UAL posts $80 million August operating profit despite fuel price spike

By Caroline Salls

Pittsburgh, Sept. 21 - UAL Corp. reported an $80 million operating profit for August, a $92 million improvement in operating profit over the same period last year despite a 43% increase in fuel prices for mainline and United Express operations, according to a company news release.

In August 2004 the company reported an operating loss of $12 million.

Last month's net loss was $30 million, including $82 million of largely non-cash reorganization expenses driven by charges related to the rejection of aircraft, the release said.

Excluding reorganization expenses, the company showed a net profit of $52 million.

UAL ended August with a cash balance of $2.8 billion, which included $917 million in restricted cash.

"The $217 million operating earnings improvement excluding fuel expense is a testament to the significant changes United has made," executive vice president and chief financial officer Jake Brace said in the release.

"We are currently working to secure the best exit financing on the most favorable terms."

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.

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