United Airlines, Denver’s largest carrier, on Tuesday reported a $63 million net loss for the third quarter, half as much as Wall Street anticipated.
The loss, which excluded noncash hedge gains and other charges, was 43 cents per share, compared with an expected 94-cent loss.
United also generated a $123 million operating profit, an improvement of $273 million over last year, on revenues of $4.43 billion.
In a conference call with analysts and reporters, United officials credited falling jet-fuel prices, improving revenue trends, capacity reductions and cost- containment efforts.
United’s top leaders expressed optimism about the return of business travel.
“The trends have clearly improved from last quarter, suggesting the beginning of a recovery,” said Kathryn Mikells, United’s chief financial officer.
Ancillary fees, such as for checked bags and quicker boarding, and the new Star alliance with Continental Airlines are bringing in new revenues.
With fuel prices fluctuating, United chief Glenn Tilton said cash is needed to ride out “this difficult environment.”
United raised $1.5 billion in the third quarter and early fourth quarter, resulting in a $3.1 billion cash balance.
On Monday, Standard & Poor’s removed United from credit watch.
The airline is still looking at a potential wide-body aircraft order after asking Airbus and Boeing in June to submit bids.
Ann Schrader: 303-954-1967 or aschrader@
