UAL 2 quarter losses bigger than last years

[b737drivr]

UAL Second Quarter Still Red

Robert P. Mark
7/29/2005
​

United Airlines Thursday reported wider losses in the second quarter this year than a year ago. The airline said its net loss increased to $1.43 billion, or $12.33 per basic share, from $247 million, or $2.25 per share.



In a company statement, the carrier also said a threatened strike by United Air's flight attendants is illegal and "will not be tolerated." It said it would do whatever necessary to ensure the continued smooth operation of the company. The airline currently faces strike threats from its flight attendants' union if the workers' pension plans are not reinstated.



One analyst – airline consultant Michael Boyd - said United's cost cuts in Chapter 11 have made it viable, but that the company needs a change in management if it is to compete long-term with key rival AMR Corp's American Airlines. America last week said its second-quarter profit rose to $58 million.

 

[FlyBoeingJets]

Can you say Operating profit? UAL can.

 

[Buck450]

Operating profit?! That's great if you don't have any debt. How many billions in debt does UAL have again?

 

[Gofish]

American diddn't make a profit...they just showed eagle as a 66 million dollar loss.

How do you like your books cooked?

 

[FlyBoeingJets]

Charges Batter UAL's Bottom Line

By Ross Snel
TheStreet.com Staff Reporter
7/28/2005 3:08 PM EDT


Losses ballooned at United Airlines' parent UAL (UALAQ:OTC BB - commentary - research) during the second quarter as the bankrupt carrier absorbed a slew of restructuring charges.

But UAL, which has been operating under Chapter 11 protection for two-and-a-half years, saw unit revenue improve on reduced capacity and higher fares. The company also said operating earnings improved.

The Chicago-based carrier, which is the nation's No. 2 airline, Thursday reported a second-quarter loss of $1.43 billion, or $12.33 a share, vs. a year-ago loss of $247 million, or $2.25 a share.

Of the latest quarter's loss, $1.39 billion came from reorganization items. Among them were a $602 million noncash loss related to UAL's handing over of pension plans to the federal pension insurer, $212 million in noncash charges for the rejection of airplanes and $509 million in noncash contract-rejection charges. UAL expects to resolve these charges in the bankruptcy process and eventually reduce them.

Excluding special costs and reorganization items, UAL lost $26 million. Operating earnings rose to $47 million from $7 million a year ago.

The company has taken drastic restructuring measures. During its time in bankruptcy, UAL has wrangled $3.2 billion in annual labor savings from its workers, battled with aircraft lessors and gotten the federal Pension Benefit Guaranty Corp. -- which itself is running a huge deficit -- to agree to take over its traditional pension obligations.

During the second quarter, UAL's mainline operations, which exclude smaller regional flights, saw unit revenue increase 5% from a year before, boosted by a 3% increase in yield, or average fare. Although passenger traffic decreased 1% across all of UAL's flights, the airline reduced capacity even more -- by 3% -- allowing it to better fill its planes. The load factor, or average percentage of seats filled, was 83%.




I don't argue that BK isn't expensive. I don't know how much debt UAL will leave BK with. Some will be forgiven.


But the investors waiting on the sidelines are looking at cost, revenue and the ability to make a profit. Operating profit stats help paint that picture because it takes out all the special items. Debt servicing payments will definitely be made with the HUGE changes UAL has worked. All they need is someone to take a chance on them and offer financing. I won't bet against them anymore.


UAL is almost transformed into the 800 lb. legacy carrier with LCC costs and lucrative international routes. Even with huge debt they will work over DAL and NWA. I'm not looking forward to the coming storm created by their new ability to compete with EVERYONE else.


On the positive side, my buds at UAL are looking at a chance to finish their career there. I wish them well.

 

[jamesslally]

PETA??
Is that People Eating Tasty Animals??

 

[Palerider957]

FA strike "will not be tolerated." That's hilarious! Threaten your employees, that will make them want to work hard--this sounds more like a regional than a legacy.

 

[banned username 1]

FA strike "will not be tolerated." That's hilarious! Threaten your employees, that will make them want to work hard--this sounds more like a regional than a legacy.

Hmmmm...the only ones who are making threats are the flight attendants. "Will not be tolerated" is simply making your position clear. I may be incorrect, but I believe the pension issues are done deals. Why are they thumping their chests now? What do they expect to accomplish?

Got to wonder how many mechanics might still be on the property (if they wanted to be) if they'd been a little more in the mood to play ball in the early stages.

Just a thought.

 

[Dangerkitty]

American diddn't make a profit...they just showed eagle as a 66 million dollar loss.

How do you like your books cooked?

It's not cooking the books. Since Eagle has obtained the RJ's they have been nothing but a huge cash drain on AMR.

Actually I am suprised that it was only a 66 Million dollar loss.

 

[WillowRunVortex]

UAL Second Quarter Still Red

Robert P. Mark​

7/29/2005

United Airlines Thursday reported wider losses in the second quarter this year than a year ago. The airline said its net loss increased to $1.43 billion, or $12.33 per basic share, from $247 million, or $2.25 per share.



In a company statement, the carrier also said a threatened strike by United Air's flight attendants is illegal and "will not be tolerated." It said it would do whatever necessary to ensure the continued smooth operation of the company. The airline currently faces strike threats from its flight attendants' union if the workers' pension plans are not reinstated.



One analyst – airline consultant Michael Boyd - said United's cost cuts in Chapter 11 have made it viable, but that the company needs a change in management if it is to compete long-term with key rival AMR Corp's American Airlines. America last week said its second-quarter profit rose to $58 million.

" It said it would do whatever necessary to ensure the continued smooth operation of the company."

1.43 Billion in losses?,,,real fu_ckin smooooooth operation.