United looks for brighter 2013 as investors await promised merger synergies

United Airlines management believes the carrier will turn a corner in 2013 after enduring significant integration challenges during 2012 that drove corporate customers elsewhere. Now that the carrier is declaring that is has largely overcome those obstacles, investors are pressing United for a timeframe of when they can expect the carrier to begin closing revenue gaps with its main domestic rival Delta.

United is refraining from offering an exact timetable of when it will achieve its merger synergies, but assures that it will win back lost corporate customers in 2013 while working to meet missed return on invested capital targets.

The significant decline in United's operational reliability peaked during summer 2012 and the ensuing passenger discontent was reflected in the carrier's 4Q2012 and full-year 2012 financial results. Factoring in USD1.3 billion of special charges driven by integration costs and wage increases from negotiated labour agreements, United recorded a loss of USD723 million for 2012. Its financial performance for 4Q2012 was affected by USD430 million of special charges, which resulted in a loss of USD190 million.