Press Release Source: UAL Corporation
UAL Reports August Results
Wednesday September 21, 3:14 pm ET
Operating Profit of $80 Million, a $217 Million Improvement Over August
2004 Excluding Fuel Expenses, $92 Million Improvement Including Fuel
Expenses
Mainline CASM Up 6 Percent on 6 Percent Lower Capacity Year-Over-Year;
Excluding Fuel, Mainline CASM Down 5 Percent
Mainline PRASM Up 9 Percent Year-Over-Year
Exit Schedule Approved by the Bankruptcy Court
CHICAGO, Sept. 21 /PRNewswire-FirstCall/ -- UAL Corporation (OTC
Bulletin Board: UALAQ - News), the holding company whose primary
subsidiary is United Airlines, today filed its August Monthly Operating
Report with the United States Bankruptcy Court. The company reported an
operating profit of $80 million for August 2005. This represents a $92
million improvement in operating profit over the same period last year,
despite a 43 percent increase in fuel prices for mainline and United
Express operations, which resulted in a $125 million increase in fuel
expenses year-over-year. In August 2004, the company reported an
operating loss of $12 million. For August 2005, the company reported a
net loss of $30 million, including $82 million of largely non-cash
reorganization expenses driven by charges related to the rejection of
aircraft. Excluding reorganization expenses, the company reported a net
profit of $52 million. As previously disclosed, the company will
continue to record large non-cash reorganization items as it moves
towards exit.
Mainline unit costs (CASM) in August increased 6 percent over the same
month last year driven by 6 percent lower capacity and higher fuel
expense. Excluding fuel, mainline unit costs in August decreased 5
percent year-over- year despite the capacity decrease. Mainline
passenger unit revenue (PRASM) in August increased 9 percent over the
same period a year ago.
UAL ended August with a cash balance of $2.8 billion, which included
$917 million in restricted cash (filing entities only). UAL met the
requirements of its DIP financing for the month of August.
"United has swung from an operating loss in August one year ago to a
respectable operating profit today, despite record fuel prices. The $217
million operating earnings improvement excluding fuel expense is a
testament to the significant changes United has made. The work we have
done significantly improves United's ability to compete with the best
U.S. airlines," said Jake Brace, executive vice president and chief
financial officer. "We are currently working to secure the best exit
financing on the most favorable terms. With the court's approval of our
exit schedule, United is approaching the end of its restructuring."
About United
United Airlines (OTC Bulletin Board: UALAQ - News) is the world's second
largest airline and operates more than 3,400 flights a day on United,
United Express and Ted to more than 200 U.S. domestic and international
destinations from its hubs in Los Angeles, San Francisco, Denver,
Chicago and Washington, D.C. With key global air rights in the
Asia-Pacific region, Europe and Latin America, United is one of the
largest international carriers based in the United States. United is
also a founding member of Star Alliance, which provides connections for
our customers to nearly 800 destinations in 139 countries worldwide.
United's 58,500 employees reside in every U.S. state and in many
countries around the world. News releases and other information about
United can be found at the company's Web site at united.com .
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