United sees 'real signs of recovery' in Pacific region

UAL Corp.'s United Airlines said it's seeing a rebound in bookings for flights across the Pacific, the carrier's largest region by passenger traffic outside the U.S.

"There are real signs of recovery," Chief Executive Officer Glenn Tilton said in Beijing today. "The Pacific is showing its traditional strength. It's moving at a higher level compared to our other international markets."

United is "very encouraged" by demand for trans-Pacific flights for the first quarter and beyond, Tilton said at a signing ceremony for a service agreement with Aircraft Maintenance & Engineering Corp., a joint venture between Air China Ltd. and United alliance partner Deutsche Lufthansa AG.

International travel is pivotal for U.S. airlines because they don't face discount competitors on those routes. Flights outside North America accounted for 43 percent of Chicago-based United's passenger traffic through February, with Pacific trips representing more than half that total.

United is the third-largest U.S. carrier by passenger traffic, trailing Delta Air Lines Inc. and AMR Corp.'s American Airlines. UAL has posted net losses in eight of the past nine quarters as the recession shrank travel demand, especially among the corporate fliers who typically pay the highest fares.

Bombardier Order?Bombardier Inc.'s new C-Series jet may be among the models considered by United this year as it studies an order for new narrow-body planes, Tilton said, echoing comments made in December by United President John Tague."There isn't any reason to preclude the C-Series from this discussion," Tilton said.The C-Series is due to make its first flight in 2012 and will carry as many as 149 passengers. United's mainline fleet now consists of planes from Boeing Co. and Airbus SAS.In December, United split an order for 50 long-range wide- body jets between Boeing and Airbus. That was the airline's first aircraft purchase in 11 years.UAL rose 8 cents to $19.99 at 4 p.m. New York time in Nasdaq Stock Market composite trading. The shares' 55 percent gain this year is the largest among the 12 carriers in the Bloomberg U.S. Airlines Index.