UAL Net Off in Quarter; Firm Suffers Loss for Year

UAL Inc., parent of United Airlines, said Tuesday that it had net earnings of $20.5 million in its fourth fiscal quarter, a decline of 69% from the same period of 1984.

The company also posted a loss on operations of $77.1 million for the most recent quarter, which compared to an operating profit of $131 million in the year-earlier period. The net profit was produced by taking extra money out of pension funds.

Richard J. Ferris, chairman and chief executive, said revenue per passenger mile improved at the end of 1985, but the resumption of fare wars with other airlines has since wiped out the benefit.

For the quarter ended Dec. 31, the corporation posted revenue of $1.9 billion. In the fourth quarter of 1984, UAL earned $67 million on revenue of $1.7 billion.

The 1985 fourth quarter included a one-time gain of $136.8 million, which the company withdrew from several pension funds as part of a continuing plan to use $962 million of excess money in pension funds for corporate use.

The fourth quarter of 1984 had a one-time gain of $103 million as the corporation reduced its contribution to the overfunded pension plans, a United spokesman said.

For the year, UAL lost $48.7 million on revenue of $6.4 billion. That contrasted with net income of $282 million on revenue of $6.97 billion in 1984.

Ferris said the loss was principally the result of a 29-day pilots’ strike against United Airlines in May and June. The airline itself lost $88.2 million in 1985.

UAL also owns Hertz Corp. and Westin Hotels.

Hertz earned $3.8 million for the fourth quarter. The business was purchased by UAL last Aug. 30.

Westin Hotels showed a 1985 profit of $25.1 million, including $7.8 million earned in the final quarter, compared to 1984 earnings of $17.9 million, including $7.2 million in the last quarter.