United positive Jan. cash flow beat forecast

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United positive Jan. cash flow beat forecast

CHICAGO (Reuters) =97 UAL Corp. Chief Financial Officer Jake Brace said=20
Wednesday that wage concessions from labor unions helped bankrupt United=20
Airlines turn in positive cash flow for the month of January, beating its=20
own forecast. The company's January cash flow was a positive $1 million per=
=20
day compared with its expectations of a negative cash burn rate of $10=20
million to $15 million per day, Brace said at a meeting of creditors in=20
Chicago. Brace also said UAL expected to exceed its first target for=20
EBITDAR, or earnings before interest, taxes, depreciation, amortization and=
=20
rent. The target was set up by the lenders of its debtor-in-possession=20
financing. He attributed the phenomenon in part to interim wage reductions=
=20
from labor groups that the company secured earlier than expected. Most of=20
UAL's labor unions agreed to temporary pay cuts while they work out=20
long-term deals, and a judge imposed the wage cuts on the holdout=20
machinists union. UAL filed the largest bankruptcy in aviation history on=20
Dec. 9. The airline also said Wednesday it had a higher cash balance after=
=20
its bankruptcy filing than it expected, in part due to fewer passengers=20
booking on other airlines than originally forecast.


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