Losses spiral at United Airlines

United Airlines' parent company made a $21 billion loss last year due to charges arising from its bankruptcy. It suffered pre-tax losses of $16.6 billion alone in the last quarter after it recognized many unsecured claims. United was one of several US carriers to seek bankruptcy protection due to soaring costs and flagging demand.

UAL Corp is due to emerge from Chapter 11 bankruptcy next month after three years of restructuring. It has cut its workforce by a quarter and secured huge pay concessions from pilots and other staff. It is radically restructuring its business in an effort to reduce annual costs by $7 billion by 2010. CEO Glenn Tilton admitted the company must do more to reduce costs and boost revenues. He also warned that fuel costs would be $885 million higher in the current year than previously thought.

Google Base:
american airlines

(2006-01-29 13:13:44 SGT) [Biz] Permalink

Comments:

Post a Comment:

Comments are closed for this entry.

« Booming nations... | Main | Another two billion... »

Most popular blog postings on lowem.log :

1. Singapore SIBOR rate falls to 0.94% in Nov 2008, lowest since Jul 2004
2. Baltic Dry Index falls 93% as shipping rates plunge, signalling global economic collapse
3. Singapore SIBOR rate falls to 1.31%, lowest since Nov 2004
4. Singapore SIBOR interest rates fall to 1.5%, lowest since Dec 2004
5. Live spot gold price quotes chart on COMEX
6. 2010 Honda Civic Hybrid preliminary specifications released
7. Fuel prices seen stoking Malaysia inflation in 2008
8. How to insert currency exchange rates into Google Spreadsheets

Featured articles on lowem.log :

1. ABC Guide to Beating Inflation in Singapore and Elsewhere
2. Singapore inflation rate hits new 26-year high of 7.5% in Apr 2008
3. Baltic Dry Index falls 93% as shipping rates plunge, signalling global economic collapse
4. 67000 China factories closed in H1 2008 as global economic collapse takes hold
5. 2010 Honda Civic Hybrid preliminary specifications released
6. Peakoiler buys 2008 Honda Civic Hybrid FD3
7. NYMEX crude oil recovers from $32.40 low after 2.2 mbpd OPEC production cut announced
8. Singapore SIBOR rate falls to 0.94% in Nov 2008, lowest since Jul 2004