United Airlines Profit Tanks 37 Percent

United Airlines

United Airlines profit fell 37 percent in the second quarter of 2012 compared to a year ago.

United’s net income for the April-June 2012 quarter was $339 million compared to $538 million last year.

Earnings of $1.41 per share, excluding special items, fell far short of the $1.70 expected by analysts.

‘The company, known by its ticker symbol UAL, said revenues edged up 1.3 percent, to $9.9 billion, missing estimates of $10.0 billion.

The biggest airline by traffic also was hit by higher fuel prices, a major driver of a 4.0 percent increase in operating costs.

Passenger revenue increased 2.3 percent to $8.8 billion, while cargo revenue tumbled 16.1 percent to $265 million.

UAL has been struggling with the integration of United and Continental airlines since their 2010 merger.’

“I want to thank my co-workers for all they did to help us earn a profit this quarter,” said Jeff Smisek, UAL’s president and chief executive officer. “While we still have work to do, we are making the right investments in our future, and we look forward to delivering the benefits of those investments to our customers around the globe.”

United Continental Holdings, the parent company of United, is the world’s largest airline.

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