Bankrupt UAL Corp., parent of United Airlines, on Wednesday said its quarterly loss more than doubled to $1.1 billion, boosted by higher energy costs and charges to terminate pensions and get rid of airplanes.
UAL, which filed for bankruptcy protection in December 2002, posted a first-quarter net loss of $1.1 billion, or $9.23 per share, compared with a loss of $459 million, or $4.17 a share, a year earlier.
The company recorded $768 million in reorganization charges in the quarter, including $433 million related to the federal Pension Benefit Guaranty Corp.'s motion to terminate UAL's pension plan for ground employees.
A bankruptcy judge on Tuesday cleared the way for United, the No. 2 U.S. airline, to terminate its pension plans, shifting them to the Pension Benefit Guaranty Corp., in the largest corporate pension default in U.S. history.
UAL's first-quarter operating revenue fell 2.5 percent to $2.92 billion as it cut back systemwide capacity by 2 percent.
Operating costs rose 1 percent to $4.2 billion, boosted by energy expenses, with average fuel prices up 36 percent.
The Elk Grove Village, Illinois-based airline's cash balance increased by $167 million to $2.3 billion, with $885 million of that restricted.
