United Airlines Holdings Inc has said that its average cash burn in the fourth quarter could jump up to $26 million per day, hurt by travel restrictions following a surge in COVID-19 cases over the last few weeks.
The US airline industry is still losing billions of dollars every month due to weak travel demand, exacerbated by recent coronavirus travel advisories that have discouraged holiday travel.
United, which expects its fourth quarter revenue to drop close to 70% from a year earlier, said that it now estimates average daily cash burn of approximately $24 million to $26 million, plus $10 million of average debt principal and severance payments per day in the quarter.
It had previously estimated daily cash burn of $15 million to $20 million.
Confident Of A Recovery In 2021
The airline said that it is confident of a recovery in 2021.
"Recent positive results in vaccine development and efficacy show an encouraging line of sight to the other side of the pandemic," United said.