Source: ATW Daily News Author: 06/18/2008
Subject Concerned: Airlines
United Airlines parent UAL Corp. said in a US Securities and Exchange Commission filing that it expects second-quarter revenue to increase over the year-ago period as both capacity and traffic fall.
Second-quarter mainline passenger RASM is expected to rise 4%-5% year-over-year, with consolidated PRASM lifting 3.5%-4.5%.
At the same time, mainline and consolidated capacity are expected to decline 1.4% from the year-ago period.
Mainline traffic will fall 4%-4.5% and consolidated RPMs will decline 4.25%-4.75%.
It said it expects unit revenue to "continue to grow modestly" in the third quarter.
Second-quarter mainline CASM excluding fuel and "certain primarily noncash charges" will rise 3%-3.5% year-over-year to 7.83-7.87 cents.
But total mainline CASM will surge at least 20% to 13.19-13.23 cents.
UAL expects to end the quarter with an unrestricted cash and short-term investments balance of US$2.7-US$2.8 billion, plus US$800 million in restricted cash.