United Airlines Holdings Inc. said on Wednesday it expects the coronavirus pandemic will continue to weigh on travel demand as the airline focuses on rebuilding itself.
United posted a net loss of $ 1.9 billion for 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 airlines remains weak for the next few months, United said it had a grasp on how to survive its immediate challenges, and outlined its plan to exceed its 2019 profit margins by 2023 , through a combination of return income and cost reduction.
“The aggressive management of the challenges of 2020 depends on our innovation and quick decision-making. “But the truth is that Covid-19 has changed United Airlines forever,” said United Airlines CEO Scott Kirby.
United’s losses come almost a week after Delta Air Lines Inc. said he lost $ 12 billion last year, also his worst annual performance ever. The poor results of the two airlines reflect the damage the pandemic has done to airlines. Manufacturers including Southwest Airlines Co. and American Airlines Group Inc. will report fourth quarter results next week.