United Continental posts 1Q loss of $417 million as costs rise, revenue rose 1 per cent

The parent of United Airlines reported a first-quarter loss of $417 million, as costs rose faster than fares.

Still, the result was an improvement from a year ago. The net loss for United Continental Holdings Inc. was $1.26 per share, down from a loss of $448 million, or $1.36 per share, in 2012’s first quarter.

The airline says it would have lost 98 cents per share without special charges, including $70 million in expenses for its merger with Continental. Analysts had been expecting it to lose $1.09 per share.

Revenue rose 1.4 per cent to $8.72 billion, matching analyst expectations. A measure of fares paid per mile rose 1.9 per cent.

Traffic fell 1.2 per cent. United cut flying capacity almost 5 per cent, so planes were fuller. Occupancy rose above 81 per cent.