Shares of United Continental Holdings Inc. (NYSE: UAL) fell Thursday morning after the company’s second-quarter financials missed analyst estimates.
The stock is down 5.54% to $19.28. The 52-week low is $15.51.
United’s net income was $339 million for the quarter, or $0.89 share, compared with $538 million, or $1.39 a share in 2011. Analysts were expecting earnings of $1.70 a share, according to averages compiled by Thomson Reuters. The drop in net income was partially due to integration costs involving the merger between United Airlines and Continental Airlines. Yet operating income for the quarter, at $575 million, was still down 28.8% compared to a year ago.
Aircraft fuel, the largest expense for the airline, rose 5.6% compared to last year’s period to $3.4 billion. Meanwhile, salaries and related costs also rose 5.6% to $2.0 billion
Revenue for the airline was $9.9 billion, up from $9.8 billion in the year-ago period. Analysts were expecting revenue of just over $10 billion.
United is the world’s largest airline by traffic.