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The Honolulu Advertiser
Posted on: Wednesday, June 18, 2008

United paying $3.5 billion more for fuel

Associated Press

CHICAGO — United Airlines yesterday projected its 2008 fuel bill to hit $9.5 billion based on current prices — or more than $3.5 billion higher than last year.

The nation's No. 2 carrier made the forecast in a statement submitted in Washington to back legislation aimed at enabling additional regulation of oil futures trading, where volatility has spurred record prices.

United parent UAL Corp. also estimated that passenger revenue for the second quarter will increase by between 4 percent and 5 percent over a year ago. It said in an investor update that it will take significant second-quarter charges for impairment, severance and the termination of contracts in connection with cutbacks it announced this month.

Cargo, mail and other revenue is projected at between $470 million and $480 million for the quarter, UAL said.

Mainline operating costs per available seat mile, excluding fuel and certain one-time items, are expected to be up 3 percent to 3.5 percent.

Jet fuel prices are expected to average $3.31 per gallon, or $3.67 per gallon excluding economic hedges. Fuel consumption is expected to total 573 million gallons in the second quarter.