United Express Revenues Up

Regional affiliates' annual contribution to operating income increased $45 million or 58 percent in 2007 when United Express carriers took in $3.071 billion, up 5.9 percent. For the quarter, the regional operation reported break-even operating income of $765 million, as the 9.6 percent increase in regional affiliate revenue was offset by a 9.3 percent increase in operating expenses at $765 million owing to higher fuel prices.
For the full-year, regional affiliate PRASM, excluding special items, increased 2.0 percent to 18.79 cents on a 3.6 percent increase in capacity to 16.3 billion. Stage length for regional affiliates was up 4.9 percent for the full year compared to 2006. In the fourth quarter of 2007, regional affiliate PRASM improved 9.0 percent to 19.13 cents compared to the fourth quarter of 2006, on a 0.7 percent increase in capacity at 3.999 billion, a 0.8 point decrease in traffic at 3.013 billion, and a 10.6 percent rise in yield to 25.39 cents.
Expenses included aircraft rents of $105 million and $107 million for the three months ended December 31, 2007 and 2006, respectively, and $425 million and $437 million for the twelve months ended December 31, 2007 and 2006, respectively.
United, meanwhile, reported pre-tax income of $695 million for 2007, the highest since 1999. The company generated net income of $403 million in 2007, the first full-year profit since 2000, excluding reorganization items. Excluding special and reorganization items and severance, 2007 net income of $352 million was $417 million higher than 2006. On a full-year basis, the company reported pre-tax income of $695 million, or $606 million excluding special items and severance, resulting in a pre-tax margin of 3.0 percent compared to a negative 0.3 percent for full-year 2006. The company generated $1.0 billion of operating income for the year, or $948 million excluding special items and severance, $515 million or nearly 120 percent higher than 2006, more than doubling operating margin to 4.7 percent. As a result, the company reported an operating loss of $64 million for the fourth quarter of 2007, a pre-tax loss of $98 million and a net loss of $53 million, $8 million better than the fourth quarter of 2006.