United Profit Gains 38% as Fuel Costs Fall by $340M

Tickers in this article: UAL

CHICAGO (TheStreet) -- United said second-quarter profit rose as fuel expenses fell by $340 million.

Excluding items, the world's largest airline reported net income of $521 million, or $1.35 a share, in line with estimates. Revenue rose 0.6% to $10 billion, also in line with estimates.

With items, primarily $52 million of special charges, United earned $469 million, up 38% from the same period a year earlier, or $1.21 a share.

During the quarter, passenger revenue per available seat mile grew 1%, which led the industry. Domestic PRASM was flat, while Atlantic PRASM grew 6.1%. Pacific PRASM fell 3.4% and Latin America PRASM fell 0.5%.

Yield rose 0.6%. On the cost side, cost per available seat mile excluding fuel and special items, rose 4.5%. Consolidated capacity declined 2.1%. Fuel expense totaled $3.07 billion, down from $3.4 billion a year earlier.

"I am encouraged by the progress we made in the second quarter -- in our operations, in our customer service and in our financial performance," said CEO Jeff Smisek, in a prepared statement.

-- Written by Ted Reed in Charlotte, N.C.

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