United Airlines ends 2013 on a positive note; now the challenge is to sustain the momentum

United recorded commendable financial results for 4Q2013 and FY2013, as the carrier recorded its highest profitability for 4Q since merging with Continental in 2010. The results were encouraging given the operational and financial obstacles the carrier encountered in FY2012.

The airline has declared that 2013 was the year it moved past its integration, and built a foundation on which to grow, presumably into a scenario of consistent profitability. While United may believe its integration challenges are still in the rear-view mirror, there are considerable outstanding labour issues, notably a joint contract for the airline's flight attendants.

In the short term United appears to be keeping its momentum despite some fall-out from the Jan-2014 winter storms that triggered more than 6,000 flight cancellations for the carrier. After some revenue weakness during 2013, United believes a recalibration of its revenue management system should continue to accelerate yield improvement through 1H2014.