UAL Corp. posts $17 billion 4th-quarter loss, predicts brighter future

UAL Corp. posts $17 billion 4th-quarter loss, predicts brighter future

   UAL Corp., parent company of United Airlines, reported Friday a fourth quarter net loss of $17 billion, due to non-cash reorganization expenses and higher fuel costs.

   UAL’s fourth quarter loss in 2004 was $664 million.

   After more than three years, the company is due to exit bankruptcy in February. Excluding the reorganization and special items, UAL posted a $297 million net loss for the fourth quarter.

   “These claims are expected to be settled when the company exits bankruptcy for a minor fraction of the amount of the claims recorded. As a result, the company expects to report a substantial gain at exit,” UAL said.

   In the fourth quarter, UAL made an operating loss of $182 million, compared to a $493 million operating loss in the fourth quarter of 2004. Group revenue rose 10 percent to $4.4 billion from $4 billion. Cargo revenue dropped 7 percent to $203 million from $218 million.

   The company ended the quarter with an unrestricted cash balance of $1.8 billion, and a restricted cash balance of $957 million, for a total cash balance of $2.7 billion.

   For the year, UAL narrowed its operating loss to $219 million from $854 million in 2004. Group revenue at UAL rose 6 percent to $17.4 billion from $16.4 billion, with cargo revenue up 3.6 percent to $729 million.

   UAL said fuel expenses increased 37 percent in 2005 to $4 billion.