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United Continental Holdings issues 1Q2012 and full year revenue and traffic outlooks

30-Mar-2012 12:30 PM

United Continental Holdings issued (29-Mar-2012) the following investor update for 1Q2012 and full year 2012.

Capacity:

  • 1Q2012:
    • Consolidated domestic available seat miles (ASMs) expected to decrease 2.5%;
    • Consolidated international ASMs to increase 3.5% year-over-year;
    • Consolidated system ASMs to increase 0.1% year-over-year;
  • Full year:
    • Consolidated system ASMs forecast to decrease between 0.5% and 1.5% year-over-year.

Revenue guidance:

  • 1Q2012:
  • Consolidated passenger revenue per ASM (PRASM) to grow between 4.0% and 5.0% year-over-year;
  • Cargo and other revenue to be between USD1.07 billion and USD1.11 billion;

Non-fuel expense guidance:

  • 1Q2012 consolidated cost per ASM (CASM) to increase 1.5% to 2.5% year-over-year;
  • United Continental expects to record approximately USD65 million of third-party business expenses in 1Q2012;

Fuel expenses:

  • Consolidated fuel price, including the impact of cash settled hedges, estimated at USD3.35 per gallon for 1Q2012, based on the forward curve as of 21-Mar-2012.

Non-operating expense:

  • 1Q2012 non-operating expenses of USD180 million-200 million;
  • Capital expenditures and scheduled debt and capital lease payments;
  • 1Q2012 gross capital expenditures of approximately USD410 million and USD270 million of net capital expenditures, excluding USD33 million of net purchase deposits paid;
  • 1Q2012 scheduled debt and capital lease payments of USD400 million and prepayments of approximately USD100 million of debt.

Liquidity Position:

  • 1Q2012 expected to end with approximately USD7.7 billion in unrestricted liquidity, comprised of approximately USD7.2 billion of unrestricted cash, cash equivalents and short-term investments and USD500 million in undrawn commitments under its revolving credit facility.

Taxes:

  • Expects to record "minimal" cash income taxes in 2012.

Advance booked seat factor (next six weeks, compared to same period in 2011):

  • Mainline domestic: +1.6 ppts;
  • Mainline international: +0.2 ppts,
  • Mainline Atlantic: -1.4 ppts;
  • Mainline Pacific: +1.5 ppts;
  • Latin America: +1.0 ppts;
  • Regional: +1.7 points. [more - original PR]