United Airlines (UAL) announced on Tuesday that it had a loss of $1.6 billion, or $5.79 a share, in the second quarter. The loss is mainly as a result of the impacts of the coronavirus pandemic. In the same period a year ago, the airline reported a profit of $1.05 billion, or $4.02.
In the last three months, ending in June, the revenue of United plunged to $1.48 billion, an 87% decrease from the same period a year ago. In spite of the sharp drop, the company still beat analysts’ estimate of $1.32 billion loss. The major cause for the plunge in the air travel industry and demand is the coronavirus pandemic. As it stands, United isn’t the only airline to suffer major losses during the last quarter. Many airline companies have struggled to cut their cash burn since the start of the pandemic. After many years of building a proper business structure, United Airlines and its competitors are now dealing with what is expected to have long-lasting impacts from the pandemic.
Sources: https://www.investingport.com/united-airlines-loses-16-billion-in-second-quarter/
In the last three months, ending in June, the revenue of United plunged to $1.48 billion, an 87% decrease from the same period a year ago. In spite of the sharp drop, the company still beat analysts’ estimate of $1.32 billion loss. The major cause for the plunge in the air travel industry and demand is the coronavirus pandemic. As it stands, United isn’t the only airline to suffer major losses during the last quarter. Many airline companies have struggled to cut their cash burn since the start of the pandemic. After many years of building a proper business structure, United Airlines and its competitors are now dealing with what is expected to have long-lasting impacts from the pandemic.
Sources: https://www.investingport.com/united-airlines-loses-16-billion-in-second-quarter/