The parent of United Airlines said Thursday that it
earned $140 million in the fourth quarter, as more passengers flew and
paid more for their tickets. The airline’s fuel bill also shrank.
Net
income at United Continental Holdings Inc. was $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. They
paid more in add-on fees, too. United said so-called ancillary revenue,
which covers items such as baggage fees, rose 15 percent in the quarter
to nearly $21 per passenger.
Fuel expenses fell 4 percent to $2.97 billion for the quarter.
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. Although all the paint on the planes and the signs at the ticket
counters read "United," the company still has to schedule flight crews
and planes separately for the two airlines, reducing the savings from
the merger.
"Our goals for 2014 are to provide even more reliable
operations, great customer service and materially better financial
performance," chairman and CEO Jeff Smisek said in a written statement.
For the full year, United earned $571 million, after losing $723 million in 2012.
Shares
of Chicago-based United Continental fell 3.4 percent in premarket
trading to $47.50. They set a new 52-week high on Wednesday at $49.20.
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