United Continental Holdings (NYSE:UAL) said on Thursday it expects a steep decline in unit revenue to continue into the fourth quarter as the strong U.S. dollar dents foreign sales, and reported quarterly earnings that came in below analysts' expectations.
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The parent of United Airlines earned $4.8 billion in the third quarter, including a one-time gain of $3.2 billion related to the reversal of a tax allowance. Adjusted profit was $1.7 billion, or $4.53 per diluted share. On that basis, the average analyst estimate was $1.59 billion and $4.55 per share, respectively, according to Thomson Reuters I/B/E/S.
The airline forecast that passenger unit revenue, a measure of sales relative to the total mileage of the seats it flies, will fall between 4 percent and 6 percent in the fourth quarter compared to a year earlier and in line with declines during the prior two quarters.
(Reporting by Jeffrey Dastin in New York; Editing by Jeffrey Benkoe)