Mon, July 22, 2024

World’s One of the Largest Airlines Lost $1.63 Billion

Airline industry and coronavirus pandemic

It is not a secret that due to the coronavirus pandemic, airlines all over the world suffered serious losses, and the world’s one of the largest airlines is not an exception. This week, United Airlines released information about the second quarter. Unfortunately, during the second quarter, the carrier lost $1.63 billion. For example, last year in the second quarter the United Airlines generated profit.

Importantly, revenue fell to $1.48 billion in the second quarter. As a reminder, the second quarter ended on June 30. As a result, compared to the same period of time in 2019 revenue declined from $11.4 billion to $1.48 billion or 87%. However, despite the huge drop, revenue surpassed expectations, as analysts expected the revenue to fall even lower.

United as well as other large airline competitors allocated time and effort to expand their networks over the years. However, the long-lasting impact of the pandemic will continue to affect their operations.

United Airlines and second-quarter resultsAirlines and financial results

The Chicago-based carrier expects to reduce its cash burn to $25 million a day in the third quarter. Importantly, in the second quarter, this number was higher by $15 million. United Airlines slashed thousands of flights.

Based on the information provided by the company, its capacity in the third quarter will likely be down 65% compared to the same period of time in 2019.

It is worth mentioning that, United expects to finish the quarter with the lowest average daily cash burn among major carriers.

Interestingly, the Chicago-based carrier expects its flights to be a little less than half full this month. Moreover, no more than 15% of its flights will be more than 70% full.

Hopefully, its cargo revenue soared 36% compared to the same period a year ago. As a result, revenue reached $402 million. The company added more than 4,800 cargo flights. Moreover, that unit generated 27% of the carrier’s revenue in the second quarter.

YOU MAY ALSO LIKE

Stocks in Asia, china

Quick Look: China aims to modernize industry, expand demand, stimulate growth, curb

The Indian Rupee Falls To A Lifetime Low, While Yields Soar

Quick Look: USD/INR Near Record High: The exchange rate nears an all-time

Stocks Advance as Fed-Minutes Rate Hint, alpine, nasdaq

Quick Look: Nasdaq, S&P 500, and Dow Jones fell by over 0.7%,

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

BROKER NEWS