United Continental outlines 0.6% capacity fall for 2Q2012

United Continental released (28-Jun-2012) the following investor update for 2Q2012:

• Capacity: Consolidated system available seat miles to decrease 0.6% year-on-year. Consolidated domestic ASMs to decrease 1.2% and consolidated international ASMs to increase 0.2%;
• Revenue: Consolidated passenger revenue per available seat mile to increase 3.2-4.2%. During Jun-2012, United Continental received proceeds from a business interruption claim from the 2011 Japanese earthquake and tsunami, which increased PRASM growth by approximately 1 ppt for the month and 2Q2012 PRASM growth by approximately 0.3 ppt. 2Q2012 cargo and other revenue to be between USD1.14-1.19 billion;
• Non-fuel expenses: Consolidated cost per available seat mile, excluding certain items, to increase 2.5-3.5%. United Continental expects to record approximately USD60 million of third-party business expense in the quarter;
• Fuel expenses: Consolidated fuel price, including the impact of cash settled hedges, to be USD3.29 per gallon;
• Non-operating expenses: Non-operating expenses of USD225-245 million;
• Profit sharing and share-based compensation: Estimated as USD20 million year-to-date through to 2Q2012.
• Capital expenditures, scheduled debt and capital lease payments: Approximately USD510 million of gross capital expenditures and approximately USD300 million of net capital expenditures, excluding net purchase deposit refunds of USD4 million. USD260 million of debt and capital lease payments expected, including approximately USD70 million of prepayments;
• Liquidity: USD8.1 billion in unrestricted liquidity as of the end of 2Q2012, comprised of USD7.6 billion of unrestricted cash, cash equivalents and short-term investments and USD500 million in undrawn commitments under its revolving credit facility;
• Advance bookings (next six week period):
  • Mainline domestic advance booked seat factor up 2.1 ppts;
  • Mainline international advance booked seat factor down 0.2 ppt;
  • Mainline Atlantic advance booked seat factor is down 2.0 ppts;
  • Mainline Pacific advance booked seat factor is up 1.4 ppts;
  • Mainline Latin America advance booked seat factor is up 0.4 ppt;
  • Regional advance booked seat factor is up 4.3 ppts. [more - original PR]