United reports record loss
United Airlines has reported losses of $3.2 billion for 2002.
The troubled US carrier, which filed for Chapter 11 bankruptcy on 9 December, tried to curb its losses through a number cost cutting measures implemented during 2002.
United chairman and president, Glenn Tilton said: “…United did everything within its control, slashing costs in every aspect of the business – without sacrificing reliability and safety – including reducing capital investments, reducing airline capacity, furloughing employees, obtaining concessions from vendors and more.”
United cut capacity in 2002 to six percent below 2001 levels. This included scrapping routes to Latin America, Europe and New Zealand. The carrier also announced a number of redundancies in 2002, and implemented wage reductions of between three and 11 percent for its salaried and management employees, and negotiated up to 29 percent pay reductions with labour unions.
United has so far used $700 million of the $1.5 billion loan facility that it arranged with a number of financing institutions in December.
In a statment United said it expected a significant loss for the first quarter of 2003 due to a downturn in international bookings; particularly from business passengers, and in Pacific markets.
Read our previous stories:
17-Dec-2002 United backs down on $100 charge
17-Dec-2002 United’s bankruptcy – Comment by Jeremy Skidmore
09-Dec-2002 UAL files for bankruptcy
06-Dec-2002 UAL crisis deepens
26-Nov-2002 United cuts more jobs
13-Nov-2002 United Airlines strikes vital deal
29-Oct-2002 UAL loss close to $1bn
29-Oct-2002 United to shed 1,500 jobs
25-Oct-2002 United scraps four more routes
25-June-2002 United asks for $2billion loan
21-June-2002 United pilots agree to wage cuts
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