Shares of United Continental Holdings fell more than 5% Wednesday, a day after the airline forecast "disappointing" passenger unit revenue in Q3. After the market closed Tuesday, United said passenger unit revenue, which measures sales relative to flight capacity, would be flat in Q3 after rising 2.1% in Q2 from a year ago. "Investors were estimating 3Q17 unit revenue would be flat to up 2 (%); our estimate was up 1.5 (%), so the guidance is disappointing," Cowen analyst Helane Becker wrote in research note. Major US carriers have just begun to break free from a years-long negative streak in passenger unit revenue, posting increases in the metric after more than 2-1/2 years of depressed performance. United said unit operating costs, excluding fuel, rose more than 3% as rising labor costs weighed on the industry. Still, it posted adjusted earnings per share of $2.75, versus analysts' consensus forecast of $2.67. 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 policy changes in hopes of winning back goodwill.<br/>
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United Airlines improved its operations in Q2 after a viral recording of a passenger being dragged off a plane hurt its reputation. But the carrier plans more changes in the coming months, executives said Wednesday. United completed more of its flights than its three major rivals, its flights were more punctual and its ratio of mishandled bags in April and May was lower, according to statistics presented during a quarterly earnings call. “On the operational side, we finished this quarter as the No. 1 airline amongst our largest competitors in completion, on-time departures and on-time arrivals,” CEO Oscar Munoz said. “We look forward to continuing to build on this momentum in the second half of the year.” A key point was an 85% reduction in involuntarily denying boarding, Munoz said. The airline took several steps after a passenger, David Dao, was dragged off a full flight in Chicago on April 9 to make room for a crew member. The airline apologized repeatedly and reached a settlement with the passenger. “It’s about providing our employees with tools, but also about the imperative to solve problems in the moment for our customers,” Munoz said of steps taken to avoid a similar problem in the future, such as no longer removing a passenger who has been seated. United plans to experiment with encouraging passengers to change flights a few days in advance, if a plane is expected to be full, said Andrew Nocella, the COO. United also plans to revamp its social media team during the next quarter so that the large company can respond faster to events, Munoz said. <br/>
Air New Zealand's chief of strategy networks and alliances Stephen Jones has quit to take up a top job at Hungarian budget carrier Wizz Air. Jones has been appointed executive VP and deputy CE at Wizz Air, which is growing quickly around Central and Eastern Europe. He has been with Air New Zealand since 2001 and has been on the airline's senior executive for the past eight years. Founded in 2003, Wizz Air is a low-cost carrier headquartered in Budapest Airport, with 26 operating bases across Europe. Jones will be based at the airline's corporate headquarters in Geneva, Switzerland. In a message to staff today, Air New Zealand's CE Christopher Luxon said Jones would leave a big gap at the airline. Jones had served as chairman of the Star Alliance management board and the Star Alliance strategy committee.<br/>