Business Analysis of United Continental

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of United Continental

UNITED CONTINENTAL

Business Overview

United Continental Holdings, Inc., together with its subsidiaries, provides air transportation services in North America, the Asia-Pacific, Europe, the Middle East, Africa, and Latin America. The company transports people and cargo through its mainline and regional operations. As of December 31, 2016, it operated a fleet of 1,231 aircraft. United Continental Holdings, Inc. also sells fuel; and offers maintenance, catering, and ground handling services for third parties. The company was formerly known as UAL Corporation and changed its name to United Continental Holdings, Inc. in October 2010. United Continental Holdings, Inc. was founded in 1934 and is based in Chicago, Illinois.

United Continental

United Continental


R&P Rank: 74
Sector: Travel & Leisure
Industry:Airline
H.Q Location:Illinois
Website: www.united.com
Company Address:
JENNIFER L. KRAFT - WHQLD, 233 SOUTH WACKER DRIVE, CHICAGO IL 60606
Ph:312-997-8000

Business Analysis of United Continental

The Travel & Leisure Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how United Continental compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by United Continental to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of United Continental with an interactive chart.

  1. Revenue Growth: United Continental reported a revenue growth of -3.5% year-on-year during 2016. Airline Industry grew at -1.0% in the same period
  2. COGS share of Revenues: As a percentage of revenue, United Continental spent 34.5% of its total revenues on COGS. Airline industry average (COGS share of revenue) in the same period was 38.0%
  3. R&D share of Revenues: United Continental R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, United Continental spent 31.7% of its total revenues on Sales, Marketing, and General Administration (SG&A). Airline industry average SG&A spending in the same period was 29.6%
  5. Inventory share of Revenues: As a percentage of revenue, United Continental spent 2.4% of its total revenues on Inventories. Airline industry average Inventory spending in the same period was 2.2%
  6. Accounts Payable share of Revenues: As a percentage of revenue, United Continental invested 5.9% of its total revenues on Accounts Payable (A/P) Airline industry average Accounts Payable investment in the same period was 5.2%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, United Continental invested 3.2% of its total revenues on Accounts Receivable (A/R). Airline industry average Accounts Receivable investment in the same period was 3.8%
  8. PP&E share of Revenues: As a percentage of revenue, United Continental invested 63.8% of its total revenues on Property, Plants, and Equipments (PP&E). Airline industry average PPE investment in the same period was 73.7%
  9. Intangibles share of Revenues: As a percentage of revenue, United Continental invested 22.3% of its total revenues on Intangibles. Airline industry average Intangibles investment in the same period was 20.3%
  10. Net Margins: United Continental Net Margins in the year 2016 were 6.2%. Airline industry average Net Margins in the same period were 8.6%

Sector and Industry Association of United Continental

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

United Continental is associated with Travel & Leisure Sector and Airline Industry.

Travel & Leisure sector is comprised of the following industries: Airline; Car Rental Services; Casino; Hotels and Resorts; Recreational Services. The definitions for each of the industries is as follows:

  • Airline industry includes companies primarily engaged in providing passenger air transport.
  • Car Rental Services industry includes companies engaged in providing car rental services.
  • Casino industry includes providers of gambling and casino facilities.
  • Hotels and Resorts industry includes operators of hotels, motels, lodges, resorts, spas and campgrounds.
  • Recreational Services industry includes providers of leisure facilities and services, such as amusement and theme parks, fitness centers, cruise lines, movie theaters, racetracks, and sports teams.

Industry Ranking of United Continental

With $36.6 billion revenues, United Continental ranked number 3 of all the companies in the US Airline industry. There were a total of 10 public companies in the US Airline industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Airline industry by revenues during 2016 were:

  1. American Airlines ($40.2 billion)
  2. Delta Airlines ($39.6 billion)
  3. United Continental ($36.6 billion)
  4. Southwest Airlines ($20.4 billion)
  5. JetBlue Airways ($6.6 billion)
  6. Alaska Air Group ($5.9 billion)
  7. SkyWest ($3.1 billion)
  8. Hawaiian Holdings ($2.5 billion)
  9. Spirit Airlines ($2.3 billion)
  10. Allegiant Travel ($1.4 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of United Continentaland its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of united-continental

American Airlines (AAL) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

American Airlines Group Inc. with $40 billion revenues in the year 2016 was the number 1 Airline company. Read this report to know the top competitors of American Airlines and identify growth and cost optimization opportunities of American Airlines

Delta Airlines (DAL) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Delta Air Lines Inc with $40 billion revenues in the year 2016 was the number 2 Airline company. Read this report to know the top competitors of Delta Airlines and identify growth and cost optimization opportunities of Delta Airlines

Southwest Airlines (LUV) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Southwest Airlines Co with $20 billion revenues in the year 2016 was the number 4 Airline company. Read this report to know the top competitors of Southwest Airlines and identify growth and cost optimization opportunities of Southwest Airlines

JetBlue Airways (JBLU) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

JetBlue Airways Corp with $7 billion revenues in the year 2016 was the number 5 Airline company. Read this report to know the top competitors of JetBlue Airways and identify growth and cost optimization opportunities of JetBlue Airways

Alaska Air Group (ALK) Business Analysis – Analyze Historical Performance, Strategic...

Alaska Air Group, Inc. with $6 billion revenues in the year 2016 was the number 6 Airline company. Read this report to know the top competitors of Alaska Air Group and identify growth and cost optimization opportunities of Alaska Air Group

SkyWest (SKYW) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

SkyWest Inc with $3 billion revenues in the year 2016 was the number 7 Airline company. Read this report to know the top competitors of SkyWest and identify growth and cost optimization opportunities of SkyWest

Revenues Analysis

United Continental (UAL) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of United Continental Holdings, Inc. (UAL) from 2012 to 2016. United Continental generated a total of $36.6 billion revenues during 2016. United Continental reported a revenue growth of -3.5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

United Continental (UAL) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of United Continental Holdings, Inc. (UAL) from 2002 to 2016. United Continental generated a total of $36.6 billion revenues during 2016. United Continental reported a revenue growth of -3.5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

United Continental (UAL) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of United Continental Holdings, Inc. (UAL) revenue growth with Airline industry growth during the last five years from 2012 to 2016. United Continental reported a revenue growth of -3.5% year-over-year during 2016. The Airline industry growth was -1% year-over-year during 2016. United Continental growth was slower than the industry during 2016.

Profit Analysis

United Continental (UAL) Net Profit And Net Margin From 2013 To...

This report provides the last four years net profit and net margin of United Continental Holdings, Inc. (UAL) from 2013 to 2016. United Continental reported a total net income of $2.3 billion during 2016. United Continental generated a total of $36.6 billion revenues during 2016. United Continental net profit margin was 6.2% during 2016. The net profit and the net profit margin correspond to the fiscal y