UAL November Losses

[b737drivr]

UAL Corp. posts $187 million net loss for November

Lisa Treon
12/21/2005​

UAL Corp. reported a $187 million net loss for November today, citing continuing reorganization charges and high fuel costs as its three-year stint in bankruptcy court nears its end.
Last November’s net loss for United Airlines’ parent company was $87.5 million; however, UAL said it had an $8.9 million operating profit and lower operating costs than a year earlier despite the spike in fuel prices.
UAL said costs for its mainline unit were down 1 percent -- or 15 percent excluding fuel -- while passenger revenue rose 15 percent to $1.64 billion from $1.42 billion a year earlier.
The company has now reported net losses of $15.1 billion since last turning a profit in the second quarter of 2000, including $5.2 billion this year and $9.9 billion since it filed for Chapter 11 bankruptcy in December 2002. But UAL said the recent net losses are misleading since they reflect claims that are expected to be settled for a fraction of the charges, meaning the company will be taking a multibillion-dollar gain when it leaves bankruptcy in February.
Chief Financial Officer Jake Brace noted that operating earnings for the first 11 months of 2005 were up by $450 million over a year ago despite a $1.3 billion increase in fuel costs. The company said it increased its cash supply by $310 million during November to $3 billion, with $959 million of it restricted

 

[koko nw]

UAL Corp. posts $187 million net loss for November

Lisa Treon​

12/21/2005
UAL Corp. reported a $187 million net loss for November today, citing continuing reorganization charges and high fuel costs as its three-year stint in bankruptcy court nears its end.
Last November’s net loss for United Airlines’ parent company was $87.5 million; however, UAL said it had an $8.9 million operating profit and lower operating costs than a year earlier despite the spike in fuel prices.
UAL said costs for its mainline unit were down 1 percent -- or 15 percent excluding fuel -- while passenger revenue rose 15 percent to $1.64 billion from $1.42 billion a year earlier.
The company has now reported net losses of $15.1 billion since last turning a profit in the second quarter of 2000, including $5.2 billion this year and $9.9 billion since it filed for Chapter 11 bankruptcy in December 2002. But UAL said the recent net losses are misleading since they reflect claims that are expected to be settled for a fraction of the charges, meaning the company will be taking a multibillion-dollar gain when it leaves bankruptcy in February.
Chief Financial Officer Jake Brace noted that operating earnings for the first 11 months of 2005 were up by $450 million over a year ago despite a $1.3 billion increase in fuel costs. The company said it increased its cash supply by $310 million during November to $3 billion, with $959 million of it restricted

From their report:
"As previously disclosed, the company will continue
to record large non-cash reorganization items as it
moves towards exit. It is common for the results of
operations of companies progressing through Chapter
11 to be impacted by non-cash charges related to
their reorganization, especially as restructuring
work nears completion. Charges based on the claims
of our creditors are recorded at the amount expected
to be allowed by the court. However, as shown in
our Plan of Reorganization, these claims are
expected to be settled at exit for a minor fraction
of the amount of the charges recorded. "

Not remotely a Rosy picture...but their going to write off everything including the kitchen sink before they exit.

Now back to the regularly scheduled UAL bashing.

 

[radarlove]

Actually, it's not a bad picture at all. "Non-cash" charges set the accounting up properly, but they have zero (zero, none, nada) affect on actual financial operation.

The important part is that they made an operating profit, which means that their core business is again profitable. That's very good news for UAL and the reorg and all the creditors need to hear. Well, ok, not all the creditors need to hear, but it's still fine news.

 

[Chuck Yogourt]

I'm sure every company out there would be profitable if it didn't have to pay any of it's bills for 3 years. This is pathetic. It should go in the trash heap along with Delta.

 

[iflyhigh]

Since everyone believes that any company that goes to BK is crap, I will assume from that that CAL, NWA, DAL, TWA (ok the fell), Independence Air, Aloha, USAir, AWA and Hawaiian, just to name a few, should all go to the tanker. Everyone of these carriers is currently or recently been through BK. Along with great carriers of the past like, PANAM and Eastern.

Plus a company in BK still has to pay bills. Yes initially they can get out of alot of them, but they are still making aircraft, payroll, maintance and other payments. Otherwise they would really be making money.

Its amazing that people pick on UAL and DAL, and not on any other carrier. Just remember just because an airline is on top today, does not mean in xxx number of years things can't change.

 

[Remington]

Since everyone believes that any company that goes to BK is crap, I will assume from that that CAL, NWA, DAL, TWA (ok the fell), Independence Air, Aloha, USAir, AWA and Hawaiian, just to name a few, should all go to the tanker. Everyone of these carriers is currently or recently been through BK. Along with great carriers of the past like, PANAM and Eastern.

Plus a company in BK still has to pay bills. Yes initially they can get out of alot of them, but they are still making aircraft, payroll, maintance and other payments. Otherwise they would really be making money.

Its amazing that people pick on UAL and DAL, and not on any other carrier. Just remember just because an airline is on top today, does not mean in xxx number of years things can't change.

And still none of those companies are profitable.

 

[737 Pylt]

I'm sure every company out there would be profitable if it didn't have to pay any of it's bills for 3 years. This is pathetic. It should go in the trash heap along with Delta.

Obviously your lack of knowledge of the BK laws (as well of compassion) is as pathetic as most of your drivel you post here! It just proves my point that you are just a punk kid!

737

 

[FLB717]

737 Pylt,
chill my neighbor, when his company gets parted out or burns through its small remaining cash, and he returns to what ever he was doing before you can smile with delight. because he will have reaped what he has sown. Karma baby Karma.

 

[koko nw]

And still none of those companies are profitable.

You mean recently right? DAL/NWA/UAL/CAL where making some mongo profits not too long ago. Hopefully their dance thru chap 11 will regulate them back to being profitable, if not then maybe they should cease to operate.

 

[Devil Dawg]

This might be slightly off topic but does anyone know if Ms. Nancy Stuke is still running her cash generating department at UAL? I'm not sure but at $50.00 x 2 scantron updates per year x millions of desparate pilots could equal a pretty good chunk of change. (might even help post bk especially if fuel prices stay high) Merry Chrirstmas and a Happy new year to you Ms. Stuke. My scantron and check await their arrival with a tip for you.