UAL Corporation (UAUA), the parent company of United Airlines, has announced the issue of $810 million notes to pay off existing debt. The $810 million in pass-through securities raised consists of $697 million of Class A certificates with a coupon interest rate of 9.75% expiring in Jan. 2017 and $113 million of Class B certificates with an interest rate of 12.0% expiring in Jan. 2016. A pass-through security is a fixed-income certificate against certain mortgage-backed securities, generally aircraft. Of the total proceeds raised from the offering, $493 million will be used to pay off equipment trust certificates issued from 2000 to 2002, while the remaining of the funds will be used for general corporate purposes. J.P. Morgan (JPM), Morgan Stanley & Co. (MS), Goldman Sachs & Co. (GS) are acting as joint book-running managers for the issue. In addition to the drop-off in ...

UAL Corporation (UAUA), the parent company of United Airlines, reported a third quarter loss of 43 cents per share, better than the Zacks Consensus Estimate of a loss of 93 cents. This compares favorably with the loss of $1.99 per share reported in the year-ago quarter. Results were heavily influenced by a sharp drop in fuel prices and more aggressive management of other costs. Revenues fell 20.3% year-over-year to $4.4 billion as a result of a 14.7% year-over-year decline in mainline revenue passenger miles (RPM) and a 17.1% drop in yield. The revenues were also disproportionately hurt by the decline in premium and business travel. UAL was able to offset much of this by a $1.7 billion decrease in operating expenses, about 80% of which was related to fuel. For the reported quarter, mainline load factor increased 260 basis points to 85.8%, and passenger revenue per ...

The U.S. Airlines industry has gone through several ups and downs in the past five years. Major negative influences on the industry included skyrocketing oil prices since 2005, economic recession in the U.S. since 2008, global economic downturn in 2009 and the "swine flu" outbreak. The airlines industry is cyclical and sensitive to a number of key drivers, the most prominent of which is the world price of crude oil. Since the beginning of 2009, prices of crude oil have been half of what they had been the year before, creating some relief for airlines. However, some industry operators hedged their fuel contracts at higher rates and are still paying the price. Many of the top airlines in the industry have responded by reducing services and aircraft fleet sizes, introducing new fees and higher fuel surcharges and reducing the number of people employed. Even with the price ...

For Immediate Release

Chicago, IL – October 16, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Harley-Davidson (HOG), US Airways (LCC), United Airlines (UAUA), Southwest Airlines (LUV) and American Airlines (AMR).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Thursday’s Analyst Blog:

Harley Fails to Meet Estimates

Harley-Davidson (HOG) disappointed in its third quarter results, posting a net income of $26.5 million or 11 cents per share compared to the Zacks Consensus Estimate of 22 cents per share. Compared to the year-ago quarter, net income tumbled 84% from $166.5 million

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Allegheny Energy, Inc. (NYSE: AYE) will disclose its financial results for the third quarter of 2009 in a news release to be issued before the New York Stock Exchange opens on Thursday, October 29, 2009.

UAL Corporation (Nasdaq: UAUA), the holding company whose primary subsidiary is United Airlines, announced today that the company will release its third quarter 2009 financial results on Tuesday, Oct. 20, 2009, and hold its financial conference call that day at 2 p.m. EDT.

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For Immediate Release

Chicago, IL – October 9, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Southwest Airlines (LUV), Frontier Airlines Holdings (FRNT), Republic Airways Holdings (RJET), Continental Airlines (CAL) and United Airlines (UAUA).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Thursday’s Analyst Blog:

Southwest September Traffic Spikes

Southwest Airlines (LUV) announced its preliminary mainline traffic results for September. The company reported an 8.8% surge in traffic to 5.8 billion revenue passenger miles from 5.3 billion revenue passenger miles a year ago.

Load factor, or the percentage of available

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Yesterday, United Airlines, a wholly owned subsidiary of UAL Corp. (UAUA) announced preliminary mainline traffic results for September. The company reported mainline passenger load factor of 81.2%. Total scheduled mainline revenue passenger miles (RPMs) decreased 1.1% on a capacity decrease of 3.7% in scheduled mainline available seat miles (ASMs) compared with the same period in 2008.   The airline has been threatened by volatile oil prices, increased competition, increasing maintenance expenses and a disgruntled workforce. During the second quarter, the company initiated a fleet modernization review to replace its older fleet types. This process could present a unique opportunity for the company to improve its cost structure and fleet strategy.   United Airlines is taking appropriate actions to respond to the current economic environment as indicated by its significant capacity reductions. However, consolidated passenger revenue per ASM was also down 1.1% and 3.7% during September.   In order ...

On Tuesday, AirTran Holdings Incorporated (AAI) announced its intention to offer 9 million shares in an underwritten registered public offering. Along with this, it also intends to offer $75,000,000 aggregate principal amount of notes. The closing of the notes offering is expected to be concurrent with the closing of the share offering. The net proceeds from both the offering will be utilized for general corporate purposes, which may include additions to working capital, capital expenditures, or the retirement of debt. AirTran’s ratio of earnings to fixed charge remains low; it has remained in the 1.0X-1.3X range since 2004. For the year ended Dec. 31, 2008, earnings were insufficient to cover fixed charges by $308.5 million. On Sept. 26, 2009, the company amended the processing agreement with its largest credit card processor to extend the expiration date of the agreement from Dec. 31, 2009, to ...

United Airlines, a subsidiary of UAL Corporation (UAUA) yesterday announced that it will essentially be taking on new debt of $659.1 million by mortgaging 31 of its planes with a later maturity date to refinance its current debt. The loan amount will be used to settle off existing debt of $556 million, excluding fees. The remaining funds will be used for general corporate purposes. This includes repayment of debt, financing of capital expenditures or funding of potential acquisitions or other business transactions. The new loan will mature in 2016. As of June 30, United Airlines had 386 aircrafts. The loan will be secured by planes representing 8% of total fleet. The planes had been bought between 1997 and July 2001. United has significant debt obligations and has suffered massive losses amid the drop-off in revenue due to the global economic downturn. The company is ...

UAL Corp. (UAL), the parent company of United Airlines, has announced a new public offering of $19 million common stock and $175 million convertible senior notes due 2029. The issue has been made in an attempt to raise cash for operations for the coming winter season when demand for air travel remains subdued. The company is bolstering its liquidity by taking advantage of the sentiment that fundamentals in airline industry have improved. In the public offering, UAL Corp. intends to grant its underwriters an option to acquire an added 2.85 million shares. The company has given the underwriters an option of nearly $26.3 million in additional convertible senior notes. Proceeds from the stock and debt offers would be used for general purposes. J.P. Morgan  (JPM) Morgan Stanley (MS) and Goldman Sachs & Co. (GS) are acting as joint book-running managers of both offerings....