Integration Costs Hurting United Continental Earnings

The parent company of United Airlines said its second-quarter net income dropped 37% as it continued to hit obstacles in its integration of Continental.

United Continental Holdings had warned on Tuesday that June passenger revenue rose less than it had been expecting. The shortfall occurred because it didn’t correctly estimate the value of tickets that had been bought but not yet used to fly.

The company says it earned $339 million for the quarter, or $0.89 per share. Excluding special items, United would have earned $545 million, or a $1.41 per share.

Analysts surveyed by FactSet had been expecting profit of $1.65 a share. Revenue rose just over 1% to nearly $10 billion.


Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined News 88.7 in January 2011. Since arriving in Houston, he has reported on the many changes wrought on the region’s economy by the revolution in domestic oil and gas production. His non-energy reporting runs the gamut from white-collar crime to cattle ranching. His work has aired on...

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