United expects decent 2Q2013 unit revenue results despite a capacity dump in Newark

United's assertive response to encroachment by familiar rival Virgin America on core markets from United's Newark hub to Los Angeles and San Francisco does not seem to be significantly affecting the network carrier's 2Q2013 revenue performance as its current unit revenue projections are in line with those issued by its largest rival Delta.

Previously United executives had warned that the new competition from Virgin America in those two key trunk Newark transcontinental markets would pressure its unit revenues for the current quarter, but the 0.3% to 1.3% rise in that metric forecast by United is roughly on par with the flat unit revenue performance forecast by Delta.

After Virgin America introduced its thrice daily service from Newark to Los Angeles and San Francisco in Apr-2013, United crafted an interesting response - a huge capacity increase accompanied by undercutting the fares offered by its smaller rival. Given the new found capacity discipline and the abandonment of chasing market share by the US major carriers, United's response to Virgin America's market entry in Newark seems to come from an old airline playbook, which has raised some eyebrows. But after a tumultuous 2012 United's aggressive counter offensive is somewhat understandable as it has a campaign under way to win back corporate customers who fled during operational meltdowns a year ago.