Recent moves including an aircraft financing deal and asset sales led UAL Corp to announce that it will increase liquidity by nearly $275 million by 2008's end.[1]
http://blog.wired.com/27bstroke6/2008/09/six-year-old-st.html
In a move to cut expenses amidst high oil prices, United announced plans to cuts its labor force by over 1100 people and reduce its plane fleet by 100.
This precipitous decline occurred immediately after Continental Airlines unexpectedly walked away from merger talks, effectively pricing the merger strategy out of the stock.
United Airlines reported its 4Q '07 earnings on January 22, 2008. The company announced a $53 million loss and cited increasing feul prices as a major cause.
Rumors surface on Jan 9 and are confirmed on Jan 15 of merger talks with Delta between both Northwest and United. Airline industry mergers historically drive up share prices because they consolidate markets, reduce competition, and help drive up ticket prices.
United Airlines announced strong third quarter results on October 25th. Their earnings exceeded analyst estimates, yet share prices fell following the news. The fall in share prices is reflective a current general trend in the airline industry. Rising fuel costs are a major source of concern for investors, as prices continue to set record highs.
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