I was just wondering...since UA has stringent DIP financing requirements and the company is tied to US, how is today''s news that for the U.S. airline industry May pricing data showed improvement, but was behind expectations, especially on the domestic front and effect UA''s formal in-court restructuring?
Most observers expected the combination of pent up demand, capacity reductions and a peak leisure period would drive larger improvements; however, this was not the case.
ATA reports show unit revenue improved in May as traffic rebounded (slightly) and incremental capacity cuts remained intact.
According to an analyst report, domestic RASM improved by 1.0%, the first positive comparison since December, while System RASM improved by 1.6% following 3 months of negative comparisons. Atlantic RASM was surprisingly strong while Domestic data was a bit disappointing up 1%). The Pacific was expectedly atrocious and Latin America was relatively flat. The measured Domestic demand shortfall at 24.4%, an improvement from April, but still well off of pre-war levels.
By the way, is this only showing negative information regarding UA or is it reporting facts?
This one''s already sparking an educated debate on another thread.