Syncmaster From United States of America, joined Jul 2002, 1983 posts, RR: 14 Posted (8 years 12 months ago) and read 1520 times:
(I did a search and didn't find anything, so, as I am sure some of you will do, let me know if this is already being discussed.)
June 24, 2004
Operating Profit of $9 Million, Improvement of $164 Million Over May 2003
Company Continues to Meet DIP Covenants
CHICAGO, June 24, 2004 – UAL Corporation (OTCBB: UALAQ.OB), the holding company whose primary subsidiary is United Airlines, today filed its May Monthly Operating Report (MOR) with the United States Bankruptcy Court. The company reported earnings from operations of $9 million, which represents an improvement of approximately $164 million over May 2003. Mainline passenger unit revenue improved 7% year-over-year. Unit costs were down 15% over last year. The company reported a net loss of $93 million, including $58 million in reorganization expenses, which include 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
Syncmaster From United States of America, joined Jul 2002, 1983 posts, RR: 14 Reply 4, posted (8 years 12 months ago) and read 1493 times:
$58 million of that where expenses related to reorganization, any company under reorganization has these expenses.
So technically only $1.16 million a day, compared to how much a year ago? These things don't just change overnight. Can't forget the 29 days of non-stop severe weather in the Midwest.
Alphascan From United States of America, joined Nov 2003, 936 posts, RR: 14 Reply 6, posted (8 years 12 months ago) and read 1460 times:
A load factor of 80% is great when you charge the passenger more than what it costs to fly him/her...which UA didn't...especially on TED flights.
The marketing geniuses at UA are actually putting downward pressure on fares in Ted markets even though their competition enjoys a 10-20% cost advantage over them.
But hey, they can tell their employees how great they are doing in load factor!
"To he who only has a hammer in his toolbelt, every problem looks like a nail."
InnocuousFox From United States of America, joined Dec 2003, 2805 posts, RR: 16 Reply 7, posted (8 years 11 months 4 weeks 1 day 23 hours ago) and read 1450 times:
I could have a 100% load factor if I gave away tickets for free. Load factor is only part of the story and can't be taken as an independant statistic.
Dave Mark - Intrinsic Algorithm - Reducing the world to mathematical equations!
N670UW From United States of America, joined Jul 2003, 1595 posts, RR: 8 Reply 8, posted (8 years 11 months 4 weeks 1 day 23 hours ago) and read 1448 times:
If I'm not mistaken, they have until June 30th to emerge from bankruptcy. In this case, they need lots of luck.
They were recently given another extension. Now they have until July 30.
StevenUhl777 From , joined Dec 1969, posts, RR: Reply 10, posted (8 years 11 months 4 weeks 1 day 17 hours ago) and read 1309 times:
UAL was granted the extension to 7/31, which means they can submit their plan without other competing plans being considered during that time. Expect UAL to request another 1-month extension in July. CFO Jake Brace said that the company will not reemerge until later this year, with or without the loan guarantees.
Re: May, it's also important to note the $61mm DIP loan repayment, on top of the reorg. expenses. The $58mm spent in reorg. expenses will help UAL down the road once they reemerge from Ch. 11, in the form of lower lease rates, etc. UAL has had to pay a lot to break leases, contracts, etc. while in Ch. 11.
Given the VERY high cost of fuel in May, it's impressive that UAL posted only a $93mm loss.
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