By David Bailey CHICAGO, July 19 (Reuters) - UAL Corp. (UAL), parent of United Airlines, on Friday reported a hefty quarterly loss and warned of deterioration in the next quarter, capping a week of major carrier losses, as a recovery following the Sept. 11 attacks slowed down. UAL, whose shares fell more than 10 percent to $6.76 on the New York Stock Exchange on Friday morning, also expects to report a significant loss in the third quarter and for the year because a gradual air travel recovery has apparently stalled, Chief Executive Jack Creighton said in a statement. "The month-to-month improvements we've seen so far this year have stalled," Creighton said. "In fact, our June unit revenue performance is slightly worse than it was in May." The No. 2 carrier's daily cash burn rate averaged less than $1 million per day in the second quarter, down significantly from last quarter, but is expected to rise in the third quarter and to further deteriorate in the fourth quarter, UAL said. The company last year reported an industry-record $2.1 billion loss. The nation's eight largest airlines posted net losses totaling about $1.4 billion for the second quarter, on top of $2.4 billion of first-quarter losses. AMR Corp. (AMR), parent of No. 1 carrier American Airlines, on Wednesday posted a quarterly loss of nearly half a billion dollars. A slump in high-revenue business travel pressured UAL earnings even before the Sept. 11 hijack attacks. The carrier followed its record 2001 net loss with a $510 million loss in the first quarter. "Both AMR and United showed the smallest level of improvement from the first quarter to the second quarter, reflecting their historic dependence on high-yield business travelers," said Jamie Baker, airline analyst at JP Morgan. "Where (most) carriers, thus far, have shown consistent improvement from the first quarter, the improvement at AMR and United was nil," Baker said. UAL ended the second quarter with about $2.7 billion in cash, including $273 million in restricted cash. UAL said the $341 million second-quarter net loss amounted to $6.08 per share including special items, compared with a net loss of $365 million, or $6.87 a share, a year earlier. Elk Grove Village, Illinois-based UAL lost $392 million, or $6.99 per share, in the second quarter excluding one-time items, compared with a loss of $292 million, or $5.50, excluding a one-time charge. Analysts expected UAL to lose $6.00 to $8.09 a share in the quarter, with a mean loss of $7.13 a share, according to market research firm Thomson First Call. UAL has asked the federal government to back $1.8 billion of a $2 billion loan, the largest request of any U.S. carrier under the federal bailout program that provided up to $5 billion for direct losses and $10 billion in loan guarantees. The airline has cut deals with management staff and pilots for three years of wage cuts if the loan backing is approved. However, machinists and flight attendants have rejected UAL overtures for similar cost-cutting. Operating revenue fell 18.6 percent to nearly $3.8 billion in the second quarter, UAL said. Shares of UAL Corp. fell 30 percent in the second quarter, while the American Stock Exchange airline index (XAL) fell about 33 percent. ©2002 Reuters Limited.