United Airlines Posts $ 1.9 Billion Loss in Q4 2020
According to the area, in the accumulated result of last year, the losses reached US $ 7.1 billion.
United Airlines reported a net loss of $ 1.9 billion in the fourth quarter of last year. Accumulated in 2020, the loss reached US $ 7.1 billion.
The company’s operating revenue fell 69% quarter-on-quarter, to $ 3.4 billion. Traffic dropped 70.9% in the fourth quarter.
Operating expenses, on the other hand, totaled US $ 5.5 billion in the fourth quarter, down 44.7% from the same period in 2019. The cash burn in the last quarter was US $ 23 billion daily, or US $ 33 billion considering indemnities and debt payments.
The airline points to a cash of US $ 19.7 billion at the end of 2020 and, according to estimates, is expected to report figures online by the end of the first quarter of 2021.
For the first quarter of 2021, United expects a 65% to 70% drop in its revenue from the first quarter of 2019, while flight capacity is expected to drop to 51%.
In the disclosure of results, the company highlighted that it raised more than US $ 26 billion in liquidity and acted in reducing cash consumption to “guarantee the company’s survival”. United estimates that it has achieved $ 1.4 billion in annual cost savings in the past three quarters.
United Airlines Posts $ 1.9 Billion Loss in Q4 2020 - /10