3. Safe Harbor Statement And
Non-GAAP Reconciliation
The information included in this presentation contains certain statements
that are “Forward-Looking Statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are subject to
a number of assumptions, risks and uncertainties related to the Company’s
operations and the business environment in which it operates. Actual results
may differ materially from any future results expressed or implied in such
Forward-Looking Statements due to numerous factors, many of which are
beyond the Company’s control, including factors set forth in the Company’s
Form 10-K for 2006 and other subsequent Company reports filed with the
United States Securities and Exchange Commission. Persons reviewing this
present-ation are cautioned that the Forward-Looking Statements speak only
as of the date made and are not guarantees of future performance. The
Company undertakes no obligation to update any Forward-Looking
Statements.
Information regarding reconciliation of certain non-GAAP financial measures
contained in this presentation is available on the Company's web site at
www.united.com/ir
4. We Are Pursuing Multiple Approaches
To Create Shareholder Value
Strengthening
The Core
Airline
Capital
Structure
Initiatives Return To
Shareholders
Unlocking Value
In Ancillary
Businesses
Consolidation
6. Our Strategic Plan Is A 5-Year Roadmap
To Create Value For All Stakeholders
We will be the global airline of choice for premium
customers, employees and investors
Investors
Customers
Employees
Safety
Safety
Balancing the needs of all stakeholders and
strengthening the core business
7. We Are Charting Our Own Course
To Create Value For Shareholders
• Strengthen the core airline
– Consistently delivering superior service
– Delivering differentiated products and services
– Building employees’ connection and
commitment to United
Five
Year – Developing new sources of revenue and
controlling costs
Plan
• Disaggregating business units
• Participate in consolidation given the right
opportunity
10. United’s Actions Produce Superior
Revenue Performance
Superior
= Revenue
Sales,
Performance
Mileage Plus
and Innovative
+ Revenue
Revenue Opportunities
Management
+ • Leveraging customer relationships
Effectiveness
• Identifying new revenue sources
Capacity
+ Discipline • Rational pricing
• Effective inventory management
Global
Network
• Matching supply with demand
s
lytic
• Elimination of unprofitable service
Ana
gor/
n/Ri
• Convenient service
utio
Exec
• Global reach
By
ered
• Profitable expansion
Pow
12. Network And Capacity Discipline
Are Critical To Success
Superior
= Revenue
Sales,
Performance
Mileage Plus
and Innovative
+ Revenue
Revenue Opportunities
Management
+ • Leveraging customer relationships
Effectiveness
• Identifying new revenue sources
Capacity
+ Discipline • Rational pricing
• Effective inventory management
Global
Network
• Matching supply with demand
s
lytic
• Elimination of unprofitable service
Ana
gor/
n/Ri
• Convenient service
utio
Exec
• Global reach
By
ered
• Profitable expansion
Pow
13. United Has A Strong Global Network
And Is The Second Largest U.S. Carrier
• Global Reach
• 225 Cities
• 31 Countries
• 3,568 Daily
Departures
• 5 Hubs
Source: OAG TME Feb 08
14. Combined With Star Alliance, United
Offers Unsurpassed Global Access
Total Capacity
(Billion ASMs)
748
748
15% Larger 652
652
34% Larger
557
557
Star Alliance Skyteam Oneworld
Star Alliance Skyteam Oneworld
808 640
897
Cities Served
17,200
Daily Flights 14,500 8,400
18.5%
28.1% 24.3%
Passenger Share
Source: Star Alliance, Q4 2007
15. New Partnerships Solidify United’s Position
As The Premier U.S. Carrier To China
• Flag carrier of China
• Service to 71 cities in China
HRB
• 39 international destinations
Beijing SHE
BAV
• 213 aircraft
INC DLC
TYN
China CGO
LHW TAO
