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UAL posts February operating loss of $179 million
By Ellen Chang
Houston, March 24 - UAL Corp. reported an operating loss of $179 million for February, compared to an operating loss of $151 million for January.
The Chicago-based parent of United Air Lines reported a net loss of $291 million in February, including $92 million of largely non-cash reorganization expenses. In January, the company reported a net loss of $326 million, including $138 million of reorganization expenses.
Fuel expense for the month was $57 million higher than February 2004 on 4% lower capacity. Unit costs in February increased 3% over the same month last year on 4% lower capacity. Excluding fuel, unit costs in February decreased 4% year-over-year. Mainline passenger unit revenue in February decreased 2% over the same period a year ago.
UAL ended February with a cash balance of $2.2 billion, including $870 million in restricted cash. The cash balance increased $183 million during February.
"Recent fare increases have been modestly encouraging, but the industry still has a long way to go in raising fares and reducing capacity to offset burgeoning fuel costs," said Jake Brace, executive vice president and chief financial officer, in a written statement.
"Consistent with our business plan, we still believe that termination and replacement of our defined benefit pension plans is necessary. Our goal remains to reach agreement with our unions on this issue and avoid a costly, time-consuming trial currently set to begin May 11, but there is much work left to do."
United filed for bankruptcy on Dec. 9, 2002 in the U.S. Bankruptcy Court for the Northern District of Illinois. Its Chapter 11 case number is 02-48191.
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