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EARNINGS ROUNDUP / UNITED

Airline posts $779-million quarterly loss

October 22, 2008|Times Wire Services

United Airlines parent UAL reported a $779-million third-quarter loss Tuesday, one of the worst quarters for an airline. In the same quarter, it suffered from expensive jet fuel and accounting charges because of falling oil prices.

The nation's second-biggest carrier said capacity cuts and charges for things such as checking luggage should help make it profitable again.

Those fees are here to stay, said John Tague, United's chief operating officer. He said customers have been frustrated as they get used to that, but the business has to be run in a way to make a profit.

The Chicago-based carrier said it lost $6.13 a share, compared with a profit of $334 million, or $2.21 a share, a year earlier.

Revenue edged up 0.7% to $5.57 billion.

The results beat estimates of analysts surveyed by Thomson Reuters who expected a loss of $2.48 a share on revenue of $5.54 billion. UAL shares rose $1.13, or 8.9%, to at $13.80.

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