Welcome to Flightinfo.com

  • Register now and join the discussion
  • Friendliest aviation Ccmmunity on the web
  • Modern site for PC's, Phones, Tablets - no 3rd party apps required
  • Ask questions, help others, promote aviation
  • Share the passion for aviation
  • Invite everyone to Flightinfo.com and let's have fun

UA Says Quarterly Unit Revenue May Fall Up To 13.3%

Welcome to Flightinfo.com

  • Register now and join the discussion
  • Modern secure site, no 3rd party apps required
  • Invite your friends
  • Share the passion of aviation
  • Friendliest aviation community on the web

CaptJax

Well-known member
Joined
Mar 3, 2006
Posts
310
UAL Says Quarterly Unit Revenue May Fall Up to 13.3% (Update4)

By Mary Schlangenstein
March 20 (Bloomberg) -- United Airlines, the third-biggest U.S. carrier, said first-quarter unit revenue may fall as much as 13.3 percent as the recession erodes travel demand.
Revenue from each seat flown a mile in its main jet operations is expected to decline in a range of 12.3 percent to 13.3 percent from a year earlier, United parent UAL Corp. said today in a regulatory filing. Traffic, in miles flown by paying passengers, may drop as much as 16.2 percent, the company said.
United joins AMR Corp.’s American Airlines and Continental Airlines Inc. in forecasting declines in unit revenue as fewer people travel and as carriers offer lower fares in an effort to boost demand.
“The revenue environment continues to be challenging for all carriers, as the impact of the economy is affecting demand for both business and leisure travel,” Kathryn Mikells, chief financial officer for Chicago-based UAL, told employees in a message today.
Jamie Baker, a JPMorgan Chase & Co. analyst, revised his first-quarter loss estimate for UAL to $4.37 a share from $3.87 as United’s unit revenue decline was wider than his expectation of a 4.5 percent drop. Helane Becker, a Jesup & Lamont analyst, widened her per-share loss estimate to $4 from $3.47. The New York-based analysts both recommend buying UAL shares.
UAL fell 71 cents, or 14 percent, to $4.48 at 4 p.m. New York time in Nasdaq Stock Market composite trading. The shares have declined 81 percent in the past 12 months.
Cost to Rise
The first-quarter cost to fly each seat a mile, excluding fuel, unspecified accounting charges and regional partners, is expected to rise in a range of 1 percent to 1.5 percent from a year earlier, the carrier said. In January, United forecast a 5 percent increase.
Unit revenue including regional jet partners may fall 11 percent to 12 percent in the quarter, United said. Traffic on that basis may drop as much as 14.5 percent, the carrier said.
UAL said it will end the quarter with as much as $2.2 billion in cash not dedicated to specific uses. The carrier estimated it will have $80 million in cash losses from fuel- hedging contracts that settled in the quarter.
Alaska Airlines, a unit of Alaska Air Group Inc., said today that unit revenue fell 3.9 percent in February and 1.3 percent for the quarter’s first two months. Traffic declined 10.2 percent in February and 7.5 percent for the first two months, the Seattle-based airline said in a regulatory filing.
“We continue to see a softness in both demand and yields,” Andrew Harrison, Alaska Air’s vice president of planning and revenue management, said in an interview. “We haven’t seen the bottom yet. Summer will be a very important telltale and indication for the fall and winter to come.”
To contact the reporter on this story: Mary Schlangenstein in Dallas at [email protected] Last Updated: March 20, 2009 16:56 EDT
 
this group couldnt sell oxygen in space.

oh and i cant wait to hear about this new "TA" that "may" help mitgate furloughs, improve QOL, and decrease fatigue----- yeah right

SKIPPY



i thought the first quarter was the last quarter to involve the bad hedging-- that was from the new chic that took the higher up position mikhalis or something-- why now do soem of the articles state that it will be spread out over the entire year? everyday they come up with new schit.
 
United is not the only airline to have RASM problems but they might be in the toughest position. They are cutting capacity 10-15% year over year and still losing 13% on the RASM side. That shows how severe this falloff in business travel is.

Airtran last week only forecast a 2-3% dropoff in total RASM for the first quarter. Difference between United (or any legacy) and Airtran (or any LCC) is that the legacies depend on the $1000/flight business traveler for strong RASM performance and the LCCs depend on the $100-$200 leisure traveler for the bulk of their business. While both categories are hurting right now, the dropoff in business travel is really hurting the legacies.
 
Last edited:
Did anyones revenue stream increase in this economy?????

Pretty sure bankruptcy law firms ain't hurting for business..... I think Obama will keep them busy for a few years.

P.S.- How are all those INTL routes from your new "inspired" mgmt doing of late? Hmmm.....
 
Pretty sure bankruptcy law firms ain't hurting for business..... I think Obama will keep them busy for a few years.

P.S.- How are all those INTL routes from your new "inspired" mgmt doing of late? Hmmm.....

80 mil is better than last quarter.......

Not expecting miracles but improvement is better than none.......

Maybe we will need to M E R G E to stay afloat and then all of a sudden a multi-million dollar quarter - those accountants don't know how to hide a zero or seven do they? :beer:
 
80 mil is better than last quarter.......

Not expecting miracles but improvement is better than none.......

Maybe we will need to M E R G E to stay afloat and then all of a sudden a multi-million dollar quarter - those accountants don't know how to hide a zero or seven do they? :beer:

Here's hoping you merge with some airline a hell of a lot better than NWA....
 

Latest resources

Back
Top