United Reports Rise in Second Quarter Profit Jul 25th 2013, 10:11
United Airlines reported its second-quarter profit rose 38% to $469 million, or $1.21 a share, from $339 million, or 89 cents a share a share, a year earlier. Excluding special charges, United reported earnings per share of $1.35. Revenue was reported at $10.0 billion, up from $9.94 billion a year earlier which was a slight improvement on analysts’ expectations of a $1.34 share on revenue of $9.97 billion as per FactSet and reported by FoxBusiness.
Jeff Smisek, United’s CEO said he was encouraged by the progress the airline made in operations, customer service and financial performance.
Jim Compton, United’s vice chairman and chief revenue officer said the airline was challenged this quarter with weather and high load factor but worked through these issues to deliver competitive on-time performance and customer service in the quarter.
Industry expert, Henry Hartevelt, Travel Industry Analyst and Strategist at Hudson Crossing told TravelPulse that "United's Q2 2013 results may look good compared to a year ago, but that is because its Q2 2012 results were weak. I'm concerned that United showed no year-over-year domestic PRASM growth. The airline's soft business performance in the Pacific is a reflection of that region's weak economic environment; at the same time, United's performance across the Atlantic is indeed impressive. The airline's on-time performance is also a cause for concern. Airlines are ultimately time management tools; I don't think United should be content with its 76.7% "on time" arrival rate (arrivals within 14 minutes of published schedules). This means almost 1 in 4 flights arrive late."
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