United Airlines reports $1.8b Q3 loss

United reported deepening losses in Q3 and a $1.1b charge to cover 22,000 job cuts during the coronavirus pandemic. The company said it suffered a net loss in Q3 of $1.8bn, about $200m more than in the second quarter and a reversal from the $1b it earned in the same period of last year. Operating revenues plunged 78% to $2.5b as it reduced flights from last year’s levels. Cash burn averaged $25m a day for the period — compared with $40m a day in Q2 — of which $4m was dedicated to servicing debt and paying severance to employees. United had $19.4b in liquidity at the end of Q3. The company also said Wednesday that it expected to pay $1.1b to reduce its workforce by 22,000 employees — 13,000 through furloughs, and 9,000 through voluntary departures. The costs comprise a mix of severance and settlement losses from the employees’ pension plan. United began furloughing 13,000 employees two weeks ago, as restrictions on US government aid meant to preserve jobs expired. The company recorded $294m of the workforce reduction charge in the second quarter, and $765m in Q3. It has also paid $14m in severance for managers this year. “We’re ready to turn the page on seven months that have been dedicated to developing and implementing extraordinary and often painful measures,” said Scott Kirby, United’s CE. “Even though the negative impact of Covid-19 will persist in the near term, we are now focused on positioning the airline for a strong recovery that will allow United to bring our furloughed employees back to work and emerge as the global leader in aviation.” United is trying to lure passengers back to the skies by dropping change fees and offering more flights to holiday destinations to court leisure travellers. The company’s cargo revenue climbed 50% in Q3 to $422m.<br/>