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United is 'transforming' and 'building a new airline', 1% capacity reduction forecast for 2013

8-Oct-2012 1:00 PM

United Continental Holdings MD corporate finance Ted North stated (05-Oct-2012) United is "transforming" and the company is "building a new airline". As part of this, are the following priorities:

  • Broad, business-centric network: Mr North said the carrier has hubs in the four largest US cities and serves "the most destinations of any global carrier";
  • Capacity discipline and business flexibility: Mr North said "maintaining capacity discipline is core to our long-term success". The carrier is now reducing capacity in response to the economic outlook with capacity (ASMs) forecast to decline 0.75% to 1.7% in 2012 and by 1% in FY2013;
  • Strengthening the balance sheet. The carrier said its liquidity position is "solid". The carrier has USD4 billion of non-aircraft debt coming due through 2016;
  • Investing in people, customers, products and technology;
  • Growing high-margin businesses. 

He also noted the carrier has "industry-leading unit revenue", and is "generating solid earnings despite elevated fuel prices". The carrier achieved its 10% return on invested capital (ROIC) goal in most recent twelve month period despite elevated fuel
prices. [more - original PR]