You can spin it your way but according to the comapny most of the loss was due to Bankruptcy payments and aircraft rejections. Would you rather have UA
accepting aircraft it can't afford? I think not. June 30th the Chapter 11 monkey will be off UA
12 consecutive months we have met or exceeded our DIP provisions. But weren't you all saing this time LAST YEAR UA
was finished? Seems like you need to get used to being wrong.
UAL Corporation Reports January Operating Results
UAL Corporation today filed its January Monthly Operating Report (MOR) with the U.S. Bankruptcy Court. The company reported a loss from operations of 191 million dollars, which represents an improvement of approximately 140 million dollars over January 2003. Mainline passenger unit revenue improved 8 percent year over year, well ahead of the industry average. Mainline unit costs for January, excluding special charges and fuel, improved 14 percent year over year. The company reported a net loss of 252 million dollars, including 26 million dollars in reorganization expenses. The majority of reorganization expenses were 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 for the 12th straight month.
"Weak demand across the industry makes this the toughest season on our business and negatively impacts our results," says Jake Brace, executive vice president and chief financial officer. "Because of the hard work we've put into restructuring the way we do business over the past year, we have a significantly improved cost structure and we're better positioned to weather the industry's most difficult months."
UAL ended January with a cash balance of about 2.2 billion dollars, which included 650 million dollars in restricted cash (filing entities only), a decrease of 131 million dollars, that reflects a quarterly retroactive wage payment to International Association of Machinists members of 63 million dollars. As part of its DIP financing agreements, UAL's lenders required the company to achieve a cumulative EBITDAR (earnings before interest, taxes, depreciation, amortization and aircraft rent) of 901 million dollars between Feb. 1, 2003 and Jan. 31, 2004.
A little less Hooah, and a little more Dooah.