United Airlines Expects Total Revenue to be Down 70% Compared to Year-End Qtrs

Posted on 12/11/2020

United Airlines, Inc., a wholly-owned subsidiary of United Airlines Holdings, Inc., continues to see a significant impact in demand for air travel. In the last month, ended December 10, 2020, there has been a continued deceleration in forward bookings as a result of the spike in COVID-19 cases and travel restrictions. As such, United Airlines now expects total revenue to be down close to 70% in the fourth quarter of 2020 as compared to the fourth quarter of 2019.

United Airlines now expects average daily cash burn during the fourth quarter of 2020 to be approximately $24 million to $26 million, plus $10 million of average debt principal payments and severance payments per day, driven by the continued deceleration in bookings, as well as a change in working capital which was due to a shift in timing of certain payments and receipts between quarters. For this purpose, “cash burn” is defined as net cash from operations, less investing and financing activities. Proceeds from the issuance of new debt (excluding expected aircraft financing), government grants associated with the Payroll Support Program of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), issuance of new stock, net proceeds from the sale of short-term and other investments and changes in certain restricted cash balances are not included in this figure.

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