United Airlines has reported a $2.1 billion loss for the first quarter of 2020 – its biggest drop since the global financial crash of 2008.
United said revenue fell 17 per cent in the first quarter from 2019 to $8 billion. On an adjusted basis, United revealed it had a roughly $1 billion loss in the quarter, stripping out special charges.
“During the three months ended March 31, 2020, the company recorded $63 million of special charges, primarily associated with a $50 million impairment for its China routes,” United said in its report.
“The company conducted impairment reviews of certain intangible assets in the first quarter of 2020, which consisted of a comparison of the book value of those assets to their fair value calculated using the discounted cash flow method.”
The airline has already cut approximately 80 per cent of its capacity for April and expects to cut 90 per cent of its capacity for May, with similar reductions in June. United has stated it is experiencing losses of around $100 million each day.
In other airline news:
- Virgin Australia has formally entered into voluntary administration. The airline notified the Australian Stock Exchange on 20 April 2020. Virgin Australia and its receivers will use the opportunity to re-capitalise the business.
- Air Canada has announced that from now until the end of may, Aeroplan members can earn Air Canada Altitude status without ever leaving their house. If you earn 50,000 Aeroplan Miles through “Travel at Home” activities, you will receive Altitude Prestige 25K status through 2021.
Airlines have been assisting with food distribution both by assisting with cargo and distribution sites:
- In a press release issued on Sunday, Etihad Airways said its catering arm has been commissioned by several parties to provide meals to people who have been affected by the corona-crisis.
- As airlines reprioritise to cargo, El Al has used the airline’s Boeing 787s to ferry millions of eggs between Europe and Tel Aviv, 45 tonnes at a time.
- Kenya Airways carried 40 tonnes of fresh fruit and vegetables to London in a converted Boeing 787 Dreamliner.
- United Airlines has announced that it had transformed one of its cargo facilities at George Bush Intercontinental Airport into a food distribution centre.
