First Quarterly Gain In Six Years

UAL Corporation, the parent company of United Airlines, reported its first quarterly profit in six years this week -– thanks to higher fares, packed flights, and cutting costs.

The San Francisco Chronicle reports UAL posted a net income of $119 million in the second quarter of 2006... compared with a loss of $1.43-billion just one year ago.

"Our focus on strengthening the core business is creating momentum within the company, and the results we have achieved this quarter are a solid step forward," said UAL chairman, president and CEO Glenn Tilton.

UAL adds it earned a profit, despite a $344 million increase in fuel expenses during the same period -- an increase of 31 percent over last year. Execs with the airline cite the implementation of $7 billion in annual cost savings, the elimination of some 43,000 jobs, and reducing wages, pensions and benefits -- along with several other measures -- as reasons for the turnaround.

Despite the good news, Tilton warned employees the news doesn't mean United is back on solid ground.

"We are encouraged -- but we are not satisfied -- by the progress and the momentum we demonstrated this quarter," said Tilton. "We had strong revenue growth, solid cost performance, a strong cash position."

Until this year, the airline struggled in bankruptcy for more than three years. Sara Nelson Dela Cruz, a spokeswoman for the Association of Flight Attendants, says no one should ignore the employees' sacrifice to make the profit possible.

"United employees have always been dedicated to United Airlines' success," said Dela Cruz. "No one should ignore the employees' sacrifice to make this profit possible and we hope to see much greater profits in the future."

FMI: www.united.com