The $1.77 billion third-quarter loss was almost entirely due to non-cash = reorganization charges. Most of the loss is based on creditor claims, = but that the actual amount upon exit will be "a minor fraction of the = amount of the charges recorded." As a result, UAL will likely record a = large gain when it emerges some time next year. The airline notes that = the charges or the future gains have no effect on its cash balance.=20 Taking the huge amount of charges out of the equation, UAL posted a $165 = million operating profit, compared with an $80 operating loss last year, = despite paying about $1.90 per gallon of fuel. Operating revenue grew by = about 5% to $3.5 billion, even though the carrier flew about 5% less = mainline capacity. "Therefore, [we] achieved almost 11% more mainline = passenger revenue per ASM year over year, which was a strong = improvement," said Controller David Wing.=20 He added that the 7.11 ex-fuel CASM was down about 18% from the = 8.62-cent CASM the airline had five years ago in 2000. Fuel expense = became the largest line of expense for United in the third quarter -- = $1.1 billion for the mainline system, or almost 25% of total operating = costs, and $1.3 billion if fuel costs for the regional affiliates are = included. Labor costs were down 21% to $1 billion.=20 "We have largely completed United's restructuring work, and we are on = schedule to emerge from Chapter 11 in early February, as we have = announced," said CEO Glenn Tilton. The airline is still concerned about = fuel prices, which cost the company about $400 million in the quarter.=20 UAL finished the quarter with a $1.7 billion unrestricted cash balance. = Looking ahead, the airline's four-quarter capacity will be down about = 3%. The airline also reported a $24 million operating loss in September, = narrowing the gap from last year's deficit.=20 ----- Original Message -----=20 From: lafrance@xxxxxxxxxxx<mailto:lafrance@xxxxxxxxxxx>=20 To: AIRLINE@xxxxxxxxxxxxxxxxx<mailto:AIRLINE@xxxxxxxxxxxxxxxxx>=20 Sent: Monday, October 31, 2005 3:58 PM Subject: United parent posts $1.7B loss United parent posts $1.7B loss The parent company of United Airlines continued to bleed red ink as = restructuring costs took a toll on their third quarter.=20 =20 =20 Recent Company News ? UAL Corp. ? United Airlines Latest News ? DaVita sees lower earnings in third quarter ? United parent posts $1.7B loss ? Mossimo gets last-minute offer from outside company ? FCC approves SBC and AT&T merger ? Teledyne buys Avnet's San Jose unit More ? Companies in the News ? People in the News=20 =20 =20 =20 =20 UAL Corp. lost $1.77 billion, or $15.26 a share, in the quarter. In = the third quarter last year, the company lost $274 million, or $2.38 a = share. The loss includes a $1.7 billion charge related to its = reorganization to emerge from Chapter 11 bankruptcy.=20 It was the company's 21st-straight quarter posting a loss.=20 Revenues were up 8.1 percent, coming in at $4.7 billion, up from $4.3 = billion a year ago.=20 For the nine-month period ended Sept. 30, UAL lost $4.3 billion, or = $36.82 a share, on revenues of $13 billion. A year ago, the company lost = $980 million, or $8.77 a share, on revenues of $12.4 billion.=20 Chicago's UAL Corp. is the parent of United Airlines, the largest = carrier at Los Angeles International Airport.=20 Roger EWROPS