In the year 2020, United Airlines has reported a total net loss of $7.1 billion. This includes $1.9 billion in the final quarter alone. The airline’s cash burn had risen to $33 million a day over the last three months of the financial year. This was up from $25 million a day in the third quarter.
United Airlines was forced to cut 22,000 jobs
To battle with losses, United has cut 22,000 jobs so far due to the pandemic. A small percentage of the jobs were recalled after the United States government approved a further $15 billion in aid for the aviation industry. This aid program has been extended till March 31st. The airline has also forecasted that its capacity would be down 51 per cent in the first quarter of 2021 compared to the same period in 2019. In the same duration, its revenue would be down by 65-70 per cent.
“Aggressively managing the challenges of 2020 depended on our innovation and fast-paced decision making. But, the truth is that Covid-19 has changed United Airlines forever.The passion, teamwork and perseverance that the United team showed in 2020 is exactly what will help us build a new United Airlines that’s better, stronger and more profitable than ever.I could not be prouder of – and more grateful to – this team, which is going to lead us there.” said United Airlines chief executive, Scott Kirby.