UAL Posts $2.7 Billion Q2 Net Loss
UAL, the parent company of United Airlines, has reported that its net loss for the second quarter ended June 30, 2008 was $2.7 billion or $151 million, excluding certain largely non-cash accounting charges, driven by a $773 million increase in consolidated fuel expense.
The company has reported basic and diluted loss per share of $1.19 excluding certain largely non-cash accounting charges. The company has also recorded $2.6 billion of previously announced accounting charges, including a $2.3 billion non-cash special charge for goodwill impairment.
Excluding the accounting charges, the company generated an operating loss of $87 million in the second quarter of 2008, versus operating income of $537 million in the in the second quarter of 2007, primarily as a result of the significant increase in fuel expense.
The company has generated a net loss of $151 million, excluding accounting charges, in the second quarter of 2008, $425 million worse than the second quarter of 2007. Including the impact of these accounting charges, the company has reported an operating loss of $2.69 billion and a net loss of $2.73 billion for the second quarter of 2008.
Jake Brace, executive vice president and CFO of United Airlines, said: “We continue to take the difficult, but necessary action across the company to reduce our costs, including reducing our workforce by more than 7,000 people. We are maintaining our cost guidance for the year even as we dramatically reduce capacity, and are improving our liquidity, ensuring United is well positioned to weather the current environment.”