Source: Associated Press

CHICAGO (AP) -- UAL Corp., the holding company for United Airlines, said Tuesday that it posted a loss of $114 million in October, including $14 million in reorganization expenses.

In a filing with the U.S. Bankruptcy Court, United said passenger revenue was flat compared with October 2003, while costs rose 9 percent because of higher fuel prices.

The nation's No. 2 carrier said it did not meet its October covenants for earnings before interest, tax, depreciation, amortization and aircraft rental. However, United noted that it received a waiver from its debtor-in-possession lenders for monthly financial covenants during the fourth quarter.

Jake Brace, executive vice president and chief financial officer, said operating performance remains high despite the challenges of bankruptcy.

"However, United's urgent need to further reduce costs is unchanged as we continue to face fares at their lowest in a decade, oil at record highs and no pricing power," Brace said in a statement. United posted an operating loss of $65 million for the month.

United said about 83 percent of its planes landed on time during the month and that load factor, or the percentage of seats filled, was at 77.8 percent.

Shares closed down 4 cents, or 4 percent, at $1 on the over-the-counter bulletin board.