United posts US$387 million Q3 profit, Continental $354 million

NEWLY merged United Continental has announced individual third quarter net profit of US$387 million for United and $354 million for Continental, said the company's release.

United Airlines merged with Continental Airlines on October 1 to form the new United Continental. Financial results for United and Continental will be combined when reporting fourth quarter results.

United reported a net profit of $473 million excluding special items for the third quarter with an improvement of $533 million year on year. On a generally accepted accounting principles (GAAP) basis, United reported a third quarter net profit of $387 million.

Continental reported a net profit of $367 million excluding special items for the third quarter with an improvement of $365 million year on year. On a GAAP basis, Continental reported a third quarter net profit of $354 million.

The combined carrier will increase capacity one per cent in 2011, said chief executive of United Continental Jeff Smisek, reported the Wall Street Journal.

Mr Smisek also said the enlarged airline is ahead of schedule in securing a single operator certificate to enable it to merge staff and aircraft fleets. It is hoped this will be done by the end of 2011 with securing approvals from regulators and new deals with its unions. Rearranging the route network of the combined carrier is expected to take 18 months.

He estimates the fourth quarter's capacity is go up three to four per cent, and the rise next year is weighted towards international services.
(Source:www.schednet.com)