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United Airlines hit with $1.6 billion loss in most difficult second quarter

Christian Fernsby |
United Airlines announced second quarter 2020 financial results, the most difficult financial quarter in its history, with a net loss of $1.6 billion, and an adjusted net loss of $2.6 billion.

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Total operating revenues were down 87.1% year-over-year, on an 87.8 percent decrease in capacity year over year.

The company's total liquidity as of the close of business on Monday, July 20, 2020 was approximately $15.2 billion.

United now expects liquidity at the end of the third quarter to be over $18 billion.

Cash burn during the second quarter averaged $40 million a day, including $3 million of principal payments and severance expenses.

The company currently is forecasting average daily cash burn to be approximately $25 million during the third quarter of 2020 including $6 million of principal repayments and severance expenses.

United believes it did the best job of matching actual capacity to demand among its largest network peers.

The company also expects to finish the quarter with the lowest average daily cash burn among large network carriers.

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