United Airlines Holdings Inc. reported a quarterly loss of $ 1 billion on Tuesday night, giving investors a look at finances completely ruined by the pandemic and near-halt of air travel.
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He said he lost $ 1.6 billion, or $ 5.79 per share, in the second quarter, in contrast to a profit of $ 1.05 billion, or $ 4.02 per share, in the prior-year quarter.
Adjusted for one-off items, United said it lost $ 2.6 billion, or $ 9.31 per share, compared to an adjusted profit of $ 4.21 per share a year ago. Revenue fell 87% to $ 1.5 billion from $ 11.4 billion a year ago.
Analysts surveyed by FactSet expected the company to report an adjusted loss of $ 8.96 per share on sales of $ 1.3 billion.
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The company called the quarter the “most difficult” financial period in its 94-year history. Liquidity as of Monday was approximately $ 15.2 billion, and the company said it expects liquidity at the end of the third quarter to be more than $ 18 billion.
Cash burn during the quarter averaged $ 40 million per day, including $ 3 million in principal payments and compensation expenses, United said. Your average daily cash consumption is forecast to be approximately $ 25 million during the third quarter, including $ 6 million in principal payments and compensation expenses.
United said it believes the average is the lowest among large airlines because it did “the best job of matching real capacity with demand among its largest network peers.”
“We accomplish this by quickly and accurately forecasting the impact COVID would have on passenger and cargo demand, fine-tuning our schedule to that reduced demand, completing the largest debt financing deal in aviation history and reducing expenses. in our business. ” Scott Kirby said in a statement accompanying the results.
“We believe this swift and aggressive action has positioned United to survive the COVID crisis and capitalize on consumer demand when it returns in a sustainable way.”
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United shares rose 1.3% in the extended session after the end of the regular trading day to 2.3%.
The airline said it would discuss second-quarter results and prospects for the fiscal third quarter and 2020 in a call with analysts Wednesday at 10:30 a.m. EST. The call will be webcast.
United’s shares have lost 63% this year, compared to 6% losses for the DIA Jones Industrial Average DJIA,
and in contrast to the 0.7% gains for the S&P 500 SPX index,
in the same period
.
