Home »Company News » World » UAL Corp net loss widens

Bankrupt UAL Corp, parent of United Airlines, on Monday reported a wider quarterly loss as reorganisation expenses drove the company deep into the red.

The No 2 US airline said its net loss amounted to $1.8 billion, or $15.26 per share, compared with $274 million, or $2.38 per share, a year earlier. The loss included $1.7 billion in non-cash charges related to its reorganisation.

The company said its operating revenue was $4.66 billion, up from $4.31 billion a year earlier and operating earnings amounted to $165 million, compared with a loss of $80 million in the same quarter a year earlier.

"Third quarter results are strong, despite a $405 million impact from higher fuel prices year-over-year," said Chief Financial Officer Jake Brace in a statement.

The airline, which has been in bankruptcy since December 2002, has been hurt along with other major airlines by high fuel costs and competition from low-cost airlines. United plans to exit bankruptcy in February.

Excluding the reorganization items, UAL earned a net profit for the third quarter totalling $68 million. The carrier said it ended the quarter with $2.7 billion in cash, of which $1.7 billion was unrestricted.

Copyright Reuters, 2005


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