United Airlines Announces Third Quarter Adjusted Net Loss of $2.4 Billion on 78% Revenue Decline
The airline reported a net loss of $1.8 billion or $6.33/share for the quarter on an 78 percent year-over-year decline in revenue. Since March, the company has raised $22 billion in liquidity through a combination of debt offerings, stock issuances and U.S. Cares Act grants.
On Wednesday (October 14, 2020), United Airlines announced their third quarter financial results with an adjusted net loss of $2.4 billion on a 78 percent year-over-year revenue decline to $2.5 billion. The carrier reported a quarterly net loss of $1.8 billion or ($6.33) per diluted share. United Airlines has raised $22 billion since March 2020 through commercial debt offerings, stock issuances and U.S. Cares Act Payroll Protection Program (PSP) grants and loans, as well as other items and closed the third quarter on September 30, 2020 with approximately $19.4 billion in total available liquidity. During the quarter, United Airlines collateralized their MileagePlus® loyalty program to raise $6.8 billion in the form of a $3.8 billion bond offering and a $3.0 billion term loan. The company also entered a sale-leaseback transaction for two Boeing 787-9 and ten 737 MAX aircraft. In Wednesday’s announcement, United Airlines’ CEO, Scott Kirby, said,
"Having successfully executed our initial crisis strategy, we're ready to turn the page on seven months that have been dedicated to developing and implementing extraordinary and often painful measures, like furloughing 13,000 team members, to survive the worst financial crisis in aviation history. Even though the negative impact of COVID-19 will persist in the near term, we are now focused on positioning the airline for a strong recovery that will allow United to bring our furloughed employees back to work and emerge as the global leader in aviation."
During the third quarter, United Airlines’ average daily cash burn was $21 million/day plus an additional $4 million in debt principal payments and severance payments daily, compared to an average daily cash burn of $37 million plus $3 million in debt principal and debt severance payments of $3 million daily during the second quarter.
Since the start of the global COVID-19 pandemic, United Airlines has been a leader in U.S. airlines in protecting their guests and team members across their entire journey. United Airlines’ shared purpose is ‘Connecting People. Uniting the World.’ Shares in the company’s parent, United Airlines Holdings, Inc. are publicly traded on the Nasdaq under the ticker symbol 'UAL'. In after-hours trading Wednesday evening, shares in United Airlines Holdings were up 0.81% at $35.90/share (7:59 EDT).
Source: United Airlines