By Hanna Whitaker, CNN • Updated 27th June 2016
United Airlines reported a quarterly profit Wednesday after seeing travel demand increase for the fourth straight quarter.
“With continued strength in the global economy, consumer confidence and business travel, we believe we are well positioned to continue delivering value to our customers, employees and shareholders in 2016 and beyond,” CEO Oscar Munoz said in a statement.
Revenue at the nation’s No. 2 airline rose 2.4% in the quarter, bolstered by a stronger US dollar, the Chicago-based carrier said.
The company reported a net profit of $472 million, compared with a loss of $333 million a year earlier.
Even the 3.2% jump in overall expenses, which included fuel and reservation taxes, was lower than the 4.4% increase a year earlier.
Revenue from international travel rose 17% compared with a year earlier and profit growth of 10.5% from the Pacific region. Domestic revenue increased 1.7%.
The success comes as American Airlines and Southwest, the nation’s top two carriers, reported higher second-quarter earnings than previously projected.
United, which is based in Chicago, is benefiting from passenger fees and baggage charges on more of its flights, among other things. It has been making inroads on bankruptcy-era cost reductions, and made it more affordable to travel with the introduction of its first premium-class seats this summer.
It said Tuesday its strategy to compete against lower fares on every route is starting to pay off.
“We have continued to work hard to increase the load factor on every route we serve and to control the unit costs of serving that route,” Munoz said in the statement.
