United Continental Holdings Inc (NASDAQ:UAL) Q2 2019 Earnings Conference Call - Final Transcript

Jul 17, 2019 • 10:30 am ET


United Continental Holdings Inc (NASDAQ:UAL) Q2 2019 Earnings Conference Call - Final Transcript


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Good morning, and welcome to the United Airlines Holdings' Earnings Conference Call for the Second Quarter of 2019. My name is Brandon, and I'll be your conference facilitator today. Following the initial remarks from management, we will open the lines for question. [Operator Instructions]

I will now turn the presentation over to your host for today's call, Mike Leskinen, Vice President of Corporate Development and Investor Relations. Please go ahead, sir.

Mike Leskinen

Thank you, Brandon. Good morning, everyone, and welcome to United's second quarter 2019 earnings conference call. Yesterday, we issued our earnings release and separate investor update. Additionally, this morning, we issued a presentation accompanying this call. All three of those documents are available on our website at ir.united.com. Information in yesterday's release and investor update, the accompanying presentation and our remarks made during this conference call may contain forward-looking statements, which represent the Company's current expectations or beliefs concerning future events and financial performance.

All forward-looking statements are based upon information currently available to the Company. A number of factors could cause actual results to differ materially from our current expectations. Please refer to our earnings release, Form 10-K and other reports filed with the SEC by United Airlines Holdings and United Airlines for a more thorough description of these factors.

Also, during the course of our call, we will discuss several non-GAAP financial measures. For a reconciliation of those non-GAAP measures to the most directly comparable GAAP measures, please refer to the tables at the end of our earnings release, investor update and presentation, copies of which are available on our website.

Joining us here in Chicago to discuss our results and outlook are Chief Executive Officer, Oscar Munoz; President, Scott Kirby; Executive Vice President of Human Resources and Labor Relations, Kate Gebo; Executive Vice President and Chief Commercial Officer, Andrew Nocella; and Executive Vice President and Chief Financial Officer, Gerry Laderman. In addition, we have other members of the team in the room available to assist with Q&A.

And now, I'd like to turn the call over to Oscar.

Oscar Munoz

Thank you, Mike, and my thanks to all of you for joining us today. We're very excited to highlight yet another successful quarter for United Airlines. And I could restart with a couple of headlines. Thanks to the hard work of United's team. We delivered a third consecutive quarter of strong adjusted pre-tax margin growth, improving 200 basis points this quarter and accelerating nice on our trajectory towards meeting our 2020 adjusted EPS goal.

On the operational front, although as you know, and obviously, we are an outdoor sport and tough weather at our hubs is nothing new. But weather combined with issues related to Pakistani and Iranian airspace, as well as the 737 MAX grounding, still didn't knock us off our game. We continue to deliver top tier operational performance with strong D0 results across the system, and we were the top performer at Chicago O'Hare, Denver, Los Angeles, San Francisco versus our large hub competitors in those