United Continental Holdings Inc reported a greater-than-expected jump in quarterly profit on Tuesday, helped by higher fares and more last-minute ticket purchases. The No 3 US carrier by passenger traffic reported fourth-quarter net profit of $580 million, or $1.99 per share, compared with $397 million, or $1.26 per share, in the year-ago quarter.
Excluding special charges, United reported profit of $1.40 per share, beating Wall Street's average estimate of $1.34 per share, according to Thomson Reuters I/B/E/S. United shares rose almost 3 percent in after-hours trading. In the fourth quarter, United posted a 0.2 percent increase in passenger unit revenue, in line with its earlier outlook.
Costly last-minute ticket purchases are generally a boost to airlines, especially during pricing peaks such as the busy holiday season. The Chicago-based airline's results follow a strong fourth-quarter performance and quarterly outlook by rival Delta Air Lines Inc, which reported better-than-expected profit earlier this month.
Shareholders are keeping a close eye on United's bottom line after an underwhelming third quarter sent shares tumbling. Cancellations in that quarter caused by a rash of powerful Atlantic hurricanes and a fierce fare war with low-cost competitors cost the airline several hundred millions of dollars.
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