United Airlines reports smaller quarterly loss than year ago

United Airlines Holdings reported a smaller quarterly loss than a year ago, but a resurgence in coronavirus cases slowed bookings and drove up cancellations, upending the carrier’s plan to return to profit.

Chief Executive Scott Kirby, however, said recent headwinds the airline has faced are “turning to tailwinds”.

United said it expects revenue in the current quarter to recover to up to 75 per cent of 2019 levels, improving from about 68 per cent in the quarter through September.

Buoyed by a strong summer travel season, United was expecting to be profitable in the third and fourth quarters. It lowered its estimates last month, citing the impact of the fast spreading Delta variant of the coronavirus on travel.

With Covid-19 cases still high but in decline in the US as more people get vaccinated, airlines said bookings have bottomed out.

Domestic travel

Rival Delta Air Lines last week said domestic consumer travel has returned to pre-pandemic levels.

US.carriers are eyeing a strong holiday season, with United planning to fly its biggest domestic schedule since the start of the pandemic, offering more than 3,500 daily domestic flights in December – representing 91 per cent of its domestic capacity compared to 2019.

They are also optimistic about the reopening next month of the transatlantic route – the most lucrative long-haul market – which they expect will spur a recovery in international traffic.

Betting on pent-up travel demand, the Chicago-based carrier last week announced an expansion of its transatlantic

Source: Civil Aviation Authority-Qatar

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