United Continental Holdings, Inc. announced second-quarter 2011 financial results including a net profit of $577 million. UAL results for the second quarter include the financial results of its two operating subsidiaries, United Airlines and Continental Airlines. Prior to the merger on Oct. 1, 2010, UAL results included only the financial results of United.
UAL said its consolidated passenger revenue increased 10.1 percent in the quarter of 2011 while consolidated fuel expense, excluding the impact of hedges, increased 45.2 percent, or $1.1 billion, year-over-year.UAL ended the quarter with $8.6 billion in unrestricted cash, cash equivalents and short-term investments.
"Our capacity discipline drove solid unit revenue and yield growth in the second quarter," said Jim Compton, UAL's executive vice president and chief revenue officer. "We will continue to offer products our customers value and are willing to pay for."
Due to the decline in demand for travel to Japan following the March 11, 2011, earthquake and tsunami, the company reduced capacity to and from Japan by 11.8 percent during the quarter.
UAL estimates that second-quarter consolidated passenger revenue decreased by approximately $100 million as a result of the reduced demand due to the tragedy in Japan.