United Continental Holdings, the world’s largest airline group, dropped into the red in 2012, posting a heavy net loss of US$723 million for the 12-month period.
The result marked a dramatic US$1.56bn swing, from the US$840m net profit it recorded in 2011, with weak cargo sector and higher costs hitting the results.
United’s total passenger revenues were virtually unchanged from the year before, climbing 0.2% to US$35.58bn. Cargo revenues however, slumped 12.8% to US$1.02bn. The airline’s fuel bill also increased 6.2% to US$13.14bn – more than 35% of the airline’s total operating costs.
United’s executive vice president and chief financial officer, John Rainey, said the results “clearly fell short of our expectations”. “2013 will be an important year for us as we take the necessary steps to create economic value and achieve a sufficient level of profitability,” Rainey added.
United’s operating profit totalled just US$39m, down 98% compared to 2011.
