UAL’s posts first 2nd-quarter profit since 2000
UAL Corp., parent company of United Airlines, today reported its first net profit in the second quarter since 2000 with a gain of $119 million for the second quarter, compared to a loss of $1.43 billion in the same period 2005.
The net loss in the second quarter 2005 included $1.39 billion in reorganization items related to the company preparing to exit Chapter 11 in February 2006.
In the last quarter, UAL reported operating income of $260 million, up 442 percent compared to $48 million in the second quarter 2005. Revenue was up 15.6 percent to $5.1 billion from $4.4 billion. Cargo revenues increased 7.8 percent to $194 million from $180 million.
In a separate development, United said it would strengthen its service to the Asia Pacific region by adding 40 weekly, year-round flights and additional cargo capacity to its schedule during the next nine months.
Included in United’s international network optimization plan are:
* Start of United’s first-ever service between Asia Pacific (Tokyo) and its Washington Dulles hub.
* Reinstatement of United’s daily, nonstop San Francisco/Taipei service.
* Expansion of United’s San Francisco/Seoul service from seasonal to year round.
* Three more weekly flights between San Francisco and Hong Kong.
“As we improve our financial performance, we must make certain that we take full advantage of our network strength and fly routes that provide the best revenue opportunities for United and the greatest benefits to our customers,” said John Tague, United’s executive vice president and chief revenue officer.