Posted at 10:35 a.m., Wednesday, April 25, 2007
United Airlines parent says loss narrows in 1st quarter
Bloomberg News Service
United Airlines parent UAL Corp., the world's second-largest carrier, said its first-quarter loss narrowed to $152 million on higher demand for international travel and lower operating costs.The net loss of $1.32 a share was more than analysts expected, and United also said today that it may reduce U.S. flight and seat capacity later this year after adding too much in January. Shares of Chicago-based UAL fell as much as 4.8 percent.
The company had "weaker revenue growth and higher costs than we expected, and a greater storm impact," James Corridore, a Standard & Poor's analyst based in New York, said in a report.
UAL joined other competitors including AMR Corp.'s American Airlines in reporting gains from higher-profit international flying. Revenue for each seat flown a mile rose 16 percent on Latin American routes and 9.6 percent on trans-Atlantic travel.
