United shores up liquidity, cuts costs to weather coronavirus

United said Tuesday it has raised an extra $2b in financing while slashing its 2020 capital expenditures by more than a third in an effort to prepare for a prolonged slump in travel demand due to COVID-19. The measures come on top of previous announcements from United regarding capacity cuts and suspended earnings forecasts and will bring the airline’s total liquidity to $8b for 2020, while adjusted capex will fall to $4.5b from $7b previously forecast for the full-year. The airline said it is now withdrawing guidance for Q1 and expects to record a loss for the period.<br/>