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Red ahead for UAL; CEO Tilton's choice: preserve profit or the flight network.
Byline: JOHN PLETZ
Deep declines in business travel will cancel United Airlines' return to profitability this year unless CEO Glenn Tilton is willing to slash flights again.
"Business travel appears to have all but vanished,'' Baltimore-based analyst Hunter Keay of Stifel Nicolas & Co. wrote in a recent report. Mr. Keay and analysts at UBS Securities LLC and J. P. Morgan Securities Inc. reversed predictions that UAL Corp. would turn a profit this year, forecasting instead a loss of more than $100 million for United's Chicago-based parent. For 2008, UAL posted a loss of $5.3 billion, or $42.21 per share, much of it due to a goodwill writedown of $2.3 billion, as revenue held steady at $20.2 billion.
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Source: HighBeam Research, Red ahead for UAL; CEO Tilton's choice: preserve profit or the flight...
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