United Airlines gets $1.2 billion infusion

By Julie Johnsson Chicago Tribune CHICAGO — United Airlines got a much-needed boost of confidence, as well as $1.2 billion in cash, from credit card partner Chase Bank, sending its shares soaring 69 percent yesterday. The deal, unveiled during United's midmorning earnings call, appeared to quell investor concerns about the carrier's viability as high oil prices, a sputtering economy and a looming seasonal fall-off in travel threaten to drain airlines' cash. Analysts think that unless oil prices fall dramatically, mounting financial pressures will send one or more large airlines into bankruptcy over the next year. Those that can amass hefty cash reserves stand the best chance of surviving the tumult. Chicago-based United appeared vulnerable after recording larger losses than its peers during the first six months of this year.... [read full story]