UAL reports $1.8 billion 3rd-quarter net loss
UAL Corp., parent company of United Airlines, reported a third quarter net loss of $1.77 billion, compared to a loss of $274 million in the same period last year.
The net loss includes $1.84 billion in reorganization items, including aircraft rejection charges of $1.69 billion.
UAL reported operating earnings of $165 million in the latest quarter, compared to an operating loss of $80 million in the third quarter last year. Revenue was up 4.8 percent to $3.46 billion from $3.3 billion. Cargo revenues increased 1.8 percent to $174 million from $171 million.
UAL said its aircraft fuel costs for the quarter increased 37.4 percent to $1.1 billion on 5 percent lower capacity.
During the quarter United reduced its fleet capacity by 13 percent.
“The results we are reporting make it clear that we have done well this quarter in overall cost control, especially given the significant reduction in capacity,” said Glenn Tilton, United’s chairman, chief executive officer and president.
For the year-to-date, UAL posted a net loss of $4.27 billion, from $980 million after nine months last year. Operating loss was $37 million, compared to $284 million, while revenue improved 1.4 percent to $9.68 billion from $9.54 billion after three quarters.
UAL reports $1.8 billion 3rd-quarter net loss
