Fuel Bill Dents United Continental 3Q Profit


7:59 am ET 10/27/2011- Associated Press Online


A higher fuel bill brought down United Continental's quarterly profit by 23 percent.

The company's fuel cost was $831 million bigger than last year. As a result, the airline's third-quarter net income fell to $653 million, or $1.69 per share. That was down from $852 million, or $2.16 per share, a year earlier.

Revenue, however, rose almost 9 percent to $10.17 billion because United Continental raised fares and cut back on flying.

The company would have earned $2 per share if not for one-time costs related to combining the two airlines, which took place Oct. 1, 2010.

Analysts surveyed by FactSet had been expecting net income of $2.08 per share on revenue of $10.11 billion.

The year-earlier results include both United and Continental, even though they hadn't merged yet.

With fares higher and the economy weak, fewer people flew. Traffic was down 1.5 percent for the quarter compared with a year ago.





United Continental Misses By $0.07, Reports Revenue In-Line

7:34 am ET 10/27/2011- Briefing.com

Reports Q3 (Sep) earnings of $2.00 per share, excluding non-recurring items, $0.07 worse than the Capital IQ Consensus Estimate of $2.07; revenues rose 8.7% year/year to $10.17 bln vs the $10.14 bln consensus.

Consolidated revenue passenger miles (RPMs) for the third quarter of 2011 decreased 1.5% year-over-year on a pro forma basis, while capacity (available seat miles or ASMs) decreased 0.8% year-over-year on a pro forma basis, resulting in a third-quarter consolidated load factor of 85.3%.

Consolidated yield for the third quarter of 2011 increased 10.9% year-over-year on a pro forma basis. Third-quarter 2011 consolidated PRASM increased 10.1% compared to the pro forma results for the same period in 2010.

Mainline RPMs in the third quarter of 2011 decreased 1.6% on a mainline capacity decrease of 0.9% year-over-year on a pro forma basis, resulting in a third-quarter mainline load factor of 86.1%.

Mainline yield for the third quarter of 2011 increased 10.8% over the pro forma results for the same period in 2010.

Third-quarter 2011 mainline PRASM increased 10.1% year-over-year on a pro forma basis.

 

maybe ual shouldve hedged when oil went to 72/barrel-- fn idiots all of them

 

Or 36 a few years ago!!

 

All of that increased fuel cost is not in the cost/gallon.......just sayin'
When the company figures out there is an accounting number related to positive pilot relations, they'll be more motivated to negotiate.

 

9.3 Billion of cash, sure they can settle a contract. I cant beleive this management

 

I hate to be the bearer of unpopular blogosphere tidings but, available cash has minimimal to do with where any company settles a labor contract. More or less cash does not equate to a better or worse contract. Settlement points are all about competition and economy in a fiercely competitive business...not cash.

 

While that may be largely true, the following...... is much less so. Profitable companies have better contracts than unprofitable ones. Maybe you're saying the same, but "settlement points" are determined by business decisions. Those decisions might be driven by potential bankruptcy, release to self help, or a realization that continuing under the current contract is detrimental to carrying out the long term business plan, but in the end, it's still just business. On the other hand, I agree with what I think is your overarching point, that anyone thinking management is going to do 'the right thing' just because they've got the cash to do so, is going to be sadly disappointed.

 

Right....and I want my pay check to compete with SWA, FEDEX, and UPS! In addition, if the CEO is the highest paid in the "fiercely competitive" business then I'm to be paid the highest too.

My skills and experience are worth it! His aren't!

Why do these management shills continue to post this crap?

 

nicely said, thank you

 

I have a heavy foot so that sure can't help the fuel bill.