United Reports $1.1 Billion Loss for 2009; Narrows Q4 Loss
UAL Corporation, the holding company for United Airlines, reported a fourth quarter net loss of $176 million, or $1.05 per basic share, excluding non-cash, net mark-to-market hedge gains and certain accounting charges, narrowing its net loss by $391 million compared to the fourth quarter of 2008.
The company reported a GAAP net loss of $240 million, or $1.44 per basic share. UAL also reported a full year 2009 net loss of $1.1 billion, excluding non-cash, net mark-to-market hedge gains and certain accounting charges, an improvement of $645 million compared to the full year 2008. The company reported a full year 2009 GAAP net loss of $651 million, an improvement of $4.7 billion compared to full year 2008.
Consolidated passenger revenue per available seat mile (PRASM) for the fourth quarter declined 5.2 percent year-over-year, a significant sequential improvement compared to the 14.7 percent year-over-year decline in the third quarter of 2009.
Mainline unit cost per available seat mile (CASM) for the quarter was up 1.1 percent year over year, excluding fuel and certain accounting charges, despite a reduction in mainline capacity of 6 percent year-over-year.
Mainline CASM, including fuel and excluding non-cash, net mark-to-market fuel hedge gains and certain accounting charges, was down 9 percent year-over-year. GAAP mainline unit cost, including these items, was down 19.8 percent. United closed the fourth quarter with total cash of $3.4 billion, unrestricted cash of more than $3 billion and restricted cash of $341 million.
During the fourth quarter, United ranked number one in on-time arrivals among the major network carriers for the fourth quarter and the full year 2009 based on preliminary industry results. It also welcomed Continental to the Star Alliance and filed an application with All Nippon Airways and Continental for antitrust immunity across the Pacific, in order to create a joint venture similar to the already approved joint venture across the Atlantic with Lufthansa, Continental and Air Canada.
United said it expects both mainline and consolidated CASM, excluding fuel, profit sharing and certain accounting charges for the full year 2010 to be up 2 percent to 3 percent year over year. The full increase is driven by unit cost pressures in four areas: revenue-related expenses, airport rents and landing fees, Annual Incentive Plan accruals in 2010 and accelerated aircraft depreciation.
The company expects scheduled debt and capital lease payments of approximately $700 million, non-aircraft capital expenditures of approximately $350 million and aircraft pre-delivery deposits of approximately $60 million for the full year 2010.
Source: News on the Caribbean and the Americas
