Ual Reports January Results

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Nov 21, 2003
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UAL Reports January Results
Thursday February 26, 11:57 am ET
Meets DIP Covenant EBITDAR for Twelfth Consecutive Month

CHICAGO, Feb. 26 /PRNewswire-FirstCall/ -- UAL Corporation (OTC Bulletin Board: UALAQ - News), the holding company whose primary subsidiary is United Airlines, today filed its January Monthly Operating Report (MOR) with the United States Bankruptcy Court. The company reported a loss from operations of $191 million, which represents an improvement of approximately $140 million over January 2003. Mainline passenger unit revenue improved 8% year-over-year, well ahead of the industry average. Mainline unit costs for January, excluding special charges and fuel, improved 14% year-over-year. The company reported a net loss of $252 million, including $26 million in reorganization expenses. The majority of reorganization expenses were non- cash items resulting from the rejection of aircraft as the company aligns its fleet with the market. UAL met the requirements of its debtor-in-possession (DIP) financing for the twelfth straight month.

"United is continuing to move steadily ahead with its reorganization efforts," said Jake Brace, United's executive vice president and chief financial officer. "Our financial results show progress compared to January a year ago, and United continued to outpace our competitors in passenger unit revenue improvement, despite the seasonally weak demand across the industry, which we expect to continue in February as well."

UAL ended January with a cash balance of about $2.2 billion, which included $650 million in restricted cash (filing entities only), a decrease of $131 million, that reflects a quarterly retroactive wage payment to International Association of Machinists members of $63 million. As part of its DIP financing agreements, UAL's lenders required the company to achieve a cumulative EBITDAR (earnings before interest, taxes, depreciation, amortization and aircraft rent) of $901 million between February 1, 2003 and January 31, 2004.

United, United Express and Ted operate more than 3,400 flights a day on a route network that spans the globe. News releases and other information about United may be found at the company's website at www.united.com .
 
Burning more cash. I'm not happy about that; even if it was January.
Good to see they made Jan's DIP covenants. Looks like some pundits who called for UAL to miss DIP covenants are proved wrong one more time.
 
Any discussions of UAL's financial results on this board have become a waste of time, since all of the posts generally fall into one or more of the below categories.

1. Those who claim the numbers indicate UAL's progress

2. Those who claim the numbers indicate UAL is edging closer to its eventual demise

3. Those who claim the numbers are worthless, since UAL is in bankruptcy and therefore "doesn't have to pay its bills"

4. Those who try to explain the vagaries of Chapter 11 (occasionally with a very pro-UAL "slant") to those who fall into category (3)
 
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nwa_dc10 said:
Any discussions of UAL's financial results on this board have become a waste of time, since all of the posts generally fall into one or more of the below categories.

1. Those who claim the numbers indicate UAL's progress

2. Those who claim the numbers indicate UAL is edging closer to its eventual demise

3. Those who claim the numbers are worthless, since UAL is in bankruptcy and therefore "doesn't have to pay its bills"

4. Those who try to explain the vagaries of Chapter 11 (occasionally with a very pro-UAL "slant") to those who fall into category (3)
You have some very good points, I was just looking to share the press release.
 
Good posts...only time will tell the real outcome...I hope they survive and thrive for everyone's (me included) sake.
 
These aren't the kind of operating results that will convince the ATSB to sink a billion and a half taxpayer bucks. Most significantly, UAL is no closer to solving its key financial obstacle of pension funding as well as the very real headache that ACA is turning from a partner to a low cost competitor.

A new paint job and ad campaign won't turn UAL around.
 
Geez I missed you World Traveler. Oh, nwa, you forgot about the posts that mention the people who "believe" that the government actually gives us 1.5 billion ACTUAL tax payer dollars. ugghhh Glad to see you haven't changed World Traveler and that you are still anxious to see all of us over here at United unemployed. Thanks! <_<
 

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