United's 3rd Quarter 2003 Financial Results

[Cosmo]

United just announced its 3rd quarter 2003 financial results, which included a $19 million operating profit. Other highlights included a 12.1% increase in RASM, a 9.4% decrease in CASM, and an 80.2% load factor (up 4.8 percentage points). More importantly, the net loss for the quarter was only $37 million if special charges and reorganization expenses are excluded. Overall, it's a very positive report for a carrier in Chapter 11.

Here's the United press release.

 

[Busdrvr]

I was actually expecting closer to 150 mill. HOWEVER, the REAL operating profit for the quarter was 90 mill, with significantly higher savings on leases still in negotiations. The company took 'special charges under operating expenses that amounted to 71 million. these items were "non-cash" and included debits to the balnce sheet for the "early' retirement of the 767-200 (some of the worlds oldest), and balance sheet losses associated with the sale of A/C (likely the 747-400). Neither counts wrt EBIDTAR. the really revealing part was the "loss" of 80 million by our "express carriers", NOT counting ACA (and they want higher fees..... ). so mainline actually made 170 million for the quarter.

 

[Cosmo]

Actually, Busdrvr, the Express carriers (excluding ACA) lost "only" $63 million, giving United mainline a "real" operating profit of $153 million. Thus, your prediction of the quarterly operating results was really closer than you think.

 

[FWAAA]

Excellent results for UAL.

Now if only it could post a profit after payment of interest expense. The $90 million of operating profit (excluding special charges) still isn't enough to pay the $105 million of interest for the quarter. And that's after interest was reduced 33% from Q3 2002.

Maybe revenues will continue to improve. If not, expenses must be further reduced.

 

[Busdrvr]

Excellent results for UAL.

Now if only it could post a profit after payment of interest expense. The $90 million of operating profit (excluding special charges) still isn't enough to pay the $105 million of interest for the quarter. And that's after interest was reduced 33% from Q3 2002.

Maybe revenues will continue to improve. If not, expenses must be further reduced.

Funny thing about BK. you continue to "accrue' interest expenses and debt on unsecured loans that you have aboslutely no intention of paying back, then suddenly when you emerge..POOF..all that debt goes away. Expect UAL to renig on north of 5 billion in debt (in exchange for UAL2 stock of course...) upon emergence