NKG CZX
WUH
CKG
CTU
Shanghai
HGH
CSX
• Sixth largest carrier in China
KWE
KWL KHN
KMG FOC
• Service to 48 cities in China
CAN XMN
SWA
• 53 aircraft
SZX
NNG
Source: Airline Websites; OAG
Note: Application for membership for both airlines was accepted in 2007
16. Capacity Discipline: Matching Capacity
With Profitable Demand
Marginal capacity
decisions impact more than
Demand
marginal revenue
Capacity discipline
enables revenue
Profitable Demand management
Optimizes results
Price
17. Growing Internationally Where
Demand Remains Strong
UA International Capacity (Million ASMs)
80,000
R
5% CAG
60,000
40,000
20,000
2003 2004 2005 2006 2007 2008 (E)
Industry and United Revenue
Growth Rate of 16%
Source: United data; ATA (2003 – 2007)
18. We Are Taking Advantage Of Profitable
International Opportunities
% of Revenue By Region
2007
Los Angeles - Frankfurt
Los Angeles - Hong Kong
Dulles - Beijing
Dulles - Kuwait (Daily)
Dulles - Rome
International
Dulles - Rio De Janeiro (Seasonal) Domestic
50.1%
49.9%
San Francisco - Frankfurt 2nd Daily
San Francisco - Taipei
2008
Denver - London Heathrow
San Francisco - Guangzhou
Note: TME December 2007; International revenue includes domestic
portion of international itineraries
19. United Has The Ability To Grow
Internationally With Existing Fleet
Product
Reconfiguration
12%
Aircraft Returning Incremental
to Scheduled Capacity Growth
Service Potential
Increased
Operating
Efficiency
Note: Capacity change measured in ASMs
Hypothetical exercise – no commitments made
20. United Has Led The Industry
In Capacity Discipline
UA 2007 Domestic Capacity Growth
• Eliminate
UA H/(L) than Industry
marginal flights
• Utilize UAX to
reduce capacity
(1.8)%
but maintain
schedule
(4.7)%
(4.8)%
• Tailor schedules
(5.6)%
(6.0)%
to day of week
(6.6)%
demand
Q1 Q2 Q3 Q4 Q1 FY
2007 2007 2008 (e) 2008 (e)
2007
2007
Source: ATA carriers + WN mainline data; Financial statements and OAG
21. United Continues To Expand Its
Domestic Network
Domestic Non Stop Markets Served
402
398
389
373
364
2004 2005 2006 2007 2008
Note: 50 US states plus Canada mainline + UAX, excludes prorate and seasonal markets
Source: OAG
23. Superior Revenue Management
Is A Differentiator
Superior
= Revenue
Sales,
Performance
Mileage Plus
and Innovative
+ Revenue
Revenue Opportunities
Revenue
Management
Management
+ • Leveraging customer relationships
Effectiveness
Effectiveness
• Identifying new revenue sources
Capacity
+ Discipline • Rational pricing
• Effective inventory management
Global
Network
• Matching supply with demand
s
lytic
• Elimination of unprofitable service
Ana
gor/
n/Ri
• Convenient service
utio
Exec
• Global reach
By
ered
• Profitable expansion
Pow
24. Our Focus On Execution Is Taking
Us Down A Different Path
Differentiation
Similarities
Opportunity
Across Airlines
• Sophisticated inventory • Back-to-basics execution
management systems
• Margin-based pricing
• Consistent pricing actions
philosophies
• Enhanced segmentation
• Similar pricing tools
• State-of-the-art
• Pricing driven by proprietary tools
competitive matching
• Well funded and staffed
25. Back To Basics Approach Better
Facilitates Executional Excellence
Segment on Fundamentals
Grounded in
Fundamentals
Declare Targets and Actions Promotes
Thoroughness
Drives Consistency
Monitor and Adjust
Creates Transparency
Permits Accountability
Measure Results
27. We Are Utilizing Our Market And Product
Advantages To Price At A Premium
Fare Snapshot
New York (JFK) – Los Angeles (p.s.)
UA Fare Premium vs. Competitor (%)
UA Fare AA DL VX
Fare Type
Lowest First $2,483 315% 315% 453%
Lowest Unrestricted $ 812 123% 123% 123%
Lowest Restricted $ 264 56% 56% 56%
7% PRASM Growth
Source: January Published fares; FY 2007 revenues
28. Our Actions Have Resulted In A Steady
Improvement In PRASM Growth . . .
