Following the merger of United and Continental Airlines in October, many analysts predicted a very bleak fourth quarter for the resulting mega airline.
Even airline executives admitted that special expenses from the merger fallout would weigh heavily on fourth quarter earnings.
But while the airline did post an expected loss for the quarter, the $325 million deficit was much better than many had predicted.
The new airline outperformed the expectations of most analysts for the quarter, boosting revenue by nearly 15 percent.
In fact, without the merger expenses, United Continental said it would have posted a $160 million quarterly profit, amounting to about 44 cents per share.
Work on the merger has continued into the New Year. Nearly 200 planes have already been rebranded with the United name and Continental logo and work on integrating the airlines’ computer systems is well underway.
Source: USA Today