Friday, December 19th2.2°C
24563
23827

With summer travel season in full swing, United Airlines breaks into the black

CHICAGO - United Airlines is making money after a slow start to the year.

The airline's net income in the second quarter hit $789 million, topping Wall Street expectations and marking a turnaround from the first quarter when United was the only major U.S. carrier to report a loss.

The company also said Thursday that it will buy back up to $1 billion in shares over the next three years.

Shares of United Continental Holdings Inc. jumped $2.60, or 5.7 per cent, to $48.60 in morning trading.

United has struggled to overcome technology glitches and other problems since the 2010 merger of United and Continental. The Chicago airline lost $609 million in the first quarter as it suffered through 35,000 weather-related flight cancellations. American, Delta and Southwest were posting strong results at the same time.

But United closed the gap in the second quarter at the beginning of the peak summer-travel season.

So-called ancillary revenue — extra fees for things like checked bags and roomier seats — rose 8 per cent per passenger.

United seems to be turning the corner, said Cowen and Co. analyst Helane Becker.

"The outlook for the company continues to improve," Becker wrote, citing the company's forecast of revenue per mile in the third quarter.

In the second quarter, United said that excluding special items, it would have earned $2.34 per share in the April-to-June quarter. Analysts surveyed by FactSet were expecting $2.19 per share.

Revenue rose 3.3 per cent to $10.33 billion, slightly higher than Wall Street forecasts. Fuel and labour costs each grew about 1 per cent.

The Canadian Press


Read more Business News

24380


Recent Trending




Today's Market
S&P TSX14505.08+158.33
S&P CDNX672.02+6.52
DJIA17844.9366.78
Nasdaq4772.517+24.12
S&P 5002073.76+12.53
CDN Dollar0.8623-0.0011
Gold1197.20+2.50
Oil56.51+2.40
Lumber338.60+1.70
Natural Gas3.452-0.19

 
Okanagan Companies
Pacific Safety0.125-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.25-0.03
Cantex0.03-0.005
Anavex Life Sciences0.1899+0.0199
Metalex Ventures0.05-0.005
Russel Metals25.35-0.65
Copper Mountain Mining1.59+0.02
Colorado Resources0.120.00
ReliaBrand Inc0.011-0.0089
Sunrise Resources Ltd0.05-0.005
Mission Ready Services0.215-0.01

 
24130


24200

FEATURED Property
2071410437 Fleming Road, Kelowna,
2 bedrooms 2 baths
$229,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Reflecting on the end of the year

The importance of the end of the year and the Christmas holidays is profound. It is a time to reconnect with family and traditions that have made us who we are. But the year-end has always been a time...


My final thoughts on real estate

This will be the last column I write on real estate. Largely because at the end of the year I will be handing in my license. After 20+ years of working in land development, resort development and rea...


Parenthood: Estates, insurance & taxes

It is now even more important to ensure your loved ones are well looked if anything should happen to you. Here are a few topics to consider helping you prepare for some of the unexpected events that c...

_



24111

24386


Member of BC Press Council


23860