United Airlines: time to deliver as sceptics look for improved fortunes in 2Q2014

After turning a bleak performance in 1Q2014, executives at United Airlines are continuing their pledges of improvement, declaring year-over-year gains in quarterly earnings going forward with lofty earnings targets for 2017 and beyond.

United is also disclosing more details regarding its philosophy on debt management and shareholders returns, the latter of which is not likely to occur until 2015 at the earliest. Unlike some of its US airline peers, an investment grade rating does not appear to be the ultimate, near-term prize for United. Instead the airline has set a debt target that allows it to strike a balance between balance sheet management and shareholder returns.

The airline during the past couple of years has often made declarations of improvements in its fortunes, only to miss those targets. So any goals United outlines are understandably met with some level of scepticism.

But with overall demand in the US market remaining solid and United's own ample opportunity for improvement, perhaps an upturn in 2Q2014 is a distinct possibility.