NEW YORK - UAL Corp, parent of United Airlines, said it expects to be in full compliance with its credit facility covenants in the third quarter and has liquidity initiatives on tap for the fourth quarter.

In a regulatory filing on Wednesday, the airline also said it expects third-quarter costs to be down 0.5 percent to 1 percent from a year earlier, a slight improvement from a forecast it issued in July.

The carrier said it now expects passenger revenue per available seat mile to fall between 17.8 percent and 18.8 percent in the third quarter.

Concerns for Chicago-based United's liquidity have been raised as the outlook for travel demand remains depressed. Still, last week some analysts said United's liquidity remained at adequate, if not robust, levels.

Shares of UAL were up 3.2 percent to $9.07 in early trading on Nasdaq. (Reporting by Deepa Seetharaman; editing by John Wallace)

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