$17 BILLION loss in one quarter?

[PulluP]

How can that be...is it one huge misprint?

http://us.rd.yahoo.com/finance/external/reuters/SIG=11vg30000/*http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh86322_2006-01-27_14-41-38_n27373822_newsml

http://biz.yahoo.com/prnews/060127/nyf030.html?.v=36

 

[wmuflyguy]

I hope it is jsut a misplaced demical point

 

[81Horse]

" ... Excluding reorganization and special items, UAL reported a fourth-quarter net loss of $297 million, an improvement of $333 million over the previous year. The carrier said it expects to report a substantial gain at bankruptcy exit in early February.
... UAL said its operating loss was $182 million, a $388 million improvement over the same quarter last year."

$$$billions in one-time charges.

 

[blzr]

I would think it's 1.7 billion. 17Billion would put them into the "Super Major" airline since now it seems any LEGACY MAJOR airline Must lose >1 Billion/Q to keep their major status. Also seems like the more they lose, the more management makes. Don't you think the public would think it somewhat absurd that a pilot make more money for every accident/incident they were involved in?

 

[AeroBoy]

From the press release:

The $17 billion of reorganization items recorded in the fourth quarter represent mostly unsecured claims allowed during the bankruptcy process. These claims, along with similar unsecured claims that the company has recognized in prior periods of the reorganization, are expected to be settled when the company exits bankruptcy for a minor fraction of the amount of the claims recorded. As a result, the company expects to report a substantial gain at exit in early 2006. It is important to note that these items are not expected to have a significant impact on the company's cash position.

Looks like this is an accounting housekeeping move, i.e. expunging the unsecured debt from United's books.

 

[LXJ31]

There is a very good post regarding this at enplaned.blogspot.com

Some highlights:

About 9 Billion worth of charges related to the termination of pension plans. Pension Benefit Guaranty Corp takes it on, paying out a percentage of their original worth. PBGC is straining under the weight of its obligations, so its likely the U.S. taxpayer will be called on to bail it out.

It also includes half a BILLION worth of lawyer, accountant, banker etc. fees which, unlike pension costs and other unsecured debts, are paid in FULL.

I should have gone to law school or become a CPA....