Printer Friendly

UAL CORP. REPORTS FIRST QUARTER FINANCIAL RESULTS; OPERATING LOSS NARROWS FROM A YEAR AGO

 CHICAGO, April 29 /PRNewswire/ -- UAL Corp. (NYSE: UAL), the holding company whose primary subsidiary is United Airlines, today reported a first quarter loss of $138 million ($5.92 a share) before an extraordinary loss, compared with a first quarter loss a year ago of $108 million ($4.52 a share) before the cumulative effect of accounting changes. The extraordinary loss, related to the planned early retirement of debt, totals $19 million.
 The company's operating loss in the first quarter this year was $121 million, a 28 percent improvement over the operating loss of $168 million in the first quarter last year.
 In addition to the extraordinary item, the company said its pre-tax results were impacted by a net negative effect of some $26 million for significant items recorded during the period, while last year's results benefited from $20 million of foreign exchange gains. Excluding the effect of these items and the extraordinary loss from the 1993 first quarter, and excluding the cumulative effect of accounting changes from the first quarter of 1992, the first quarter results would have been the same, a $120 million loss, in both years.
 The company said United's unit costs (cost per available seat mile), which have received considerable attention, fell 2.6 percent from 9.88 cents to 9.62 cents in the first quarter 1993 compared with the same period in 1992, despite a 6.3 percent increase in the average price of fuel, from 62.0 cents to 65.9 cents a gallon. Excluding commissions, unit costs were down 2.6 percent from 8.19 cents to 7.98 cents.
 United's unit revenue (revenue per available seat mile) declined slightly, 0.5 percent, from 9.36 cents to 9.31 cents. The company attributed the decline to the impact of the weak economy in Japan, which had an effect on both passenger traffic and yield in the company's Pacific division, and weak pricing in the Atlantic division. In U.S. domestic markets, passenger unit revenues actually improved 3.1 percent. Excluding commissions, total unit revenue was up slightly, 0.3 percent, from 7.66 cents to 7.68 cents.
 "While the effect of our $400 million cost-reduction program initiated earlier this year resulted in favorable year-over-year unit cost comparisons, our first quarter results make it ever so apparent that this action alone is not enough to restore United Airlines to a level of sustained profitability," said Stephen M. Wolf, chairman and chief executive officer of UAL Corp.
 "We continue to move forward with plans to reduce further our costs by making structural changes to the company," Wolf said.
 The significant items recorded in the first quarter this year included, on an pre-tax basis, a $10 million charge primarily related to the adoption of FAS 106 by Covia; a $10 million charge related to Air Wisconsin; $22 million of foreign currency exchange losses; and an additional $16 million of revenues resulting from the payment by the U.S. government of certain receivables.
 -0- 4/29/93
 /CONTACT: Joe Hopkins, corporate communications, 708-952-5770, night, 708-952-4088 or Pamela Hanlon, investor relations, 708-952-7501, both of UAL Corp/
 /FIRST AND FINAL ADD -- TABLES -- TO FOLLOW/
 (UAL)


CO: UAL Corp. ST: Illinois IN: AIR SU: ERN

WB -- NY044 -- 2578 04/29/93 10:52 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 29, 1993
Words:546
Previous Article:GENERAL HOST CORPORATION COMPLETES ACQUISITION OF 49.5 PERCENT OF SUNBELT NURSERY GROUP'S STOCK
Next Article:HARRIER, INC. ANNOUNCES BOARD CHANGES, REDUCES NUMBER OF DIRECTORS FROM FOUR TO THREE
Topics:


Related Articles
UAL REPORTS 1991 RESULTS
UAL CORP. REPORTS SECOND QUARTER FINANCIAL RESULTS
UAL CORP. REPORTS SECOND QUARTER FINANCIAL RESULTS
UAL CORP. REPORTS SECOND QUARTER FINANCIAL RESULTS
UAL CORPORATION REPORTS THIRD QUARTER FINANCIAL RESULTS
UAL CORP.'S $224 MILLION FOURTH QUARTER NET LOSS INCLUDES $62 MILLION OF PRE-TAX CHARGES
UAL CORPORATION REPORTS SECOND QUARTER FINANCIAL RESULTS
UAL CORP. REPORTS THIRD QUARTER NET PROFIT OF $149 MILLION
UAL CORP. REPORTS FOURTH QUARTER, FULL YEAR 1993 FINANCIAL RESULTS
UAL CORP. REPORTS THIRD QUARTER FINANCIAL RESULTS

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters