United Continental Holdings Inc.
) airline traffic - measured in revenue passenger miles or RPMs,
which implies revenue generated per mile per passenger - fell
3.4% year over year to 13.74 billion. Consolidated capacity (or
available seat miles/ASMs) for the month was 17.46 billion, down
8.4% from Feb 2012.
The load factor (percentage of seats filled by passengers)
improved to 78.7% from 74.6% in Feb 2012. Passenger revenue per
available seat mile (PRASM) is estimated to have increased
6.5-7.5% year over year.
Although United Continental Holdings has gained considerably
over the Jan 2013 performance on the back of busy traffic in the
Pacific and Latin America, factors like lower business in the
Atlantic as well as in the domestic market continued to linger on
Feb traffic results. In addition, volatile oil prices, increased
competition, increasing maintenance expenses and a disgruntled
workforce also remain detrimental factors for the company's
Headquartered in Chicago, United Continental operates nearly
5,472 flights every day across 381 airports in 6 continents. With
the target to expand its operational wings, United Continental is
expanding its global route network. The company is launching
various non-stop flights across many international spots. The
company announced plans to operate twice-daily nonstop flights
between Denver and Dickinson, North Dakota, starting Jun 6,
Moreover, United Continental is optimizing its network and
flight routes for greater efficiency in fleet operations. The
company is reducing its domestic fleet count, retiring the older
and less-efficient aircraft and reconfiguring domestic aircraft
for international service. In 2012, the company suspended
services of 19
) 737-500s, one Boeing 757-200 and three Boeing 767-200s.
United Continental's various strategic actions including the
baggage delivery option, installation of Economy Plus seats and
MileagePlus program are expected to give it a competitive edge
over other industry players such as
Southwest Airlines Co.
United Continental currently retains a Zacks Rank #3
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