UAUA

Don't believe the fairy tales United and Continental are spinning about their proposed merger being beneficial to travelers and carriers alike: Beyond the deal to bring Southwest to Newark Airport that they cut placate the antitrust watchdogs, this merger is all bad news.

UAL Corp., the parent of United Airlines, reported sharply higher earnings in the second quarter of $273 million, or $1.29 a share. Quarterly revenue rose 28.4% to $5.16 billion from $4 billion.

UAL is expected to announce today that it will "buy" Continental in a transaction that is more a merger of equals.

There have been a lot of articles in the press about the bleak future of U.S. airlines. If anyone needed confirmation about how tight cash is getting in the industry, they only need look at the U.K. flag carrier British Airways. According to The Wall Street Journal, BA will bring in cash in a...

The combination of the economy and high energy prices is threatening the U.S. airline industry in a way it has not been threatened since crude traded above $100 and pushed jet fuel prices to exorbitant levels. Jet fuel fell as oil dropped below $40 in the early part of this year, but its price is...

Long before the rest of economy went to pot, the airline industry was awash in an ocean of red ink. Some things never change. Republic Airways Holdings (RJET) yesterday offered to buy bankrupt Frontier Airlines (FRNTQ) for $108.8 million. Indianapolis-based Republic will still need to get court...

Just a few months ago, airlines were on the brink of recovery. Oil prices had dropped and travel was down, but people were still flying. The carriers had cut back on capacity, a move that should have made each seat more profitable. But now the International Air Transport Association has doubled its...

So, you are a struggling company in a struggling sector, what do you do? How about dishing out more than $10 billion during one of the worst slumps ever in your industry. Well, that's the strategy UAL (UAUA), parent company of United Airlines, seems to be employing. According to The Wall Street...