United Posts Loss On Weaker Travel Demand

United Airlines parent UAL posted a narrowed quarterly net loss on Tuesday, but its revenue was hit hard by economic recession that drained travel demand.

The company said its first-quarter loss amounted to USD$382 million, or $2.64 per share, compared with USD$549 million, or $4.55 per share, a year earlier.

The airline industry has been battered by an economic recession that has eroded demand, causing UAL and other airlines to reduce their capacity. UAL said its mainline capacity is expected to be down by 9 percent to 10 percent for all of 2009.

UAL said it saved USD$729 million, or 38.7 percent, in consolidated quarterly fuel costs due to declining fuel prices since July. The savings included the impact of settled hedge losses suffered as falling fuel prices eroded the value of hedges.

The company expects mainline costs per available seat mile, excluding fuel and other items, to rise 1 percent to 2 percent in 2009.

UAL said its consolidated unit revenue fell 11.1 percent year-over-year.