UAL Corp., parent of No. 2 U.S. carrier United Airlines, on Tuesday said its quarterly profit more than doubled as it controlled costs during the strong summer travel season.
The company, whose labor and fuel costs declined during the quarter, said its second-quarter profit amounted to $274 million, or $1.83 per share, compared with $119 million, or 93 cents per share, a year earlier.
Shares of UAL traded at $48.50 in premarket trade, up 2.6 percent from Monday's closing price on Nasdaq.
The company reported operating revenue of $5.2 billion, a 2 percent increase over the comparable quarter in 2006.
The airline industry has been battered in recent years by soaring fuel costs and low-fare competition. Carriers initiated several lasting fare hikes in 2006, but the trend toward higher fares has slowed in 2007, even during the peak summer travel season.
UAL, which exited bankruptcy in February 2006, ended the quarter with $5.1 billion in cash and short-term investments.
(Reporting by Kyle Peterson)