Business News
United Airlines, US Airways report fewer losses than expected
Apr 27, 2010, 18:24 GMT
Washington - United Airlines parent UAL Corp and US Airways Group Inc, which ended merger talks last week, Tuesday posted lower first-quarter losses than had been expected thanks to a boost in international travel and higher fares.
The net loss at Chicago-based UAL shrank to 82 million dollars from 382 million dollars in first quarter 2009. Revenues rose 25 per cent to 4.24 billion dollars, the company said in a statement.
US Airways, based in Tempe, Arizona, reported losses of 45 million dollars, compared with 103 million dollars lost in early 2009. Sales rose 7.9 per cent to 2.65 billion dollars.
As the recession eased, more high-paying business travellers took to the air, boosting revenues and cutting down on losses, airline officials said. Higher ticket prices helped compensate for an increase in jet fuel prices.
After US Airways pulled out of merger talks with United Airlines last week, a separate set of merger talks have been moving forward between Continental Airlines and United Airlines.
The two companies are now wrangling over the stock prices to be used in their merger negotiations. The current hold-up centres on the date at which stock prices should be used for the no-premium stock merger, Bloomberg news service reported Monday, quoting three unnamed people familiar with the negotiations.
COMMENT
blog comments powered by DisqusLatest Headlines in Business
- 1. US unemployment drops further, but figures disappoint
- 2. Japan stocks down as euro debt outweighs positive US data
- 3. Iraq resumes oil flow after pipeline blast in Turkey
- 4. Spanish bond auction lifts eurozone worries, sinks Japan stocks
- 5. ECB holds rates, rules out early exit from emergency measures
Older Talkback
