Lindy field From United States of America, joined Mar 2001, 3170 posts, RR: 11 Posted (13 years 7 months 1 week 4 days 13 hours ago) and read 2662 times:
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.
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
SQ325 From Germany, joined Jul 2001, 1473 posts, RR: 7
Reply 6, posted (13 years 7 months 1 week 4 days 10 hours ago) and read 2516 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!
UAL-Fan From United States of America, joined Dec 1999, 377 posts, RR: 0
Reply 8, posted (13 years 7 months 1 week 4 days 7 hours ago) and read 2424 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.
Doug_Or From United States of America, joined Mar 2000, 3585 posts, RR: 3
Reply 9, posted (13 years 7 months 1 week 4 days 7 hours ago) and read 2394 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.
Sean-SAN- From United States of America, joined Aug 2002, 801 posts, RR: 1
Reply 10, posted (13 years 7 months 1 week 4 days 6 hours ago) and read 2365 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.
Ouboy79 From United States of America, joined Nov 2001, 4675 posts, RR: 21
Reply 12, posted (13 years 7 months 1 week 4 days 5 hours ago) and read 2345 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?