United Continental has reported net income of $588 million, or $1.78 a share, on a 5.2% slide in overall revenue to $9.4 billion. Its earnings per share of $2.61 beat Wall Street estimates only slightly, while its unit revenue declined by 6.6%, in line with recent guidance.
For the current third quarter, United said its unit revenue is expected to be down between 5.5% and 7.5%. And its pretax margin should hit 13.5% to 15.5%, as opposed to 14.5% in the second quarter, within guidance. The third quarter is generally the busiest in the calendar year for the industry.
In the second quarter, United said it took a $264 million after-tax write down on the value of its slot portfolio at Newark. This was caused by the Federal Aviation Administration loosening slots at Newark, effective later this year.