United parent posts 2Q profit

FA Mikey

Aug 19, 2002
United parent posts 2Q profit on one-time gains

The parent of United Airlines said Tuesday it is cutting international capacity by an extra 7 percent during the last four months of this year, as it posted a $28 million second-quarter profit due to fuel hedge gains and other one-time items.

UAL Corp. said that the international capacity reductions it is planning starting in September are part of an effort by the Chicago-based airline company to better match supply with demand.

Its shares rose 36 cents, or 10.3 percent, to $3.87 in morning trading.

The earnings were equivalent to 19 cents a share for the three months ended June 30, compared to a loss of $2.74 billion, or $21.57 a share, a year ago.

Excluding one-time items, UAL Corp. said it lost $2.23 a share in the quarter. Analysts surveyed by Thomson Reuters had been expecting a loss of $2.61 a share excluding items.

Revenue fell 25.2 percent to $4.02 billion from $5.37 billion a year earlier. Analysts had been expecting revenue of $4.04 billion in the latest quarter.

The parent of the nation's third-largest airline said it ended the quarter with $2.6 billion in unrestricted cash, ahead of its previous projection of $2.5 billion. The company raised an additional $155 million earlier this month through a spare parts financing transaction. That money will be included in its third-quarter figures.

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