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”
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