United Profit Gains 38% as Fuel Costs Fall by $340M

CHICAGO ( TheStreet) -- United ( UAL) said second-quarter profit rose as fuel expenses fell by $340 million.

Excluding items, the world's largest airline reported net income of $521 million, or $1.35 a share, in line with estimates. Revenue rose 0.6% to $10 billion, also in line with estimates.

With items, primarily $52 million of special charges, United earned $469 million, up 38% from the same period a year earlier, or $1.21 a share.

During the quarter, passenger revenue per available seat mile grew 1%, which led the industry. Domestic PRASM was flat, while Atlantic PRASM grew 6.1%. Pacific PRASM fell 3.4% and Latin America PRASM fell 0.5%.

Yield rose 0.6%. On the cost side, cost per available seat mile excluding fuel and special items, rose 4.5%. Consolidated capacity declined 2.1%. Fuel expense totaled $3.07 billion, down from $3.4 billion a year earlier.

"I am encouraged by the progress we made in the second quarter -- in our operations, in our customer service and in our financial performance," said CEO Jeff Smisek, in a prepared statement.

-- Written by Ted Reed in Charlotte, N.C.

>To contact the writer of this article, click here: Ted Reed

If you liked this article you might like

Closing Bell: LIVE MARKETS BLOG

Closing Bell: LIVE MARKETS BLOG

Dollar Traders Believe What They See, Not What They Hear: Market Recon

Dollar Traders Believe What They See, Not What They Hear: Market Recon

Haters Have an Incredible New Chance to Send the Bull Market in Stocks Crashing

Haters Have an Incredible New Chance to Send the Bull Market in Stocks Crashing

Tesla Refutes Report of Model 3 Delays: LIVE MARKETS BLOG

Tesla Refutes Report of Model 3 Delays: LIVE MARKETS BLOG

Jim Cramer: Stocks Can Go Down, Even the Best Ones

Jim Cramer: Stocks Can Go Down, Even the Best Ones