UAL, parent of bankrupt United Airlines, on Tuesday reported a net loss of USD$93 million in May, including USD$36 million for reorganization expenses.

United said its operating loss was USD$21 million for the month, reversing an operating profit of USD$9 million in May 2004. The company noted that fuel expenses rose USD$93 million year over year.

"Fuel is a brutal challenge for our industry. In the face of this challenge, we continue to improve operations across the company, targeting every area of non-labor cost reduction and revenue generation opportunity," Chief Financial Officer Jake Brace said.

United ended the month with a cash balance of USD$2.6 billion, USD$957 million of which was restricted. The cash balance increased by USD$143 million in May, driven by strong receipts and effective cost controls, the airline said.

UAL said it met the requirements of its debtor-in-possession financing.

United has been in bankruptcy since December 2002 and lately has been battered by soaring fuel costs, weak revenue and competition from low-cost carriers.