United Continental expects Q3 unit revenue gain | Reuters on Astini News
CHICAGO |
CHICAGO (Reuters) - United Continental Holdings Inc (UAL.N), parent of United Airlines, on Wednesday said it expects its third-quarter passenger revenue to increase between 9.5 percent and 10.5 percent amid declining domestic capacity.
The world's largest airline, formed last year from a merger of United Airlines and Continental Airlines, said in a regulatory filing that its total consolidated capacity will likely fall 0.8 percent for the quarter.
Capacity on domestic routes is likely to be down 1.9 percent, while international capacity is estimated to rise 0.6 percent.
The company expects to end the third quarter with $8.4 billion of unrestricted cash, cash equivalents and short-term investments.
The U.S. airline industry is reclaiming stability after a years-long downturn exacerbated by soaring fuel costs and an economic recession that drained travel demand. Top carriers bolstered their positions by eliminating excess capacity and raising fares.
Also on Wednesday, United Continental gave details on its frequent flyer program, Mileage Plus, which will expand to include members of Continental's OnePass that expires at the end of this year.
The updated Mileage Plus loyalty program will feature four status levels to determine services offered to the members.
The new United will enrol OnePass members automatically into Mileage Plus in the first quarter of 2012.
United bought Continental in a $3.17 billion all-stock deal last year, but the airlines continue to operate separately while they integrate into a new United Airlines. Merging loyalty programs was key step toward cementing a single identity.
United Continental's shares rose 2.8 percent, or 61 cents, to $21.40 on the New York Stock Exchange. (Reporting by Kyle Peterson, editing by Gerald E. McCormick and Maureen Bavdek)
