United Airlines parent narrows loss in 1Q

xUT

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United Airlines parent narrows loss in 1Q

Chicago-based United Continental Holdings, the world's largest airline company, lost $417 million, or $1.26 per share in the first three months of the year. That compares with a net loss of $448 million, or $1.36 per share in the same quarter last year. The net loss in the most recent quarter included $92 million in special charges, $11 million of which was related to the grounding of Boeing's 787 Dreamliner.

Revenue rose 1.4 percent to $8.72 billion. United said was able to improve per-passenger revenue across its network despite a decrease in traffic overall. That's an indication of higher ticket prices or fees. The airline last week increased the penalty for changing a flight's itinerary to $200 from $150. US Airways followed, instituting a $200 fee Wednesday
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B) xUT
 

spectator

Corn Field
Oct 18, 2011
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the counterpoint is that UA was the only major airline that lost money and lost it at a rate far larger than other airlines.

UA's costs grew because of having to sign merger-related labor agreements while they have not seen the merger-related revenue synergies that they said would have taken place by this point.

UA now has the highest cost per ASM among US airlines - at about a 5% disadvantage to DL on a consolidated basis - and has about a 5% revenue per ASM disadvantage as well.

UA has a strong core network but they still have a lot of work to do to become long-term profitable on a consistent basis.
 
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