United sees better cash position as it trims flight plans

United burnt through $40m of cash per day in Q2 but boasted on Tuesday that this was lower than other large US carriers and that it will have more in the bank to get through the rest of the year than previously expected. The company also signalled that it was trimming its plans to restore some flights in the next few months as the country battles new spikes in coronavirus, which have damped hopes for a rebound in air travel. Capacity in Q3 will be 65% of where it was in 2019, it said. “We expect United produced fewer losses and lower cash burn in the second quarter than any of our large network competitors,” CE Scott Kirby said. “We accomplished this by quickly and accurately forecasting the impact that Covid would have on passenger and cargo demand, accurately matching our schedule to that reduced demand, completing the largest debt financing deal in aviation history and cutting expenses across our business.” Calling the three months to June “the most difficult financial quarter in its 94-year history”, the Chicago-based company reported a $1.6b loss and revenues 87% lower from a year earlier. Its $1.5b in operating revenue compared with more than $11b in Q2 2019. United’s loss still exceeded Wall Street’s expectations. Analysts polled by FactSet predicted an adjusted diluted loss per share of $8.96, while the airline reported $9.31. It cut its operating expenses by 69%compared to Q2 2019.<br/>