UAL Swings to Loss; Sees Added Job Cuts
UAL (UAUA), the operator of United Airlines, said a 54% surge in fuel costs pushed it to a second-quarter loss, and the carrier laid out plans to expand its job cuts.
Excluding special items, UAL lost $151 million, or $1.19 a share, in the latest quarter. Revenue rose 3% to $5.37 billion and was roughly in line with estimates. UAL had a profit of $1.83 a share last year.
With noncash accounting expenses, including a $2.3 billion charge for goodwill impairment and $82 million in severance costs, the company lost $2.7 billion, or $21.47 a share.
Fuel costs rose by $773 million in the quarter. "Our industry is challenged as never before by the unrelenting price of oil," said CEO Glenn Tilton in a prepared statement. "The elimination of our entire
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