United posts Q2 loss of USD1.6 billion
Posting a second successive billion-dollar quarterly loss, United just had its ‘most difficult financial quarter’ in nearly 100 years.
It posted a net loss of $1.6 billion and an adjusted net loss of $2.6 billion.
Its revenues were down 87% year-over-year with seat capacity down by a similar percentage.
"I am grateful for the professionalism of our United team members who persevered through an historic and challenging period to deliver for our customers," CEO Scott Kirby said.
Kirby says the airline is going in the right direction by cutting unnecessary expenses and boosting cash reserves.
"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."
It said total operating costs are down by 69% compared to a year ago.
Earlier forecasts for a gradual increase in demand through the summer have been scrapped due a resurgence of Covid-19 cases across the country.
United now doesn’t expect travel demand to return to normal until there is a vaccine available.
The airline recently said up to 36,000 of its employees could be furloughed from October but it expects many will take advantage of its extended leave and voluntary programs.
by Ray Montgomery, US editor
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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