The Limited Times

Now you can see non-English news...

United Airlines is still losing money but relies on vaccination

2021-04-20T01:02:44.088Z


The American company United Airlines announced Monday a net loss for the fifth quarter in a row but relies on the resumption of demand for leisure travel as the vaccination against the Covid progresses. Read also: Covid-19: faced with the resumption of traffic, the company United Airlines will hire airline pilots The group hopes that a key measure of its profitability (adjusted profit margins be


The American company United Airlines announced Monday a net loss for the fifth quarter in a row but relies on the resumption of demand for leisure travel as the vaccination against the Covid progresses.

Read also: Covid-19: faced with the resumption of traffic, the company United Airlines will hire airline pilots

The group hopes that a key measure of its profitability (adjusted profit margins before interest, taxes, depreciation and amortization) becomes positive again by the end of the year, details a statement.

"We are encouraged by the strong evidence of renewed demand for air travel and our continued ability to meet it," company

chief executive Scott Kirby said in the document.

Without specifying when it expected to make money again, United Airlines stressed it could regain a net profit even if demand for business travel and international flights remained at around 65% of its level. from 2019, when the spread of Covid-19 had not yet hit sales of airline tickets.

Less 60% of turnover

Demand for these particularly lucrative categories for airlines is currently stagnating at around 30% of their pre-pandemic level. In the meantime, the group has lost another 1.4 billion dollars over the first three months of the year. Reported per share and excluding exceptional items, preferred measure of Wall Street investors, the loss is larger than expected (7.50 dollars against 7.05 dollars expected by analysts). Its turnover was down 60% compared to the same period in 2020, and 66% compared to 2019, to $ 3.22 billion. Over the quarter as a whole, the company reduced the rate at which it burns its cash, to around $ 9 million per day from $ 19 million per day in the fourth quarter of 2020. It notably benefited froma new wave of financial aid from the government.

For the current quarter, United Airlines plans to offer 45% fewer seats than the same period in 2019, down from -54% in the first quarter. The company recently announced the opening in the coming weeks of several lines to tourist destinations, to the American coasts, Latin America or European destinations accepting tourists showing evidence of Covid vaccines or negative tests such as Greece and Croatia. The stock lost 1.8% in electronic trading following the close of trading on Monday.

Source: lefigaro

All business articles on 2021-04-20

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.