UAL Swings to Profit

Updated from 8:20 a.m. EDT

United Airlines parent UAL(UAUA Quote) reported a second-quarter profit for the first time since 2000, and said it could perform even better were it not for the reduced pricing introduced a year and a half ago by a competitor.

"We're still dealing with the damaging remnants of Delta's(DALRQ Quote) simplified fares," said Executive Vice President John Tague on a conference call. "While many components have been eliminated, we still have these eliminations of minimum stays in the business markets that are enormously damaging."

Delta introduced "SimpliFares" in January 2005, forcing most carriers to match. While AMR's(AMR Quote) American Airlines has said similar pricing enabled it to draw passengers from low-fare competitors, Tague said United's results would improve if the pricing policies disappeared. ...