Updated from 11:52 a.m. EDT
United Airlines parent UAL ( UAUA) beat analysts' third-quarter estimates and said it is well-positioned for the fourth quarter as a result of deep capacity cuts. Excluding items, including noncash mark-to-market losses on fuel-hedging contracts, the carrier loss $252 million, or $1.99 a share. Analysts surveyed by Thomson Reuters had estimated a loss of $2.48. Revenue rose 0.7% to $5.6 billion and slightly exceeded the consensus projection. When the special items were counted, UAL lost $779 million, or $6.13 a share. That included $519 million in mark-to-market losses as a result of the decline in oil prices during the quarter. The losses haven't been realized. Hedges that settled during the quarter produced a gain of $17 million. The contracts still outstanding have a fair value of negative $230 million. During the quarter, fuel costs increased by $946 million over the same period a year earlier. But "in this environment of falling oil prices, we at United see the opportunity to return to profitability," said CEO Glenn Tilton, on an earnings conference call. "We expect solid unit revenue growth in the fourth quarter, driven almost entirely by our capacity reductions," said Executive Vice President John Tague. Consolidated capacity will decline by 10.5% to 11.5%, while domestic mainline capacity will drop 14.5% to 15.5%. United's cuts "represent the steepest cuts of any legacy operator," wrote JPMorgan analyst Jamie Baker, who said the guidance "suggests
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