Weakening financial performance
The company has posted loss after loss over the last ten years. In 2008, United incurred net loss
of $5.3 billion as compared to a minute net profit of $403 million in 2007. Furthermore,
company’s long-term stock performance has been lower than the industry’s average. United
also filed Chapter 11 bankruptcy in 2002. Although, United emerged from bankruptcy in 2008,
it has stained United’s overall credit rating. United is under so much burden of loans that most
of its revenue is used for interest payments.