United Airlines is still losing money, but relying on the vaccine

United Airlines is still losing money, but relying on the vaccine

(New York) US-based United Airlines reported a net loss for the fifth consecutive quarter on Monday, but the bank is making renewed demand for retirement as the COVID-19 vaccine continues.


France Media Agency

The group hopes that a key measure of its profits (adjusted profit margins on interest, tax, depreciation and pre-debt) will turn positive again by the end of the year, a report describes.

“We are encouraged by the strong evidence of renewed demand for air travel and our continued ability to meet it,” company CEO Scott Kirby said in the document.

Noting when it would make money again, United Airlines insisted that net profit could be recouped even if demand for business travel and international flights was about 65% at its level. In 2019, the spread of COVID-19 will no longer affect air ticket sales.

Demand for this specialty has grown significantly as a result of recent corporate scandals.

Meanwhile, the group lost another $ 1.4 billion in the first three months of this year.

Excluding Wall Street investors’ preferred quantity of exceptional goods, the loss was larger than expected ($ 7.50 against $ 7.05 expected by analysts).

Its revenue was down 60% from the same period in 2020 to $ 3.22 billion, down 66% from 2019.

Overall, the company reduced its money-burning rate to about $ 9 million a day in the fourth quarter of 2020, compared to $ 19 million a day in the fourth quarter. It benefited from a new wave of government assistance.

In the current quarter, United Airlines plans to offer 45% fewer seats than in the same period in 2019, up from -54% in the first quarter.

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The company recently announced that it will open travelers in the coming weeks to US beaches, Latin America or European destinations accepting tourists who show evidence of COVID-19 vaccines or negative tests. Such as Greece and Croatia.

The stock lost 1.8% in e-commerce following the close of trading on Monday.

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Cory Weinberg

About the Author: Cory Weinberg

Cory Weinberg covers the intersection of tech and cities. That means digging into how startups and big tech companies are trying to reshape real estate, transportation, urban planning, and travel. Previously, he reported on Bay Area housing and commercial real estate for the San Francisco Business Times. He received a "best young journalist" award from the National Association of Real Estate Editors.

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