United Continental has resolved the proxy fight over the makeup of its board of directors by agreeing to make former Air Canada CE Robert Milton the non-executive chairman of the board. The company has also agreed to add 2 board members nominated by activist investors Altimeter Capital Management and PAR Capital Management, hedge funds that together own 7.1% of United. In March, Altimeter and PAR had announced their intention to nominate a slate of 6 board members, including former Continental CE Gordon Bethune, sparking a public dispute over the makeup of United’s board. United CE Oscar Munoz, whose contract with the company had specified that he would also become chairman of United’s board in 2017, has agreed to amend his contract so that he won’t assume the chairman’s role until 2018. <br/>
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United Continental reported Wednesday a Q1 profit above analysts' expectations and said it would slow its growth plans because flight capacity has exceeded passenger demand. The airline posted adjusted Q1 earnings per share of US$1.23, compared to $1.52 a share in the year-earlier period. And revenue for the quarter came in at $8.2b, against the comparable year-ago figure of $8.61b. Analysts had expected United Continental to report earnings of about $1.18 a share on $8.2b. A collapse in oil prices continues to hurt demand for travel from energy centre Houston, one of United's principal hubs. At the same time, a surge in flights from LCCs continues to keep US domestic prices low. United said that in response to soft demand, it has reduced plans to add flight capacity in 2016 by 0.5 percentage points. <br/>
THAI has been given a target operating profit of THB12b this year while the company is expected to post a net profit of THB2b. Deputy transport minister Ormsin Chivapruck said the airline's revenue is projected to surge to THB194b this year, up 7% from THB182b last year. The carrier posted a net loss of THB13.06b last year. However, it has succeeded in stemming losses, Ormsin said Wednesday. The Finance Ministry said that THAI's recovery was mainly due to low fuel prices, leading the SEPC to set a target operating profit for the company of at least THB12b this year. THAI is also required to make management changes in line with international best practices. The airline reported Q1 earnings Wednesday. Revenue was THB48.8b, slightly lower than its target of THB49.4b. <br/>
SIA has signed a deal with Panasonic Avionics to supply inflight entertainment and connectivity (IFEC) across the carrier’s upcoming Airbus A350 and Boeing 787-10 deliveries. The deal will see the new aircraft delivered with Panasonic’s broadband-connected multi-channel eX3 entertainment offering. SIA said the new IFEC system will offer a “custom-tailored [experience] for an enhanced KrisWorld experience.” The eX3 system can link into the company’s Global Communication Services (GCS) provisioning to enable more than 1Tbyte of entertainment as well as customised on-board broadband internet-based communications. The company said the system will “deliver higher levels of personalisation … and unrivalled opportunities around passenger engagement and value delivery.” <br/>