A1FlyBoy
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CHICAGO –– United Airlines parent UAL Corp. reported a $510 million first-quarter loss Friday, its second-biggest setback ever, reflecting its continued struggles to lure back business travelers in a skittish economy.
The quarterly loss was the seventh in a row for the nation's second-biggest carrier, exceeded only by the $1.16 billion loss in last year's third quarter, when the terrorist attacks threw the airline industry into crisis. Passenger revenues tumbled 28 percent, largely due to schedule cutbacks made last fall.
But results showed some signs of improvement. The operating loss was significantly smaller than expected, more seats were filled than in the fourth quarter and the airline burned through cash at about $5 million a day – about half its rate in the previous quarter.
The net loss amounted to $9.22 a share, compared with a loss a year earlier of $313 million, or $5.97 a share.
Excluding special items, United said the operating loss was $487 million or $8.81 per share, beating the $10.24 consensus estimate by analysts surveyed by Thomson Financial/First Call.
UAL shares rose 21 cents to $15.05 in morning trading on the New York Stock Exchange, though they retain only half their value from before the Sept. 11 attacks.
Operating revenues were $3.3 billion, down 26 percent from $4.4 billion a year ago.
Chief executive officer Jack Creighton said the Elk Grove Village, Ill.-based airline was making progress in its recovery, although he acknowledged that complications with labor contract negotiations have blocked efforts to cut salary and further reduce high operating costs.
The loss was exceeded only by the $575 million lost by AMR Corp., parent of industry leader American Airlines. All major carriers but Southwest Airlines finished in the red for the quarter.
"We certainly are seeing signs that our industry's situation is beginning to improve, but there still is a long way to go," Creighton said.
After posting its five biggest losses ever in the last five quarters, the company said it expects to report a "significant" second-quarter loss in addition to a loss for the full year.
Creighton has scheduled a meeting with the airline's union leaders next week to address the labor situation, chief financial officer Jake Brace said on a conference call.
UAL hasn't decided whether to file for a government loan, Brace said. The deadline for applying is at the end of June.
Special items for the quarter totaled $23 million. A $52 million charge for the closing of business-jet unit Avolar was partly offset by a gain of $29 million related to the sale of Cendant shares.
United has gone into steep descent for a number of reasons since last turning a profit in the second quarter of 2000: its failed merger with U.S. Airways, labor turmoil, high costs, the sinking economy and the attacks, all of which drove off the high-paying business travelers it depends on more than other carriers.
The company lost an industry-record $2.1 billion last year. Analysts expect another whopping loss this year, albeit a smaller one; they are forecasting an operating loss of $20.44 a share, compared with last year's $33.23.
The quarterly loss was the seventh in a row for the nation's second-biggest carrier, exceeded only by the $1.16 billion loss in last year's third quarter, when the terrorist attacks threw the airline industry into crisis. Passenger revenues tumbled 28 percent, largely due to schedule cutbacks made last fall.
But results showed some signs of improvement. The operating loss was significantly smaller than expected, more seats were filled than in the fourth quarter and the airline burned through cash at about $5 million a day – about half its rate in the previous quarter.
The net loss amounted to $9.22 a share, compared with a loss a year earlier of $313 million, or $5.97 a share.
Excluding special items, United said the operating loss was $487 million or $8.81 per share, beating the $10.24 consensus estimate by analysts surveyed by Thomson Financial/First Call.
UAL shares rose 21 cents to $15.05 in morning trading on the New York Stock Exchange, though they retain only half their value from before the Sept. 11 attacks.
Operating revenues were $3.3 billion, down 26 percent from $4.4 billion a year ago.
Chief executive officer Jack Creighton said the Elk Grove Village, Ill.-based airline was making progress in its recovery, although he acknowledged that complications with labor contract negotiations have blocked efforts to cut salary and further reduce high operating costs.
The loss was exceeded only by the $575 million lost by AMR Corp., parent of industry leader American Airlines. All major carriers but Southwest Airlines finished in the red for the quarter.
"We certainly are seeing signs that our industry's situation is beginning to improve, but there still is a long way to go," Creighton said.
After posting its five biggest losses ever in the last five quarters, the company said it expects to report a "significant" second-quarter loss in addition to a loss for the full year.
Creighton has scheduled a meeting with the airline's union leaders next week to address the labor situation, chief financial officer Jake Brace said on a conference call.
UAL hasn't decided whether to file for a government loan, Brace said. The deadline for applying is at the end of June.
Special items for the quarter totaled $23 million. A $52 million charge for the closing of business-jet unit Avolar was partly offset by a gain of $29 million related to the sale of Cendant shares.
United has gone into steep descent for a number of reasons since last turning a profit in the second quarter of 2000: its failed merger with U.S. Airways, labor turmoil, high costs, the sinking economy and the attacks, all of which drove off the high-paying business travelers it depends on more than other carriers.
The company lost an industry-record $2.1 billion last year. Analysts expect another whopping loss this year, albeit a smaller one; they are forecasting an operating loss of $20.44 a share, compared with last year's $33.23.