SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

UAL Reports Q1 Loss Of $510 Million

Sun Apr 21, 2002 6:25 am

(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.
 
padcrasher
Posts: 1815
Joined: Tue Aug 10, 2004 6:17 am

RE: UAL Reports Q1 Loss Of $510 Million

Sun Apr 21, 2002 8:28 am

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%.


 
UAL Bagsmasher
Posts: 1839
Joined: Wed Sep 08, 1999 12:52 pm

RE: UAL Reports Q1 Loss Of $510 Million

Sun Apr 21, 2002 8:38 am

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!
 
ILUV767
Posts: 3035
Joined: Mon May 29, 2000 2:21 pm

RE: UAL Reports Q1 Loss Of $510 Million

Sun Apr 21, 2002 12:05 pm

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
 
Guest

RE: UAL Reports Q1 Loss Of $510 Million

Sun Apr 21, 2002 12:53 pm

UAL still lost less than AA, and the daily cash burn rate is less than AA's.
 
airworthy
Posts: 752
Joined: Thu Nov 08, 2001 7:05 am

RE: UAL Reports Q1 Loss Of $510 Million

Sun Apr 21, 2002 1:19 pm

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.
 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: UAL Reports Q1 Loss Of $510 Million

Sun Apr 21, 2002 4:39 pm

"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.
 
donder10
Posts: 6944
Joined: Sun Oct 21, 2001 5:29 am

RE: UAL Reports Q1 Loss Of $510 Million

Sun Apr 21, 2002 10:31 pm

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