System YOY PRASM
United vs Industry Average
9.2%
8.9%
5.2%
4.8%
4.5%
4.0%
2.5%
2.3%
1Q 2007 2Q 2007 3Q 2007 4Q 2007
UA Adjusted (1) Industry ex UA
YOY Capacity
UA vs Industry (0.9) (0.9) (1.6) (2.9)
(1)UA
Adjusted for Mileage Plus under old accounting and special items
Source: Air Transport Association
29. . . . With Strong Results Across
The System
United 2007 YOY PRASM
14% 12.5% 11.8%
12%
8.5%
10%
8%
6%
3.8%
4%
2%
0%
Domestic Atlantic Pacific Latin
Year-Over-Year Improvement in All Entities
Source: Earnings releases of ATA carriers; UA adjusted for Mileage Plus
under old accounting; excludes 36 to18 month impact
All numbers are mainline only
30. Our Focus On Execution Extends
Into The Cargo Division
• Cargo integrated into route/
scheduling planning process
– Contributes up to 10%-15% of
revenue for some int’l routes
• Implementing state-of-the-art
cargo revenue management
system
– Phase 1 improved space
utilization
– Phase 2 (2008) will improve
cargo mix and yield
• Winning profitable new
business
– Regained U.S. domestic mail
contract after relinquishing
lower margin contract in
2H 2006
31. Continued Innovation Is The Key
To Outperforming Competition
• Improve segmentation tool
Formalize and • Standard work/playbooks
Sustain RM
• Continuous improvement
Process
• Talent development/recruitment
• Conditional revenue optimization
Next Generation
• Merchandizing considerations
System
Improvements
• Business models of the future
33. Leveraging Our Relationships With
Agency And Corporate Customers
Superior
= Revenue
Sales,
Performance
Mileage Plus
and Innovative
+ Revenue
Revenue Opportunities
Management
+ • Leveraging customer relationships
Effectiveness
• Identifying new revenue sources
Capacity
+ Discipline • Rational pricing
• Effective inventory management
Global
Network
• Matching supply with demand
s
lytic
• Elimination of unprofitable service
Ana
gor/
n/Ri
• Convenient service
utio
Exec
• Global reach
By
ered
• Profitable expansion
Pow
34. Effective Management Of Our B2B
Portfolio Increases High-Yield Traffic
Large Travel
Incentive >50% passenger revenue
Agencies &
Agreements
influenced via contracts
Distributors
and incentives
Nearly 20% of passenger
Large
Corporate Share revenue under direct
Corporate
Agreements
Buyers corporate contract
Yield for corporate
Individual contracted revenue
Experience
Corporate nearly double all other
Enhancers
Travelers
35. United’s B2B Sales Efforts Are Sharply
Focused On Improving Margin
Sales Discipline and Focus Margin Improvement
• Portfolio analysis and
management
• Strengthen high yield
• Contract modeling revenue core
• Disciplined account
management - and -
• Innovative B2B programs
• Reduce all sales and
and offerings
distribution costs
• New tools and enablers
• Quantitative goals and
measures
36. Our Sales Approach Is Process-Driven,
Analytical and Progressive
Proprietary Tools Focused Training
Defined Processes
Customer Concerns
• Why is United • Do we have a • What are my • Which • Did we make • Are we getting
contacting us? problem? options? supplier best the right value from this
meets our decision? decision?
• What can United • How large is it? • What decision
criteria?
offer to us? criteria should • How quickly will
• Does it justify
we use? • What are the we see results?
action?
risks?
• Which • Should we
• What is the
supplier best • Am I getting change?
perfect
meets our good value/
solution?
criteria? fair price?
