DALLAS (AP) — Profit is down and revenue is still falling at United Airlines, as the airline industry struggles with lower average fares.
Linda Jojo, the airline's chief information officer, on Monday offered the airline's first detailed description of last week's breakdown.
Investors pay close attention to revenue for every seat flown one mile, a figure called unit revenue.
United reported that figure dropped 5.8 percent in the third quarter — better than Delta's 6.8 percent decline, but still another reminder that average prices have been falling because airlines added flights faster than the growth in demand.
The airline's predictions of fourth-quarter unit revenue and profit margins were "a bit underwhelming," said Jack Atkins, an analyst with Stephens Inc. He said he thought the revenue forecast would be better because airlines have recently reported improving trends in some fares.
