United Airlines expects more cash burn as Covid-19 cases spike
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
[BENGALURU] United Airlines said on Friday average cash burn in the fourth quarter could jump up to US$26 million per day, hurt by travel restrictions following a surge in Covid-19 cases over the last few weeks.
The US airline industry is still losing billions of dollars every month due to weak travel demand, exacerbated by recent coronavirus travel advisories that have discouraged holiday travel.
Delta Air Lines and American Airlines also raised their cash burn expectations earlier this month.
United, which expects fourth-quarter revenue to drop close to 70 per cent from a year earlier, said it now estimates average daily cash burn of about US$24 million to US$26 million, plus US$10 million of average debt principal and severance payments per day in the quarter.
It had previously estimated daily cash burn of US$15 million to US$20 million.
The airline said it was confident of a recovery in 2021.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
"Recent positive results in vaccine development and efficacy show an encouraging line of sight to the other side of the pandemic," United said.
REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
