United Airlines' parent company, UAL, lost a worse-than-expected $292 million in the second quarter, battered by the fall in business travel and higher labour and fuel costs.
It was the company's fourth money-losing quarter in a row after more than five years without one.
Revenues slumped 9 per cent to $4.66 billion from $5.11 billion a year earlier for United, which was overtaken by American Airlines this year as world's largest carrier. Passenger revenues were nearly 12 per cent lower, at $4.02 billion.
"We continue to feel the disproportionate effect of the weaker economy on business travel, particularly on the West Coast and Asia, two of our key regions," said UAL chairman and chief executive officer Mr James Goodwin.
Mr Goodwin promised to continue cost-cutting initiatives.
For the first six months of 2001, UAL lost $605 million, or $11.47 a share, compared with earnings of $237 million, or $1.68 a share, in the first half of 2000. Revenues declined 6 per cent to $9.08 billion from $9.65 billion, including an 8 per cent drop in passenger revenues.
AP