With its much publicized troubles on the labor and operational front, it comes as little surprise that the world's largest airline is expecting less than stellar results for next quarter.

United Airlines announced last week that it expects to post a loss for the third quarter, which chairman and CEO James Goodwin labeled "a difficult period for United."

"The disruptions to our operations throughout the quarter greatly inconvenienced our customers and front-line employees, reducing revenues significantly," Goodwin said. "On the cost side, while we are pleased that we were able to reach a tentative pilot contract, the financial implications of the agreement, coupled with the higher price of jet fuel, will further impact our results."

Goodwin said the losses will extend through the fourth quarter as well.

The company experienced an abnormally high level of delays and cancellations throughout the peak travel season this summer.

In response, it adjusted its schedule to reduce the inconvenience caused by the disruptions to its customers and front-line employees, and this, combined with the effect of the disruptions themselves, had a significant effect on revenues.

Affecting the company's costs are the recent tentative pilot contract agreement combined with the higher cost of jet fuel.

"The cost of the tentative pilot agreement, as well as the expected impact of other labor agreements which the company is now negotiating, will be greater than originally anticipated," Goodwin said.

The company is addressing the fuel problem with a hedge program against crude oil cost increases for the year, but this appears to be too little too late.

The cost of jet fuel has risen at a higher rate than the cost of crude oil, and this will affect the company's costs for the quarter.