United Airlines Parent Posts Net Loss for Oct.
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UAL Corp. (UALAQ.OB), parent of bankrupt United Airlines, Wednesday reported a net loss for October as reorganization expenses weighed on its bottom line.
The No. 2 U.S. carrier lost $698 million, including $584 million in largely noncash reorganization expenses related to the termination of the pilots' defined benefit pension plan. Excluding reorganization expenses, the net loss was $114 million.
UAL said in its report filed with U.S. Bankruptcy Court that bankrupt companies often see charges related to restructuring, especially as the reorganization nears an end.
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The carrier filed for bankruptcy in December 2002 and aims to emerge early next year.
UAL said its operating loss increased to $71 million for October from $65 million a year earlier.
The company linked the loss partly to a 53 percent rise in fuel prices, which resulted in a $169 million increase in fuel expenses versus last year.
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"United's revenue performance and cost reductions were offset by record high fuel costs," said Jake Brace, UAL's chief financial officer, in a statement.
UAL ended October with a cash balance of $2.7 billion, which included $964 million in restricted cash.