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United Continental Holdings, Inc. reported June 2011 operational results for United Air Lines, Inc. and Continental Airlines, Inc. United and Continental’s combined consolidated traffic (revenue passenger miles) in June 2011 decreased 0.9 percent versus pro forma June 2010 results on a consolidated capacity (available seat miles) increase of 0.6 percent. The carriers’ combined consolidated load factor in June 2011 was down 1.3 points compared to the pro forma results from the same period last year.
United and Continental’s June 2011 combined consolidated and mainline passenger revenue per available seat mile (PRASM) each increased an estimated 4.0 to 5.0 percent compared to the pro forma results from June 2010.
June year-over-year PRASM growth was reduced due to the impact of the company’s trans-Atlantic joint-venture revenue-sharing agreement, which is accounted for as Passenger Revenue. The second quarter impact of this agreement is booked entirely in June. While the agreement was executed in the fourth quarter of 2010, revenue-sharing aspects of the joint venture are retroactive to Jan. 1, 2010, and activity related to revenue-sharing obligations in the first nine months of 2010 was recorded as Other Operating Expense in the fourth quarter of 2010. Therefore, revenue results for the first three quarters of 2010 do not reflect the negative impact of the joint-venture obligation. In addition to the joint-venture impact, June 2010 revenue results also included an accounting adjustment related to interline billings that increased the company’s June 2010 year-over-year PRASM growth by approximately 2 percentage points.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
