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lindy field
Posts: 2938
Joined: Tue Mar 27, 2001 1:52 pm

United's Third Quarter Loss - $889 Million USD

Fri Oct 18, 2002 10:36 pm

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
 
keesje
Posts: 8594
Joined: Thu Apr 12, 2001 2:08 am

RE: United's Third Quarter Loss - $889 Million USD

Fri Oct 18, 2002 10:41 pm

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 !
"Never mistake motion for action." Ernest Hemingway
 
John
Posts: 1253
Joined: Sat Sep 18, 1999 10:47 am

RE: United's Third Quarter Loss - $889 Million USD

Fri Oct 18, 2002 10:51 pm

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.
 
JumboClassic
Posts: 314
Joined: Thu Jun 29, 2000 4:37 am

RE: United's Third Quarter Loss - $889 Million USD

Fri Oct 18, 2002 11:57 pm

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
 
Guest

RE: United's Third Quarter Loss - $889 Million USD

Sat Oct 19, 2002 12:00 am

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

RE: United's Third Quarter Loss - $889 Million USD

Sat Oct 19, 2002 12:39 am

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.
 
SQ325
Posts: 1274
Joined: Wed Jul 18, 2001 7:54 pm

RE: United's Third Quarter Loss - $889 Million USD

Sat Oct 19, 2002 1:00 am

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!
 
groobster
Posts: 254
Joined: Tue May 15, 2001 12:37 am

RE: United's Third Quarter Loss - $889 Million USD

Sat Oct 19, 2002 1:06 am

ouch, that is not a good sign.
Next flights: Nothing
 
UAL-Fan
Posts: 342
Joined: Thu Dec 09, 1999 1:36 pm

RE: United's Third Quarter Loss - $889 Million USD

Sat Oct 19, 2002 4:15 am

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?
 
doug_or
Posts: 3118
Joined: Sat Mar 18, 2000 9:55 am

RE: United's Third Quarter Loss - $889 Million USD

Sat Oct 19, 2002 4:40 am

"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
 
Sean-SAN-
Posts: 690
Joined: Tue Aug 13, 2002 4:02 pm

RE: United's Third Quarter Loss - $889 Million USD

Sat Oct 19, 2002 5:26 am

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
 
Sean-SAN-
Posts: 690
Joined: Tue Aug 13, 2002 4:02 pm

RE: United's Third Quarter Loss - $889 Million USD

Sat Oct 19, 2002 5:29 am

Meant to say chapter 11...  Smile

-Sean
 
ouboy79
Posts: 4110
Joined: Sun Nov 18, 2001 1:48 pm

RE: United's Third Quarter Loss - $889 Million USD

Sat Oct 19, 2002 5:55 am

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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