UAL Expects to Break Even With Acquisition

United Airlines parent UAL Corp. said it expects to break even this year if its acquisition of US Airways Group Inc. is completed and it foresees unspecified profit increases for 2002 and 2003. The world’s largest airline company told analysts that the combined revenue of the carriers would total about $26 billion this year with costs of about $25.3 billion if the acquisition is wrapped up by midyear. The company said that without the US Airways acquisition, it will earn $500 million before taxes. UAL sought to ease analysts’ concerns that it agreed to pay too much for US Airways and that profit would suffer as the companies combine. The company has agreed to sell some US Airways assets to win Justice Department approval for the acquisition. Analysts in the last two weeks have lowered their 2001 profit estimates for UAL without an acquisition to $2.62 a share. Before UAL reported fourth-quarter earnings Jan. 18, the company was forecast to earn $4.17 a share this year. Shares in UAL rose $1.15 to close at $41.60, while US Airways closed up 1 cent at $43.50, both on the New York Stock Exchange.