KTTC Rochester, Austin, Mason City News, Weather and SportsUnited Airlines sees higher 1Q passenger revenue
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NEW YORK (AP) - United Airlines said Wednesday it expects a key revenue metric to rise 16 to 17 percent in the first quarter from a year ago.
In a filing with the Securities and Exchange Commission, the Chicago-based airline said it expects consolidated passenger unit revenue per available seat mile between 11.44 cents and 11.54 cents. The key metric gauges how much money the airline makes for every mile it flies a paying passenger.
The company said that the February snowstorms on the East Coast boosted the passenger revenue metric by 0.4 percentage point for the quarter. Although the storms hurt United's sales by $40 million, canceling flights and bumping passengers to less-full flights boosted the money it made per passenger.
The airline is forecasting capacity, or the number of available seats, to decline 3.4 percent in the first quarter. Airlines cut capacity either through scaling back the number of planes in their fleet or by using smaller jets.
United expects to end the quarter with at least $3.4 billion in cash. It plans to take in another $700 million in early April when it gets proceeds from secured notes issued during the first quarter.
"Our financial performance is demonstrating that we are firmly on the path to profitability," Chief Financial Officer Kathryn Mikells wrote in a message to employees. United will report full first quarter results in late April.
United Airlines' parent company is UAL Corp. UAL shares 69 cents, or 3.4 percent, to close at $19.49 in trading Wednesday.
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