syncmaster
Posts: 1926
Joined: Mon Jul 15, 2002 9:55 am

UAL Reports May Results

Sat Jun 26, 2004 4:59 am

(I did a search and didn't find anything, so, as I am sure some of you will do, let me know if this is already being discussed.)

June 24, 2004

Operating Profit of $9 Million, Improvement of $164 Million Over May 2003
Company Continues to Meet DIP Covenants

CHICAGO, June 24, 2004 – UAL Corporation (OTCBB: UALAQ.OB), the holding company whose primary subsidiary is United Airlines, today filed its May Monthly Operating Report (MOR) with the United States Bankruptcy Court. The company reported earnings from operations of $9 million, which represents an improvement of approximately $164 million over May 2003. Mainline passenger unit revenue improved 7% year-over-year. Unit costs were down 15% over last year. The company reported a net loss of $93 million, including $58 million in reorganization expenses, which include non-cash items resulting from the rejection of aircraft as the company aligns its fleet with the market. UAL met the requirements of its debtor-in-possession (DIP) financing

Link: http://www.united.com/press/detail/0,6862,52091,00.html

Good news for UA the money situation is defenately getting better. What do you all think?
 
DIA
Posts: 3053
Joined: Sun Jan 28, 2001 2:24 pm

RE: UAL Reports May Results

Sat Jun 26, 2004 5:03 am

IMO: Thanks TED.

Other than that. . .maye some of you can fill in the other details.
Ding! You are now free to keep supporting Frontier.
 
syncmaster
Posts: 1926
Joined: Mon Jul 15, 2002 9:55 am

RE: UAL Reports May Results

Sat Jun 26, 2004 5:04 am

I just noticed the 80.1% load factor, I'm by no means an expert, but that's fairly good, correct?
 
N670UW
Posts: 1441
Joined: Mon Jul 21, 2003 9:55 am

RE: UAL Reports May Results

Sat Jun 26, 2004 5:06 am

The company reported a net loss of $93 million

That's still $3 million every day. Still a bit troubling IMO.



R
 
syncmaster
Posts: 1926
Joined: Mon Jul 15, 2002 9:55 am

RE: UAL Reports May Results

Sat Jun 26, 2004 5:14 am

$58 million of that where expenses related to reorganization, any company under reorganization has these expenses.

So technically only $1.16 million a day, compared to how much a year ago? These things don't just change overnight. Can't forget the 29 days of non-stop severe weather in the Midwest.
 
levg79
Posts: 918
Joined: Sat Sep 27, 2003 10:59 am

RE: UAL Reports May Results

Sat Jun 26, 2004 5:20 am

If I'm not mistaken, they have until June 30th to emerge from bankruptcy. In this case, they need lots of luck.
A mile of runway takes you to the world. A mile of highway takes you a mile.
 
alphascan
Posts: 795
Joined: Mon Nov 24, 2003 12:04 am

RE: UAL Reports May Results

Sat Jun 26, 2004 5:28 am

A load factor of 80% is great when you charge the passenger more than what it costs to fly him/her...which UA didn't...especially on TED flights.

The marketing geniuses at UA are actually putting downward pressure on fares in Ted markets even though their competition enjoys a 10-20% cost advantage over them.

But hey, they can tell their employees how great they are doing in load factor!
"To he who only has a hammer in his toolbelt, every problem looks like a nail."
 
InnocuousFox
Posts: 2556
Joined: Sat Dec 06, 2003 1:30 am

RE: UAL Reports May Results

Sat Jun 26, 2004 5:35 am

I could have a 100% load factor if I gave away tickets for free. Load factor is only part of the story and can't be taken as an independant statistic.
Dave Mark - Intrinsic Algorithm - Reducing the world to mathematical equations!
 
N670UW
Posts: 1441
Joined: Mon Jul 21, 2003 9:55 am

RE: UAL Reports May Results

Sat Jun 26, 2004 5:37 am

If I'm not mistaken, they have until June 30th to emerge from bankruptcy. In this case, they need lots of luck.

They were recently given another extension. Now they have until July 30.

http://biz.yahoo.com/rb/040618/airlines_unitedairlines_2.html



R
 
worldoftui
Posts: 1054
Joined: Fri Aug 24, 2007 5:18 pm

RE: UAL Reports May Results

Sat Jun 26, 2004 5:37 am

Wow though!
An improvement of USD164 million. Way to go UA! A major step in the right direction. Maybe things are beginning to look a little brighter.


Mark
 
StevenUhl777
Posts: 3281
Joined: Sun Jul 08, 2001 11:02 am

RE: UAL Reports May Results

Sat Jun 26, 2004 12:20 pm

UAL was granted the extension to 7/31, which means they can submit their plan without other competing plans being considered during that time. Expect UAL to request another 1-month extension in July. CFO Jake Brace said that the company will not reemerge until later this year, with or without the loan guarantees.

Re: May, it's also important to note the $61mm DIP loan repayment, on top of the reorg. expenses. The $58mm spent in reorg. expenses will help UAL down the road once they reemerge from Ch. 11, in the form of lower lease rates, etc. UAL has had to pay a lot to break leases, contracts, etc. while in Ch. 11.

Given the VERY high cost of fuel in May, it's impressive that UAL posted only a $93mm loss.

Anyone have May figures for other carriers?

And the winner for best actress is....REESE WITHERSPOON for 'Walk the Line'!!!!!!!!
 
RCS763AV
Posts: 3645
Joined: Mon Jun 14, 2004 1:22 am

RE: UAL Reports May Results

Sat Jun 26, 2004 10:38 pm

Way to go UAL...an improvement of $164 million!  Smile
Now we need DL and US achieving those records....  Sad

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