UAL loses $1.43 Billion in 2nd Qtr
Associated Press
UAL Posts Sharply Wider Loss in 2Q
07.28.2005, 11:42 AM
UAL Corp., the parent of United Airlines, on Thursday reported a sharply wider loss as the company recorded charges for turning over pension plans to the U.S. government and continued to feel the effects of higher fuel costs.
The company posted a wider quarterly loss of $1.43 billion, or $12.33 per share, compared with a loss of $247 million, or 2.25 per share, in the year-earlier quarter. Operating earnings, which exclude certain reorganization charges, rose to $48 million from $7 million a year ago.
Total revenue grew 5.6 percent to $4.42 billion from $4.19 billion in the same period last year. Fuel expenses were $262 million higher than a year ago and dragged down second-quarter results, UAL said.
Glenn Tilton, United chairman, president and chief executive, said the company posted "industry-competitive revenue performance ... although the harsh economic environment, including very high fuel costs, presents difficult challenges for the industry."
The airline has asked a federal bankruptcy judge to schedule a September hearing on its reorganization plan. The company has said it hopes to exit Chapter 11 bankruptcy sometime this fall.
Over-the-counter shares of UAL rose 5 cents, or 3.6 percen