United confirms heavy loss

United confirms heavy loss    United Airlines’ parent company, UAL Corp., reported a net loss of $664 million for the fourth quarter, bringing its annual net deficit to $1.6 billion in what turned out to be another dismal year for the U.S. airline industry.
   United, which continues to trade under bankruptcy protection, lost $2.8 billion in 2003.
   The heavy annual loss of UAL is the second-largest among U.S. airlines after Delta’s recently announced $5.2 billion deficit for 2004. The latest figures suggest that 2004 was the second-worst year for U.S. airlines since 2002, as intense competition in passenger travel and high fuel prices impeded the airlines’ recovery plans.
   “The industry environment continues to be extremely difficult,” said Glenn Tilton, chairman, president and chief executive of UAL. “Record fuel prices and pressure on revenue led to unacceptable results.”
   In the fourth quarter, UAL made an operating loss of $493 million, compared to a $134 million operating loss in the fourth quarter of 2003. Group revenue rose 5 percent to $4 billion. Cargo revenue soared 31 percent to $218 million.
   For the year, UAL narrowed its operating loss to $777 million from $1.4 billion in 2003. Group revenue at UAL rose 10 percent to $16.4 billion, but cargo revenue was down 12 percent to $1,3 billion.
   United said it is reducing domestic capacity about 12 percent, while increasing international capacity 14 percent.
   “The company continues to see strong international results and growth potential in international markets,” it said.