United Airlines Holdings Inc. said on Wednesday that it expects the coronavirus pandemic to continue to weigh on travel demand this year, while the airline refocuses on rebuilding itself.
United reported a net loss of $ 1.9 billion in the fourth quarter, compared with a profit of $ 641 million in the same period last year. In all, United lost $ 7.1 billion in 2020.
While the outlook for the coming months remains bleak for airlines, United said it has gained control over how to survive its immediate challenges and outlined the broad outline of its plan to exceed profit margins from 2019 through 2023, through a combination of return travel revenue and cost savings.
“Managing aggressively the challenges of 2020 depended on our innovation and quick decision making. But the truth is that Covid-19 changed United Airlines forever, ”said United Airlines Chief Executive Scott Kirby.
United’s losses come nearly a week after Delta Air Lines Inc. announced it lost $ 12 billion last year, also its worst annual performance. The gloomy results of the two airlines reflect the damage the pandemic has inflicted on airlines. Operators such as Southwest Airlines Co. and American Airlines Group Inc. are expected to release fourth quarter results next week.