United registers 2Q profit – first time since 2000
© United AirlinesIt has been a very, very long dry spell. For the first time since 2000, UAL Corp., the parent company of United Airlines, has recorded a second-quarter profit. That net profit of $119 million compares with a $1.43 billion loss one year ago. At that time, United was struggling to emerge from Chapter 11 bankruptcy.
United managed the feat despite record fuel prices. Fuel costs during the second quarter of 2006 were almost a third higher than they were for the comparable period a year ago.
What’s behind United’s showing? Cost controls, higher fares, and reduced capacity (fewer flights). United received a real boost earlier this year when Independence Air folded. The discount airline operated out of Washington Dulles (IAD), which is also United’s main East Coast hub. Independence’s demise meant less low-fare competition out of Dulles for United.
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