UAL posts $113 million July operating profit

By Caroline Salls

Pittsburgh, Aug. 25 - UAL Corp. reported an operating profit of $113 million for July, a $62 million improvement over a $51 million July 2004 operating profit, according to a company news release.

The increase in operating profit came despite a 46% hike in fuel prices for mainline and express operations, which resulted in a $127 million increase in fuel expenses year over year, the release said.

The company reported a net loss of $274 million last month, including $350 million of largely non-cash reorganization expenses driven by renegotiated aircraft financings.

Excluding reorganization expenses, the net profit was $76 million.

UAL ended July with a cash balance of $2.8 billion, which included $923 million in restricted cash. The cash balance increased $227 million during July, driven primarily by a $310 million increase in debtor-in-possession financing and partially offset by a quarterly success sharing payment and by aircraft-related payments.

"The recent agreement with the holders of public aircraft debt clears one of the last major hurdles to exiting bankruptcy," executive vice president and chief financial officer Jake Brace said in the release.

"We have received updated proposals for all-debt exit financing from four financial institutions and we expect to file our plan of reorganization and disclosure statement with the bankruptcy court very soon."

The Chicago-based parent of United Airlines 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.

© 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.