TransportAirlines

More Flyers and Higher Fares Boost United’s 4Q Profit to $140 Million

Skift Take

United’s 4Q profits completely turned around in one year in part to higher fares, but also higher ancillary revenue, which jumped 15 percent to almost $21 per passenger last quarter.

— Samantha Shankman

The parent of United Airlines says fourth-quarter net income totaled $140 million as more passengers flew, and paid more for their tickets. The airline’s fuel bill also shrank.

United Continental Holdings Inc. earned $140 million, or 37 cents per share. A year earlier it lost $620 million, or $1.87 per share.

Not counting special charges, United would have earned 78 cents per share — well above the 66 cents expected by analysts surveyed by FactSet.

Revenue rose more than 7 percent to $9.33 billion, also higher than analysts had expected.

Passengers paid 3 percent more per mile to fly compared to a year earlier.

United said in November that it intends to cut $2 billion in annual costs. The company is still working to integrate Continental after their 2010 merger.

Copyright (2014) Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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