Tue, Aug 26, 2003
Again Met a Monthly Bankruptcy Milestone, as 'Negative
Net Profit' Picture is Good Enough
UAL Corporation, the
holding company whose primary subsidiary is United Airlines, filed
its July Monthly Operating Report (MOR) with the United States
Bankruptcy Court, and reported that the Company earned $35 million
from operations in July, continued to generate positive cash flow
during the month and met the requirements of its
debtor-in-possession (DIP) financing for the sixth straight
month.
More revenue helps operating results.
United's executive vice president and chief financial officer,
Jake Brace, said, "United is continuing to deliver major cost
reductions and is now coupling that effort with significant unit
revenue improvement. United's systemwide unit revenue improved 10%
year-over-year, well ahead of the industry average for the month.
All of us at United are very proud of the solid progress we are
making. As we continue to successfully bring down cost and improve
revenue, we are building the momentum to emerge from Chapter 11 as
a much more focused, efficient and flexible business for the long
term. We know there is still much work to be done, but United is
moving steadily in the right direction."
Putting more cash in the kitty
Brace added, "United's cash
balance increased by an average of about $4 million a day in July,
excluding a quarterly retroactive wage payment to IAM members,
allowing us to maintain our strong cash position. We met the
requirements of our DIP agreements for the sixth time, and expect
to meet our DIP covenant for August as well."
The net still isn't so good:
Excluding reorganization expenses, United recorded a net loss of
$7 million for July. The $105 million in reorganization expenses
somewhat dull the joy...
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