Struggling United Airlines posts 1.7bn Q1 loss over coronavirus
US carrier United Airlines posted a net loss of 1.7 billion dollars in the first quarter of this year due to a downturn n in demand attributed to the coronavirus pandemic, the airline said after the close of trading Thursday.
This compared to a profit of 282 billion dollars in the same time period last year.
Turnover was down 17 per cent to 8 billion dollars.
The coronavirus crisis has brought air traffic nearly to a standstill and has caused many airlines to run into financial difficulties.
United Airlines said it expects its daily cash burn to average between 40 million and 45 million dollars during the second quarter of 2020.
“While we are still in the midst of this crisis, we will not hesitate to make difficult decisions we believe will ensure the long term success of our company,” Chief Executive Officer Oscar Munoz said in a statement.
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“When demand returns, we believe we’ll be positioned to bounce back strongly and quickly because of our early and aggressive efforts to fight the worst financial crisis in aviation history,” Munoz added.
United shares were up immediately after the announcement as some investors had expected an even higher loss. (dpa)
