United Airlines to Ask For Credit Revision: Report

The carrier may approach its lenders, Citigroup, JPMorgan Chase and Credit Suisse, as early as Monday to request concessions on its financing arrangements, the FT said on its website, citing people close to the situation.

Shares of UAL Corp. was recently down $1.01 or 6.4 percent to $14.88.

United has said it has enough cash and earnings to remain in compliance with the credit facility's terms, concerns about its financial health helped persuade Continental Airlines Inc. to end merger negotiations, people familiar with the matter have said, according to the report.

The airlines industry have been hard-hit with soaring fuel prices and a slowing economy, causing airlines to consider consolidation as a way to cut costs.

The ability of airlines to comply with bank covenant and loan agreements has already been reported to be a near-term concern. Northwest has asked lenders in its $1.2 billion bank loan to do away with fixed-charge coverage ratios for the next 12 months.