United posts huge USD7 billion full-year loss

Sunday, 21 Jan, 2021 0

United Airlines disasterous year for the industry with a full year loss of $7 billion, which is its largest for 15 years.

It posted a net loss of $1.9 billion in the fourth quarter as revenue fell nearly 70%.

It doesn’t expect a fast turnaround during this year and 2021 will be a ‘transitional’ one.

It won’t start showing improvements on its 2019 pre-pandemic performance until 2023 the airline said.

"Aggressively managing the challenges of 2020 depended on our innovation and fast-paced decision making. But, the truth is that Covid-19 has changed United Airlines forever," the carrier’s CEO, Scott Kirby, said in an earnings release.

United stated it had nearly $20 billion liquidity as of the end of 2020.

Now it will focus on cutting costs and aims to shrink about $2 billion from annual outgoings through 2023.

Its daily cash burn averaged $33 million a day during the fourth quarter, which is actually higher than the previous quarter.

The airline hasn’t given specifics on when it expects to reach cash flow break-even but is targeting sometime in 2021.

Written by Ray Montgomery, US Editor

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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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