United Airlines Slashes Its Q4 Forecast
United Airlines (NASDAQ: UAL) executives have prided themselves on taking a conservative approach to capacity decisions during the COVID-19 pandemic. For much of 2020, this seemed to be paying off in the form of lower cash burn relative to peers, especially American Airlines.
However, even United has no answer for the recent surge in COVID-19 cases -- and corresponding drop in travel demand. Last week, it became the latest airline to slash its forecast for the fourth quarter, projecting that it will burn significantly more cash than management previously anticipated.
Two months ago, United Airlines reported average daily cash burn of $25 million for the third quarter, including average debt principal and severance payments of $4 million per day. That marked an improvement from cash burn of $40 million per day in the second quarter.
Source Fool.com
