United Airlines Reports Loss
United Airlines reported that it lost $2.1 billion in pretax profits over the most recent period as a result of historically low air travel precipitated by the coronavirus pandemic. It was noted that nearly all of this loss happened in March when there were widespread quarantines and low demand.
The airline has decreased its capacity by 90%, freezing most revenue streams. United Airlines stock is down about 67% year-to-date.
It plans to borrow up to $4.5 billion under the Coronavirus Air, Relief and Economic Security (CARES) Act. The airline will also receive $5 billion through the CARES Act’s Payroll Support Program.
United Airlines has an airport hub at Washington Dulles International Airport and service out of Charlottesville-Albemarle Airport, Norfolk International Airport, Richmond International Airport, Roanoke Blacksburg Regional Airport, Ronald Reagan Washington National Airport, and Shenandoah Valley Regional Airport.