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United's Third Quarter Loss - $889 Million USD  
User currently offlineLindy field From United States of America, joined Mar 2001, 3131 posts, RR: 13
Posted (12 years 2 months 5 days 12 hours ago) and read 1987 times:
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Iwon is reporting via Reuters that United reported a $889 million dollar quarterly loss on weak traffic and fares.

"UAL, which has warned of a possible autumn bankruptcy, said the third-quarter net loss amounted to $15.57 per share, compared with a net loss of $1.2 billion, or $21.43 a share, a year earlier."

United plans to file an updated business plan with the Air Transportation Stabilization Board next week. The agency is considering whether to grant federal backing for $1.8 billion of a $2.0 billion loan as United faces large fourth-quarter debt payments. But it wants more cost cuts than the airline previously outlined in late June.

"United, based in the Chicago suburb of Elk Grove Village, Illinois, said it ended the third quarter with $2.0 billion cash on hand despite burning through an average $7 million daily."

UAL lost a record $2.1 billion in 2001 and another $850 million in the first two quarters of 2002.


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At this point, I'd be rather surprised if United can avoid bankruptcy...
For the full article: http://money.iwon.com/jsp/nw/nwdt_rt.jsp?cat=USMARKET&src=201&feed=reu§ion=news&news_id=reu-n18263406-u1&date=20021018&alias=/alias/money/cm/nw

12 replies: All unread, jump to last
 
User currently offlineKeesje From , joined Dec 1969, posts, RR:
Reply 1, posted (12 years 2 months 5 days 11 hours ago) and read 1978 times:

AA -475 mln
United - 889 mln
Delta - 326 mln
Northwest - 46 mln
Continental - 37 mln

I think absolutely nobody is happy with this ..

To all United employees : fasten your seatbelts ... my thoughts are with you !


User currently offlineJohn From United States of America, joined Sep 1999, 1374 posts, RR: 5
Reply 2, posted (12 years 2 months 5 days 11 hours ago) and read 1961 times:

OMG, this is staggering! I thought the AA loss, at 475 million, was bad enough?!  Sad This industry is going down the shitta! A very SAD state of affairs.

User currently offlineJumboClassic From United States of America, joined Jun 2000, 315 posts, RR: 0
Reply 3, posted (12 years 2 months 5 days 10 hours ago) and read 1920 times:

AMR - 924 M (incl. special items); 475M is operating loss only
UAL - 889 M total, 504 M operating loss

AMR is not in good shape either.

JC


User currently offlineCerulean From , joined Dec 1969, posts, RR:
Reply 4, posted (12 years 2 months 5 days 10 hours ago) and read 1917 times:

Do some research on the overall state of the airlines in the following years:

1972
1982
1992
2002

and then tell me if anyone sees a pattern?


User currently offlineSingapore_Air From United Kingdom, joined Nov 2000, 13745 posts, RR: 19
Reply 5, posted (12 years 2 months 5 days 9 hours ago) and read 1870 times:

Well this is a disaster. Losing what is $1 billion in three months? God help is all!  Sad  Sad


Anyone can fly, only the best Soar.
User currently offlineSQ325 From Germany, joined Jul 2001, 1455 posts, RR: 7
Reply 6, posted (12 years 2 months 5 days 9 hours ago) and read 1841 times:

One of the two had to go to rescue the others!
There is no other way out of this situation.
The situation fpr the US majors is horrible, now imagine how a second Gulf War would impact in aviationindustry especially in the states!


User currently offlineGroobster From United Kingdom, joined May 2001, 311 posts, RR: 0
Reply 7, posted (12 years 2 months 5 days 9 hours ago) and read 1834 times:

ouch, that is not a good sign.


Next flights: MAN-IST-AUH-MAN
User currently offlineUAL-Fan From United States of America, joined Dec 1999, 374 posts, RR: 0
Reply 8, posted (12 years 2 months 5 days 6 hours ago) and read 1749 times:

Barring a huge US government bail out, which I strongly object to but think could happen if the collapse of the American aviation industry seems inevitable; what can these companies do right now to stop the bleeding?

I think the days of gouging Business travelers are over so how can these Airlines immediately get their cost of doing business in line with their revenue stream? Is it even possible? How long can any Business run like this? Where does all this "lost" money come from? I can't think of any company that can "loose" this much money and still operate.

Just curious, any thoughts?


User currently offlineDoug_Or From United States of America, joined Mar 2000, 3441 posts, RR: 3
Reply 9, posted (12 years 2 months 5 days 5 hours ago) and read 1719 times:

"I'm not dead yet"
as the man on the cart says

"Shortly after the financial results were released, the pilots union said four of five unions had reached an agreement in principle to cut wages by "well over" $1 billion yearly as part of a $2.5 billion annual recovery program. That includes concessions from suppliers and other parties, too."

the url is a million charecters long, but can be accesed from the news section of this page.



When in doubt, one B pump off
User currently offlineSean-SAN- From United States of America, joined Aug 2002, 772 posts, RR: 1
Reply 10, posted (12 years 2 months 5 days 5 hours ago) and read 1690 times:

UAL Corp has massive debt payments (total almost $1Bil) due Nov 15, and Dec 15.. If they don't get the loan package, they'll go chapter 13. And it doesn't sound like they'll get it since labor only gave $5.8B in cost cuts, mgmt. was looking for $9B.

The next 3-6 weeks are critical.

-Sean


User currently offlineSean-SAN- From United States of America, joined Aug 2002, 772 posts, RR: 1
Reply 11, posted (12 years 2 months 5 days 5 hours ago) and read 1687 times:

Meant to say chapter 11...  Smile

-Sean


User currently offlineOuboy79 From United States of America, joined Nov 2001, 4616 posts, RR: 23
Reply 12, posted (12 years 2 months 5 days 4 hours ago) and read 1670 times:

Sean...very good observation. With all charges coming due and the expected loses...UAL is likely to end the year roughly $130 million in cash. That would mean they would run out of cash in mid-January...unless the losses per day accelerates as UAL stated in their Q3 filing. UAL union agreements that were "announced" today are only agreements in principle. In english...nothing new. They all agree that costs must be reduced, however they have not even started to divide it up amongst unions. If something concrete doesn't develop in the next 7 days, there will likely be a Chapter 11 filing during the weekend following the board meeting coming up at the end of the month. Where it goes from there is anyones guess. They are submitting a modified loan application in the coming days that will give a lot of insight into their reorganization plans.

Will it receive the conditional approval like US Airways and allow Ch11 to be part of the progress? Who knows. However, the overall view may be...UAL files Ch11...they immediately start chopping them up and selling them off. Being an airline that does cover the entire country -- they can be easily replaced by existing network carriers and will bring a very much needed reduction in capacity. Hey...Southwest may get into DEN after all?  Smile


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