1.Generate &
Process Stages
2.Develop Account Plans
Screen Leads
3. Develop 4.Tailor Value 6.Negotiate & 7.Implement 8. Maximize
5.Build Deal
Opportunity Proposition Close Program Value
• Identify • Understand • Customize • Build preliminary • Present • Enable • Enable
prospects customer value Deal based on proposal to maximum maximum value
buying process proposition Deal Building Plan customer contract creation through
Stage Objectives
• Screen prospects
and decision performance the Account
• Identify • Develop multiple • Help customer
• Assign sales
criteria (d.c.) through timely, Review process
potential scenarios and resolve
channel for
flawless
• Stimulate need barriers and finalize proposal perceived • Resolve service
qualified leads
implementation
for change develop risks & issues that
• Establish proposal
solutions barriers • Begin account threaten
• Collect presentation
development customer
customer travel • Maximize strategy • Achieve win-
perception of
data perceived fit win result
• Develop proposal
value
with d.c. discussion
materials
Quantitative Goals Pay for Performance Portfolio Management
INVESTMENT/PROFIT MATRIX
Data month:
ANNUALIZED
Incentive Compensation Scorecard for Lavallechaiken, Laurie
Nov/06
Territory Code: D_US_CC_E_A1 Terr Name: Milwaukee N, WI Close Scorecard
Sample Customer, LLC – Current Deal
CSA SP Listing TMC SP Listing SAM TMC SP Listing Contracting Listing Incentive Calculator Notes
Proposal 1 Proposal 2
Plan to Date Performance and Attainment
Performance Goal Service Share UA Share Goal Share Attainment Goal Weight
45%
74%
CSA Share Premium 7.4 pt 10.0 pt 22.8% 30.2% 32.8% 27%
154%
TMC Share Premium 5.9 pt 2.3 pt 19.7% 25.6% 22.0% 31%
128%
SAM TMC SP 10%
118%
Attainment on SP metrics 68%
40%
98%
Contracting (DVC, $000s) $6,350 $6,453 32%
Sample Customer, LLC
112%
Overall Attainment 100%
Quarterly Payout Incentive Plan Details
35%
Overall Attainment 112% Attainment Payout (% of Target)
DISCOUNTS AND AMENITIES (D&A)
250%
8
Payout (% of Target)
% of Target Payout 139.0% Less than 75% 0%
200%
Illustrative 4% payout for every 1% attainment
150%
Plan Target Payout $ 3,750
x 75% to 100%
above 75%
30%
100%
7
100% plus 3.33% payout for every 9
Plan-end Projected Incentive $ 5,211 100% to 130%
1% attainment above 100%
50%
Previous Quarter Payout 200% plus .147% payout for every
4
$ 1,875
- 130% to 300%
0% 1% attainment above 130%
in this Plan Period
12 2
0% 50% 100% 150% 200% 250% 300% 350%
Estimated Quarter Payout $ 3,336 19
More than 300% 225%
Attainment (%)
5
10
25% 15
Monthly Performance Trends 6
13
CSA Share Premium TMC Share Premium SAM TMC SP Attainment Contracting
8 175%
12
SAM TMC Attainment
$7,000
7 150%
10 $6,000
20%
6 125%
14
DVC (000s)
$5,000
8
TMC SP
CSA SP
5
11
100%
$4,000
4
6
75%
$3,000
3
4 50%
20
$2,000
2
2 25%
1 $1,000
18
0%
0 0 $000
15%
Jul Aug Sep Oct Nov Dec
Jul Aug Sep Oct Nov Dec Jul Aug Sep Oct Nov Dec Jul Aug Sep Oct Nov Dec
17
Performance Goal Performance Goal Performance 100% Performance Goal
10%
-20% -10% 0% 10% 20% 30%
DEAL CONTRIBUTION
37. Our Disciplined Approach Is Yielding
Positive Results With Large Agencies
Reduced Agency
Increased Agency
Incentive Costs
Revenue Performance
4.0
Revenue Share Premium*
3.0
14%
Cost of Sale
2.0
1.0
0.0
2005 2006 2007
2007
2006
*Share Premium = market share minus “fair share” (the amount of share United should
expect based on network and schedule alone)
Data displayed for portfolio of all assigned North America agencies
4Q2007 data contains actual October and November and estimated December data
38. We Are Adding Smart New Business
To Our Corporate Accounts Portfolio
Corporate Portfolio Share
Cumulative Corporate Customer
Premium2
Acquisitions ($M)
$450
12.0
$400 Net new acquisitions
Losses1
$350
Revenue Share Premium
11.5
$300
$250
11.0
$200
$150
10.5
$100
$50
$0 10.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1Q 2Q 3Q 4Q
2007
2006 2007
1) Not including purposeful walkaways
2) “Same Store” contracts with at least 18 months duration
39. We Are Now Applying This Approach
To Our Global Portfolio
Started In
EMEA & Asia North America
Late ’07/’08 ’05/’06
Late ’07/’08
Latin America
EMEA: Europe, Middle East, Africa
40. Strong Execution Provides Further
Opportunity To Increase Margin
