United Airlines Holdings Inc. said on Wednesday it expects the coronavirus pandemic to continue to weigh on travel demand this year as the airline focuses on rebuilding.
United reported a net loss of $ 1.9 billion in the fourth quarter, compared to a profit of $ 641 million in the same period a year earlier. In total, United lost $ 7.1 billion in 2020.
While the outlook for the next few months remains bleak for airlines, United said they understood how to survive their immediate challenges and outlined their plan to exceed their 2019 profit margins by 2023. , through a combination of return trips. revenue and cost reduction.
“Aggressively managing the challenges of 2020 depended on our innovation and rapid decision making. But the truth is, Covid-19 has changed United Airlines forever, ”said Scott Kirby, chief executive of United Airlines.
United’s losses come nearly a week after Delta Air Lines Inc. said it lost $ 12 billion last year, also its worst annual performance. The dismal results of both airlines reflect the damage the pandemic has inflicted on airlines. Carriers like Southwest Airlines Co. and American Airlines Group Inc. are expected to release their fourth quarter results next week.