United Air Sees Further Unit Revenue Declines
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.
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)