UAL gets cash infusion amid $2.73 billion loss

United raised its job elimination goal to 7,000, from about 3,800 previously.

United stirred together an extended credit-card agreement with Chase Bank USA, new debt on its planes, and other financial maneuvers that it said would add $1.7 billion to its cash balance, including $200 million it expects to get over the next two years. United ended the quarter on June 30 with $2.9 billion in cash.

The news seemed to help investors get over the $2.73 billion second-quarter loss reported by United parent UAL Corp. Most of the loss was a non-cash special accounting charge of $2.3 billion. United lost $151 million, or $1.19 per share, without the accounting charges.

Revenue rose 3 percent to $5.37 billion, from $5.21 billion a year ago.

Analysts surveyed by Thomson Financial expected UAL to lose $2.05 per share on revenue of almost $5.39 billion. Analysts' estimates generally exclude one-time charges.

United's cash-raising moves grabbed the spotlight, though.

The carrier extended its credit card agreements with Chase Bank, a unit of JPMorgan Chase & Co. As part of that deal, Chase will accelerate a payment of $600 million for buying the frequent flier miles it uses to reward credit card customers.

United also freed up about $350 million in previously restricted cash by signing a new credit card processing agreement with Paymentech LLC, which Chase partially owns. Credit card processors often hang onto some of the money for airplane tickets that have been sold but not used, in case they get returned. A sharp increase in the holdback for Frontier Airlines helped send that small carrier into Chapter 11 bankruptcy protection in April.

United's holdback dropped from $385 million to $25 million, Chief Financial Officer Jake Brace said on a conference call. He said the agreement includes triggers that could raise the holdback to higher levels again.