Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: United Continental Holdings
So what: The company expects an 8.3% to 9.3% increase in consolidated passenger revenue per available seat mile in the second quarter, below analysts' expectations of a double-digit gain. There will also be a $110 million charge stemming from a change in the way mileage credits sold to Chase Bank are accounted for.
Now what: According to UBS, that means the $1.54 consensus EPS estimate for the quarter is about $0.30 too high. United Continental said demand was in line with its expectations, but a transatlantic joint venture revenue-sharing agreement and other items are affecting revenue. Disruptions related to the tragedy in Japan and sky-high oil prices are also causing turbulence for airlines. American Airlines' parent company AMR
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