United Posts Record Loss of $331.9 Million for Year

Ual Inc., the parent company of United Airlines reported record losses for the fourth quarter and full year, blaming the the economy, one-time costs of new labor contracts and fare wars.

UAL, based in the Chicago suburb of Elk Grove Village, said its net loss of $252.6 million, or $10.69 a share, for the three months ended Dec. 31 was twice as large as its record loss of $123.5 million, or $5.66 a share, in the same period of 1990.

Fourth-quarter revenue rose slightly to $2.9 billion from $2.8 billion a year earlier.

For all of 1991, the company lost $331.9 million, or $14.31 a share, compared with earnings of $94.5 million, or $4.33 a share, in 1990. Revenue was $11.7 billion compared to $11 billion a year earlier.

United’s 1991 results were hurt by charges taken in a failed employee-led buyout of the airline as well as rising fuel costs that followed the Iraqi invasion of Kuwait.

It said fourth-quarter results were affected by a $130 million charge, which included $64 million in retroactive pay and benefits to employees in the airline’s three labor unions. The company reached labor pacts with its machinists, flight attendants and pilots after years of negotiations.