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UAL Reports April Results
Thursday May 27, 3:37 pm ET
Improvement of $221 Million Over April 2003
Company Continues to Meet DIP Covenants
CHICAGO, May 27 /PRNewswire-FirstCall/ -- UAL Corporation (OTC Bulletin Board: UALAQ - News), the holding company whose primary subsidiary is United Airlines, today filed its April Monthly Operating Report (MOR) with the United States Bankruptcy Court. The company reported a loss from operations of $75 million, which represents an improvement of approximately $221 million over April 2003. Mainline passenger unit revenue improved 20% year-over-year. Unit costs were down 12% over last year. Excluding fuel, costs were down 17%. The company reported a net loss of $137 million, including $28 million in reorganization expenses, which include 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.
"Like the rest of the industry, we are challenged by high fuel prices," said Jake Brace, United's executive vice president and chief financial officer. "We continue to move United's restructuring forward. We are introducing a number of fuel conservation measures and building on our cost reduction efforts on all fronts. If fuel prices were at more typical levels, United would have reported an operating profit in April."
UAL ended April with a cash balance of about $2.3 billion, which included $685 million in restricted cash (filing entities only). The cash balance decreased $246 million during the month of April, driven by a pension contribution of $110 million, a quarterly retroactive wage payment to International Association of Machinists members of $63 million, the April Bank One DIP repayment of $60 million and a quarterly Success Sharing reward to employees of $26 million. The Success Sharing program provided a cash payout for employees, who exceeded the company's performance goals for on-time departure and customer satisfaction.
United continued to deliver strong operational results, with an on-time :14 departure performance of 85.1% and a record April load factor of 79.9%.
Thursday May 27, 3:37 pm ET
Improvement of $221 Million Over April 2003
Company Continues to Meet DIP Covenants
CHICAGO, May 27 /PRNewswire-FirstCall/ -- UAL Corporation (OTC Bulletin Board: UALAQ - News), the holding company whose primary subsidiary is United Airlines, today filed its April Monthly Operating Report (MOR) with the United States Bankruptcy Court. The company reported a loss from operations of $75 million, which represents an improvement of approximately $221 million over April 2003. Mainline passenger unit revenue improved 20% year-over-year. Unit costs were down 12% over last year. Excluding fuel, costs were down 17%. The company reported a net loss of $137 million, including $28 million in reorganization expenses, which include 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.
"Like the rest of the industry, we are challenged by high fuel prices," said Jake Brace, United's executive vice president and chief financial officer. "We continue to move United's restructuring forward. We are introducing a number of fuel conservation measures and building on our cost reduction efforts on all fronts. If fuel prices were at more typical levels, United would have reported an operating profit in April."
UAL ended April with a cash balance of about $2.3 billion, which included $685 million in restricted cash (filing entities only). The cash balance decreased $246 million during the month of April, driven by a pension contribution of $110 million, a quarterly retroactive wage payment to International Association of Machinists members of $63 million, the April Bank One DIP repayment of $60 million and a quarterly Success Sharing reward to employees of $26 million. The Success Sharing program provided a cash payout for employees, who exceeded the company's performance goals for on-time departure and customer satisfaction.
United continued to deliver strong operational results, with an on-time :14 departure performance of 85.1% and a record April load factor of 79.9%.