Economy
United Continental's profit falls 11.9%
Updated: 2011-07-22 09:08
(Xinhua)
HOUSTON - US carrier United Continental's profit fell 11.9 percent in the second quarter of the year due to rising fuel costs and a drop-off in travel to Japan, the company said on Thursday.
However, the company still reported net income of $5.38 million. Revenue rose 10.3 percent to $9.81 billion, beating analysts' estimates of $9.7 billion.
Fuel costs increased 1 billion, 45 percent higher over last year. The company's flights to Japan dropped after a March earthquake and tsunami.
Fare increases helped blunt rising fuel costs. United Continental, along with other major carriers, raised fares leading into the summer travel season, which helped compensate for the increased fuel costs.
United Airlines parent UAL Corp. and Continental Airlines Inc. merged in October last year, forming the world's largest carrier.
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