United Airlines shed $1.9 billion in the fourth quarter, bringing its full losses for 2020 to just in excess of $7 billion, its worst 12 months since merging with Continental Airways a ten years back. Even with that terrible loss, the airline mentioned it expects 2021 to be a “transition year” as it prepares for a recovery from the coronavirus pandemic.
“The reality is that Covid-19 has modified United Airways eternally,” the company’s chief govt, Scott Kirby, said in a statement. “The enthusiasm, teamwork and perseverance that the United staff confirmed in 2020 is particularly what will assist us create a new United Airlines which is improved, more robust and extra successful than at any time.”
The airline described about $3.4 billion in working earnings in the remaining 3 months of last yr, down far more than two-thirds from the exact period in 2019. It finished the yr with entry to almost $20 billion in dollars or dollars-equivalent money, not together with federal stimulus loans.
Delta Air Traces very last week described a $12.4 billion reduction in 2020, capping what its chief executive termed the “toughest year in Delta’s background.”
In anticipation of a restoration, United has resumed major upkeep and engine overhauls so that planes sidelined by weak desire will be ready as much more individuals get started traveling again, it said.
But that recovery is unlikely to arrive for fairly some time. United mentioned it expects to provide in about a 3rd as a lot functioning profits in the 1st quarter of this year as it did during the exact same a few months in 2019. Most analysts imagine the airline industry will not absolutely recover from the pandemic for numerous years.