United Air raises forecast for Q1 flight capacity

United Continental Holdings Monday raised its forecast for Q1 flight capacity. The airline said it expects capacity growth of 2.6% for the quarter ended March 31, compared to a prior forecast of a 1-2% increase. United said the increase in the forecast was driven mainly by an improvement in mainline completion factor in Q1, which resulted in higher flight capacity. The carrier also said it expects Q1 passenger unit revenue to be about flat, compared to a year earlier. "Better than expected close-in traffic in March offset higher than anticipated completion factor in the quarter," United said of the unit revenue forecast. Last week, Delta Air Lines lowered its Q1 passenger unit revenue forecast for the second time, citing slower-than-expected improvement in average fare prices for flights booked at the last minute. <br/>