UAL posts $21 million May operating loss

By Caroline Salls

Pittsburgh, June 28 - UAL Corp. reported an operating loss of $21 million for May, despite a $93 million year-over-year higher fuel expense, according to a company news release.

In May 2004, the company reported an operating profit of $9 million.

The company reported a May net loss of $93 million, including $36 million of reorganization expenses.

UAL ended May with a cash balance of $2.6 billion, which included $957 million in restricted cash.

The cash balance increased $143 million during the May, driven by strong receipts and effective cost controls, according to the release.

"Fuel is a brutal challenge for our industry. In the face of this challenge, we continue to improve operations across the company, targeting every area of non-labor cost reduction and revenue generation opportunity," Jake Brace, executive vice president and chief financial officer, said in the release.

"We continue to make good progress improving United's revenue performance," John Tague, executive vice president marketing, sales and revenue, said in the release. "We expect our full second-quarter results to be competitive as we realize the benefits of the capacity shift from domestic to international markets."

The Chicago-based parent of United Air Lines 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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