CHICAGO (AP) -- United Airlines' parent company reported a net loss of $93 million (euro77 million) in May, attributable largely to what its chief financial officer called the ''brutal challenge'' of higher fuel costs.
UAL Corp. said Tuesday it had an operating loss of $21 million (euro17 million) for the month, blaming the deficit mostly on fuel expenses that exceeded the May 2004 total by $93 million (euro77 million). Had fuel costs remained unchanged, the company would have broken even for the month on a net basis.
The results included $36 million in reorganization expenses as the company continued the bankruptcy overhaul it began in December 2002.
CEO Glenn Tilton said recently that the airline is on target to emerge from Chapter 11 bankruptcy this fall and predicted it would turn a profit in 2006. But it's been five years since the company last made money, and that trend shows no sign of disappearing with oil prices more than 65 percent above year-ago levels.
UAL, which reports results monthly to federal bankruptcy court, has lost more than $1.4 billion (euro1.2 billion) through five months of 2005 and $6.1 billion (euro5 billion) since entering Chapter 11 bankruptcy in December 2002.
''Fuel is a brutal challenge for our industry,'' said Jake Brace, chief financial officer. ''In the face of this challenge, we continue to improve operations across the company, targeting every area of non-labor cost reduction and revenue generation opportunity.''
He said United continues to make significant progress toward completing its restructuring.
Spokeswoman Jean Medina reiterated Tuesday that the company intends to leave bankruptcy this fall, despite increasing industry skepticism.
