Fliers who value cheap airplane tickets and cheap vacation packages, greeted positively Uniteds news that it posted a $538 million profit during the second quarter. The healthier existing airlines are, the more likely they can afford to run airfare sales, and help keep competitors from price gouging.
Even though Uniteds second quarter profit was down slightly from the same period in 2010, the companys profit exceeded analysts estimates.
The merged United Continental Airline is the worlds largest airline and flies under the United Airlines name. Uniteds revenue increased over 10 percent in the quarter, coming in just shy of $10 billion.
Uniteds fuel costs rose by 30 percent while total operating expenses increased by 12 percent. United lost $100 million in revenue in the second quarter as a result of falling demand in Japan after Japans March earthquake and tsunami.
The company says that it merger integration is on track and pointed out that it is streamlining many check-in and customer service processes. It has announced plans for a unified frequent flier program.
Uniteds CEO observed Thanks to the hard work my co-workers, who managed through tough weather issues and many integration changes during the quarter, we are making steady progress towards building the worlds leading airline. We are well positioned to deliver on the once in a lifetime opportunities that this merger presents for our company and our people. www.cheapfares.com