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Last Updated: Monday, 31 July 2006, 14:13 GMT 15:13 UK
United Airlines returns to profit
United Airlines plane
United emerged from bankruptcy protection in February
The parent company of United Airlines, UAL Corporation, has unveiled its first quarterly profit in six years.

Helped by increased revenues and ongoing cost-cutting, in the three months to the end of June the firm made a net profit of $119m (64m).

This compares with a loss of $1.4bn for the same period in 2005.

UAL, which emerged from Chapter 11 US bankruptcy protection in February, saw revenues grow to $5.11bn from $4.42bn a year ago.

Cost-cutting

The results marked the first time UAL had made a quarterly profit since it earned $408m in the second quarter of 2000.

UAL added that it now aimed to speed up its ongoing cost-cutting programme by bringing forward some of the $400m in savings it had planned to start next year.

United - the second-largest US airline after American Airlines - is just one of several established US carriers that has sought bankruptcy protection in recent years.

The airline sector has struggled with soaring costs, increased competition from low cost rivals, and a dip in passenger numbers after the 11 September 2001 attacks.

Under US Chapter 11 protection, a bankrupt firm can continue trading while being protected from its creditors, giving it time to restructure is finances.

United's recovery has come despite higher fuel costs. Like many of its competitors, the airline has successfully managed to pass some of the increases onto its passengers in the form of surcharges on top of the basic ticket price.




SEE ALSO
United Airlines to axe 1,000 jobs
14 Jun 06 |  Business
Losses spiral at United Airlines
27 Jan 06 |  Business
United released from bankruptcy
20 Jan 06 |  Business
United's quarterly losses double
12 May 05 |  Business
US airlines seek foreign capital
03 Nov 05 |  Business

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