United Airlines reports worst ever financial quarter
United Airlines has confirmed the last three months have been the most difficult financial quarter in its 94-year history.
The carrier reported a net loss of $1.6 billion, and an adjusted net loss of $2.6 billion, for the three months to the end of June.
Total operating revenues were down 87 per cent year-over-year, on an 87.8 per cent decrease in capacity year-over-year.
Total liquidity as of the close of business on Monday was approximately $15.2 billion.
United now expects liquidity at the end of the third quarter to be over $18 billion.
“I am grateful for the professionalism and dedication of our United team members who persevered through an historic and challenging period to deliver for our customers,” said chief executive, Scott Kirby.
“While this unprecedented crisis has been difficult for our team, we expect United produced fewer losses and lower cash burn in the second quarter than any of our large network competitors.
“We accomplished this by quickly and accurately forecasting the impact that Covid-19 would have on passenger and cargo demand, accurately matching our schedule to that reduced demand, completing the largest debt financing deal in aviation history, and cutting expenses across our business.
“We believe this quick and aggressive action has positioned United to both survive the Covid-19 crisis and capitalise on consumer demand when it sustainably returns.”
Cash burn during the second quarter averaged $40 million a day, including $3 million of principal payments and severance expenses.
The company currently is forecasting average daily cash burn to be approximately $25 million during the third quarter of 2020 including $6 million of principal repayments and severance expenses.
United doubled the size of its schedule from June to July - meaning more flights, more seats, and more space onboard for customers.
The schedule will expand again in August as the recovery continues.