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Loss Widens at UAL

Second-quarter operating revenue was $3.1 billion, down 18% from last year.

UAL Corp.


, the parent of United Airlines, reported a wider second-quarter loss Friday and said its revenue fell 18% from the same period a year ago.

Including items, the company lost $623 million, or $6.26 a share, compared with a loss of $341 million, or $6.08 a share, last year.

Excluding a $300 million reimbursement from the government related to the war in Iraq and charges of $447 million, UAL's loss for the quarter was $476 million, or $4.79 a share, compared with analysts' expectation of a loss of $5.34 a share.

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Operating revenue was $3.1 billion, a decrease of 18% from last year. Shares of the bankrupt carrier were down 2 cents to 49 cents on the over-the-counter Bulletin Board.

Passenger revenue for the quarter fell 18% from last year on a 14% decrease in capacity. Traffic dropped 11% vs. last year, and United's load factor for the quarter was 77%.

On the bright side, Glenn Tilton, president and chief executive of the company, said UAL "achieved a large decrease in our labor and other costs as we continue to implement our various cost-reduction initiatives." The company also said it added 160 new domestic flights during the quarter to satisfy demand.

United began June with a cash balance of around $2.2 billion, including $659 million in restricted cash. The airline ended the month with a cash balance of about $2.3 billion, including $674 million in restricted cash.

The company said that it had earnings from operations of $20 million and a loss of $310 million in June, which factors in $334 million in reorganization expenses.