Nov 19 United Continental Holdings, the
parent company of United Airlines, said on Tuesday its costs
will fall by $2 billion every year and that it may issue
dividends by 2015, as the airline cuts fuel consumption and
sourcing costs and increases productivity.
At its first investor day as a joint company after United's
merger with Continental, the airline said it aims to increase
pre-tax earnings by two to four times the current level over the
next four years and "to generate sufficient cash to begin
allocating capital to shareholders by 2015."
Chicago-based United Continental Holdings has been lagging
the industry on important performance points. Last month, the
company missed quarterly profit estimates as the airline still
struggled to consolidate itself nearly three years after a
merger that created the world's biggest airline.
United has been under pressure from investors after rival
Delta Air Lines said in May it plans to return $1
billion to shareholders over the next three years. The airline
has been chalking out plans to improve its image among flyers,
including training employees for better customer service,
launching a faster boarding system and improving its food menu.
The airline also plans to increase ancillary revenue by
approximately $700 million, with a goal of generating more than
$3.5 billion in ancillary revenue by 2017. Ancillary revenue is
revenue from non-ticket sales, like baggage fees and food sales.
United, the only American carrier to use the Boeing 787
Dreamliner, said it will use the aircraft to service new
markets, but did not mention which ones. The company previously
announced service from San Francisco to Chengdu, China.