UAL news....We aint dead yet.

[Extra300S]

Reuters
UAL Positive Cash Flow Beat Forecast -CFO
Wednesday March 12, 3:26 pm ET


CHICAGO (Reuters) - UAL Corp. (NYSE:UAL - News) Chief Financial Officer Jake Brace said on Wednesday that wage concessions from labor unions helped bankrupt United Airlines turn in positive cash flow for the month of January, beating its own forecast.
ADVERTISEMENT


The company's January cash flow was a positive $1 million per day compared with its expectations of a negative cash burn rate of $10 million to $15 million per day, Brace said at a meeting of creditors in Chicago.

Brace also said UAL expected to exceed its first target for EBITDAR, or earnings before interest, taxes, depreciation, amortization and rent. The target was set up by the lenders of its debtor-in-possession financing.

He attributed the phenomenon in part to interim wage reductions from labor groups that the company secured earlier than expected. Most of UAL's labor unions agreed to temporary pay cuts while they work out long-term deals, and a judge imposed the wage cuts on the holdout machinists union.

UAL filed the largest bankruptcy in aviation history on Dec. 9. The airline also said on Wednesday it had a higher cash balance after its bankruptcy filing than it expected, in part due to fewer passengers booking on other airlines than originally forecast.

 

[CoopDog]

WARNING, WARNING, WARNING,....

Danger Will Robinson!!!!

Be very cautious of airline CFO's and financial spin doctors in times like these. These financial wizzes (and that they are, uh huh) can make anything look good (or bad) on paper, that is until they get what they want from either labor or creditors.

Proceed with extreem caution. Be on the lookout for more B.S. in the news in the near term, be it good or bad. And the truth will lie somewhere in between.

Brace also said UAL expected to exceed its first target for EBITDAR, or earnings before interest, taxes, depreciation, amortization and rent.

Take it from a guy who used to watch his ex airline expect to exceed its target for FUBAR. These press snip-its are usually tactical measures to buy time for something. Let's hope it works in UAL's case. We don't need to see any more job losses in this industry.

 

[Extra300S]

True......True.........



But expect to hear plenty of Bad news about AA soon. They are now the new "flavor of the month" as far as the press is concerned.

It really sucks for us at AA, UAL and USAirways and soon CAL....Everybody was praying fro UAL to fail esp. Ol' Gordo Buffoon looks like that aint gonna happen, I also hear that CAL might have to go direct to CHAP 7.

At least UAL did apply for the ATSB loan and they still have a crack at it, something CAL didn't do, cause GORDO was too busy spouting his drivel....

Poor Gordo...

Good luck to us all....

 

[Boeingman]

True......True.........



But expect to hear plenty of Bad news about AA soon. They are now the new "flavor of the month" as far as the press is concerned.

It really sucks for us at AA, UAL and USAirways and soon CAL....Everybody was praying fro UAL to fail esp. Ol' Gordo Buffoon looks like that aint gonna happen, I also hear that CAL might have to go direct to CHAP 7.

At least UAL did apply for the ATSB loan and they still have a crack at it, something CAL didn't do, cause GORDO was too busy spouting his drivel....

Poor Gordo...

Good luck to us all....

I think it is interesting the timing of this release. But, regardless, does anyone believe this? This was the same management team that claimed to the ATSB they were only losing 7 million a day, but under oath it turned out to be 22 - 25 million per day? Was this made in bankruptcy court?

UAL will liquidate long before CAL. Further CAL is not exposed to the 3 strikes rule since it was legislated after BK1. The "drivel" Bethune was speaking about UAL turned out to be true. The ATSB also agreed. Also, Bethune is not interested in a taxpayer handout. Never was. I think it would be a miracle from above the ATSB changed their minds about giving UAL the loan. Especially after the true financial picture emerged in court.

As another poster astutley pointed out, you UAL folks were trying everything to woo Gordon from CAL. I think it is clear as he said the didn't want to be at the helm of a loser. If you noticed, your BOD has not been able to attract anyone with an iota of airline business experience. Ever stop to wonder why?

You folks should stop pointing fingers at others regarding your problems. Ultimatly, it will be the final nail in the coffin over there since it would seem so many are in denial about what is actually going on.

P.S. These financials don't include lease or pre petition debt payments since you're operating in bankruptcy. I wouldn't get to excited over this press release. It is nothing but gloss and posturing. In fact, I'd be very worried.

 

[Extra300S]

I just drive the bus, I do not want Gordo over here at UAL actually I think the BOD wanted the "other" guy.


Didn't CAL leverage a bunch of spare parts?


I don't wish ill will on anyone, as far as UAL losing 25 million a day you would have to factor in that they are trying to write of a ton of debt and OTC's (Other Considerations)

 

[Floyd94]

, I also hear that CAL might have to go direct to CHAP 7.

Boy... What in the H$ll you been smokin?(in a thick southern accent)_

 

[LivinDaDream]

GORDO is also the only one that has said that labor agreements are not the industry's problem, poor management and unfunded federal mandates are to blame.

Perhaps he speaks the truth....

 

[CRJ Driver]

UA

NEW YORK -- United Airlines parent UAL Corp. (NYSE:UAL - News) , operating under protection from creditors, said Wednesday it expects to exceed the crucial financial target it must meet by next week to keep receiving financing from its interim lenders and stay aloft.
Jake Brace, UAL's chief financial officer, indicated to creditors at a meeting in Chicago that the company's cumulative loss before interest, taxes, depreciation, amortization and rent for the three-month period ended Feb. 28 likely was narrower than the maximum specified by the providers of the so-called debtor-in-possession financing, confirmed company spokesman Jeff McAndrews.

Mr. Brace didn't specify the figure during the meeting, but lenders have said the loss for the period needs to be under $964 million, according to court documents. Under the strict terms of the financing, UAL's cumulative loss must shrink over time and the company must be generating profits, before interest, taxes, depreciation, amortization and rent, by the end of October.

Mr. Brace also said UAL generated a positive cash flow of $1 million per day in January, exceeding its own expectations that it would spend $10 million to $ 15 million more per day on operations than it would take in as revenue.

Mr. Brace cited the interim wage cuts that UAL secured from labor unions earlier than anticipated as a reason for its better-than-expected financial condition, according to Mr. McAndrews.

 

[MLBWINGBORN]

If UAL has lost and is losing billions and they have finally told the truth about just how much they are losing..

How is this different than many of the other companys that have followed false or even illegal accounting reporting procedures?

Whos gonna be on the next "Perp Walk"?

Mike

 

[awaitingswa]

I'm a little skeptical. UAL lost $478 million (ebditar) in the 4th quarter. That's roughly $5.3 million a day. Now they turned that around in 1 months time with rising fuel costs and 0% hedging. The whole story's not out on this one yet.