United posts $1.6b loss in virus-scarred 2QAP

United said Tuesday that it lost $1.63b in Q2 as revenue plunged 87%, and it will operate at barely over one-third of capacity through September as the coronavirus throttles air travel. The airline burned through $40m a day from April through June but said it will trim losses to $25m a day in the third quarter by slashing costs. CEO Scott Kirby said United cut its cash-burn rate below its closest rivals by shrinking its schedule to meet lower demand and cutting costs across the company. In a statement, he said the moves "positioned United to both survive the COVID crisis and capitalize on consumer demand when it sustainably returns.” Investors will have to wait for United to provide more details about the quarter and the future outlook on Wednesday, when executives hold a call with analysts and reporters. United, which started the year with 96,000 employees, said 6,000 have volunteered to take severance packages and leave. Last week, the airline warned 36,000 employees that they could be furloughed in October, although executives said they expect the final job-loss number to be smaller. United said it began this week with $15.2b in available cash and expects to boost that to more than $18b by the end of Q3. The airline has mortgaged its MileagePlus frequent-flyer program and agreed to a $4.5b secured loan from the Treasury Department, although executives say they might not draw on the government loan. <br/>