United Revenue
Sales Management Margin
Engine Process
Agencies/
Distributors
Disciplined Disproportionate High Yield
Corporate
Commercial Revenue Share
Buyers
Relationships • Contract performance ↑
• Commissions ↓ Business
• Discount discipline ↑
Travelers
• Credit card costs ↓ • Middle market penetration ↑
• SG&A ↓ • Global accounts development ↑
42. Developing New Revenue Sources
And Leveraging Old Ones
Superior
= Revenue
Sales,
Performance
Mileage Plus
and Innovative
+ Revenue
Revenue Opportunities
Management
+ • Leveraging customer relationships
Effectiveness
• Identifying new revenue sources
Capacity
+ Discipline • Rational pricing
• Effective inventory management
Global
Network
• Matching supply with demand
s
lytic
• Elimination of unprofitable service
Ana
gor/
n/Ri
• Convenient service
utio
Exec
• Global reach
By
ered
• Profitable expansion
Pow
43. Mileage Plus Is Key To United’s
Revenue Performance
Core Program Strengths
Core Program Strengths
• Attractive awards
• Attractive awards
– World-wide travel
– World-wide travel
– First and Business Class
– First and Business Class
– Upgrades
– Upgrades
– Star Alliance award seats
– Star Alliance award seats
• Wide-range of accrual
• Wide-range of accrual
opportunities
opportunities
• Surplus inventory economics
• Surplus inventory economics
• Large enrolled and active
• Large enrolled and active
membership
membership
Over 1000+ Mileage Plus Partners
Over 1000+ Mileage Plus Partners
44. Mileage Plus Has Millions Of
Engaged Members With Highly
Attractive Demographics
Indexed to National Average
300 General
268
262
Members
250 Elite
Members
192
186
200
167
145
150
100
National
Average
50
0
Average Household Premium Credit Card Hold Advanced Degree
Income Holder
Source: Compiled from Mileage Plus and Acxiom data
45. Our Members Are Very Loyal Customers
For United And Partners
2007 United Passenger Revenue Miles Issued to Third-Parties Excluding
Airline Partners(1) Indexed to 2003
By Membership and Status
133% 141%
100% 111% 119% 133% 141%
100% 111% 119%
Total revenue as a % of 2003
Total revenue as a % of 2003
CAGR= 9%
Elite Members
31%
Non-
Members
46%
General
Members
23%
2003 2004 2005 2006 2007
2003 2004 2005 2006 2007
Generates Disproportionate Revenue Steady Sales Growth
Generates Disproportionate Revenue Steady Sales Growth
(1)Excludes Mileage Sales to United and its Airline Partners
46. Miles Issued To Partners Growing Faster
Than Miles Issued To United Passengers
Miles Issued
Compound Annual Growth Rate
2007 Miles Issued
2003 to 2007
Other
Airlines 10%
10% 9%
5%
United
47%
Non
Airline
43%
United Non Airline Other Airlines
Nearly $1B in 2007 Non-Airline Mileage Sales
Nearly $1B in 2007 Non-Airline Mileage Sales
47. We Are Innovating To Deliver
Better Outcomes For Members,
Partners And United
• We are setting higher expectations for future credit card
spend growth
– Excellent alignment and support from Chase and Visa
• We are applying increased business discipline to the
issuance of miles
• We are increasing redemption options for members at
reasonable unit cost
– Increases member satisfaction and accelerates
revenue recognition
• We are building momentum to increase breadth and
depth of relationships with both members and partners
48. Developing New Revenue Sources
And Leveraging Old Ones
Superior
= Revenue
Sales,
Performance
Mileage Plus
and Innovative
+ Revenue
Revenue Opportunities
Management
+ • Leveraging customer relationships
Effectiveness
• Identifying new revenue sources
Capacity
+ Discipline • Rational pricing
• Effective inventory management
Global
Network
• Matching supply with demand
s
lytic
• Elimination of unprofitable service
Ana
gor/
n/Ri
• Convenient service
utio
Exec
• Global reach
By
ered
• Profitable expansion
Pow
49. Merchandising Will Increase Revenue
And Improve Customer Satisfaction
• New product and service options allow customers to
tailor their travel experience
– Allows customers to buy services they value rather
than paying for those they don’t
• Will generate significant top and bottom line growth,
as evidenced with seat up-sell
• Merchandising does not depend on share shift; it
should therefore be accretive to the industry
50. Strong Up-sell Results Demonstrate
Merchandising Potential . . .
