UAL’s posts $1.4 billion second quarter net loss

UAL’s posts $1.4 billion second quarter net loss    UAL Corp., parent company of United Airlines, reported a net loss of $1.43 billion for the second quarter, compared to a loss of $248 million in the same period last year.
   The net loss includes $1.39 billion in reorganization items, including curtailment and settlement losses of $602 million related to the Pension Benefit Guaranty Corp.’s takeover of the company’s defined benefit pension plans for ground employees, management and public contact employees, and flight attendants. Also included in the loss are $212 million in charges related to the rejection of aircraft and $509 million in contract rejection charges.
   UAL reported second quarter operating earnings of $48 million, compared to $7 million in the second quarter 2004. Revenue was up 5.6 percent to $4.4 billion from $4.1 billion. Cargo revenues increased 7.8 percent to $180 million from $167 million.
   UAL said its aircraft fuel costs for the quarter increased 37.8 percent, or by $262 million, to $955 million on 3 percent lower capacity.
   During the quarter United reduced its fleet capacity by 13 percent.
   “Although the harsh economic environment, including very high fuel costs, presents difficult challenges for the industry, United’s restructuring has earned us the opportunity to compete for a place among the leading network carriers,” said Glenn Tilton, United’s chairman, chief executive officer and president.