UAL Swings to Profit

United said revenue and productivity improvements more than offset a $344 million increase in fuel expenses. Revenue per available seat mile increased 12% from the same quarter a year earlier. Mainline load factor was 84.9%, up 1.5 points.

Cost per available seat mile, excluding fuel and one-time charges, was 7.64 cents, an increase of 1.5% from the same quarter a year earlier. Operating margin, excluding one-time items, improved to 5.5% from 1.5%.

In a report issued Monday, Calyon Securities analyst Ray Neidl said that while United "appears to be turning the corner to returning to consistent profitability, it still has more work to do to catch up to and surpass its peers." Neidl maintained a neutral rating on the stock, saying UAL trades at a premium to American and Continental(CAL Quote).

United ended the quarter with unrestricted cash and short-term investments of $4.2 billion, and a restricted cash balance of $900 million. "This is the most significant cash position the company has been in historically, and we intend to enjoy it for a while," Tilton said.