United sees second quarter revenue dip

New United Airlines Cargo website
United Airlines

United Airlines saw its cargo revenue fall in the second quarter (Q2) of this year, but it is up for the first half of 2015.

The airline’s revenue for Q2 was $229 million, a decline of 1.3 per cent on the $232 million, which was achieved in Q2 last year.

United Airlines’ cargo revenue for the first six months of the year is up YOY by 6.8 per cent to $471 million. This compares to cargo revenue of $441 million in the first six months of 2014.

The carrier’s cargo tonne miles (CTM) in Q2 saw a YOY rise of 4.8 per cent to 633 million, up on the 604 million in Q2 last year. For the first half of the year, CTM was 1.29 billion, a YOY increase of 8.9 per cent on the 1.18 billion registered in the same period in 2014.

United Airlines saw an overall profit of $1.3 billion in Q2. Total revenue was $9.9 billion, which is a YOY decrease of four per cent. In the first half of the year revenue fell to $18.5 billion, a YOY fall of 2.6 per cent. United Airlines vice chairman and chief revenue officer, Jim Compton, says: “This quarter, we continued to build and refine our route network, including announcing the move of a transcontinental service to our global gateway hub at Newark Liberty Airport and forming a long-term partnership with Azul Brazilian Airlines.

“We will continue to improve our leading network by focusing on our strengths, while investing in our people, fleet and products to increase revenue.”

In Q2, United Airlines invested $100 million, through a wholly owned subsidiary, to acquire an approximate five per cent stake in Azul Brazilian Airlines. It is also invested $30 million to acquire an equity stake in Fulcrum BioEnergy, an alternative fuels company.