United Airlines Hit Hard by COVID-19... 2Q Revenue Down 87% YoY

Q2 Records $1.63 Billion Loss

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jaehee] United Airlines reported a loss of $1.63 billion (approximately 2 trillion won) in the second quarter due to the impact of the novel coronavirus (COVID-19), CNBC reported on the 21st (local time). This represents an 87% decrease from the revenue of $1.05 billion in the same period last year.

United Airlines stated, "In the second quarter, we recorded an average daily loss of $40 million, but we expect to reduce this to an average daily loss of $25 million in the third quarter."

Scott Kirby, CEO of United Airlines, said, "We will adjust flight schedules according to air travel demand and reduce cash burn to the level of our competitors to cut operating costs."

He added, "This is to survive the COVID-19 crisis and to reserve funds for when travel demand recovers."

United Airlines also stated that its flight operations in the third quarter are expected to decrease by 65% compared to the same period last year. With a rapid increase in COVID-19 cases across the United States and stringent screening of travelers in New York, New Jersey, and Connecticut, the recovery of air travel demand is facing difficulties.

Additionally, United Airlines revealed that about 6,000 of its approximately 96,000 employees took early retirement earlier this year.

Furthermore, it has indicated that up to 36,000 employees may enter unpaid leave starting October 1.

United Airlines currently holds $15.2 billion in cash and expects this to increase to $18 billion by the end of the third quarter.

This content was produced with the assistance of AI translation services.