UAL Corp receives financing commitments

Airline Industry Information, August 26, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

UAL Corp, the parent company of United Airlines, has revealed that it has secured commitments for financing to enable it to emerge from Chapter 11 bankruptcy protection.

Commitments have been made by four financial organisations - Citibank, JPMorgan Chase & Co, Deutsche Bank and GE Commercial Finance - for a total of USD3bn in debt financing. This was above the USD2.5bn requested by the company and was said to be an endorsement of its new business plan.

The airline has been in bankruptcy since December 2002 and is aiming to exit from Chapter 11 by late 2005 or early 2006.

In other news UAL has reported a net loss of USD274m for July, including USD350m of expenses related to its reorganisation. The monthly operating profit increased to USD113m from USD51m in July last year despite higher fuel costs.

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