UAL has $2.2 billion in cash and burned through >$250million in January. How is this going to last?
The company says it is an improvement and the stock is up 10%. Go figure.
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UAL Has $191 Million Jan. Operating Loss
Thursday February 26, 1:57 pm ET
CHICAGO (Reuters) - United Airlines parent UAL Corp. (OTC BB:UALAQ.OB - News) on Thursday reported an operating loss of $191 million for the month of January.
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Elk Grove, Illinois-based United, the world's second-biggest airline, filed the largest bankruptcy in aviation history in December 2002, and hopes to emerge from court protection around the middle of this year.
UAL said its net loss for January, including $26 million in reorganization expenses, was $252 million. It ended the quarter with $2.2 billion in cash, of which $650 million was restricted for existing obligations.
The cash balance was down $131 million from December, the carrier said, adding that it met special bankruptcy financing requirements for the 12th consecutive month.
The change in the cash balance included a retroactive, $63 million quarterly wage payment to the International Association of Machinists. The airline reports the monthly statistics as a result of its Chapter 11 bankruptcy case.
"Our financial results show progress compared to January a year ago, and United continued to outpace our competitors in passenger unit revenue improvement, despite the seasonally weak demand across the industry, which we expect to continue in February as well," said Chief Financial Officer Jake Brace in a statement.
Mainline unit revenue, which represents the amount of revenue taken in per available seat mile, rose 8 percent year-over-year, United said, above the industry average.
A similar cost measure excluding special charges and fuel improved 14 percent, the company said.
The company says it is an improvement and the stock is up 10%. Go figure.
================================
UAL Has $191 Million Jan. Operating Loss
Thursday February 26, 1:57 pm ET
CHICAGO (Reuters) - United Airlines parent UAL Corp. (OTC BB:UALAQ.OB - News) on Thursday reported an operating loss of $191 million for the month of January.
ADVERTISEMENT
Elk Grove, Illinois-based United, the world's second-biggest airline, filed the largest bankruptcy in aviation history in December 2002, and hopes to emerge from court protection around the middle of this year.
UAL said its net loss for January, including $26 million in reorganization expenses, was $252 million. It ended the quarter with $2.2 billion in cash, of which $650 million was restricted for existing obligations.
The cash balance was down $131 million from December, the carrier said, adding that it met special bankruptcy financing requirements for the 12th consecutive month.
The change in the cash balance included a retroactive, $63 million quarterly wage payment to the International Association of Machinists. The airline reports the monthly statistics as a result of its Chapter 11 bankruptcy case.
"Our financial results show progress compared to January a year ago, and United continued to outpace our competitors in passenger unit revenue improvement, despite the seasonally weak demand across the industry, which we expect to continue in February as well," said Chief Financial Officer Jake Brace in a statement.
Mainline unit revenue, which represents the amount of revenue taken in per available seat mile, rose 8 percent year-over-year, United said, above the industry average.
A similar cost measure excluding special charges and fuel improved 14 percent, the company said.