Scope out RJ's
Well-known member
- Joined
- May 31, 2006
- Posts
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I really feel sorry for the employees there. That truly is a ship with no rudder!
http://biz.yahoo.com/ap/081021/earns_ual.html?.v=6
AP
Fuel costs, hedges drive UAL Corp. 3Q loss
Tuesday October 21, 9:57 am ET
By Joshua Freed, AP Business Writer United Airlines parent UAL blames steep 3Q loss on fuel hedges, revenue edges higher
MINNEAPOLIS (AP) -- United Airlines parent UAL Corp. on Tuesday reported a $779 million third-quarter loss, squeezed by high jet fuel prices through much of the quarter and falling oil prices which hurt its hedging positions.
The Chicago-based carrier said its loss totaled $6.13 per share, compared with profit of $334 million, or $2.21 per share, a year ago.
UAL Corp. said it would have lost $252 million, or $1.99 per share, if not for accounting charges and $519 million in non-cash fuel hedge charges resulting from the drop-off in oil prices it had to record at the end of the quarter.
Revenue edged up 0.7 percent to $5.57 billion, helped by a nearly 11 percent rise in cargo revenue and a 1.3 percent rise in United Airlines passenger revenue.
The results beat estimates of analysts surveyed by Thomson Reuters, who had expected a larger adjusted loss of $2.48 per share on revenue of $5.54 billion. Shares jumped $1.22, or nearly 10 percent, to $13.89 in morning trading.
The July-through-September period saw crude oil prices peak at $147.27 on July 11, but then decline steeply to the $80-range by the end of the quarter. Jet fuel prices fell, too, but not as fast as oil.
UAL said that meant that its fuel expenses surged $946 million year-over-year, while it was still stuck with the accounting loss on the hedges. It recorded a cash gain of $17 million on fuel hedges that settled during the quarter; the noncash losses are for contracts that haven't settled yet.
Glenn Tilton, United's chairman, chief executive and president, said United is aiming to return to profitability, although the company didn't predict when.
"While today's weak economic environment challenges our industry as demand softens, that same economic environment has caused oil prices to significantly decline from the unprecedented highs we witnessed earlier this year, suggesting significantly lower industry costs and improving operating margin," Tilton said in a prepared statement.
United said it now expects overall capacity to shrink 8 percent to 9 percent during 2009. That includes a projection of shrinking domestic capacity by 12.5 percent to 13.5 percent and international capacity 7 percent to 8 percent. For the first nine months of 2008, United said it has lost $4.05 billion, or $32.34 per share, versus a profit of $456 million, or $3.10 per share, during the first three quarters of 2007. Revenue rose 3.5 percent to $15.65 billion.
http://biz.yahoo.com/ap/081021/earns_ual.html?.v=6
AP
Fuel costs, hedges drive UAL Corp. 3Q loss
Tuesday October 21, 9:57 am ET
By Joshua Freed, AP Business Writer United Airlines parent UAL blames steep 3Q loss on fuel hedges, revenue edges higher
MINNEAPOLIS (AP) -- United Airlines parent UAL Corp. on Tuesday reported a $779 million third-quarter loss, squeezed by high jet fuel prices through much of the quarter and falling oil prices which hurt its hedging positions.
The Chicago-based carrier said its loss totaled $6.13 per share, compared with profit of $334 million, or $2.21 per share, a year ago.
UAL Corp. said it would have lost $252 million, or $1.99 per share, if not for accounting charges and $519 million in non-cash fuel hedge charges resulting from the drop-off in oil prices it had to record at the end of the quarter.
Revenue edged up 0.7 percent to $5.57 billion, helped by a nearly 11 percent rise in cargo revenue and a 1.3 percent rise in United Airlines passenger revenue.
The results beat estimates of analysts surveyed by Thomson Reuters, who had expected a larger adjusted loss of $2.48 per share on revenue of $5.54 billion. Shares jumped $1.22, or nearly 10 percent, to $13.89 in morning trading.
The July-through-September period saw crude oil prices peak at $147.27 on July 11, but then decline steeply to the $80-range by the end of the quarter. Jet fuel prices fell, too, but not as fast as oil.
UAL said that meant that its fuel expenses surged $946 million year-over-year, while it was still stuck with the accounting loss on the hedges. It recorded a cash gain of $17 million on fuel hedges that settled during the quarter; the noncash losses are for contracts that haven't settled yet.
Glenn Tilton, United's chairman, chief executive and president, said United is aiming to return to profitability, although the company didn't predict when.
"While today's weak economic environment challenges our industry as demand softens, that same economic environment has caused oil prices to significantly decline from the unprecedented highs we witnessed earlier this year, suggesting significantly lower industry costs and improving operating margin," Tilton said in a prepared statement.
United said it now expects overall capacity to shrink 8 percent to 9 percent during 2009. That includes a projection of shrinking domestic capacity by 12.5 percent to 13.5 percent and international capacity 7 percent to 8 percent. For the first nine months of 2008, United said it has lost $4.05 billion, or $32.34 per share, versus a profit of $456 million, or $3.10 per share, during the first three quarters of 2007. Revenue rose 3.5 percent to $15.65 billion.
