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Press Release Source: UAL Corporation
UAL Corporation Reports Significant Restructuring Progress
Tuesday January 27, 1:06 pm ET
Company Reports Fourth Quarter Operating Loss of $135 million, A Strong Improvement of $859 Million Year-Over-Year
Passenger Unit Revenue Up 10%, Outperforming the Industry
Unit Costs Down 17%; Excluding Special Charges and Fuel, Unit Costs Dip 20%
CHICAGO, Jan. 27 /PRNewswire-FirstCall/ -- UAL Corporation (OTC Bulletin Board: UALAQ - News), the holding company whose primary subsidiary is United Airlines, today reported its fourth-quarter and full year financial results for 2003, demonstrating significant progress in the restructuring of the company. Because of the work the company completed in the last year, UAL remains on track to exit from bankruptcy protection in the first half of 2004 poised to compete for the long term.
UAL's fourth-quarter operating loss was $135 million, a strong improvement of $859 million over fourth-quarter results last year, which reflects the company's continued success in the pursuit of lower costs and improved revenue. UAL reported a net loss of $476 million, or a loss per basic share of $4.33, which includes $225 million in special and reorganization items described in the notes to the financial tables. The majority of reorganization charges resulted from non-cash items caused by the rejection of aircraft. Excluding the special and reorganization items, UAL's net loss for the fourth quarter totaled $251 million, or a loss per basic share of $2.30.
"Through relentless hard work, creative problem solving and dedication to our customers, we are building a dramatically different company - a much more competitive, cost-effective and customer-focused airline," said Glenn Tilton, chairman, president and chief executive officer. "We would not have been able to achieve so much this year without the total focus and commitment of all United employees, pulling together to meet the challenges. Our work is not done yet. We have made significant progress on restructuring this company, and we will continue to make the tough decisions to successfully exit from Chapter 11 in the first half of this year."
Tilton said that in the fourth quarter United:
-- Increased passenger unit revenue 10% compared to last year, an
improvement that outperformed the industry;
-- Reduced unit costs by 17%. Excluding fuel and special charges, unit
costs dipped by 20%;
-- Improved earnings from operations by $859 million over the same quarter
a year ago; and
-- Announced and started selling tickets on Ted, United's low-fare
operation, which begins flying to leisure destinations on Feb.12.