UAL posts $71 million October operating loss

By Caroline Salls

Pittsburgh, Nov. 23 - UAL Corp. reported a $71 million operating loss for October, according to a company news release.

The operating loss is $6 million worse than the same period last year, due largely to a 53% increase in fuel prices for mainline and United Express operations that resulted in a $169 million increase in fuel expenses year-over-year.

According to a Wednesday filing with the U.S. Bankruptcy Court for the Northern District of Illinois, the company had $1.71 billion in revenues for October.

For October 2005, the company reported a net loss of $698 million, including $584 million of largely non-cash reorganization expenses driven by charges related to the termination of the pilot defined benefit pension plan, according to the release.

UAL ended October with a cash balance of $2.7 billion, which included $964 million in restricted cash. The cash balance during the month increased by $31 million.

"United's revenue performance and cost reductions were offset by record high fuel costs," chief financial officer Jake Brace said in the release.

"Our restructuring work has been effective and has equipped the company to manage through the challenges the industry presents. We move steadily towards a February exit from bankruptcy."

UAL, the Chicago-based parent of United Airlines, filed for bankruptcy on Dec. 9, 2002. Its Chapter 11 case number is 02-48191.

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