UAL’s fourth-quarter results were impacted by high fuel costs and a difficult domestic revenue environment.
UAL reported a fourth-quarter operating loss of $493 million, which compares with a $134 million operating loss in the fourth quarter of 2003. UAL reported a net loss of $664 million, or a loss per basic share of $5.73, which includes $111 million in special items. Excluding the special items, UAL’s net loss for the fourth quarter totaled $553 million, or a loss per basic share of $4.77.
“As expected, the industry environment continues to be extremely difficult,” said Glenn Tilton, chairman, president and chief executive. “Record fuel prices and pressure on revenue led to unacceptable results. United has made good progress with more cost reductions already underway. But as we have said, and as this quarter shows without question, we have more work to do.”
Special items in this year’s fourth quarter included a $158 million gain from the sale of UAL’s remaining shares of Orbitz, $222 million in reorganization expenses and a $47 million increase in frequent flyer liability, principally associated with revised estimates.
For the full year 2004, UAL reported a net loss of $1.6 billion, or a loss per basic share of $14.57, compared to a net loss of $2.8 billion in 2003. Excluding special items, UAL reported a net loss of $1.2 billion, or a loss per basic share of $10.74.
Murdok | Breaking eBusiness News
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