Elk Grove Village, Ill. – United Airlines’ parent company reported a $187 million net
loss Wednesday for November, citing continuing reorganization charges
and high fuel costs as its three-year bankruptcy overhaul draws to a
finish.
The deficit more than doubled the $87.5 million net loss of a year
earlier.
In signs its restructuring is starting to pay off, however, UAL Corp.
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.
“These solid results are evidence of real progress in our work to make
United competitive and resilient,” CEO Glenn Tilton said in a statement
discussing the company’s separate regulatory filing.
Non-case reorganization expenses for the month totaled $159 million,
consisting largely of aircraft-related transactions, and fuel cost the
company $124 million more than a year earlier due to the 39 percent jump
in prices since the previous November. UAL had an operating loss of $188
million for the same month in 2004.
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.
