United Airlines expects to record USD412m special charge in relation to Newark slots

United Airlines stated (12-Jul-2016) it expects to record special charges of USD434 million (USD278 million after income taxes) for 2Q2016, with the most significant item in the period comprising a non-cash impairment of intangible assets. In Apr-2016, the Federal Aviation Administration (FAA) announced plans to designate New York Newark Liberty International Airport as a level 2 schedule-facilitated airport under the IATA worldwide slot guidelines effective 30-Oct-2016. The designation was associated with an updated demand and capacity analysis of Newark by the FAA, and United has determined the FAA's action has impaired the entire value of its Newark slots. United said the slots will no longer be the mechanism that governs take-off and landing rights, and they expect to record a USD412 million special charge to write off the intangible asset. [more - original PR]