United Continental Thursday said its ailing CEO will return from medical leave by the end of Q1 or sooner, as it reported Q4 profit below analysts' expectations. Shares were up 1.1% after rising more than 3% earlier, part of a broader rebound in airline shares. CE Oscar Munoz, who suffered a heart attack in October, said on a conference call he was feeling great after a heart transplant this month. United previously said he would return by the beginning of Q2. The news overshadowed United's warning that it expects unit revenue to keep sinking as sharply lower oil prices hurt sales to energy clients around the airline's Houston hub. United doubled its adjusted profit to US$934m, or US$2.54 per diluted share. Analysts on average expected United to earn about US$959m, or US$2.58 per diluted share. United forecast a pre-tax profit margin between 8 and 10% in Q1, excluding special items. It also said it expects passenger unit revenue will fall between 6 and 8% in Q1 from a year ago.<br/>
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United said Thursday it will buy 40 small planes from Boeing, dealing a US$3.2b blow to Bombardier's hopes of landing a major customer for its fledgling CSeries program. Separately, Southwestsaid it had ordered 33 of Boeing's 737-800 aircraft, a deal it struck in December but announced on Thursday. Reuters reported last week that Boeing was poised to snatch at least part of United's order for small jets that seat about 100 passengers. Boeing 737-700s can seat 126 people and will be flown by United's pilots, reducing its reliance on contractors as a shortage of regional pilots looms in the United States. Canada's Bombardier has not landed an order in more than a year for the CSeries, a new carbon-composite aircraft whose two models seat between 100 and 160 passengers and are equipped with fuel-efficient Pratt & Whitney engines.<br/>
Air New Zealand is ramping up its new Auckland-Houston route faster than anticipated as it benefits from high demand from cashed-up tourists from the US east coast and oil executives travelling to and from Australia. As a result, the airline has reduced the number of flights on the Auckland-Los Angeles and Auckland-San Francisco routes, which will become increasingly competitive due to the entry of American and United into the New Zealand market from June and July respectively. Macquarie Equities said scheduling data showed an 11% decline in Air NZ's capacity to Los Angeles and a 8.8% decline to San Francisco in the current half relative to a year ago, with a 17% fall to Los Angeles expected in H2 of the calendar year. <br/>