United 1Q results to detail system change impact

AP News
Posted: Apr 26, 2012 3:03 AM
United 1Q results to detail system change impact

The bigger United Airlines will tell investors this morning just how bad the growing pains were in the first quarter.

United acquired Continental and formed United Continental Holdings Inc. in 2010. As part of the ongoing integration, the company made some significant computer changes last month. They didn't go smoothly, causing flight disruptions. In February, a separate system change resulted in United selling more seats at lower fares than it otherwise would have.

Wall Street wants to know exactly how much these events hurt the bottom line.

On top of that, the first-quarter tends to be a money-losing one for airlines because of seasonally slow travel.

Analysts surveyed by FactSet are expecting United to report a loss of $1.10 per share on revenue of $8.6 billion.