United Airlines lost money again in the second quarter, but the airline anticipates profitability to return in the second half of 2021 as travel ramps up, according to a study released Tuesday.
However, despite reaching a “tipping point” following the devastating months of the Covid-19 outbreak, when travel was mostly halted, a full recovery in the industry is not predicted until 2023, according to United.
The major US passenger carrier lost $400 million in the fiscal quarter ending June 30, a significant improvement from the previous quarter’s loss of $1.4 billion.
According to the statement, revenue increased to $5.5 billion, but it is still down by more than half compared to the same three months in 2019, before the epidemic began.
“Thanks to the professionalism and perseverance of United employees… our airline has reached a significant turning point: we anticipate to be back to making a profit once again,” United CEO Scott Kirby said in a statement.
He stated that the corporation is concentrating on future plans “as we emerge from the most disruptive crisis our company has encountered.”
Travel has resumed because to widespread Covid-19 vaccinations, even as growing infections from the highly transmissible Delta strain sweep the globe, threatening the economic recovery.
Nonetheless, United has been planning for a travel comeback, announcing the purchase of 270 new Boeing and Airbus aircraft – the airline’s largest combined order in history.
It has reintroduced nonstop service on 33 domestic and 14 foreign routes, while also announcing dozens more, including new flights to Dubrovnik, Athens, and Reykjavik.
“As travel demand improves, the business now forecasts positive adjusted pre-tax income in the third and fourth quarters of 2021,” the statement stated.
However, third-quarter capacity is predicted to be down roughly 26% compared to the same period in 2019.