UAL Corporation, the parent company of United Airlines, has suffered a net loss of $779 million, or $6.13 per share, in the third quarter of 2008.

UAL Corporation, with its corporate offices in Chicago, the United States, said in a statement that the company had to spend about $1 billion in higher costs of jet fuel.

“The airline’s loss,” the statement explained, “was due to high fuel prices during the quarter and accounting charges related to markdowns in the value of some fuel hedging contracts after oil prices fell sharply by the end of the period. Those non-cash charges were $519 million.”

UAL Corporation had earned a profit of $334 million, or $2.21 a share, in the third quarter of 2007.

United Airlines ended the September 2008 quarter with $2.9 billion in cash and it owns $3 billion in other unencumbered assets, mainly aircraft that it could use, if necessary, to raise more cash, the statement said.

United Airlines’ largest hub is O’Hare International Airport in Chicago, the United States. It also has hubs in Denver International Airport, Washington Dulles International Airport, San Francisco International Airport, and Los Angeles International Airport. The airline also maintains focus-city operations at Narita International Airport near Tokyo, Japan.

The website www.usatoday.com quoted Glenn Tilton, CEO of UAL Corporation, as telling airline analysts and journalists: “Oil prices reached unprecedented levels during the last quarter. Failing financial institutions and tight credit markets are affecting us all.”

Tilton added: “Jet fuel cost United Airlines $946 million more in the third quarter of 2008 than a year earlier – an increase of nearly 65%. If fuel prices remain low, UAL Corporation and the industry will have a better fourth quarter.”

According to the company’s statement, “because United Airlines, like most other carriers, has been cutting routes and flights to reduce costs, its flying capacity shrank by 3.6% year-over-year in the third quarter of 2008. Total passenger revenue rose by 1.4%, and passenger revenue for every seat flown one mile went up by 5.7%.”

This quarter, United Airlines’ domestic and international flying capacity on full-size jets will be down by at least 11.5% year-over-year, the company said.

Glenn Tilton pointed out that “passenger demand is softening on domestic and international routes” and that “the trend reflects the economic downturn as well as higher fares that carriers have been charging.”

“United Airlines,” Tilton said, “has been hurt by economic softness in certain international regions where it flies.

As a result, the carrier is cutting flying capacity to mainland China and is stopping its Los Angeles-Hong Kong route. Besides, the non-stop route between Denver International Airport in the United States and London’s Heathrow Airport will be discontinued “because of weak demand.”

However, United Airlines will launch service between Washington Dulles Airport and Dubai by the end of October 2008, and between Washington Dulles Airport and Moscow in March 2009.