Surging energy costs take a big toll on U.S. airline earnings

The parent company of United Airlines, the UAL Corporation, reported a $537 million loss in the first quarter on Tuesday, bigger than expected, as a 51 percent increase in fuel costs overwhelmed furious efforts to raise fares at the country’s second-largest carrier.

UAL shares closed down $7.88, to $13.55.

Unless oil prices unexpectedly retreat, there is no relief in sight for airlines, and nearly the entire industry is expected to lose money this year.

IHT