Investment bank analysts smile on United Continental prospects in 2013

AVIATION analysts at New York investment bank Dahlman Rose & Co expect a see a strong year ahead for United Continental Holdings because of labour harmony, an improving balance sheet, a dominant global network now that the full merger with Continental Airlines has been completed.

With one of the biggest domestic networks United is now a major player in Asia and Latin America, said the Dahlman Rose analysts in an American Shipper report.

As a member of Star Alliance, the airline can access Russia and Africa, routes which are expected to be fully exploited with the coming of 50 Boeing 787 Dreamliners.

"United had several operational missteps in 2012, which resulted in weak earnings results," the Dahlman Rose analysts said in their report. "We believe the company has turned the corner with improved on-time arrivals and higher completion factors."

United has reached agreements with all of its big unions, they said. There are still changes to be made to various contracts, but the agreements can't be amended until 2014 at the earliest, giving United and the unions a large negotiating timetable and ensuring a little bit of stability on that front.