United Airlines reports a loss of $2.1 billion

Published on : Wednesday, April 22, 2020

The news comes as the coronavirus pandemic continues to drive travel demand down to the lowest level in decades.

After the recession of 2008 the United Airlines has reported a $2.1 billion loss for the first quarter.  During the first two weeks of April united flew less than 200,000  which was  a 97 per cent drop from the more than six million customers during the same period of 2019.

United Airlines said it had cut its flight schedule in May by 90 per cent and expected similar cuts for June due to the pandemic.

 

The airline added it has applied for up to $4.5 billion in government loans on top of about $5 billion in federal payroll grants and loans it also expects to receive to weather the crisis.

Frank Benenati, United Airlines spokesperson thanked the congress and the administration for quickly passing legislation to protect the paycheques of tens of thousands of United Airlines employees and look forward to completing the final agreements with the treasury department in the next few days.

It is expected that the  funds will cover a portion of their pay and benefits costs through September 30th. They were thankful for the support provided to their employees and their families by the CARES act.

 

United is the first United State-based airline to  offers details of the financial impact of the virus on its results in the first three months of the year.

Air travel demand  has been ravaged due to the disease and prompted carriers to slash most of their flights.

United said revenue fell 17 per cent in the first quarter from a year ago – to $8 billion and it had a roughly $1 billion loss in the quarter, excluding special charges.

The carrier  said  for an undisclosed sum it would sell and lease back 22 planes to Bank of China Aviation.


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