CHICAGO ( TheStreet) -- United ( UAUA) reported its highest quarterly profit in 11 years and its first quarterly profit in three years. The carrier said net profit excluding items was $430 million, or $1.95 a share. Analysts surveyed by Thomson Reuters had estimated $1.77 a share. Revenue rose 28.4% to $5.2 billion; analysts had estimated $5.1 billion.
Including items, net income was $273 million, or $1.29 a share, up from $28 million, or 19 cents a share, a year earlier. "We are clearly on the right path toward our goal of achieving sustained and sufficient profitability across the economic cycle," said Chief Financial Officer Kathryn Mikells, in a prepared statement. On Monday, Delta ( DAL) reported its highest quarterly profit in 10 years. Its shares dipped as much as 9% in early trading Monday, reflecting investor concern about third-quarter margin guidance, before ending the day flat. United said passenger revenue per available seat mile revenue grew 27%, with double-digit growth in all regions, including increases of 52% in the Pacific, 56% in Latin America and 33% in the Atlantic. On the cost side, United said cost per available seat mile excluding fuel and special items grew 1.9% during the quarter, while capacity grew 1.1%. Mainline CASM excluding fuel and items rose 1.7% while mainline capacity fell 1.6%. The carrier said its fuel needs are 80% hedged at a fuel price of $79 a barrel for the current quarter. United ended the quarter with a total cash balance of $5.2 billion including unrestricted cash of $4.9 billion. The carrier said it ranked No. 1 in on-time arrivals among the five network carriers during the first half of 2010. -- Written by Ted Reed in Charlotte, N.C.
Readers Also Like: