=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/c/a/2005/11/01/BUG38FGVUR= 1.DTL --------------------------------------------------------------------- Tuesday, November 1, 2005 (SF Chronicle) United's losses set $1.8 billion record/UAL pleased with operating profit o= f $165 million -- not counting one-time charges David Armstrong, Chronicle Staff Writer UAL Corp., the parent company of United Airlines, reported a record quarterly loss of $1.8 billion in the third quarter, a drop that company officials attributed chiefly to bankruptcy costs associated with restructuring its aircraft leases. UAL's net loss for the third quarter was $15.26 per share, compared with= a loss of $274 million ($2.39 per share) in the third quarter of 2004. UAL also said it made an operating profit of $165 million for the quarter despite high jet fuel prices, with a healthy load factor -- the percentage of seats filled on its passenger flights -- of 83.9 percent. "United is a fundamentally better company today, with sustainable improvements across the business and solid operational performance," UAL Chairman and Chief Executive Officer Glenn Tilton said. Still, the third-quarter results represented the 21st consecutive quarter of red ink for UAL as it struggles to complete its restructuring before February, when it plans to exit Chapter 11 bankruptcy protection. UAL's biggest previous loss was in the fourth quarter of 2002, when it reported a $1.47 billion loss. UAL's third-quarter loss was the largest of any U.S. airline that has reported this year. Since entering Chapter 11 in December 2002, United has trimmed its workforce to 55,000 from 100,000, turned over its pension obligations to a federal agency and obtained billions of dollars in wage and benefits givebacks from employees and retirees. United, the dominant carrier at San Francisco International Airport, has also created a low-fare unit called Ted, as well as premium service routes between New York and San Francisco and New York and Los Angeles for high-paying business travelers. UAL's bankruptcy restructuring, company officials say, will put United in a strong position to compete in a tough aviation market still plagued by high costs, when the airline emerges from Chapter 11. Fuel expenses were $301 million higher for the quarter than a year ago a= nd continued to be the single largest operational expense, UAL said. The airline, though, was heartened by gains in operating revenue, which rose 8.1 percent from $4.3 billion to $4.7 billion. It also cited a 21 percent decline in employee and related expenses and better use of its aircraft in domestic and overseas markets. Morningstar analyst Chris Lozier was encouraged by United's inroads in reducing non-fuel costs. Its operating expense per available seat mile was up only 5 percent from the year-ago quarter, despite higher fuel prices and a 10 percent reduction in the number of aircraft. "Things look really strong on revenue and expenses," he told Reuters. Chronicle news services contributed to this report. E-mail David Armstro= ng at davidarmstrong@xxxxxxxxxxxxxxxx ----------------------------------------= ------------------------------ Copyright 2005 SF Chronicle