United Air Line's October losses narrow to $114.41 million

By Jeff Pines

Washington, Nov. 30 - United Air Lines Inc.'s parent, UAL Corp., nearly halved its October loss to $114.41 million on sales of $1.57 billion, according to its monthly operating report filed with the Securities and Exchange Commission Tuesday. In September, Elk Grove Township, Ill.-based UAL lost $221.85 million on sales of $1.47 billion.

The company's operating loss was $65.22 million in October, down from an operating loss of $117.59 million in September.

However, "United's urgent need to further reduce costs is unchanged as we continue to face fares at their lowest in a decade, oil at record highs and no pricing power," said Jake Brace, executive vice president and chief financial officer, in a news release. "We are actively reducing costs across the business to ensure that the company continues to maintain adequate liquidity."

United failed to meet its October EBITDAR covenant; however, the company received a waiver from its DIP lenders for the monthly EBITDAR covenants during the fourth quarter 2004.

United filed for bankruptcy on Dec. 9, 2002 with the U.S. Bankruptcy Court for the Northern District of Illinois. Its Chapter 11 case number is 02-48191.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.