Syncmaster From United States of America, joined Jul 2002, 2063 posts, RR: 10 Posted (10 years 11 months 1 week 3 days 18 hours ago) and read 2670 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
StevenUhl777 From , joined Dec 1969, posts, RR:
Reply 10, posted (10 years 11 months 1 week 3 days 10 hours ago) and read 2459 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.