United Q1 $542M loss

[contrail67]

I think we're a long ways from entering bankruptcy again and I'm not just saying that because I'm a UA employee and I'm fearing for my job or something ridiculous like that.

We didn't even go into bankruptcy the first time until we were down to 1B in cash. We now have 2.9B and 3B in unleveraged assets. Over the last 12 months, we've burned through 573M, 250M of which was a dividend AND there was some debt repayment in that number. I can't imagine they're going to do that again!

And we're not laying off 600 pilots- or I should say that they didn't say we were laying off 600 pilots. They just mentioned a number of "represented" employees that are going to be let go. Could be pilots, mechanics, CSR's, F/A's, whoever.

I think the UA employees reading all of this bad news need to take a breather (not you Andy but the lurkers who never post at all). Take the gloom and doomers who normally post here with a grain of salt. Most of them haven't a clue as to what the actual financial situation of any airline is other than what they on this forum, and unfortunately that's not saying much.

Yes, the numbers are probably the worst in the industry for 1Q '08. We're sitting on cash, we're sitting on hard assets that can be borrowed against (if it even comes to that), and there are no covenants (bank, credit card) that we're even coming close to violating.

The bottom line is that the entire industry needs to charge fares to cover its costs, and they're not doing that right now. When if/they do, I suspect our losses won't be as bad or, perish the thought, we might actually make some money.

Like I posted on another thread...a flight ops manager called me today and said there were not plans right now to furlough pilots and to expect a full summer schedule...he was very encouraging.

Most of the doom and gloomers are the ones that either did not get a interview or got turned down.

 

[Cardinal]

I think we're a long ways from entering bankruptcy again and I'm not just saying that because I'm a UA employee and I'm fearing for my job or something ridiculous like that.
...............
We're sitting on cash, we're sitting on hard assets that can be borrowed against (if it even comes to that), and there are no covenants (bank, credit card) that we're even coming close to violating.

Ya know what's funny? After dilligently looking at the financials, I was on these boards valiantly defending my carrier's honor. Two weeks ago I posted almost your exact words, but said it about F9. As I was typing there was a letter on our CEOs desk informing him of the new, higher, holdback. Three days later F9 was in court.

I'm not saying that's what will happen to UA, far from it. But events have a way of coming out of left field and defying conventional wisdom. Wish you guys all the best, got a friend who's a newhire with a capital "N."

 

[JoeMerchant]

Like I posted on another thread...a flight ops manager called me today and said there were not plans right now to furlough pilots and to expect a full summer schedule...he was very encouraging.

Most of the doom and gloomers are the ones that either did not get a interview or got turned down.

....or are just realists...

 

[Skippy]

im on careerbuilder right now

 

[Andy]

We didn't even go into bankruptcy the first time until we were down to 1B in cash.

You're correct; my bad on that one. How much did UAL get in DIP financing - do you remember?

 

[jtm2222]

Goodbye United

 

[ualdriver]

You're correct; my bad on that one. How much did UAL get in DIP financing - do you remember?

No, I don't. All I remember was that we were dangerously close to violating the DIP covenants a couple of times

 

[Andy]

Ya know what's funny? After dilligently looking at the financials, I was on these boards valiantly defending my carrier's honor. Two weeks ago I posted almost your exact words, but said it about F9. As I was typing there was a letter on our CEOs desk informing him of the new, higher, holdback. Three days later F9 was in court.

I'm not saying that's what will happen to UA, far from it. But events have a way of coming out of left field and defying conventional wisdom. Wish you guys all the best, got a friend who's a newhire with a capital "N."

Cardinal, good luck to ya and everyone over at F9; I'm rooting for you guys to pull through relatively unscathed.

While I don't see the possibility of furloughs at UAL until after the summer, I'm planning for what I think is the 'worst case' scenario. For me, based on my seniority, is a furlough in early 2009. After being furloughed in 2002, I'd rather overplan than underplan.
PCL128 or Lear70 likes to call me an alarmist; that my concern is unwarranted. But I collected more than a couple unemployment checks on my last furlough; I'd prefer to NOT do that again.

 

[grog_sit_reserv]

Hey Lowcur, why the blue writing? Can't you conform? Sheesh.

Oh, by the by, merger on Friday for UAL. They needed to drive the stock down to match LCC to make a cost neutral beginning to it.

Peace out my brudders.

 

[Green]

Hey Lowcur, why the blue writing? Can't you conform? Sheesh.

Oh, by the by, merger on Friday for UAL. They needed to drive the stock down to match LCC to make a cost neutral beginning to it.

Peace out my brudders.

Grog

you seem pretty darn confident there? You're going all in with your credibility. Are you privy to some top secret stuff? Which way will the stock go on monday???????