CHICAGO — United Airlines' parent lost $1.77 billion in the third quarter, largely due to the cost of restructuring its aircraft leases.

The loss, which the airline characterized as "common" for a company approaching an exit from bankruptcy, was the largest-ever quarterly shortfall for UAL Corp. It amounted to a loss of $15.26 for each share of company stock.

The Elk Grove Township-based carrier is poised to exit bankruptcy early next year. Excluding reorganization charges, the airline would have earned $68 million in the quarter.

Restructuring aircraft leases has enabled United to shave hundreds of millions of dollars in operating expenses. Although the restructuring costs appear as huge losses on the airline's balance sheet, nearly all of that liability will disappear when the airline leaves court protection.

United sought bankruptcy protection in December 2002. The airline has said it is on pace to exit in early 2006.

On an operating basis, the airline earned $165 million in the quarter, up $245 million from the same period a year ago.

United's largest expense in the quarter was $1.1 billion spent on fuel, up 37 percent from the same period in 2004. United hasn't had the cash to lock in long-term fuel contracts at lower prices.

"We have to deal with the hand we're dealt, and fuel is a reality we need to deal with," said Jake Brace, United's chief financial officer.

Fuel costs continue to bedevil the industry, with nearly all airlines blaming record fuel expenses for losses in the last quarter. The price of fuel has necessitated becoming more efficient in all other areas and boosting revenue, Brace said.

Both efforts were evident in the quarterly results. Operating revenue was up almost 5 percent, to $3.47 billion. United, like other carriers, has been pushing through fare increases in an effort to increase revenue.

Labor costs were down 21 percent, to $1 billion.

United still needs to lower its nonfuel costs, "but it looks like they're almost there now," said airline analyst Ray Neidl of Calyon Securities.

United and the rest of the industry are benefiting from the price increases airlines have been able to put in place, Neidl said. Although not enough to cover fuel costs that have more than doubled in recent years, prices likely will be up slightly, including during the traditionally busy holiday months, he said.