Networ-King
Well-known member
- Joined
- Jan 11, 2003
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UAL Guy/Gals,
I thought you guys were doing a bit better, with all the talks of getting out of bankrupcy early and all. Whats the story, anyone know?
United Airlines Parent Posts $623M Loss
By Dave Carpenter
AP Business Writer
Friday, August 1, 2003; 11:07 AM
CHICAGO –– United Airlines' parent company said Friday it lost $623 million in the second quarter – nearly double its loss of a year ago but its smallest deficit of the past year as it progresses through a bankruptcy overhaul.
The loss was the 12th straight for UAL Corp. and its second in Chapter 11 bankruptcy, which it hopes to emerge from by early 2004. It came despite a $300 million reimbursement from the government – its share of a federal aid package covering airport security costs during the Iraq war.
Depressed international passenger travel because of the war and SARS, coupled with tough competition from discount carriers, kept United deep in the red despite a new labor deal that cut costs by $543 million, or 30 percent, for the quarter.
The loss for the April-through-June quarter amounted to $6.26 per share, compared with a loss a year earlier of $341 million, or $6.08 per share.
The operating loss – excluding $300 million in government aid and $447 million in special items – was $476 million, or $4.79 a share. That was better than the $5.34-per-share estimate of Wall Street analysts surveyed by Thomson First Call.
Revenues were $3.11 billion, down 18 percent from $3.79 billion a year earlier in a reflection of the airline's 14 percent reduction in capacity.
"The second quarter began as a severe challenge for United and the industry as a whole, but we saw a particularly positive trend as we moved through the period," said CEO Glenn Tilton, citing a steady improvement in revenue and the labor and other cost savings.
"Despite the continued difficult economic environment, the improvement in both revenue and cost is encouraging," he said.
The Elk Grove Village, Ill.-based airline said it met its lenders' requirements for bankruptcy progress in June for a fifth straight month and expects to have met the standard for July.
For the first six months, the company lost a net $1.96 billion, or $20.22 per share, increasing its loss from $850 million, or $15.27 per share, in the first half of 2002. Revenues fell 11 percent to $6.29 billion from $7.08 billion.
UAL shares fell 3 cents to 48 cents in morning over-the-counter trading. The stock was delisted from the New York Stock Exchange in April, and shares are expected to be worthless when the company emerges from bankruptcy.
I thought you guys were doing a bit better, with all the talks of getting out of bankrupcy early and all. Whats the story, anyone know?
United Airlines Parent Posts $623M Loss
By Dave Carpenter
AP Business Writer
Friday, August 1, 2003; 11:07 AM
CHICAGO –– United Airlines' parent company said Friday it lost $623 million in the second quarter – nearly double its loss of a year ago but its smallest deficit of the past year as it progresses through a bankruptcy overhaul.
The loss was the 12th straight for UAL Corp. and its second in Chapter 11 bankruptcy, which it hopes to emerge from by early 2004. It came despite a $300 million reimbursement from the government – its share of a federal aid package covering airport security costs during the Iraq war.
Depressed international passenger travel because of the war and SARS, coupled with tough competition from discount carriers, kept United deep in the red despite a new labor deal that cut costs by $543 million, or 30 percent, for the quarter.
The loss for the April-through-June quarter amounted to $6.26 per share, compared with a loss a year earlier of $341 million, or $6.08 per share.
The operating loss – excluding $300 million in government aid and $447 million in special items – was $476 million, or $4.79 a share. That was better than the $5.34-per-share estimate of Wall Street analysts surveyed by Thomson First Call.
Revenues were $3.11 billion, down 18 percent from $3.79 billion a year earlier in a reflection of the airline's 14 percent reduction in capacity.
"The second quarter began as a severe challenge for United and the industry as a whole, but we saw a particularly positive trend as we moved through the period," said CEO Glenn Tilton, citing a steady improvement in revenue and the labor and other cost savings.
"Despite the continued difficult economic environment, the improvement in both revenue and cost is encouraging," he said.
The Elk Grove Village, Ill.-based airline said it met its lenders' requirements for bankruptcy progress in June for a fifth straight month and expects to have met the standard for July.
For the first six months, the company lost a net $1.96 billion, or $20.22 per share, increasing its loss from $850 million, or $15.27 per share, in the first half of 2002. Revenues fell 11 percent to $6.29 billion from $7.08 billion.
UAL shares fell 3 cents to 48 cents in morning over-the-counter trading. The stock was delisted from the New York Stock Exchange in April, and shares are expected to be worthless when the company emerges from bankruptcy.
