UAL Corp. posts $187 million net loss for November
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
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.12/21/2005
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