(Reuters) – United Airlines (UAL.N) said on Friday it expects to record a special charge of $105 million in the second quarter after determining an Open Skies agreement between Brazil and the United States impairs the value of its Brazil routes.
United said the value of its Brazil routes were impaired because the agreement removes reciprocity requirements for flights between the two countries, and does not reflect any decline in passenger traffic.
“This is about an accounting non-cash write down and has nothing to do with the value of the routes,” a United spokeswoman said.
United, which trades under its parent United Continental Holdings Inc, is due to publish second-quarter results after the market closes on July 17, followed by a conference call on July 18.
The company’s share price edged narrowly higher to close at $70.96 on the New York Stock Exchange on Friday.
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