The airline still managed to make a profit despite higher than expected fuel prices which were mostly offset by fare increases at the airline. The airline showed strong performance after it increased the numbers of seats to international destinations in Europe.
United is looking to add 3 to 3.5% seating capacity in the fourth quarter and roughly 2.5% for the upcoming 2007 year. What a positive sign for the airline that no one though would make it, though they are far from out of the woods. Two profitable quarters does not constitute frivolous spending on their part again. They need to continue to work on customer service, products and keeping the airline slim and profitable.
With a lot of airlines returning to profitability do not look for many mergers to be taking place. The main goal of a merger is to eliminate the competition and increase market share in order to better control the market. Don't look for airlines to be seeking a merger partner anytime soon. All of them seem to be in better financial standing than just a few years ago. So the reason for a merger is not applicable anymore.
Chicago Tribune
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