A United Airlines Boeing 777-200 aircraft
Nicolas Economou | NurPhoto | fake pictures
United Airlines posted a net loss of $ 1.63 billion for the second quarter, driven by a drop in demand for air travel due to the coronavirus pandemic, the airline said Tuesday.
Revenue fell more than 87% from a year earlier to $ 1.48 billion a year in the three months ended June 30, compared to analyst estimates for sales of $ 1.32 billion.
The Chicago-based airline and other major airline competitors who spent years building their networks are grappling with what are expected to be the lasting impacts of the pandemic.
United said it expects to reduce its cash consumption to $ 25 million per day in the third quarter from an average daily expense of $ 40 million in the second quarter. The airline cut thousands of flights and parked hundreds of planes to reduce cash consumption.
Earlier this month, United warned 36,000 employees that their jobs are at risk this fall when federal payroll terms expire in October.
United’s shares fell 1.4% in aftermarket trading.
United executives will make a call with analysts to break down their results and prospects at 10:30 am ET on Wednesday.
Southwest Airlines and American Airlines plan to report quarterly results before the market opens on Thursday.
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