Executives say carrier is in better cash position and is spending on product initiatives >>
by: Harvey Chipkin
United Airlines said it is now looking to recovery rather than survival, according to executives on the carrier’s third-quarter earnings call. Scott Kirby, CEO, said, “We can see the recovery on the horizon and our attention can now be firmly focused there.” He said this is “the end of the beginning” of the effort to rebound from the pandemic-caused crisis. There was still grim news as the airline reported net losses of $1.84 billion during the quarter. Andrew Nocella, chief commercial officer, said demand, now off about two-thirds from 2019, is likely to plateau at 50% of that year’s levels until a vaccine is widely available. As a result, United plans to continue flying just 45% of its 2019 capacity into early next year. On the positive front, Kirby said the company believes it has had the lowest cash burn in the industry throughout the crisis and expects to be the first to return to cash positive. He also said United has begun spending on initiatives that will help build business, like resuming the retrofitting of Boeing 787 interiors with Polaris business class and premium economy cabins.
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