United Airlines Reports Q2 Net Loss of $434 Million on 52% Revenue Decline to $5.5 B Versus Q2 2019
United Airlines has reported a second quarter net loss of $434 million or ($ 1.34) per diluted share on a year-over-two decline in revenue of 52 percent to $5.5 billion. At June 30, 2021, the carrier had approximately $23 billion in available liquidity.
On Tuesday (June 20, 2021), United Airlines reported their second quarter 2021 financial results for the period ending June 30, 2021. The carrier reported a Q2 net loss of $434 million or ($ 1.34) per diluted share on a 52 percent decline in revenue compared to the second quarter of 2019 to $5.5 billion. At June 30, 2021, United Airlines had approximately $23 billion in available liquidity, including cash, cash equivalents, short-term investments and undrawn credit facilities. The company expects to report a positive adjusted pre-tax income during the third and fourth quarters of 2021, with a projected full recovery in demand by 2023.
In Tuesday’s announcement, United Airlines’ CEO, Scott Kirby, said,
“Thanks to the professionalism and perseverance of the United employees who have worked so hard to take care of our customers through the pandemic, our airline has reached a meaningful turning point: we're expecting to be back to making a profit once again. As we emerge from the most disruptive crisis our company has faced, we're now focused squarely on our United Next strategy that will transform our customers' onboard experience and help fulfill United's incredible potential.”
During the second quarter, United secured financing collateralized by substantially all their slots, routes and gates, consisting of a $4 billion private bond offering, a $5 billion term loan and a $1.75 billion revolving credit facility. The financing package was the largest non-merger financing in the history of the airline industry. United Airlines also announced the purchase of 270 new Boeing and Airbus aircraft during the second quarter, the largest combined order in the airline’s history, as well as a commercial agreement to acquire aircraft from Denver-based Boom Supersonic.
United Airlines announced seven new domestic and international routes during Q2, while launching 39 domestic and five international routes. The new route announcements included service between Dubrovnik, Croatia and New York/Newark, Athens to Washington D.C. and Reykjavik to Chicago. International routes launched during the quarter included Accra, Ghana to Washington D.C. and Johannesburg to Newark. Additionally, the carrier launched three new routes to Hawaii including Maui/Kahului to Newark, Honolulu-Orange County and Kona-Chicago. Compared to the first quarter of 2021, United resumed nonstop service on 33 domestic and 14 international routes. The airline also announced plans to fly approximately 80 percent of their full schedule in July 2021 compared to July 2019.
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.’
Source: United Airlines