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United's first 1Q operating profit since 2000

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Well-known member
Sep 25, 2003
Still a net loss, but came it around $.50/share vs. estimates of a $.90/share loss. Will make CAL 'negotiations' interesting.


UAL Corporation Reports First Quarter 2010 Results
First 1Q Operating Profit Since 2000
$58 Million 1Q10 Operating Profit Excluding Charges; $69 Million 1Q10 GAAP Operating Profit
Generated $482 Million in Operating Cash Flow
$92 Million 1Q10 Net Loss Excluding Charges; $479 Million Improvement From Prior Year
$82 Million 1Q10 GAAP Net Loss; $300 Million Improvement From Prior Year
No. 1 On-Time Carrier Among 5 Largest U.S. Global Carriers for 1Q10 Based on Preliminary Industry Results †
CHICAGO, April 27, 2010 – UAL Corporation (Nasdaq: UAUA), the holding company whose primary subsidiary is United Airlines, reported results for the first quarter ended March 31, 2010. The company:

Reported a first quarter operating profit of $58 million, excluding non-cash, net mark-to-market hedge gains and certain accounting charges as outlined in note 4 of the attached statement of consolidated operations, the company’s first operating profit in the first quarter since 2000. The company reported a GAAP operating profit of $69 million.

Reported a first quarter net loss of $92 million, or $0.55 per basic share, excluding non-cash, net mark-to-market hedge gains and certain accounting charges as outlined in note 4 of the attached statement of consolidated operations, narrowing its net loss by $479 million compared to the first quarter of 2009. The company reported a GAAP net loss of $82 million, or $0.49 per basic share.

Reported a 19.0% year-over-year increase in consolidated passenger revenue per available seat mile (PRASM) for the first quarter.

Reported a 4.8% year-over-year increase in consolidated unit cost per available seat mile (CASM) for the quarter, excluding fuel and certain accounting charges, against a reduction in consolidated capacity of 3.3% year-over-year. Consolidated CASM, including fuel and excluding non-cash, net mark-to-market fuel hedge gains and certain accounting charges, was up 6.5% year-over-year. GAAP consolidated unit cost, including these items, was up 8.6%.

Closed the quarter with total cash of $3.8 billion, unrestricted cash of more than $3.5 billion, and restricted cash of nearly $300 million. As of April 26, unrestricted cash increased to $4.5 billion, including $700 million in secured debt offering proceeds received in April.

Ranked No. 1 in on-time arrivals among the five largest U.S. global carriers for the first quarter based on preliminary industry results † .

Finalized agreements for 25 Boeing 787 Dreamliner and 25 Airbus A350 XWB widebody aircraft orders.

Filed an application for a daily non-stop slot from San Francisco to Tokyo’s downtown Haneda airport with the U.S. Department of Transportation, an opportunity enabled by the pending U.S.-Japan Open Skies agreement.
CFO Katherine Mikells just spoke on CNBC. Good interview. No merger info. Erin Burnett mouthed off about seats as it ended. [Typical]

Mergers will be superfulous if airlines can start making money. Nice job UAL!
If correct, this won't help them...


Greece Just Tip of Debt Crisis Iceberg: Roubini
Published: Tuesday, 27 Apr 2010 | 4:40 AM ET
By: Patrick Allen
CNBC Senior News Editor

The sovereign debt crisis will get worse and bond vigilantes could move on to even bigger economies like the United States and Japan when they are done sweeping through vulnerable European nations, according to economist Nouriel Roubini.

Nouriel Roubini

With government debt across the world soaring, the man who predicted the credit crunch is predicting a reckoning.

"The recent problems faced by Greece are only the tip of a sovereign-debt iceberg in many advanced economies,” Roubini told readers of his RGE Monitor Web site.

"Bond-market vigilantes already have taken aim at Greece, Spain, Portugal, the United Kingdom, Ireland, and Iceland, pushing government bond yields higher.” “Eventually they may take aim at other countries – even Japan and the United States -- where fiscal policy is on an unsustainable path," he wrote.

Roubini said he fears failure to learn the lessons of the credit crisis will simply mean a bigger, more dangerous crisis is just around the corner.

"There is a lot of talk about better regulation and supervision of the financial system but the financial industry is back to business as usual -- rebuilding leverage, engaging in prop trading and other risky behaviour, compensating bankers and traders with indecent bonuses -- and is lobbying against better regulation and supervision,” he said.

“Governments are talking about reforms but almost no one has implemented them."

You Can See Bubbles Inflating

Roubini also says he believes that those who claim it is impossible to see an asset bubble coming are misguided.

Bubbles are easy to see coming and have had similar characteristics since Tulip mania hit the Netherlands in the 17th century, he said.

"An asset bubble -- often in real estate or in stock markets or in a new industry -- leads to financial euphoria, excessive risk taking, an accumulation of excessive debt and leverage,” Roubini wrote.

“So the signposts of this phase -- asset boom and bubble, followed by the eventual bust and crash - are highly predictable if one looks at the economic and financial indicators that show the build-up of such excesses."

Roubini warned that we are seeing more and more crises, that their impact on the economy and society is climbing and people continue to miss the signals.

"The trouble is that in the bubble phase nearly everyone, the exception being a few critical analysts, is swept in a delusional bubble mania of irrational euphoria: households, financial institutions, investors, governments, spinmeisters all of whom profit from the bubble, including Ponzi-schemers who concoct their houses of cards and financial con games," he wrote.

Have We Learned Anything?

Huge debts run up in the build up to the credit crisis by households, corporations and the financial sector remain a huge problem and are being added to buy governments across the world, Roubini said.

"While there is much talk about deleveraging as the crisis wanes, the reality is that private-sector debt ratios have stabilized at very high levels,” he wrote.

“By contrast, as a consequence of fiscal stimulus and socialization of part of the private sector’s losses, there is now a massive releveraging of the public sector. Deficits in excess of 10 percent of GDP can be found in many advanced economies, including America’s, and debt-to-GDP ratios are expected to rise sharply -- in some cases doubling in the next few years."

(Nouriel Roubini will join Maria Bartiromo on "Closing Bell" at 4 pm New York time Tuesday.)
Earnings Comparisons

Operating Margin:

AS: +3.1%
WN: +2.1%
UA: +1.6%
DL: +1.0%
FL: +0.5%
US: -0.4%
CO: -1.6%
AA: -5.9%

Operating Margin excluding specials:

AS: +4.1%
WN: +3.9%
UA: +2.1%
DL: +1.8%
US: -0.2%
FL: -0.3%
CO: -1.3%
AA: -5.9%

Net Margin:

AS: +0.6%
WN: +0.4%
US: -1.7%
UA: -1.9%
FL: -2.0%
DL: -3.7%
CO: -4.6%
AA: -10.0%

Net Margin excluding specials:

AS: +1.6%
WN: +0.9%
UA: -1.5%
DL and FL: -2.8%
US: -3.36%
CO: -4.3%
AA: -8.9%
Good, maybe they can recall some of their strange pilots........

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