Thursday, October 21, 2010

United, Continental Report Profits on recovering Travel Demand

United Airlines and Continental Airlines posted third-quarter profits among improving business- travel demand that is letting them charge more for tickets.

United said profit not including some items was $473 million, or $2.12 a share and Continental’s profit was $367 million, or $2.24 a share.

Rebounding travel demand is allowing the carriers to increase fares while keeping planes full. The carriers combined in October in an all-stock deal to form Chicago-based United Continental Holdings Inc., surpassing Delta Air Lines Inc. as the world’s major airline.

“As we incorporate the two networks and make the world’s leading airline, we will offer even more value to our customers,” Chief Revenue Officer Jim Compton said today in a report.

United’s revenue grows 22 percent to $5.39 billion and Analysts anticipated $5.41 billion. Continental’s revenue advanced 19 percent to $3.95 billion and Analysts estimated $3.91 billion, on average.

United had been the third-biggest carrier in the U.S. previous to the $3.47 billion merger and Houston-based Continental was No. 4.

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