Excluding one-time charges, the carrier reported second-quarter net income of $545 million, or $1.41 a share. Analysts surveyed by Thomson Reuters had estimated $1.66 a share. Revenue rose 1.3% to $9.9 billion. Analysts had estimated $10 billion.
Including charges, United reported net income of $339 million, or 89 cents a share. United said Tuesday that it would incur a charge of $206 million due to integration and severance costs related to its merger with Continental.
During the quarter, consolidated passenger revenue per available seat mile rose 3% compared to the same quarter a year earlier while mainline PRASM increased 1.8%. PRASM fell by 3.4% in Latin America but gained in other segments, led by 8.5% in regional and 6.6% in the Pacific, where passenger revenue grew by 12.5% to $1.3 billion,But passenger revenue fell by 3.4% in Latin America to $657 million and by 1.9% in the Atlantic to $1.6 billion. Domestic passenger revenue grew 0.6% to $3.4 billion. Consolidated passenger revenue grew 2.3% to $8.8 billion. On the cost side, consolidated cost per available seat mile excluding fuel and special charges, increased 2.1%. "We had a solid quarter during which we strengthened our balance sheet, invested in our business, and generated a return in excess of our cost of capital," said Chief Financial Officer John Rainey, in a prepared statement. >To follow the writer on Twitter, go to http://twitter.com/tedreednc. >To contact the writer of this article, click here: Ted Reed
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