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Nice Job United

Skippy

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.... you F'n MORONS



UAL reports $1.3 billion 4Q loss
Wednesday January 21, 9:16 am ET
By Joshua Freed, AP Airlines Writer United Airlines parent UAL reports $1.3 billion 4Q loss on operations and fuel hedges

MINNEAPOLIS (AP) -- United Airlines parent UAL Corp. on Wednesday said it lost $1.3 billion in the fourth quarter because of operating losses and fuel-price bets that turned sour as oil prices fell. Without the bad hedges, results were better than analysts had expected. The Chicago-based carrier also said it would lay off another 1,000 salaried and management staff by the end of this year, in addition to the 1,500 it had already announced. United began 2007 with some 9,000 people in those positions. Glenn Tilton, United's chairman, president, and CEO, told workers in an e-mail on Wednesday that the layoffs are necessary because of reduced capacity and demand.
UAL said it lost $9.91 per share, compared with a loss of $53 million, or 47 cents per share, during the same period last year. UAL reported revenue of $4.55 billion, down 9.6 percent from $5.03 billion during the same period last year.
United said without the hedging and other accounting charges, it would have lost $547 million for the quarter, or $4.22 per share.
Analysts surveyed by Thomson Reuters expected UAL to lose $4.42 per share for the fourth quarter, on revenue of $4.54 billion.
The hedging loss included $370 million in cash for fuel hedges that settled during the quarter. It also had to record non-cash charges of $566 million on fuel hedges that show a loss but have not yet settled. Oil prices whipsawed airlines during 2008. Hedges that looked like a good bet when oil hit $147 per barrel in July have gone terribly wrong for United and other airlines as oil prices fell. On Wednesday oil was trading around $41 per barrel in Europe
 

9rj9

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nice job !!! So you actually pay thoes CEO's money for that great return. freaking clowns....
 

Shrek

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.... you F'n MORONS



UAL reports $1.3 billion 4Q loss
Wednesday January 21, 9:16 am ET
By Joshua Freed, AP Airlines Writer United Airlines parent UAL reports $1.3 billion 4Q loss on operations and fuel hedges

MINNEAPOLIS (AP) -- United Airlines parent UAL Corp. on Wednesday said it lost $1.3 billion in the fourth quarter because of operating losses and fuel-price bets that turned sour as oil prices fell. Without the bad hedges, results were better than analysts had expected. The Chicago-based carrier also said it would lay off another 1,000 salaried and management staff by the end of this year, in addition to the 1,500 it had already announced. United began 2007 with some 9,000 people in those positions. Glenn Tilton, United's chairman, president, and CEO, told workers in an e-mail on Wednesday that the layoffs are necessary because of reduced capacity and demand.
UAL said it lost $9.91 per share, compared with a loss of $53 million, or 47 cents per share, during the same period last year. UAL reported revenue of $4.55 billion, down 9.6 percent from $5.03 billion during the same period last year.
United said without the hedging and other accounting charges, it would have lost $547 million for the quarter, or $4.22 per share.
Analysts surveyed by Thomson Reuters expected UAL to lose $4.42 per share for the fourth quarter, on revenue of $4.54 billion.
The hedging loss included $370 million in cash for fuel hedges that settled during the quarter. It also had to record non-cash charges of $566 million on fuel hedges that show a loss but have not yet settled. Oil prices whipsawed airlines during 2008. Hedges that looked like a good bet when oil hit $147 per barrel in July have gone terribly wrong for United and other airlines as oil prices fell. On Wednesday oil was trading around $41 per barrel in Europe

The buck STOPS with you Tilton.....BOD whatchya gunna do now?!

Probably give yourselves a bonus.......:puke:
 

labbats

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.
United said without the hedging and other accounting charges, it would have lost $547 million for the quarter, or $4.22 per share.

This is the most telling part. Even without the sub par bet on oil futures they would have lost half a BILLION.
 

Mr.B

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In case SENIOR management reads this....like our forum....

RESIGN YOU IDIOT!
 

ultrarunner

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Over half a BILLION DOLLAR loss from operations in 12 weeks!

FYI, that comes out to flushing 7 million a day down the toilet!

2.9 billion or so cash on-hand.
Do the math.

I think it's a pretty safe bet that any DIP bucks are gone!
 

NavinRJohnson

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Is that the current cash on hand or 3rd qtr? I can't get on to EDGAR to get the SEC filing...
 

Yuppyguppy

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current cash on hand is 2.0 billion...hardly enough. Game over...just a few more quarters
 

Jon Rivoli

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Come on now. How long have we been waiting for MESA to die?
 

ultrarunner

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Good point Jon, but it's going to happen....I suspect this is the year....UAL will get absorbed..CAL would be crazy to go anywhere NEAR UAL except after a Ch. 7 filing....

Mesa will loose it's legal battles....

There is still WAY too much capacity out there...
 

Jonny Sacko

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Tilton is an idiot. Even if he plays this off as some means to get the GOV to allow a merge, he's an idiot.
 

Jon Rivoli

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The socialist are in power now and Barry is from Chicago and the most powerful woman in the world represents SFO. Eject, Eject , Eje... I mean bailout.
 

GuppyWN

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HOLY COW. I take back everything crappy I've said about WN's Gary Kelly - lately.

You boys need to storm to castle.

Gup
 

NavinRJohnson

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That is an unbelievable amount of cash hemorrhaging. Even with an instantaneous management changeover, it will be tough to last through the year.

I know a lot of these losses are 'one time charges', but I believe I saw similar large sums of charges last quarter as well. Who knows what they'll have lost on the books next quarter.

United ALPA should be going into DEFCON 1! I don't know how much they can do, but this is not a storm that can be rode out.

Good luck you guys.
 

ualdriver

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It is quite a burn through of cash- a negative 1.1B cash flow for the quarter. That's obviously unsustainable but also not likely to continue at that rate into the future (hopefully).

What killed UAL this quarter was a couple of things. They "mark to market" their hedging contracts every quarter, so just that loss alone was 580M, with more (but much less) coming until April 2009. Other airlines may/may not use the "mark to market" method, so they may not show that sort of large loss all at once, but one way or the other, if an airline hedged, it will be taking massive losses as they are required to put collateral up for these contracts (assuming the commodity they hedged stays low). We won't be alone in that regard unfortunately. And the collateral/loss is pure cash burn for the airlines- bad when the guy who runs out of cash first loses.

Throw in another 400M in debt that was paid down during the quarter and the regular loss for the traditionally weak 4th quarter, and you get just over 1B *poof* gone.

There's 2B in unrestricted cash left and 2B in unencombered assets. Obviously they're not going to be burning through 1B per quarter over the next several quarters, but certainly you can't bleed through cash forever, no matter what the reason.
 

Yuppyguppy

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Just wait until they have to deal with all 4 unions at once at the end of this year....Chapt 11 is a sure thing.
 

contrail67

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It has been a sure thing for quite some time here on all knowing FI.com. Has not happened.
 
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