ELK GROVE VILLAGE, Ill. (AP) -- UAL Corp., United Airlines' parent company, reported a $30 million net loss for August on Wednesday as a result of continuing high costs for its 33-month-old bankruptcy reorganization and the spike in fuel prices.
The company said in its monthly operating report filed with U.S. Bankruptcy Court that it had an operating profit last month of $80 million versus a $12 million operating loss a year earlier. That gain came despite $125 million in increased jet fuel spending due to a 43 percent jump in fuel prices since August 2004.
The nation's second-largest airline, which is targeting an emergence from federal bankruptcy protection in February, recently forecast that it will make a net profit next year for the first time since 2000. But the forecast is based on average oil prices of $50 a barrel, well below Wednesday's closing price of $66.80.
UAL said its passenger revenue increased 9 percent in August over the same month a year ago. It ended the month with $2.8 billion in cash, approximately $1.9 billion of it unrestricted.
CEO Glenn Tilton highlighted the improvement in a taped message to employees. The results, he said, ''make clear the progress that we have made together.''
''Our operating profit ... excluding the $125 million increase in fuel expense ... was $217 million better than last year,'' Tilton said. ''We have managed a respectable operating profit.''
Copyright 2005 Associated Press
