1st Quarter Results

[chucky]

UAL Corporation Reports First Quarter 2008 Results
Tuesday April 22, 8:00 am ET
Announces Actions to Combat Higher Fuel Costs


CHICAGO, April 22, 2008 /PRNewswire-FirstCall/ -- UAL Corporation (Nasdaq: UAUA - News), the holding company whose primary subsidiary is United Airlines, reported a pre-tax loss of $542 million for the first quarter ended March 31, 2008, $305 million higher than the first quarter of 2007, driven primarily by a $618 million increase in consolidated fuel expense. For the quarter, the company:

-- Reported basic and diluted loss per share (EPS) of $(4.45).

-- Increased mainline passenger unit revenue (or PRASM) by 8.7 percent
year-over-year through continued capacity discipline and strong yield
management.

-- Continued its focus on controlling costs, with mainline cost per
available seat mile (CASM), excluding fuel and special items, for the
quarter up 2.4 percent versus 2007. Mainline CASM for the quarter was
up 15.9 percent versus the first quarter of 2007, reflecting a
50 percent increase in fuel price.

-- Strengthened its balance sheet by reducing on and off balance sheet
debt by $195 million. The company ended the quarter with an
unrestricted cash and short-term investments balance of $2.9 billion
and restricted cash of $0.7 billion.

-- Announced a plan to reduce 2008 non-fuel costs by an incremental
$200 million and to reduce 2008 capital expenditures by $200 million.

-- Acted decisively to reduce mainline domestic capacity by approximately
9 percent by the fourth quarter, on top of a 5 percent reduction in the
fourth quarter of 2007.

-- Announced plans to eliminate 30 aircraft from its operating fleet, 10
to 15 more aircraft than initially announced in March.

Link

 

[NewHampshire Black Bears]

Over a 1/2 BILLION $$ + , in just one quarter.

"OUCH" ....(Double).."OUCH" !!

(and I thought AA's 300+ $ Million was bad)

Can't wait for DL/NW/US and Co to come in.

 

[UAL_TECH]

planned cuts

The Chicago-based company said it will lower its planned 2008 spending by $400 million and eliminate 500 salaried and management jobs and 600 union jobs by the end of the year. UAL also said it will cut capacity 9 percent by the fourth quarter, on top of a 5 percent reduction in the fourth quarter of 2007, and take 10 to 15 more narrow-body aircraft out of its operating fleet for a total of 30 to be grounded.

:down:

 

[flyhigh]

Very surprising to say the least. I expected UAL to come in lower than, or at the sames level as AMR. This is truly disappointing for everyone involved. For three years in bankruptcy, this company has little good to show for it. I think UA employees have done a generally good job, creditors have out up with a lot, investors have been more than patient. I think if this performance continues through Q2, Tilton may be in trouble. I don't see how the investors who helped them get out of bankruptcy will continue to allow their investment to erode like this. Unfortunately, if that happens, while I hate to think it, I imagine a hatchet manager may be brought in to carver up certain portions of UA. It's still a bit of a longshot, but something has to give and sadly today, investors at hedge funds, etc. are not concerned about people.

 

[dariencc]

Over a 1/2 BILLION $$ + , in just one quarter.

"OUCH" ....(Double).."OUCH" !!

Stock is down 34% on the DAY! Triple ouch.

Don't worry. 767Jetz has a plan.

 

[NewHampshire Black Bears]

Stock is down 34% on the DAY! Triple ouch.

Don't worry. 767Jetz has a plan.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

dariencc,

I personally TAKE NO PLEASURE in seeing UAL struggle, and I MEAN THAT as seriously as I can say that.

Yes....$537M is a very Large figure !

For the record(because I do NOT know), but of the 6 remaining legacy's/AA-UA-DL-CO-NW-US, which carrier has had the ..lowest quarterly loss...ever ??

 

[jimntx]

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
For the record(because I do NOT know), but of the 6 remaining legacy's/AA-UA-DL-CO-NW-US, which carrier has had the ..lowest quarterly loss...ever ??

??? NHBB, they don't keep records on lowest quarterly loss. That would be in the range of zero to one penny. Did you mean largest quarterly loss? Even if you did, it's a meaningless number out of context. Circumstances change--number of a/c & employees, cost of fuel, etc. Comparing raw dollar losses between one airline and the next is easy, but there are too many other variables that affect that final number.

For instance, Southwest 1st quarter earnings report(Now, do NOT misunderstand. I think Southwest is a great airline and fabulously managed; however...)

The "raw" net income numbers for Q12008 are $34 mil vs $93 mil in Q12007. Now that would say that net income was down $59 mil or 63%. However, SWA is reporting an "increase" in quarterly profits of $10,000,000 because "excluding special items" Q12008 net was $43 mil vs. $33 mil in Q12007. Now in my book $60 million in special items is hard to exclude. Plus, note that doing that little exclusion exercise INCREASED this year's net by $9 million while the same exercise DECREASED last year's Q1 net by $60 mil. There's stuff there that ain't explained, just stated.

So, that's why saying we lost $328 mil (admittedly not good) is $172 mil better than UAUA is not really saying anything other than you and I know basic arithmetic, but not much about accounting and finance.

 

[lpbrian]

I guess all that maintenance outsourcing really paid off. I remember the UA ALPA website crowing how 777 outsourcing would "save" UA 200 million a year, and thus end up in their members pockets. guess not.

 

[flyhigh]

A little naive to say one thing was the reason when the one thing you mention doesn't even cover the entire loss. How do you know it didn't save $200 million and that their loss wouldn't be worse had they not outsourced it???