United Airlines reports third quarter loss

Airline Industry Information, Oct 29, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

United Airlines' parent company UAL has recorded a third quarter loss of USD274m and immediately warned that labour costs would have to be slashed again if the airline was to emerge from bankruptcy.

The latest results mark the airline's 17th straight quarter loss and was the final set of third quarter results from the US's biggest airlines all of which have reported disappointing results. US Airways, Delta Air Lines and American Airlines all reported poor third quarter results with the seven biggest airlines reporting a combined loss of USD1.3bn in the third quarter of 2004.

A spokesperson for United Airlines said that despite an increase in passenger traffic the pricing environment meant that it could not turn the passenger increase into enough revenue to cover increased fuel costs. The airline has already cut USD5bn in costs but is now insisting it needs to cut more to have any chance of emerging from bankruptcy and not defaulting on bankruptcy repayments in the fourth quarter of 2004, reports The Associated Press.

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