UAL Reports 2Q Profit

July 31, 2006
UAL emerged from bankruptcy in February, and this is its first profit in six years.

UAL Corp., parent of United Airlines, reaffirmed Monday that it had its first profit in six years in the second quarter on 16 percent revenue growth.

Making formal the results it indicated last week that it expected to report, the company posted net income of $119 million (euro94 million), or 93 cents per share, for the April-June period compared with a loss of $1.43 billion, or $12.33 per share, in the year-ago period, when the company was operating under Chapter 11 bankruptcy protection.

Revenue grew to $5.11 billion (euro4.04 billion) from $4.42 billion a year ago.

UAL had announced last week that it expected to report a $119 million (euro94 million) profit on $5.1 billion in revenue for the quarter. It was its first quarter in the black since it earned $408 million in the second quarter of 2000.

Total operating expenses increased 11 percent to $4.85 billion (euro3.83 billion), including a 31 percent increase in fuel costs. Major airlines have been reporting improved results this quarter, as cost control efforts, higher fares and reduced capacity have combined to offset the rising fuel prices.

UAL emerged from bankruptcy in February.

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