United Airlines parent United Continental Holdings reported a Q3 net profit of US$965m, down 80% from a net income of $4.8b in the 2015 September quarter. According to United’s Q3 performance report, in 2015, “after considering all positive and negative evidence, the company concluded that its deferred income taxes would more likely than not be realised. The company released substantially all of its valuation allowance in Q3 of 2015, which resulted in a $3.2b benefit in its provision for income taxes.” As a result, United’s total net income in Q3 2015 was $1.6b (before taxes) plus the $3.2b income tax benefit. By contrast, in Q3 of 2016, United’s income before taxes was $1.5b, with an income tax expense of $545m. United said the company’s effective tax rate for the 3 and 9 months ended Sept 30 was 36%. <br/>
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Passenger numbers at TAP rose 4.7% in September as new US routes boosted the carrier. Total passengers carried during the month rose to 1,160,873, with Boston and New York JFK routes helping push the US total up 104.5%. Overall numbers for the intercontinental sector were up 11.3% in September. A consortium, led by David Neeleman, former CE of JetBlue, and Humberto Pedrosa, took over 61% of TAP in a part privatisation in 2015. The deal was amended in early 2016 as a new Portuguese govt regained control of the airline with a 50% stake. The Neeleman/Pedrosa consortium agreed to reduce their stake to 45%. The Atlantic Gateway Consortium has restructured the airline’s network and introduced capacity and aircraft changes. <br/>
LOT has launched a direct flight between Poland and South Korea, hoping to increase travel and investment between the two nations, the airline said Tuesday. Starting Monday, LOT operates 3 flights a week between Warsaw Chopin and Incheon International using a 252-seat Boeing 787 Dreamliner. It is LOT's third non-stop flight to Asia, following China in 2008 and Japan in January, it said. In light of the direct flight, the Polish airline signed a memorandum of understanding with the Korea Tourism Organisation on developing tour package programs in both countries. "We need to diversify the inbound tourism market that has mainly focused on China and Japan," Kim Jung-ah, a KTO official, said. "We hope the direct flight between South Korea and Poland could help draw more travellers from Eastern European nations." <br/>