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United Air ramps up promises of improvement despite a glaring 1Q2014 loss; management under fire

Analysis

Few were surprised by United's 1Q2014 loss as the carrier recently warned that severe winter storms would take its toll on quarterly results. But its fellow legacy carrier American cancelled nearly as many flights as United, yet managed to post strong quarterly profits despite the tough operational challenges.

United has spent most of the last year on the defensive over when it will turn the corner to consistent revenue generation on par with its peers and towards sustainable profitability. The airline that has constantly touted the supremacy of its network is now fielding questions over the lack of revenue its hubs generate as investors try to grasp onto any concrete reason why the carrier continues to struggle.

The airline contends no structural issues are responsible for its dismal performance. Instead, it maintains, it is simply continuing to eliminate lingering inefficiency from the merger between United and Continental. True to form United continues to promote several initiatives to improve its fortunes, but the rhetoric is wearing thin with analysts.

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