Soaring fuel prices send United earnings down

“No way United could turn a profit with this dire fuel situation”

High fuel prices are still dogging no-longer-bankrupt United Airlines, which reported a $306 million loss for the first quarter, excluding reorganization gains.

Shares of United’s parent company, UAL, fell almost 9 percent Monday after the company released its first quarterly earnings report since exiting bankruptcy three months ago.

“Fuel costs are raining on the airline’s parade in a big way,” said Joseph Schwieterman, an airline industry expert and professor at DePaul University. “There was no way United could turn a profit with this dire fuel situation.”

United’s fuel costs were 33 percent higher for the first quarter, compared to the same period a year ago. Revenue was up 14 percent, but higher ticket prices and more passengers couldn’t overcome fuel prices averaging $1.95 per gallon.

Chicago Sun-Times