8-Oct-2012 1:00 PM

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

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]

Want More News Like This?

CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More