United Continental boosts 2Q earnings 38 pct.

Higher fares and a lower fuel bill led to a 38 percent profit jump for the parent of United Airlines in the second quarter.

Fewer passengers flew on United from April to June, but those who did paid slightly more. Not just for plane tickets, either. United boosted revenue from add-on charges such as baggage fees and seats with more legroom.

Last spring, United was struggling to merge some of its large computer systems with Continental, resulting in snafus that frustrated passengers and hurt fares.

In the most recent quarter, a key measure of per-seat passenger revenue rose 1 percent as United recovered. The airline projected that per-seat revenue would rise as much as 5 percent in the third quarter.

"We have clearly turned the corner post-merger, and I am confident that we are on a path toward becoming the world's leading airline," said Jeff Smisek, the airline's chairman, president, and CEO, on a conference call.

United sees one path to greater profitability in collecting more money for add-ons. Revenue for its extra-legroom Economy Plus seats jumped 37 percent in the most recent quarter. United hopes to sell more of those seats through the Sabre ticket distribution system next year. Sabre processes sales to large corporate travel clients and online booking sites such as Travelocity, which Sabre owns.

United also sells "subscriptions" for a $500 fee that entitles a passenger to Economy Plus for a year. And it's rolling out satellite-based Internet connections that it will sell to passengers. Revenue from add-ons like that rose by 13 percent to more than $20 per passenger in the second quarter, United said.

"We believe there is considerable room for us to grow in this high-margin space," said Chief Revenue Officer Jim Compton.

The airline is also aiming to bring so-called "revenue management" to more of those fees. Airlines have long sold tickets for different prices depending on how much demand there is for the flight and how far in advance the customer is booking. Now it's doing the same thing with those Economy Plus seats.

The next step will be to make different offers to different customers, Compton said. United deals with 140 million passengers per year, "not all of whom want or value the same thing from us, and not all of whom in return create the same value for the company," Compton said. He said United will beat its earlier goal of raising revenue from add-ons by 9 percent.

United Continental Holdings Inc. earned $469 million, or $1.21 per share, for the quarter. It would have earned $1.35 per share if not for special items. That's a penny better than expected by analysts surveyed by FactSet. A year ago it earned $339 million, or 89 cents per share.

Revenue rose almost 1 percent to $10 billion, about what analysts had expected.

United cut flying by 2 percent compared to a year earlier. Its fuel bill dropped 10 percent on a combination of the reduced flying and an 8 percent drop in the per-gallon price of fuel.

Lower fuel bills helped all of the big airlines in the most recent quarter. But oil prices have risen in recent weeks, likely dampening the relief for airlines.

Shares of Chicago-based United Continental fell 67 cents, or 1.9 percent, to $34.30.

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Tiger Woods Boosts Masters Prices

Lynne Sladky/AP Photo

With round one of the Masters Golf Tournament underway, tickets for the famous game in Augusta, Ga., are still being sold online today. Though ABC News’ Darren Rovell reports prices on web sites like StubHub have dropped to $3,000 to $4,000 today, some badges were being sold earlier this week for as high as $10,000.

The high ticket prices, experts say, are linked to Tiger Woods, who is making his run for a fifth Masters title. Woods finished playing today with a 2 under par 70, in striking distance of the lead.

The prices people are willing to pay this year are nearly unprecedented, only seen the first time Woods made his appearance as a professional in the late 90's, Kenneth Wisnefski a branding expert, CEO and founder of WebiMax, told ABC News.

“It’s 100 percent related to Tiger,” said Wisnefski. “When he played well years ago, it was at a different level than people have ever seen. They were able to see that level of brilliance up close and people who didn’t go thought ‘Wow, we missed the opportunity to see it up close.”

Wisnefski said people are jumping at the chance to see Woods be great again.

“That’s why it’s a huge ticket and why people are so buzzed about it,” Wisnefski said.

The high ticket prices may also be because corporate spending is returning in a better economy, Robert Tuchman, president of sports marketing company Goviva told ABC News.  But Woods is clearly the big draw.

“Tiger Woods is great for the business itself, from selling products on TV and even badge prices at the Masters, he has a direct link to the business itself. A lot of it has to do with people believing he can contend for another green jacket this year,” Tuchman said.

Though some tickets are going for five-figure amounts, Rick Spehn, a Minnesota resident who frequents the Masters, says he would never pay tens of thousands to watch the tournament. Spehn just returned from watching the practice rounds of the Masters.

“I was out there two years ago and Tiger was just coming out of that mess. He’s always had the highest draw, and it was that way again this year,” Spehn said. “The real star is the golf course itself. They could put 20 third graders out there, I’d go see it.”

Some don’t go just for Woods, Wisnefski says, but the loyalty to see Woods play is all in his branding.

“It’s interesting to see a sports figure rehabilitate their brand and do something even companies can’t do. When looking at a sports figure, good play will trump anything,” Wisnefski said.

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