United sees a bleak road ahead for the airline industry, calling for a drastic reduction for more than a year, however, he said Wednesday that he had done a bigger task than its competition to accommodate the required capacity.
United expects traffic to return to only 50% of prepanemic grades until there is a vaccine that opposes coronavirus, executives said Wednesday in the airline’s second quarter earnings call.
“I’m not an expert on when a vaccine will be held and widely distributed,” said CHIEF executive Scott Kirby. “We expect a situation that will take until the end of next year before that happens. We hope it’s faster than that.”
Meanwhile, Kirby said, for the moment quarter, United produced “the worst monetary effects of all of our competitors.”
In a Ready in United earnings statement Tuesday night, Kirby said, “While this unprecedented crisis has been complicated for our team, we expect United to have produced less losses and less liquidity in the quarter that any of our major network competitors.” “
In some respects, however, United’s effects differed little from those of Delta, which was released last week.
Prior to special items, United had a net loss of $1.6 billion, while Delta lost $5.7 billion. Delta had a non-monetary impairment rate of $2.5 billion and a deterioration of equity partners of $2.1 billion. In terms of adjusted net loss, United $2.6 billion while Delta $2.8 billion.
United said it had reduced its inconsistent expenses by 54% year-over-year and expects money entry to fall to $25 million consistently with the day in the current quarter. Delta said it reduced its expenses inconsistent with those of 53% year-over-year and reduced its money income to $27 million consistent with June day.
United’s genuine and favorable benchmark may be simply American, which will unveil its effects on Thursday.
United has issued dismissal warnings to 36,000 workers. During the appeal, Kirby claimed that negotiations with United’s unions continue. The effect on can be mitigated, he said, because thousands of workers have taken a transitional leave and because the carrier, hoping that one day an immediate passenger rebound bank will occur, needs to “keep other people temporarily, perhaps not on the payroll full-time but committed, company-linked, certified, trained and able to recover.”
Regarding the demand outlook, Andrew Nocella, Commercial Director, said: “Our most productive estimate is that demand, measured through revenue, will eventually fall by 50% and then be limited at that point until a vaccine is widely distributed. . “
Everything indicates that leisure travelers are flying and business travelers stay at home. Nocella said commercial traffic fell by 96% in June, and Kirby said commercial traffic expansion would slow until a vaccine is widely available.
“We’re not going to have another 180,000 people at Consumer Electronics in Las Vegas in January, like they did last January,” Kirby said. “Companies may not see their 500 most sensible dealers come every year, at the end of the year, for a big party and a birthday party until we get over the pandemic.”
Meanwhile, Nocella said, United will “put more capacity in recreational markets and friends and family.”
Nocella said United “has already felt the worst of falling foreign income.” “United deserves to make the most of a foreign recovery,” he said. United has the highest productivity transatlantic center in Newark and the top-productivity trans-Pacific center in San Francisco.
A peculiarity of the existing environment: since the desire to move to paintings every day in a workplace turns out to have reduced the duration of the pandemic, “some other people make their car journeys for less common computers through airplanes from a remote location. “Nocella says.
During the call, Kirby spoke earnestly about the highest point of protection on board.
“A plane is a safe environment,” he said. In an airplane, air flows from the ceiling to the ground and leaves. When the air returns to the cabin, 50% pass through a HEPA cleaning (high-efficiency particulate air), while 50% comes from the outside.
“For other people who need to go on business or vacation or make a stopover in their circle of relatives and relatives, one of the safest parts of their destination will be through the plane,” Kirthrough said. Compared to a 13-hour AutomobileArray, “it’s safer to fly,” he says.
I’ve been covering airlines since 1989. I am a journalist for six newspapers: Miami Herald, Charlotte Observer, Sacramento Bee, Fresno Bee, Toledo Blade and Aberdeen (Washington).
I’ve been covering airlines since 1989. I am a journalist for six newspapers (Miami Herald, Charlotte Observer, Sacramento Bee, Fresno Bee, Toledo Blade and Aberdeen (Washington) Daily World) and TheStreet. I also worked for US Airways before mergers as an editor.
My new book, Kenny Riley and Black Union Labor Power in Charleston Harbor, is now on sale. I co-wrote American Airlines, US Airways and created the world’s largest airline.
Email: [email protected]