NYTimes.com Article: United Links Loss to Reorganization Costs

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United Links Loss to Reorganization Costs

August 26, 2003
 By BLOOMBERG NEWS






The parent of United Airlines, the UAL Corporation, posted
a net loss in July of $113 million, mainly because of
bankruptcy reorganization costs, and said it had met loan
terms for a sixth consecutive month.

The company, which filed for Chapter 11 protection from
creditors in December, said it expected to fulfill the loan
terms again this month. UAL reported earnings from
operations of $35 million in July, a "significant
turnaround" from July 2002, as the airline increased
revenue 10 percent for each seat per mile flown.

United, which is based in Chicago, is seeking to exit
bankruptcy by early 2004. The carrier has cut labor costs
by negotiating lower wages and work-rule changes with its
unions, and it has reduced aircraft expenses. United has
also tried to increase ticket sales through business-fare
discounts.

"The whole industry seemed to see a big revival in July,
and United seemed to have fully participated in that
revival," a Goldman Sachs analyst, Glenn Engel, said. July
statistics show United took back market share from some
competitors because its increase in revenue per seat was
larger than the 8 percent industry average, Mr. Engel said.


Excluding reorganization expenses of $105 million, most of
it a noncash cost for eliminating some planes, the loss
would have been $7 million, UAL said.

http://www.nytimes.com/2003/08/26/business/26UAL.html?ex=1062906536&ei=1&en=7a4e8053e356d5a9


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