Capacity to be cut 10% this year
United Airlines has posted a $382m net loss in the first quarter 2009, year-on-year.
The loss, not including special items and fuel hedging adjustments, is 30.4% better than the $549m loss United suffered in the same period in 2008.
United's adjusted loss was $579m, or $4 per share. The largest negative adjustment was for fuel hedging which amounted to $263m over the three months.
Passenger revenue (PRASM) fell 11.1%. United said this was "at the top end" of predictions made in March.
United's Latin American routes suffered the greatest drop in revenue, down 19.6%. Of the airline's long haul markets, its Atlantic routes suffered the lowest fall in revenue of 13.4%.
The airline said its 2009 outlook was improved for "non-fuel costs" but expected capacity to fall 9-10% for the full year.
A non-aircraft capital expenditure plan for 2009 will be cut by $100m, from $450m to $350m, United said.
Savings from fuel expenses amounted to $729m, or 38.7% year-on-year, including the impact of hedging losses.
United said it raised $500m in cash in the first quarter through "various transactions" including aircraft and engine financings, airport facility relocations and the sale of assets.
The airline has received "tentative approval" from the US Department of Transportation to form a transatlantic joint venture with Star Alliance partners Continental Airlines, Lufthansa and Air Canada.
In January, United and Aer Lingus announced they were to increase their transatlantic route partnership.
The EC announced this week it planned to investigate the relationship of the four airlines as well as those of BA, American Airlines and Iberia who are members of the oneworld alliance to see if they were anti-competitive.
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