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United to write off $264 million as Newark landing slots lose value

Published 07/12/2016, 05:56 PM
Updated 07/12/2016, 06:00 PM
© Reuters. A United Airlines airplane pulls into the United Terminal at O'Hare International airport in Chicago

(Reuters) - United Continental Holdings Inc expects to write off a quarter billion dollars in assets because a decision by U.S. regulators to allow more take-offs and landings in Newark, New Jersey, has diminished the value of United's slots there, the airline said on Tuesday.

United, the No.3 U.S. airline by passenger traffic, said it will record a non-cash charge of $412 million in the second quarter, or $264 million after income taxes, associated with its slots at Newark Liberty International Airport.

© Reuters. A United Airlines airplane pulls into the United Terminal at O'Hare International airport in Chicago

The charge follows a recent decision by the U.S. Federal Aviation Administration to allow more flights to take off and land at Newark because airport congestion had eased.

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