Post-Chapter 11 UAL posts $23 billion 1st-quarter profit
UAL Corp., parent company of United Airlines, reported Tuesday a first quarter net profit of $23 billion, thanks entirely to non-cash
reorganization gain related to its exit from Chapter 11 bankruptcy protection in February.
Excluding the reorganization and special items, UAL posted a $306 million net loss for the first quarter, compared to a net loss of $302 million in the first quarter 2005.
“The $23 billion gain is a reflection of the magnitude and effectiveness of our restructuring. We are now applying the same rigor and discipline to improving our operating and financial performance,” said Glenn Tilton, UAL’s chairman, president and chief executive officer.
UAL made a quarterly operating loss of $171 million, compared to a $250 million operating loss in the first quarter 2005. Group revenue rose 14 percent to $4.47 billion.
The company ended the quarter with an unrestricted cash balance of $3.6 billion, and a restricted cash balance of $900 million, for a total cash balance of $4.5 billion. Unrestricted cash and short-term investments increased by $1.8 billion during the quarter as the company drew down $2.8 billion of exit financing. UAL generated positive operating cash flow of over $400 million.