member

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    Q3 Cap decline 0.4% to 1.4% YOY
    Q4 Cap Gain due mostly to Sandy
    92% mainline has E+
     
  8. davef139

    davef139 Gold Member

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    mioble baording pass scanning at all airports by end of year, first us carrier to do so.
    ^ there are some that dont?
     
  9. davef139

    davef139 Gold Member

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    Saver? I missed something but it sounded like a frontend or a plan for the way they to do offerings to customers
    Talk of different offers for different customers along with profitability of customers and added services vary. This sounds like the reasoning of the people who complain about the cheap TODs
     
  10. Mackieman
    Original Member

    Mackieman Gold Member

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    Very tiny outstations. GSP didn't get it until the last year or so, but yeah.
     
  11. davef139

    davef139 Gold Member

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    EArly, programs allowing early retirement, sounds like needs union ratification

    Froze pension plan for admin and mgmt, and added a new contribution plan.

    738/9 will get split scimitar winglets 2% fuel gain.

    140 current widebodys
    avg age 15years?
    94widebodys on order in 12years

    752 replaced by 739ER, 2million benefit per year due to being more effcient
    73 domestic 757s reitred by 2015

    all152 A319/320, slimline seats being added = more legroom will extend life of aircraft
     
  12. davef139

    davef139 Gold Member

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    500million in debt/cap lease paid down
    7billion in unrestriced liq

    ...

    Q&A
     
  13. Mackieman
    Original Member

    Mackieman Gold Member

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    [​IMG]
     
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  14. davef139

    davef139 Gold Member

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    Corp Biz Increase
    2% Corp Rev Growth

    IT/Elect/Finance is upward trend
    MFGR/Defense is downward trend

    ##
    Rev Growth

    other rev grew 20%
    most of the rev is from selling fuel
     
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  15. colpuck
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    colpuck Gold Member

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    What are the PRASM numbers?
     
  16. davef139

    davef139 Gold Member

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    Consolidated for Q2 was 13.7 (+1.0%)
     
  17. davef139

    davef139 Gold Member

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    Media Q
    WSJ:

    Early Out Program (the early retirement thing)
    required JCBA's joint collective bargin agreemnt


    Retirement plans for admin/mgmt
    CO side was moved to a contribution plan

    AP:
    Q: Rev mgmt on ancillary products:
    Various pricepoints on E+
    37% growth for E+ sales
     
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  18. davef139

    davef139 Gold Member

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    and done, quite a few other Q and such which was mostly financials.
     
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  19. Rob
    Original Member

    Rob Gold Member

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    thanks for live-posting
     
  20. unavaca
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    unavaca Gold Member

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    Always look forward to your live posting each quarter. Thanks!
     
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  21. genemk2

    genemk2 Gold Member

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    Thanks for the live post!
     
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  22. Captain Oveur
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    Captain Oveur Gold Member

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    It's hard to think about United's future without wondering how they're going to pay for those new airplanes; now with the 739s and 787s and in 2018 with the A350s.

    I'm far from a financial analyst, but my gut feeling isn't positive for United. Feels like the current management is in over their head.
     
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  23. Seacarl
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    Seacarl Gold Member

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    24F seats and door 2 boarding, it is sad to see you go
     
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  24. Pizzaman
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    Pizzaman Co-founder

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    I'm not very familiar with the quantities UA has in order. Where do you see the issues?
     
  25. Mackieman
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    Mackieman Gold Member

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    Aircraft financing is a big industry and there's plenty of credit to go around for a company like UA. Moreover, as the new aircraft come online that are more efficient than those they replace, costs go down. It's exactly what every airline is trying to do.
     
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