Top US Airlines Post Losses

UAL Corp. (UAUA) and AMR Corp. (AMR), parent companies of two major airlines, posted quarterly losses today.

UAL Corp, the parent of United Airlines, incurred a net loss of $1.3 billion or $9.91 a share in the fourth quarter on the back of fuel-hedging losses. This prompted the carrier to initiate a fresh round of job cuts, this time eliminating 1,000 more salaried and management positions. Excluding one-time items, UAL’s loss this quarter stood at $4.22 per share, narrower than the consensus. Revenue was down 9.6% at $4.55 billion.

The parent of American Airlines, AMR Corp’s fourth-quarter results witnessed a loss of $340 million, due to the higher fuel costs and the worsening economy. Loss for the quarter came at $1.22 a share, compared with the previous year’s 28 cents per share. AMR lost $214 million, or 77 cents per share, excluding one-time items. Analysts had projected a loss of 75 cents. The quarter also experienced a 3.8% drop in revenue, amounting to $5.47 billion.

Subscribe by RSS Subscribe by Email