S&P: UAL, United unchanged

Standard & Poor's said UAL Corp., parent of United Air Lines Inc. (D), reported an operating loss of $182 million in the fourth quarter of 2005, a substantial narrowing of the year-earlier loss.

However, the fourth-quarter 2005 net loss was a huge $16.9 billion, due to $16.6 billion of predominantly noncash, bankruptcy-related charges, the agency added, noting that its ratings on UAL and United, which are defined by their bankruptcy status, are not affected by the earnings report.

S&P said UAL benefited from labor cost reductions and stronger revenue generation, but faced much higher fuel prices, compared to the fourth quarter of 2004. The agency previously said it expects to assign its B corporate credit rating, with a stable outlook, to UAL and United upon the companies' exit from bankruptcy, which should occur in early February.

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