United Airlines’ profit up 30 percent as it recoups most fuel costs
United Airlines’ fortunes continue to fly high as the carrier posted third-quarter profit growth of 30%.
It lifted its full-year outlook despite the ever-present concern over still rising fuel costs.
United Continental shares rose nearly 5% in after-hours trading.
The airline says it has achieved the difficult task of recouping most of the extra fuel costs with higher ticket prices and fees.
Total operating revenue was up 11.2% to $11 billion year-on-year and paid out $2.6 billion on third quarter fuel costs.
The airline boosted overall capacity by more than 5% and just announced a big expansion from six hubs, including new flights to Alaska and Hilton Head Island, SC, which will be linked with Chicago, Newark and Washington, D.C.
"With more than 40 new domestic routes added this year, we remain committed to expanding our network to offer customers even more choices in their travel destinations," said Ankit Gupta, United’s vice president of domestic network planning.
"The expansion to Hilton Head Island from three of our hub cities and the introduction of New York’s only nonstop service to Anchorage and Pensacola, are just some of the ways we are responding to customer interest and demand."
United is introducing a new nonstop service from Washington Dulles to Asheville, NC, as well as new nonstops out of LA and San Francisco.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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