Integration costs drag down United Continental Holdings
United Continental Holdings has reported a first-quarter 2012 net loss of $286 million or $0.87 loss per share, excluding $162 million of net special charges consisting primarily of integration-related costs.
Including special charges, UAL - which operates United and Continental Airlines - reported a first-quarter 2012 net loss of $448 million or $1.36 loss per share.
UAL first-quarter consolidated passenger revenue increased 5.5 percent year-over-year.
First-quarter consolidated passenger revenue per available seat mile (PRASM) increased 5.2 percent compared to the same period in 2011.
First-quarter consolidated fuel expense increased 20.8 percent, or $557 million, year-over-year.
Consolidated unit costs (CASM) holding fuel rate and profit sharing constant and excluding special charges and third-party business expense for first-quarter 2012 increased 0.6 percent year-over-year.
First quarter consolidated CASM increased 8.3 percent year-over-year.
UAL ended the first quarter with $7.8 billion in unrestricted liquidity.
UAL converted to a single passenger service system, a single website and a single loyalty program on March 3rd, 2012.
“This was a difficult quarter, but we made significant progress with our integration and we’re now able to serve our customers as a single airline,” said Jeff Smisek, UAL’s president and chief executive officer.
“I want to recognise my co-workers for their hard work during a challenging time, and thank our customers for their continuing support.
“We are now on the steep back slope of our integration and can look forward to delivering more benefits from the merger in the remainder of the year.”
Costs drag United Continental
Written by Administrator