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UAL Has Worst Loss in 75 Years
The Associated Press
Thursday, Nov. 1, 2001; 8:50 a.m. EST
CHICAGO –– United Airlines' parent company, UAL Corp., said Thursday it lost $1.16 billion in the third quarter – the worst loss in its 75-year history.
The loss includes $865 million in special charges and a $391 million cash infusion from the federal government after the Sept. 11 terrorist attacks, which involved two United planes and caused a steep dropoff in U.S. air travel.
Excluding the unusual charges, the nation's No. 2 airline posted a loss of $542 million, or $10.05 per share for the three months ended Sept. 30. That's slightly better than the $10.27 consensus estimate of analysts surveyed by Thomson Financial/First Call but by far its most dismal quarter ever.
United already was deeply troubled before the attacks, suffering from the industry's highest labor and operating costs and an economy-caused falloff in business travel, on which it depends heavily.
Revenue for the third quarter was off 16 percent to $4.1 billion from $4.9 billion a year earlier.
© Copyright 2001 The Associated Press
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