NEW YORK (CNN/Money) -
UAL Corp., the parent of United Airlines, reported a significant first-quarter loss Friday as it continued to be hit by the lingering effects of the Sept. 11 attacks on the airline industry, but it beat analyst expectations by more than $1 a share.
UAL (UAL: up $0.21 to $15.05, Research, Estimates) posted a net loss of $510 million, or $9.22 a share, in the first quarter, compared with a loss of $313 million, or $5.97 a share, in the year-earlier period.
Before items, the company reported a loss of $487 million, or $8.81 a share, compared with a loss of $305 million, or $5.82 a share, a year earlier. The special items include a $52 million charge for closing its business jet unit, Avolar. Analysts had expected a loss of $10.24 a share, according to tracking firm First Call.
"We certainly are seeing signs that our industry's situation is beginning to improve, but there is still a long way to go," CEO Jack Creighton said.
The airline's operating revenue fell 26 percent to $3.3 billion from $4.42 billion in the first quarter of 2001, and its cash burn rate fell to less than $5 million daily in the first quarter from $10 million in the previous quarter.
UAL officials said they expect the company to post another significant loss in the second quarter and for the year.
America West and Alaska Air also report quarterly losses
Separately, America West Airlines, a unit of America West Holdings (AWA: up $0.04 to $5.30, Research, Estimates), reported a first-quarter net loss of $358.3 million, or $10.62 a share, after charges and accounting changes.
Excluding special charges, AmericaWest lost $47.6 million, or $1.41 a share. Analysts' average loss estimate was $1.50 a share, according to First Call.
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America West, the only major carrier to apply for and accept federal loan guarantees, said total operating revenue fell 21.6 percent to $460 million in the first quarter.
Also Friday, Alaska Air Group Inc. (ALK: up $0.24 to $31.14, Research, Estimates), parent of Alaska Airlines and regional carrier Horizon Air, reported a $34.4 million first-quarter net loss, amounting to $1.30 a share, compared with a loss of $33.1 million, or $1.25 a share, a year ago. Analysts estimated a loss of $1.53 a share on average, according First Call.
The airline's operating revenue dropped 3.7 percent from a year earlier to $497 million in the first quarter.
--from staff and wire reports
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