United Airlines Reports $2.1 Billion First-Quarter Loss

United Airlines announced financial results for the first quarter of 2020, the first major airline to offer detailed financial information for the period.

The Chicago-based airline said revenue fell to $8 billion, down 17% compared to the same period in 2019. On an adjusted basis, United said it had a roughly $1 billion loss in the quarter.

The nation’s third largest carrier said it expects to borrow up to $4.5 billion from the U.S. Treasury Department for a term of up to five years in addition to the $5 billion it expects to receive as part of a government aid package.

The airline previously said it expects to fly approximately 10% of its schedule in May and June.

The pre-tax loss includes $1 Billion of special charges and write-downs, including a $50 million impairment for its routes in China, where the coronavirus first started to affect travel in January. United also wrote down the value of its investments in Brazilian low-cost carrier Azul Linhas Aéreas Brasileiras and allowed for a $697 million credit loss relating to its investment in Colombian airline Avianca.

(Photo: Accura Media Group)