United's costs shoot up after new labour contracts

Atlanta

UNITED Continental Holdings Inc said expenses are rising more quickly than usual because of new employee contracts that have brought the airline to the brink of labour peace after years of acrimony.

Costs for each seat flown a mile are expected to climb 4.75 per cent to 5.75 per cent in the fourth quarter, excluding fuel and certain other items, the Chicago-based carrier said on Monday. The increase, which the carrier said was driven by recently ratified labour deals, compares with no change in last year's fourth quarter and a gain of 1.2 per cent in 2014.