Paris attacks hurt UA revenue
United Airlines said its passenger unit revenue may have fallen more than expected in the fourth quarter just ended after the November attacks in Paris shook traveller demand and sharply lower oil prices hurt sales to the Houston hub carrier’s energy clients, Reuters reported.
Passenger unit revenue, which compares ticket sales to flight capacity, fell between 5.75 percent and 6.25 percent in the fourth quarter from a year ago, United Continental Holdings Inc said in a regulatory filing.
That compares to an earlier forecast for a drop between 4 percent and 6 percent for the October-December quarter. The forecast may suggest continued turbulence for US airlines, which suffered from steep unit revenue declines in 2015.
The Paris attacks’ impact on demand is ?concerning,? said Sterne Agee CRT analyst Adam Hackel, adding that hotel bookings were down in France during the holidays. The November 13 attacks by militants in which 130 people died were claimed by the Islamic State.