Home / World News / United sees around $15-20 million daily cash burn in Q4 if demand bounces

United sees around $15-20 million daily cash burn in Q4 if demand bounces

Chicago-based United flew only a fraction of its normal capacity in the second quarter and expects to fly about 35% of its normal summer schedule in the third quarter

Premium

United warned that travel demand will remain suppressed until there is a widely accepted treatment or vaccine for Covid-19.

Reuters Chicago

2 min read Last Updated : Jul 23 2020 | 1:28 PM IST

United Airlines expects its daily cash burn rate to slow to between $15 million and $20 million in the fourth quarter, depending on the pace of a recovery in demand, executives said on a conference call on Wednesday.

Halting the cash burn, which averaged $40 million in the second quarter, will happen once United reaches a point in which sharp falls in demand and flight capacity have slowed to a roughly 50% decline.

"The second quarter of 2020 was historic for the airline industry for all the wrong reasons. At the beginning of April, we saw the sharpest, deepest drop in demand in

Topics : Coronavirus United Airlines Aviation Civil Aviation

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in