This excerpt taken from the UAUA 10-K filed Mar 16, 2007.
As described in the Overview section above, presentation of the combined twelve month period of 2006 is a non-GAAP measure; however, management believes it is useful for comparison with the full years of 2005 and 2004.
The air travel business is subject to seasonal fluctuations. The Companys operations can be adversely impacted by severe weather and its first and fourth quarter results normally reflect lower travel demand. Historically, because of these seasonal factors, results of operations are better in the second and third quarters.
Earnings from operations increased $666 million to $447 million in 2006 as compared to a loss from operations of $219 million in 2005. Excluding reorganization items, the net loss was $58 million in 2006 which represents an improvement of $517 million over the net loss in 2005 of $575 million. These improvements are due to the net impact of the items discussed below, among other factors. See Note 1, Voluntary Reorganization Under Chapter 11Financial Statement Presentation, in the Notes to Consolidated Financial Statements for further information on reorganization items.
This excerpt taken from the UAUA 10-Q filed Aug 2, 2006.
The air travel business is subject to seasonal fluctuations and historically, results of operations are better in the second and third quarters. Our operations can be impacted by adverse weather and our first- and fourth-quarter results normally reflect reduced travel demand.
On the Effective Date, UAL implemented fresh-start reporting in accordance with SOP 90-7. As a result of the application of fresh-start reporting, the financial statements prior to February 1, 2006 are not comparable with the financial statements for the period February 1, 2006 to June 30, 2006. However, for managements discussion and analysis of the results of operations, the three months ended June 30, 2006 have been compared to the three months ended June 30, 2005, and the combined six month period ended June 30, 2006 was compared to the six months ended June 30, 2005. The Company believes that the reported non-GAAP financial results provide management and investors a better perspective of the Companys ongoing financial and operational performance and trends by combining the periods for this purpose. References to Successor Company refer to UAL on or after February 1, 2006, after giving the effect to the application of fresh-start reporting. References to Predecessor Company refer to UAL prior to February 1, 2006. For detailed information concerning the effects of the adoption of fresh-start reporting on the balance sheet of the Successor Company, see Note 1, Voluntary Reorganization Under Chapter 11Fresh-Start Reporting in the Notes to Consolidated Financial Statements (Unaudited).