United Airlines is in the red, but is relying on a return to air traffic

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American airline United Airlines has been plagued by an epidemic and continues to lose money in the second quarter, but it is optimistic about the months to thank for the resurgence in aviation. The company expects to post pre-tax adjusted profits for the second half of the year, especially with the gradual return of business travel at the end of the summer, a press release on Tuesday explains.

There does not seem to be much concern about the rapid spread of the delta variant, which expects full revenue to meet demand by 2023. To prepare for this, the company put together the largest lineup in its history at the end of June: the 200 Boeing 737 Max and the 70 Airbus A321 Neo. Meanwhile, United Airlines lost another $ 434 million from April to June.

However, when traffic in the United States was very low after the onset of the Covid 19 epidemic, the company largely reduced its losses compared to the second quarter of 2020 (1.6 billion). Since then, with the vaccine campaign in the country and the gradual reopening of tourist sites, Americans have regained a taste for travel and are gradually recalling flights.

At the same time, there are international trips and business trips. “Accelerated faster than expectedUnited said in a statement. United’s revenue quadrupled to $ 5.47 billion last year. However, this is 52% less than the same period in 2019.

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Total revenue for available seat and kilometer travel has dropped by 11% compared to 2019, while the company has significantly reduced its operating costs. “In view of current trendsUnited expects this flight-specific metric to rise again in the third quarter. Delta and American Airlines also took advantage of a slight recovery in their funds in the second quarter of last week when they bought air tickets in the United States.

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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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