United Airlines has reported its first quarterly profit since 2007.

Parent company UAE Corporation reported the airlines posted a second quarter net profit of $430 million – an improvement of $751 million on the same quarter last year.

The company saw a 26.9% year-over-year increase in passenger revenue per available seat mile with double digit growth rates across all regions.

The turnaround in the carrier’s financial performance comes after United announced a merger agreement with Continental Airlines in May, which is expected to be finalised by the end of the year.

The two airlines said this will create the world’s leading airline serving over 350 destinations.

UAL chairman, president and chief executive Glenn Tilton, said: “We are pleased to report a significant net profit improvement in the quarter along with excellent operational results across the company.”

The strong performance “builds momentum that we take into our planned merger with Continental Airlines later this year”, he added.