United posts higher passenger unit revenue

United Continental said Tuesday passenger unit revenue rose 2.1% in Q2, but unit operating costs, excluding fuel, rose more than 3% as rising labour costs weighed on the industry. The airline outperformed analysts' expectations on key financial metrics, posting adjusted earnings per share of US$2.75, versus analysts' consensus forecast of US$2.67. Excluding special charges, United posted net income of US$846m and a pretax margin of 13.2%. The solid financial results for the period ended on June 30 came despite consumer outrage over an April incident in which a paying passenger was dragged off a United flight. The company eventually settled with the passenger for an undisclosed amount and promised changes to company policy in hopes of winning back goodwill. In the Q2 report, United posted a 79% decline in the number of passengers involuntarily denied boarding in May and an 88% drop in June, following the uproar over the dragged passenger. The airline performed better than expected on revenue, pulling in US$10b, up 6.4% year over year, versus analysts' consensus of US$9.97b. United also said on Tuesday it would delay taking four Airbus A350 jets from 2018 and it would accelerate its order of 12 Boeing 737 Max aircraft into 2019 and two Boeing 787-10 aircraft within 2019.<br/>