United Airlines Reports a $1.63 Billion Second-Quarter 2020 Loss
July 22, 2020
United Airlines Holdings, referencing "the most difficult financial quarter in its 94-year history," reported a $1.63 billion second-quarter 2020 loss on 87% lower revenue due to the COVID-19 pandemic. Posting a $5.79/share loss compares to the $4.02/share profit a year earlier of $1.05 billion. Revenue dropped to $1.48 billion from $11.4 billion – a clear indication the pandemic is having on travel demand.
Despite these very disturbing losses, the earnings and revenue were actually better than analysts expected where consensus estimates were that the loss for the quarter would be somewhere near $7.39 a share on revenue of $1.32 billion.
United Airlines has said it had about $15.2 billion of available cash and expected that figure to grow to $18 billion by the end of the third quarter of 2020. United CEO, Scott Kirby, emphasized that the corporation minimized losses by accurately predicting the impact the COVID pandemic would likely have on the demand for cargo and passenger demand. Additionally, Scott pointed that the company accurately matched the schedule to demand, cut expenses across the business in all areas and completed the largest debt financing deal in aviation history.