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...

FMI: www.ual.com