United Continental Reports Fourth-Quarter Loss Due to Merger Costs

United Continental reported a fourth-quarter loss due to the cost of merging what had been United Airlines and Continental Airlines; it would have reported a profit without those costs. Including integration costs, United Continental reported a fourth-quarter net loss of $138 million.

The combined company’s full-year profit would have been $1.3 billion, except for $483 million of special items, mostly integration costs. Including those costs, its full-year profit was $840 million.

Passenger revenue increased 9 percent in 2011 over 2010. Passenger revenue per available seat mile (PRASM) increased 9.2 percent in 2011 over 2010. Passenger revenue increased 4.6 percent in the fourth quarter, as quarterly PRASM increased 8.2 percent year over year. Fuel expenses increased 36 percent, excluding the impact of hedging.

For the fourth quarter of 2011, total revenue was $8.9 billion, an increase of 5.5 percent year over year. Fourth-quarter consolidated passenger revenue rose 5.6 percent to $7.8 billion, compared to the same period in 2010.

Consolidated revenue passenger miles (RPMs) for the fourth quarter of 2011 decreased 3.2 percent year over year, while capacity (available seat miles or ASMs) decreased 2.5 percent year over year, resulting in a fourth-quarter consolidated load factor of 81.5 percent.

Consolidated yield for the fourth quarter of 2011 increased 9 percent year over year. Fourth-quarter 2011 consolidated PRASM increased 8.2 percent compared to the same period in 2010.