United Airlines (NASDAQ:UAL) on Wednesday posted a wider-than-expected third-quarter loss as the coronavirus pandemic continued to hammer air travel demand, but the carrier trimmed its cash burn.
The Chicago-based carrier swung to a net loss of $1.8 billion in the three months ended Sept. 30, from a $1 billion profit a year ago.
Revenue in the period dropped 78% to $2.49 billion from $11.38 billion in the third quarter of 2019, roughly in line with Wall Street expectations, after the airline cut capacity 70% from last year. Excluding one-time items, United posted a per-share loss of $8.16, compared with analysts’ estimates of a per-share loss of $7.53.
Airlines have struggled during the pandemic, particularly large carriers like United, Delta and American, which were heavily reliant on international and business areas, two of the hardest-hit segments.
United’s results come a day after Delta reported a $5.4-billion net loss for the third quarter.
United cut its daily cash burn in the quarter to $25 million a day, including debt and severance payments, down from an average of $40 million a day in the previous quarter.
The airline ended the quarter with $19.4 billion in liquidity. Like other carriers United has raised billions to help weather the coronavirus, through stock and debt sales, including $6.8 billion in debt it backed by its MileagePlus frequent flyer program. U.S. airlines also received portions of $25 billion in federal payroll support that expired after Sept. 30, opening the door to job cuts.
UAL shares crumpled $1.60, or 4.5%, to $34.01.
