UAL 1st quarter $152M loss!

[Yuppyguppy]

They Need To Be Fired All Of Them

 

[Eagle757shark]

When will they learn. An airline inside of another airline has never worked. Why can't Tague figure this out. Hopefully United will fold Ted back into United and get on with providing a good product to their customers.

 

[PHXFLYR]

Hopefully the new bankruptcy laws will make them hesitate. Especially since a bankrupt carrier equals an acquisition target for US Airways.

You're kidding,right? Chug-a-lug Doug can't handle what's on his plate now


PHXFLYR

 

[737 Pylt]

pot meet kettle....

Hey, I think you're lost....
This isn't the regional board, or the flight attendant board.
Stop back when you grow a set, and a brain!

Perhaps you missed this part:

Not good! UAL needs new/improved leadership!

737

 

[g-code]

Well, they had positive cash flow which is good, paid off 1.2 billion in debt which will save $100 mill. per year, and were hit VERY hard by the DEN and ORD winter storms. I believe the DEN storm alone cost them $80 million.

I agree they need new management, but why is it all the DL guys on here act like high-school cheerleaders?

"Gimme a D-E-L-T-A........gooooOOOOOOOO Widget!" uke:

 

[Morning Wood]

Something is not right with this airline. They are the airline with all of the "extensive and lucrative" international network, to include Asia, specifically China and Japan and LHR and they are blaming the 154 million dollar loss on pesky domestic passenger demand. Everyone else is offsetting the dwindling domestic demand (if there is truly any) with strong international revenue and here is someone who still can't make it work.

Yeah exactly. When 85% of the seats were filled in March. Something doesn't smell right.

 

[Morning Wood]

If this whole profitabilty thing doesn't work out they can just go into bankruptcy for 3 years or so and reorganize again. Then they could have some other hotshot with an mba come and try to make it work. After they demand more wagecuts for the employees so the new management team can get 15% or so of the new stock offering.

Nah, they don't need to hire any MBA's. They can just hire some other *********************************** that ran another airline (or airlines) into the ground and left with a fistfull of cash.

 

[Wiskey Driver]

You're kidding,right? Chug-a-lug Doug can't handle what's on his plate now


PHXFLYR

Ahhh ye have little faith. Just leave it to me bro cause I got your back on this one. I am working on a swwet deal that will have you home based

BTW you are starting to act like your uncle again:laugh:

I spoke with your little brother last week, and he tells me that you are the spitting image of your uncle. Have a good weekend and we's see ya round the funnyfarm...

WD.

 

[Devil Dawg]

I have the answer. More scantrons. This time charge $500 to apply and use that money from United wanna-be's to supplement the bottom line. There are still a lot of suckers out there who want in this business. Why? I do not know.

 

[HomerJ]

Not good! UAL needs new/improved leadership!

737


AP
UAL Loses $152M in First Quarter
Wednesday April 25, 4:42 pm ET
By Dave Carpenter, AP Business Writer

UAL Posts 1Q Loss of $152 Million on Weaker Demand; Shares Fall

CHICAGO (AP) -- United Airlines' parent company posted a bigger-than-expected $152 million loss for the first quarter Wednesday, pressured by the reduced domestic passenger demand that has slowed results for U.S. carriers.
UAL Corp. said it added too many flights in January during a slow travel season and was hurt by the storms that crippled flying schedules in February. Its executives said they might reduce U.S. capacity later this year among possible moves to cut costs further and raise revenue.
It was the company's second quarterly deficit in a row, just a year after its emergence from bankruptcy, and investors and analysts showed their disappointment despite United's improvement from last year's first quarter.
UAL shares, already down 12 percent in the past week on signs of weaker domestic results, fell another 88 cents, or 2.2 percent, to $38.28 Wednesday on the Nasdaq Stock Market.
"United is improving but still not there yet," said Morningstar analyst Brian Nelson. "Their international flying is going to have to take them to the finish line. It looks like domestically, yields for U.S. airlines are wavering and ticket prices aren't as strong."
The net loss for the January-through-March period amounted to $1.32 per share, compared with a consensus estimate of a 47-cents-per-share loss by analysts surveyed by Thomson Financial.
A year earlier, the company officially reported a $22.9 billion on-paper profit, but that reflected the reversal of on-paper losses recorded for all of the previous year in bankruptcy. A more meaningful comparison with last year is with its net loss in the first quarter of 2006 excluding certain items of $223 million, or $1.95 per share.
Revenue was $4.4 billion, down 2 percent from $4.5 billion a year ago. UAL blamed that in part on a switch to deferred revenue accounting for its frequent flier program, which resulted in $107 million less in passenger revenue than would have been recorded under the previous method.
Like other airlines, United was pressured by resurgent crude oil prices as well as costly winter storms that forced thousands of cancellations and delays.
But it is reduced U.S. passenger demand that has industry observers wary.
J.P. Morgan analyst Jamie Baker called UAL's results "meaningfully worse" than expected. "Demand (was) the culprit, with mainline, Express, cargo and other all disappointing," he wrote in a note to investors.
Calyon Securities' Ray Neidl agreed that results were disappointing but said the market is overreacting to the industry's revenue outlook, citing solid bookings for the second quarter and beyond.
"At the end of the day, the industry is strong," he said. "We have a couple of good quarters ahead of us domestically. I'm more concerned about the fuel prices."
United said its revenue is expected to increase in the second quarter over a year ago.
CEO Glenn Tilton cited United's lowered operating costs and improved cash flow. The company cut its costs per average seat mile, a key industry barometer, by 4.3 percent from the first quarter of 2006 while operating cash flow increased 38 percent to $626 million.
"In the year since we exited Chapter 11, we have made significant progress," Tilton said. "Our core results show progress on both costs and revenue." UAL is in the process of moving its headquarters to downtown Chicago from suburban Elk Grove, Ill.

Prediction : With fuel prices where they currently are, insert DL for UAL in about 6 months...