Monday, September 15th6.8°C
22190
22285

United Airlines can't bring in enough revenue to cover its costs; still struggling with merger

United Airlines is the one U.S. carrier that can't seem to get its act together.

While all the other major airlines made money in the first quarter, United lost $609 million during the first three months of this year.

United attributed $200 million of its loss to the "historic severe" winter weather that impacted much of the U.S. this past winter. But by comparison, Delta Air Lines made $213 million in the same quarter while dealing with the same ice and snow storms.

Chicago-based United is still struggling to combine systems and see financial benefits following its 2010 merger with Continental Airlines. In the first quarter, its cost for each mile passengers flew rose 1 per cent but its related revenue fell 2 per cent. It simply isn't able to charge high enough airfares.

United lost $1.66 per share, worse than the $1.26 per share it lost during the same period last year. Excluding special items, the loss was $1.33 per share, barely beating the $1.35 loss expected by Wall Street analysts surveyed by FactSet.

United's revenue slipped 0.3 per cent to $8.7 billion, just short of the $8.71 billion Wall Street analysts had expected.

The one bright spot for United was that it paid less for fuel: $3.18 a gallon, down from $3.28 during last year's first quarter. Considering that the airline used 916 million gallons during the period, that added up to $133 million in savings.

"While we are not pleased with our first-quarter financial results, we are building a strong foundation that will result in improved financial performance," John Rainey, chief financial officer for United Continental Holdings, Inc., said in a statement.

United also lost $21 million during the quarter due to an exchange rate loss in Venezuela. Approximately $100 million of the company's unrestricted cash balance was held as Venezuelan bolivars as of March 31, 2014. All international airlines flying there have struggled with a quickly devaluing currency and have billions of dollars tied up in bolivars that can't be quickly converted because of Venezuelan currency controls.

__

Scott Mayerowitz can be reached at http://twitter.com/GlobeTrotScott.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX15531.58-2.74
S&P CDNX987.935.65
DJIA16987.51-61.49
Nasdaq4567.599-24.208
S&P 5001985.54-11.91
CDN Dollar0.9023+0.0005
Gold1235.60+4.10
Oil91.52-0.75
Lumber348.00+3.50
Natural Gas3.936+0.026

 
Okanagan Companies
Pacific Safety0.18-0.02
Knighthawk0.01-0.005
QHR Technologies Inc1.300.00
Cantex0.06-0.01
Anavex Life Sciences0.240.00
Metalex Ventures0.065-0.005
Russel Metals36.26+0.14
Copper Mountain Mining2.88+0.12
Colorado Resources0.1650.00
ReliaBrand Inc0.0318-0.0032
Sunrise Resources Ltd0.0250.00
Mission Ready Services0.265-0.01

 



23021

FEATURED Property
1927239227-4205 Gellatly Road
2 bedrooms 2 baths
$445,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Brangelina and Celebrity vs Philanthropy

This week my wife wrote a blog for our charities website, I thought you may enjoy reading it here: I was planning to write about the incredible philanthropic Miss Angelina when, funnily enough, she ...


Price Guarantees

Article written by Linda Bustos Though I’d never recommend “lowest prices” as a unique selling proposition, I notice many retailers use a Price Match Guarantee or even a 110% Guara...


Manage your behaviour

You can’t manage what you can’t control! You can’t manage the number of sales you’re going to make but you can manage the behaviour that will help you make those sales. Obvious...

_



23073

23073


Member of BC Press Council


22814