This article from NYTimes.com has been sent to you by psa188@xxxxxxxxx /-------------------- advertisement -----------------------\ Explore more of Starbucks at Starbucks.com. http://www.starbucks.com/default.asp?ci=1015 \----------------------------------------------------------/ United Reports $375 Million Net Loss May 28, 2003 By THE ASSOCIATED PRESS Filed at 8:47 p.m. ET CHICAGO (AP) -- United Airlines said in a bankruptcy court filing Wednesday that it lost $375 million in April, when the war in Iraq and fallout from SARS combined to wallop the air travel business. The world's second-largest carrier said it had met its lenders' financial requirements for the month and ended April with more than $1 billion in restricted cash -- back at prewar levels. Chief financial officer Jake Brace cautioned, however, that ``the revenue environment continues to be challenging.'' United's financial outlook has improved this month, with labor costs dramatically reduced in contracts that took effect May 1, the war over and the consequences of SARS on Asian travel having decreased. The airline has restored 162 flights for the summer travel season, and Brace reiterated that it is ``encouraged'' by bookings. ``We have stayed on track with our efforts to reduce our cost structure significantly and we continue to move our business forward,'' he said. But while officials of the airline express confidence that United also will meet its lenders' May 31 benchmark, it must make dramatic improvement to get back to positive cash-flow by the end of October as required. United reported a loss from operations of $297 million in April. United's creditors also have grown impatient with its failure to disclose more details of how it plans to return to profitability, although it has until Oct. 6 to file a reorganization plan in federal bankruptcy court. John Tague, United's newly appointed executive vice president for customer initiatives, said the airline is now turning its full attention toward how to boost revenue after having restructured many of its costs. United, which filed for Chapter 11 bankruptcy in December, lost an industry-worst $1.34 billion in the first quarter of 2003. United's stock, which was delisted by the New York Stock Exchange earlier this year, fell 10 cents to $1.82 Wednesday on the over-the-counter market. ^------ On the Net: www.united.com http://www.nytimes.com/aponline/business/AP-United-Airlines.html?ex=1055245253&ei=1&en=a6c64f2d827953ad --------------------------------- Get Home Delivery of The New York Times Newspaper. Imagine reading The New York Times any time & anywhere you like! Leisurely catch up on events & expand your horizons. Enjoy now for 50% off Home Delivery! Click here: http://www.nytimes.com/ads/nytcirc/index.html HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2003 The New York Times Company