Economy Plus and Premium Cabin
Up-sell Revenue
$250
$220M
$200
$167M
$ Millions
$150
$99M
$100
$42M
$50
$0
2005 2006 2007 2008F
Kiosk
Other Expected Revenues
united.com
51. . . . As Do Our Changes To Food Service
In Domestic Economy Cabins
Domestic Food Economics
$103M
$100
$75
$ Millions
$50
$19M
$25 $16M
$0
$0
Cost Revenue Cost Revenue
2000 2007
52. Customers Indicate A Strong Appetite
For New Products And Services
Willing To Purchase Enhancements To
Improve Their Travel Experience
100
83
73
80
62
Percent
56
Percent
60
40
20
0
Non-Member General Elite Super Elite
Member
53. New Products Are Expected To Generate
$400M Annual Revenue At Steady State
Steady State Revenue Potential
120
$ Millions $110M
100
$80M
80
$ Millions
$60M $60M
60
$40M
40
$30M
$20M
20
0
Product 1 Product 2 Product 3 Product 4 Product 5 Product 6 Product 7
54. Additional Value Can Be Created By
Unbundling Today’s Core Offering
• We recently reduced the domestic Segmentation for Changes
Segmentation for Changes
to Baggage Allowance
checked baggage allowance for to Baggage Allowance
non-elite customers from 2 to 1
• We consider a number of factors Elites Non-Elites
in making these changes:
– Protect elite frequent flyers
– Protect elite frequent flyers
Refundable No Change No Change
– Offer the ability to buy back
– Offer the ability to buy back Tickets
eliminated services
eliminated services
Domestic
• If adopted by the industry, our
• If adopted by the industry, our Economy No Change Reduced
bag initiative is worth more than Non-Refund-
bag initiative is worth more than Allowance
able Tickets 2 to 1
$100M to United
$100M to United
55. Merchandising Will Produce $1 Billion
In Annual Revenue Within Five Years
• Seat up-sell can double to $300M or more per year
• Unbundling products that have traditionally been part
of the basic offering can generate $200M-$300M
• The initial set of seven new products are expected to
generate $400M per year or more
• Several initiatives will be launched by Fall 2008, with
full deployment over the next few years
59. Our Goal Is To Create A Best-In-Class
Experience For Premium Customers
• Use unique portfolio of
products and services to
target distinct customer
segments
Capture
• Win the premium “travel
greater share
experience” by creating
of premium
best-in-class customer
customers
experience on and off
the plane
• Enroll frontline to ensure
efforts are sustainable
Best-in-class experience worth >$200M in gross revenue
60. Premium Customer Contribution To
Industry Revenue Continues To Grow
• Our segmentation work shows that Premium
Customers are growing in size and contribution
Industry Share of Revenue as
Estimated by Market Research
CAGR 16%
50%
45%
40%
35%
30%
25%
20%
15%
Premium
2004 2005 2007
Source: United Market Research
61. Best-In-Class Service Must Be
Built On A Foundation Of Strong
Operating Performance
• Engaging and Thoughtful Service
• Relaxing Experience
Creating
Creating
Memorable
Memorable • Personalized Rewards
Experiences
Experiences
• Easy Processes
• Helpful Employees
Meeting And Exceeding
Industry Standards • Problem Resolution
• Reliability
Consistently Getting
Consistently Getting
• Cleanliness
The Basics Right
The Basics Right
• Courtesy
Safety
Safety
62. We Have A Clear Strategy To Create
A Best-In-Class Customer Experience
Process Employee Signature Best-In-Class
Improvements Service Service Customer
+ + =
Delivery Elements Experience
To improve the To improve To create lasting
basics and customer service customer impressions
exceed industry through tools, with game-changing
standards training and front- initiatives
line leadership
64. Best-In-Class Customer Experience Starts
By Getting The Fundamentals Right
Process Employee Signature Best-In-Class
Improvements Service Service Customer
+ + =
Delivery Elements Experience
To improve the To improve To create lasting
basics and customer service customer impressions
exceed industry through tools, with game-changing
standards training and front- initiatives
line leadership
