UAL loses $1.43 Billion in 2nd Qtr

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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
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Looks like they only have a month or two left in Chapter 11 - and their going for broke! (ha! a bankruptcy joke).

It would very difficult to get givebacks from labor, vendors, and leasors if they were showing profits. My guess is after they exit chapter 11 the 10Q's will be dramatically different.

There was another story on Yahoo that quoted Boyd saying that UAL needed a change in managmant at the top. And all this time I thought that was the sole domain of UAL labor to demand a change in managment!
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another UAL story
Tilton's UAL Faces Losses, Global Protests
Greg Levine, 07.28.05, 4:46 PM ET

The skies could've been a little friendlier on Thursday: UAL (otc: UALAQ - news - people ) posted a sharply wider second-quarter loss—and that's not the end of the bad news for the United Airlines parent today.

The carrier's loss was $1.43 billion, compared with a loss of $247 million in the year-ago period. Yet operating earnings, which exclude certain reorganization charges, rose to $48 million from $7 million a year ago

Led by Chief Executive Glenn Tilton, the firm continued to feel the burn of higher fuel costs, and recorded charges for bumping its pension plans to the U.S. government. And the potential loss or diminishment of those pensions spread gale-force ripples, as United flight attendants staged protests at 17 airports across three continents, from Hong Kong to New York to Paris.

The UAL angst comes as Gerald Grinstein, CEO of fellow legacy Delta Air Lines (nyse: DAL - news - people ), warned that cost cuts may not be enough to stave off bankruptcy. All of which makes it seem even more miraculous that Continental Airlines (nyse: CAL - news - people ) and AMR (nyse: AMR - news - people ) unit American Airlines both turned profits in the second quarter.

Greg Davidowitch, president of the Association of Flight Attendants at United, said in a statement, "Current United management has held its employees and creditors hostage in Chapter 11 for nearly 1,000 days... We want our pensions back, and we want this management team out." In its own statement, Tilton's carrier responded by maintaining that any strike would be illegal—and "would not be tolerated."
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Quote: And the potential loss or diminishment of those pensions spread gale-force ripples, as United flight attendants staged protests at 17 airports across three continents, from Hong Kong to New York to Paris.
Gale force ripples ? Is that anything like an attack hamster?
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gale force ripples
Wow those UA guys and girls are having a tough go of it!
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