Tags: profit | airlines | United | merger

United Airlines Parent Misses Wall Street Profit View

Thursday, 24 Oct 2013 12:28 PM

United Continental Holdings Inc., which owns United Airlines, 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.

Shares of the company were trading down 1.4 percent in pre-market trading on Thurday morning.

In a statement, Chief Executive Jeff Smisek said the company was "not satisfied with our financial performance, and are taking prompt actions to increase our revenue and operate more efficiently across the company."

United's consolidated revenue passenger miles decreased 0.3 percent, and capacity decreased 1.1 percent.

Passenger revenue per available seat mile, a key measure of airline health, rose 2.7 percent. Delta said on Tuesday that its comparable number rose 4 percent.

United, which was formed by a merger of UAL and Continental in 2010, has been working to win back customers who turned to rivals after the airline faced severe service-related and operational problems last year.

In August, United was fined $350,000 by the U.S. Department of Transportation for failing to make prompt refunds to consumers. The department also said the airline underreported the number of mishandled baggage reports it received from passengers between January and October 2011.

For the third quarter, the Chicago-based company earned $379 million, or 98 cents a share, up sharply from $6 million, or 2 cents a share, a year earlier.

However, after excluding $211 million on merger related charges, the company earned $1.51 a share, missing Wall Street estimates by 3 cents, according to Thomson Reuters I/B/E/S.

Revenue came in at $10.23 billion. A year before, revenue was $9.91 billion.

United shares were trading at $30.49 Thursday morning before the markets opened. They closed at $30.98 Wednesday on the New York Stock Exchange.

© 2017 Thomson/Reuters. All rights reserved.

 
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United Continental Holdings Inc., which owns United Airlines, 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.
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2013-28-24
Thursday, 24 Oct 2013 12:28 PM
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