Transport Airlines

United Can’t Shake Doubts About Merger With Continental

Excerpt from TheStreet.com

Jul 29, 2013 6:09 am

Skift Take

United’s merger with Continental has been rough going, to say the least. While JP Morgan expects the airline to gain its footing in 2014, there are persistent doubts about how large the upside is.

— Dennis Schaal

Free Report: The State of Student Travel

Three years after the 2010 merger between United and Continental, investors remain deeply uncertain about the combination’s success.

“Lest anyone loses count, 2Q13 represents the ninth consecutive quarter of (year over year) earnings declines at United,” wrote JPMorgan analyst Jamie Baker Baker. “Our concern remains that United has inadvertently stepped into the industry role once occupied by old AMR, that of perennial disappointment and relative underperformance.”

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