United sees Q1 revenue gauge near high end of outlook

United Continental said a benchmark measure of pricing power rose near the upper end of a company forecast even as the No. 3 US carrier ramped up the supply of seats and flights. Passenger revenue for each seat flown a mile, a proxy for an airline’s ability to raise fares, rose about 2.7% in the quarter ended March 31, United said in a regulatory filing Monday. The carrier last month projected an increase of 1 to 3%. The report suggested that United’s fares were holding up despite the airline’s fast growth. Investors panned an aggressive expansion plan the company unveiled Jan. 24, sending the shares down 11% amid fears that the rising seat supply would dent pricing and profits across the industry. United boosted seating capacity 3.6% in Q1 and has said it expects to increase capacity by as much as 6% each year for the next three years.<br/>