United Q3 profit up 30% as it recoups fuel costs

United says it is now passing the full impact of higher fuel prices to its customers, helping the nation's third-biggest carrier boost Q3 profit by 30%. Parent company United Continental Holdings said Tuesday that it earned $836m, as rising revenue more than offset a 40% jump in fuel spending. United doesn't disclose average fares, but an approximation — revenue for every seat flown one mile — rose a surprisingly steep 6.1% from a year ago. CEO Oscar Munoz declared it a "stand-out third quarter performance" that "is proof that United is building momentum." The company raised its forecast of full-year earnings per share. United shares rose more than 4% in the first hour of late trading after the report was released. United has struggled to keep up with rivals. To turn things around, Munoz's executive team has added flights from its mid-US hub airports in Chicago, Denver and Houston, where many passengers connect to other destinations. Executives say those are now among United's strongest operations in growth of revenue per seat. Revenue jumped $1.1b, or 11%, to $11b, slightly higher than the $10.96 forecast from analysts in the Zacks survey. Labour costs remained United's top expense, but fuel ran a close second and is expected to keep rising. Still, United said that thanks to higher fares, it captured "approximately 100%" of the increase in fuel prices over the same period last year.<br/>