From: Reuters
Published December 19, 2007 09:50 AM

UAL sees fourth-quarter passenger revenue up 11-12 percent

CHICAGO (Reuters) - UAL Corp <UAUA.O>, parent of United Airlines, said on Wednesday it expects its unit revenue to increase in the fourth quarter helped by capacity reductions on North American routes.

The company said in a government filing that it expects its fourth-quarter consolidated passenger revenue per available seat mile to increase between 11 and 12 percent year over year.

UAL, along with its rivals, has been recovering from a years-long industry downturn. Some experts predict, however, that the progress will be stifled -- if not reversed -- by soaring fuel costs and a softening U.S. economy.

The company said it expects its mainline operating cost per available seat excluding fuel and special items will be up about 7.5 percent for the fourth quarter.

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The company, which has hedged 18 percent of its forecast fuel consumption in the fourth quarter, expects to pay an average of $2.60 per gallon of jet fuel.

UAL said it estimates that cargo, mail and other revenue will be between $455 million and $465 million for the quarter.

Shares of UAL were down 8 cents at $34.54 on Nasdaq in early trade.

(Reporting by Kyle Peterson, editing by Dave Zimmerman)

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