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Dec 31, 2020
United Airlines Q4 2020 Earnings Report
United Airlines reported a net loss and a decrease in operating revenue compared to Q4 2019, but made progress in reducing core cash burn and identified cost savings.
Key Takeaways
United Airlines announced Q4 and full-year 2020 financial results, reporting a net loss of $1.9 billion for the quarter and a 69% decrease in operating revenue compared to Q4 2019. However, the company has raised over $26 billion in liquidity and reduced core cash burn to $19 million per day.
Reported fourth-quarter net loss of $1.9 billion.
Reported fourth-quarter total operating revenue of $3.4 billion, down 69% versus fourth-quarter 2019.
Reported fourth-quarter core cash burn of $19 million per day, an improvement of an average of $5 million per day versus the third-quarter 2020.
Company expects 2021 to be a transition year focused on preparing for a recovery and anticipates exceeding its 2019 adjusted EBITDA margin by 2023.
United Airlines
United Airlines
United Airlines Revenue by Segment
Revenue by Segment
Passenger Revenue
CapyFin.comCargo Revenue
CapyFin.comOther Operating Rev Revenue
CapyFin.com Forward Guidance
Based on current trends, the company expects first quarter 2021 total operating revenue to be down 65 percent to 70 percent versus the first quarter 2019. Expects first quarter 2021 capacity to be down at least 51 percent versus the first quarter of 2019. Expects first quarter 2021 ending available liquidity to be similar to year-end 2020 available liquidity of around $19.7 billion1.
Positive Outlook
- Accelerated distribution of the COVID-19 vaccine may lead to faster improvement.
- Company expects 2021 ending available liquidity to be similar to year-end 2020 available liquidity of around $19.7 billion.
- Company continues to improve core cash burn in the face of continued COVID-19 headwinds.
- Company sharpens focus to prepare for recovery.
- Company expects to exceed 2019 Adjusted EBITDA margin by 2023.
Challenges Ahead
- Company expects first quarter 2021 total operating revenue to be down 65 percent to 70 percent versus the first quarter 2019.
- Company expects first quarter 2021 capacity to be down at least 51 percent versus the first quarter of 2019.
- COVID-19 has changed United Airlines forever.
- Reported fourth-quarter net loss of $1.9 billion.
- Reported fourth-quarter total operating revenue of $3.4 billion, down 69% versus fourth-quarter 2019.
Revenue & Expenses
Visualization of income flow from segment revenue to net income