United Airlines posts 4Q profit of $140M

The parent of United Airlines said today that it earned $140 million in the fourth quarter, as more passengers flew and paid more for their tickets. The airline's fuel bill also shrank.

Its shares fell, though, after a disappointing prediction for revenue growth in the current quarter.

Net income at United Continental Holdings Inc. was $140 million, or 37 cents per share. A year earlier it lost $620 million, or $1.87 per share.

Not counting special charges, United would have earned 78 cents per share — well above the 66 cents expected by analysts surveyed by FactSet.

Revenue rose more than 7 percent to $9.33 billion, also higher than analysts had expected.

Passengers paid 3 percent more per mile to fly compared to a year earlier. They paid more in add-on fees, too. United said so-called ancillary revenue, which covers items such as baggage fees, rose 15 percent in the quarter to nearly $21 per passenger.

Fuel expenses fell 4 percent to $2.97 billion for the quarter.