Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
UAL Reports Q1 Loss Of $510 Million  
User currently offlineSingapore_Air From United Kingdom, joined Nov 2000, 13739 posts, RR: 19
Posted (12 years 4 months 4 days 17 hours ago) and read 2467 times:

(not an article)

UAL will ask it's workers for a wage cut as it reports a loss of $510 million in Q1. Last year, it reported a loss of $313 million in the Q.

UAL, the last of the 7 major airlines to report, means that the total cumulative Q1 losses exceed $2 billion.

Southwest Airlines reported a profit of $21 million.

Jake Brace, United chief financial officer, said on Friday he expected another "significant loss" in the second quarter and said the airline would also lose money in the full-year.

Recovery is being undermined by fare wars. Mr Brace, UAL's CFO said that unions must be willing to have a "shared sacrifice".

Costs fell 17%, but revenue fell 25% to $3.3 billion. Mr Brace did not comment on whether UAL would follow US Airways in applying for a state guranteed loan. Analysts took it as a clear signal of intent. "United expects to apply for the government loan programme," said Brian Harris at Salomon Smith Barney.

More information at the Financial Times website

United Airlines is a member of the Star Alliance - The Airline Network For Earth


Anyone can fly, only the best Soar.
7 replies: All unread, jump to last
 
User currently offlinePadcrasher From , joined Dec 1969, posts, RR:
Reply 1, posted (12 years 4 months 4 days 15 hours ago) and read 2421 times:

UA is in deep deep trouble. Consider this.

Their operational loss as a percentage of total revenues was -19%. U came in at -21.5%. -AA at -17.5%. At the other end CO was -5% and DL at -12.5%.

It's not only their employee cost but also their business model. Their passenger revenue and cargo revenue combined was less than DL's but their fuel, commissions, landing fees, were all considerably higher.
Labor costs were 5% higher than DL's

For UA to have had a broken even operationally the labor costs would have had to be reduced by 40%.




User currently offlineUAL Bagsmasher From United States of America, joined Sep 1999, 2146 posts, RR: 10
Reply 2, posted (12 years 4 months 4 days 15 hours ago) and read 2421 times:

I like how Creighton says he is pleased with wage talks he held w/ the pilots, but is disappointed with the IAM's failure to consider wage concessions at this point in time. Excuse me, but the pilots have had a contract for the past two years with substantial raises, and have been reaping the benefits from the extra cash. We at the IAM are working at 1994 wages, have been in contract talks for two and a half years, and have seen no progress. I realize UA is hurting right now, but you cannot expect us to give up more concessions when we haven't bounced back from our last concessions. There is no way we are going to vote for the same percentage of concessions as other labor groups such as pilots. They have already had the luxury of a raise for 2 years. It seems like Mr. Creighton is expecting us to jump head over heels into wage concessions. Gimme a break. Not going to happen....Give us a contract!

User currently offlineILUV767 From United States of America, joined May 2000, 3141 posts, RR: 8
Reply 3, posted (12 years 4 months 4 days 11 hours ago) and read 2385 times:

Singapore_Air wrote:
UAL will ask it's workers for a wage cut as it reports a loss of $510 million in Q1. Last year, it reported a loss of $313 million in the Q.

Maybe yes, maybe no...but there has been no official word yet from managment regarding this issue. Please do not state something as fact until you your self knows it and can prove it. I'm currently reading the 40 page Financial Report sent to my home by United as well as the releases on united.com.

United will probably end up having to ask for concessions as that is the only area that has not yet been tapped into. Everything down to salt shakers has been cut.

I L U V 7 6 7


User currently offlineUAL1837 From , joined Dec 1969, posts, RR:
Reply 4, posted (12 years 4 months 4 days 11 hours ago) and read 2366 times:

UAL still lost less than AA, and the daily cash burn rate is less than AA's.

User currently offlineAirworthy From , joined Dec 1969, posts, RR:
Reply 5, posted (12 years 4 months 4 days 10 hours ago) and read 2354 times:

UA's revenues less than DL's... this is a very interesting (read: saddening) development.

UA still leads DL in Operating Revenue, however, by nearly $200 million, mostly because of the maintenance work it does for other airlines and entities.


User currently offlineSingapore_Air From United Kingdom, joined Nov 2000, 13739 posts, RR: 19
Reply 6, posted (12 years 4 months 4 days 7 hours ago) and read 2325 times:

"Maybe yes, maybe no"

ILUV767: I'm just rewording what it says in the article. Please contact the Financial Times if you wish something to be ammeded.



Anyone can fly, only the best Soar.
User currently offlineDonder10 From Canada, joined Oct 2001, 6660 posts, RR: 21
Reply 7, posted (12 years 4 months 4 days 1 hour ago) and read 2308 times:

Singapore,Air,
I thought that you didn't engage in rumour and gossip?


Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
AMR Corporation Reports Q1 Loss Of $575 Million posted Wed Apr 17 2002 21:06:32 by DeltaSFO
Delta Air Lines Reports Q1 Loss Of $397 Million posted Tue Apr 16 2002 20:08:57 by DeltaSFO
Delta Air Lines Reports Q1 Loss Of US$466 Million posted Thu Apr 17 2003 15:24:47 by Singapore_Air
Delta Reports A Q1 Loss Of $1.1 Billion posted Thu Apr 21 2005 13:43:01 by DAL767400ER
Northwest Airlines Posts Q1 Loss Of US$396 Million posted Wed Apr 16 2003 16:47:56 by Singapore_Air
Lufthansa Posts Q1 Loss Of US$184 Million posted Wed May 15 2002 12:08:00 by Singapore_Air
SAS Posts Q1 Loss Of US$136 Million posted Wed May 15 2002 12:00:38 by Singapore_Air
RG Fires 130 Pilots; 3Q Loss Of USD170 Million posted Thu Nov 17 2005 23:51:37 by Hardiwv
UAL Reports $93M Loss For May posted Wed Jun 29 2005 05:05:55 by Scotron11
WestJet Reports Q1 Loss posted Wed Apr 27 2005 17:28:55 by Goose