Continental Ag · XETR:CON
Continental — Continental Airlines — Next Generation US Airline Conference 2009
22 slides from Continental's conference presentation, Dec 9, 2009
Slide 1: Proud New Member of the Star Alliance
Proud New Member of the Star Alliance Next Generation US Airline Conference December 9, 2009
Slide 2: Gerry Laderman, Senior VP Finance & Treasurer
Gerry Laderman Senior VP Finance & Treasurer
Slide 3: Forward-looking statements
Please note that the discussion today contains forward-looking statements that are not limited to historical facts, but reflect the company’s current beliefs, expectations, or intentions regarding future events. Actual results could differ materially from those described in the forward-looking state
Slide 4: Competitively Well Positioned
Competitively Well Positioned • Professional, dedicated team of employees with a strong company culture • Strong, globally well-balanced network and strategically located hubs • Consistent, reliable product and service • Modern, fuel-efficient fleet • Star - the world’s most comprehensive global all
Slide 5: Strong Global Network and Strategically Located Modern Hubs
Strong Global Network and Strategically Located Modern Hubs % of 2009E Capacity US Domestic Atlantic Latin Pacific • New York The world’s largest market 100% 10% • Houston 15% Third largest U.S. hub, with optimal 80% connections to Latin America and the U.S. 60% 26% • Cleveland Midwest hub providing
Slide 6: Enhancing our Premium Product
Enhancing our Premium Product Nose to Tail DirectTV 180 BusinessFirst Flat Bed Seat Domestic Narrowbody Fleet International Fleet In-seat Power Exit Row Forward Nose to Tail AVOD 757-200 & 777 Fleet
Slide 7: Operational Reliability and Consistent Delivery
Operational Reliability and Consistent Delivery % of Flights Completed 100% 99% 98% 97% 96% 95% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009* Continental Industry Source: Department of Transportation (D.O.T.); Industry = D.O.T. reporting airlines excluding CAL *2009 YTD 3Q09
Slide 8: The Fleet For the Mission
The Fleet For the Mission • The right-sized aircraft for the mission allows us to take advantage of business opportunities across the globe • Next generation aircraft equipped with winglets are highly fuel efficient • Common fleet types reduce training costs and provide scheduling flexibility Missio
Slide 9: Modern, Fuel Efficient Fleet
Modern, Fuel Efficient Fleet Reduction in Fuel Burn % Reduction in Gal / 1000 RPMs vs 1997 0.0 % (1.8)% (8.4)% (15.0)% (15.2)% (17.3)% (22.9)% (25.5)% (30.0)% (28.1)% (31.5)% (34.1)% (35.1)% (35.7)% (37.9)% (45.0)% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009E Fuel Efficiency by Aircr
Slide 10: Leveraging Strategic Route Opportunities
Leveraging Strategic Route Opportunities 2010E Year-over-Year % Change in Capacity by Region 8.0% 6.0% ~5% - 6% 4.0% ~2% - 3% ~1.5% - 2.5% 2.0% About Flat 0.0% Mainline Domestic Mainline International Mainline Consolidated 2010 growth primarily due to run-rate of strategic route additions in 2009: •
Slide 11: Member of the World's Most Comprehensive Global Alliance
Member of the World’s Most Comprehensive Global Alliance Daily Departures 13,133 8,030 19,534 Destinations 856 ~700 1,070 * * * * Source: August 2009 OAG for oneworld and other data from alliance websites. * Future Partners
Slide 12: Star Provides Enhanced Customer Benefits
Star Provides Enhanced Customer Benefits Daily Departures 13,133 19,534 Destinations 856 1,070 Lounges ~415 954 Lounge Access: President Club Members Select locations YES CO Platinum & Gold Elites* NO YES BusinessFirst Customers Select locations YES Frequent Flyer rewards via continental.com 4 partn
Slide 13: RASM Premium to the Industry
RASM Premium to the Industry Revenue per available Seat Mile – (RASM)* Twelve Months Ended September 30, 2009 9.89 10.00 9.75 Revenue per ASM ( cents) Industry** 9.02 9.03 9.00 8.81 8.00 7.79 7.00 UAUA CAL AMR DAL LCC * See Appendix ** Industry includes all carriers shown
Slide 14: Growing Ancillary Revenue Streams
Growing Ancillary Revenue Streams • Presidents Club • DIRECTV • Baggage Fees • Hotel / Car “Trip Additions” • Air • Booking Fees • Vacation Packages Transportation • PetSafe • In-flight Amenities • Co-Branded Marketing • Targeted Marketing Core Product Product Product Unbundling Enhancement
Slide 15: Leading Margin Performance
Leading Margin Performance EBITDAR Margin* Third Quarter 2009 14% 13.2% 12% 11.1% Industry** 10.2% 9.4% 9.9% 10% 8% 5.8% 6% 4% 2% 0% CAL DAL UAUA LCC AMR * See Appendix ** Industry includes all carriers shown
Slide 16: CAL Liquidity vs. Industry
CAL Liquidity vs. Industry 3Q09 Cash as a % of LTM Revenue* 22% 20.2% 19.7% 18.9% 18% 15.1% 14% 11.7% 10% AMR CAL DAL UAUA LCC *Cash balances include unrestricted cash, cash equivalents, and short-term investments. Excludes restricted cash
Slide 17: 2009 Aircraft Financing
2009 Aircraft Financing In late October, Continental raised $644MM in the EETC market at a blended interest rate of 7.5% CAL UAUA AMR AMR UAUA CAL UAUA DAL 2009-1 Spare 2009-1 2009-2 2009-1 2009-2 2009-2 2009-1 Parts Secured Issue June - 09 July - 09 July - 09 July - 09 Oct - 09 Oct – 09 Nov - 09 No
Slide 18: Appendix: Footnotes
Appendix Footnotes 1) EBITDAR (Earnings Before Income Tax, Depreciation and Amortization, and Rent) margin data excludes special items; EBITDAR data derived from information disclosed in company reports (see GAAP to Non-GAAP reconciliation on Continental’s website for details). EBITDAR Margin calcul
Slide 19: Slide 19
Slide 20: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Three Months Ended September 30, 2009 Earnings Before Income Tax, Depreciation, Amortization, and Rent (EBITDAR) Margin: EBITDAR Margin formula: EBITDAR/Operating Revenue ($Millions) CAL DAL UAUA LCC AMR Industry** Operating Income / (Loss) - GAAP 61 204 88 6 (194) 16
Slide 21: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION Last Twelve Months Ending September 30, 2009 Length of Haul Adjusted Revenue per Available Seat Mile (RASM): RASM formula: Yield * Load Factor Length of Haul (LOH) formula: (Revenue Passenger Miles (RPMs) / Enplanements) * 1000 LOH Adjusted RASM formula: RASM * (Carri
Slide 22: EBITDAR - Special Items Excluded
EBITDAR - Special Items Excluded AMERICAN: 3Q09: $94MM charge related to sale of certain aircraft and the grounding of leased A300 aircraft prior to lease expiration CONTINENTAL: 3Q09: $9MM charge related to unused facilities, $6MM aircraft related charges, and $5MM severance related charge DELTA: 3
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