United Airlines Reports First Quarter Net Loss of $1.4 Billion on 60% Revenue Decline to $3.2 B
United Airlines has reported a first quarter net loss of $1.4 billion or ($4.29) per diluted share on a year-over-year revenue decline of 60 percent to $3.2 billion. The carrier ended the quarter with $21 billion in liquidity and has reduced their daily cash burn to $9 million.
On Monday (April 19, 2021), United Airlines, Inc. reported their first quarter financial results for the period ending March 31, 2021. The carrier reported a net loss of $1.4 billion or ($4.29) per diluted share on a year-over year revenue decline of 60 percent to $3.2 billion. During the quarter, United reduced their daily cash burn to $9 million, compared to approximately $19 million during the fourth quarter of 2020. The company’s operating expenses were down 49 percent versus Q1 2020, or down 34 percent excluding special charges. United's capacity was down 54 percent versus the first quarter of 2020 and the company ended the quarter with approximately $21 billion in available liquidity.
In Today’s announcement, United Airlines’ CEO, Scott Kirby, said,
“The United team has now spent a year facing down the most disruptive crisis our industry has ever faced and because of their skill and dedication to our customers, we're poised to emerge from this pandemic with a future that is brighter than ever. We've shifted our focus to the next milestone on the horizon and now see a clear path to profitability. We're encouraged by the strong evidence of pent-up demand for air travel and our continued ability to nimbly match it, which is why we're as confident as ever that we'll hit our goal to exceed 2019 adjusted EBITDA margins in 2023, if not sooner.”
United Airlines continues to make progress on their commitment to remove $2 billion in structural costs, while investing in key customer programs. During March, the company reported a return to positive cash flow and is focused on returning to positive EBITDA margins, even if international long-haul demand remains up to 70 percent below 2019 levels.
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 symbol ‘UAL’. In after hours trading Monday evening (April 19, 2021), shares in United Airlines Holdings, Inc. (NASDAQ: UAL) were 2.16% lower at $53.80/share (5:43 PM EDT).
Source: United Airlines