Breaking News Bar
updated: 10/24/2013 2:05 PM

United Continental profit up, but shy of estimates

hello
Success - Article sent! close
  • Chicago-based United Continental Holdings Inc., the world's largest airline, posted a third-quarter profit that trailed analysts' estimates and promised unspecified "numerous actions" to boost revenue and efficiency.

      Chicago-based United Continental Holdings Inc., the world's largest airline, posted a third-quarter profit that trailed analysts' estimates and promised unspecified "numerous actions" to boost revenue and efficiency.
    ASSOCIATED PRESS

 
Associated Press

The parent of Chicago-based United Airlines reported a third-quarter profit below analysts' expectations as it absorbed a drop in revenue for flights to Asia -- a key market.

Chairman and CEO Jeff Smisek said United managers weren't satisfied with the financial performance, "and are taking prompt actions to increase our revenue and operate more efficiently across the company." The company's press release didn't say what those actions would be.

United Continental Holdings Inc. earned $379 million, or 98 cents per share, for the quarter. If not for special charges, it would have earned $590 million, or $1.51 per share. That's three cents a share less than expected by analysts surveyed by FactSet.

During the same period last year United had a profit of $6 million, or 2 cents per share.

Revenue in the most recent quarter rose 3 percent to $10.23 billion, also less than analysts had expected.

United has been struggling to absorb Continental after their 2010 merger. On Thursday, Smisek said the company has improved its operations and customer service to the point where it is competitive in those areas.

United is the world's largest airline by traffic, but some customers avoided it after its service problems. Traffic fell slightly in the most recent quarter, and is down 1 percent for the year. Traffic at rival Delta Air Lines Inc. is up slightly so far this year.

United passenger revenue for Pacific flights fell 11 percent. It posted an 11 percent gain in revenue from Atlantic flying, and a gain of 0.4 percent in domestic revenue.

"Long-term we continue to like the company, however we believe the absolute short-term will not be pretty," Cowen and Company analyst Helane Becker wrote in a note shortly after United's results came out.

Share

Interested in reusing this article?

Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.

The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.

Need more information about reprints? Visit our Reprints Section for more details.

Contact information ( * required )

Name * Company Telephone * E-mail *

Message (optional)

Success - Reprint request sent Click to close
Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.
    help here