Mon, Mar 01, 2004
Still In The Red
UAL Corporation, the
holding company whose primary subsidiary is United Airlines, today
filed its January Monthly Operating Report (MOR) with the United
States Bankruptcy Court. The company reported a loss from
operations of $191 million, which represents an improvement of
approximately $140 million over January 2003. Mainline passenger
unit revenue improved 8% year-over-year, well ahead of the industry
average. Mainline unit costs for January, excluding special charges
and fuel, improved 14% year-over-year. The company reported a net
loss of $252 million, including $26 million in reorganization
expenses. The majority of reorganization expenses were non- cash
items resulting from the rejection of aircraft as the company
aligns its fleet with the market. UAL met the requirements of its
debtor-in-possession (DIP) financing for the twelfth straight
month.
"United is continuing to move steadily ahead with its
reorganization efforts," said Jake Brace, United's executive vice
president and chief financial officer. "Our financial results show
progress compared to January a year ago, and United continued to
outpace our competitors in passenger unit revenue improvement,
despite the seasonally weak demand across the industry, which we
expect to continue in February as well."
UAL ended January with a cash balance of about $2.2 billion,
which included $650 million in restricted cash (filing entities
only), a decrease of $131 million, that reflects a quarterly
retroactive wage payment to International Association of Machinists
members of $63 million. As part of its DIP financing agreements,
UAL's lenders required the company to achieve a cumulative EBITDAR
(earnings before interest, taxes, depreciation, amortization and
aircraft rent) of $901 million between February 1, 2003 and January
31, 2004.
More News
Inversion to Launch Reentry Vehicle Demonstrator Aboard SpaceX Falcon 9 This fall, the aerospace startup Inversion is set to launch its Ray reentry demonstrator capsule aboard Spac>[...]
"We are excited to accelerate the adoption of electric aviation technology and further our journey towards a sustainable future. The agreement with magniX underscores our commitmen>[...]
"The journey to this achievement started nearly a decade ago when a freshly commissioned Gentry, driven by a fascination with new technologies and a desire to contribute significan>[...]
Aero Linx: OX5 Aviation Pioneers Each year a national reunion of OX5 Aviation Pioneers is hosted by one of the Wings in the organization. The reunions attract much attention as man>[...]
"Our driven and innovative team of military and civilian Airmen delivers combat power daily, ensuring our nation is ready today and tomorrow." Source: General Duke Richardson, AFMC>[...]