UAL Corporation Reports Second Quarter 2008 Results
Tuesday July 22, 8:30 am ET
Taking Action to Offset Record Fuel Costs, and Position Company to Compete
CHICAGO, July 22 /PRNewswire-FirstCall/ -- Driven by a $773 million increase in consolidated fuel expense, UAL Corporation (Nasdaq: UAUA - News), the holding company whose primary subsidiary is United Airlines, reported a net loss of $2.7 billion or $151 million, excluding certain largely non-cash accounting charges. For the second quarter ended June 30, 2008, the company:
-- Reported basic and diluted loss per share of $1.19 excluding certain
largely non-cash accounting charges described below. United's reported
GAAP loss per share was $21.47.
-- Recorded $2.6 billion of previously announced accounting charges,
including a $2.3 billion non-cash special charge for goodwill
impairment.
-- Continued its focus on controlling costs, with mainline cost per
available seat mile (CASM), excluding fuel and the above mentioned
accounting charges, up 2.6 percent versus the same period in 2007.
Mainline CASM for the quarter was up 85.5 percent versus the second
quarter of 2007, reflecting a 55.4 percent increase in mainline fuel
price per gallon and the significant accounting charges.
-- Strengthened its cash position by raising $90 million through new
financings, asset sales and freeing up $130 million in restricted cash.
In addition, the company expects to raise $330 million in cash in the
third quarter through aircraft financings and the release of restricted
cash, resulting in a total cash balance improvement of approximately
$550 million.
-- Announced further capacity cuts and the retirement of the entire B737
fleet as well as six B747s. In total, United will retire 100 aircraft
and will reduce fourth-quarter mainline domestic capacity 15.5 percent
to 16.5 percent year-over-year. In conjunction with the capacity
reductions, the company expects to reduce its workforce by
approximately 7,000 by year-end 2009.
-- Announced an alliance partnership with Continental Airlines -- a
partnership that will create the most comprehensive domestic system by
linking networks as well as creating potential for cost savings and
operational efficiencies, while simultaneously benefiting customers.
Link
Tuesday July 22, 8:30 am ET
Taking Action to Offset Record Fuel Costs, and Position Company to Compete
CHICAGO, July 22 /PRNewswire-FirstCall/ -- Driven by a $773 million increase in consolidated fuel expense, UAL Corporation (Nasdaq: UAUA - News), the holding company whose primary subsidiary is United Airlines, reported a net loss of $2.7 billion or $151 million, excluding certain largely non-cash accounting charges. For the second quarter ended June 30, 2008, the company:
-- Reported basic and diluted loss per share of $1.19 excluding certain
largely non-cash accounting charges described below. United's reported
GAAP loss per share was $21.47.
-- Recorded $2.6 billion of previously announced accounting charges,
including a $2.3 billion non-cash special charge for goodwill
impairment.
-- Continued its focus on controlling costs, with mainline cost per
available seat mile (CASM), excluding fuel and the above mentioned
accounting charges, up 2.6 percent versus the same period in 2007.
Mainline CASM for the quarter was up 85.5 percent versus the second
quarter of 2007, reflecting a 55.4 percent increase in mainline fuel
price per gallon and the significant accounting charges.
-- Strengthened its cash position by raising $90 million through new
financings, asset sales and freeing up $130 million in restricted cash.
In addition, the company expects to raise $330 million in cash in the
third quarter through aircraft financings and the release of restricted
cash, resulting in a total cash balance improvement of approximately
$550 million.
-- Announced further capacity cuts and the retirement of the entire B737
fleet as well as six B747s. In total, United will retire 100 aircraft
and will reduce fourth-quarter mainline domestic capacity 15.5 percent
to 16.5 percent year-over-year. In conjunction with the capacity
reductions, the company expects to reduce its workforce by
approximately 7,000 by year-end 2009.
-- Announced an alliance partnership with Continental Airlines -- a
partnership that will create the most comprehensive domestic system by
linking networks as well as creating potential for cost savings and
operational efficiencies, while simultaneously benefiting customers.
Link
