United Airlines (UAL) Misses Q2 EPS by 29c, Revenue Beats

July 21, 2020 4:17 PM EDT

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United Airlines (NASDAQ: UAL) reported Q2 EPS of ($9.31), $0.29 worse than the analyst estimate of ($9.02). Revenue for the quarter came in at $1.48 billion versus the consensus estimate of $1.32 billion.

The company's total liquidity as of the close of business on Monday, July 20, 2020 was approximately $15.2 billion. United now expects liquidity at the end of the third quarter to be over $18 billion.

  • Since the start of the crisis the company has raised a total of $16.1 billion through debt offerings, stock issuances and the CARES Act Payroll Support Program grant and loan, among other items.
  • As of July 2, raised $6.8 billion in financings secured against MileagePlus Holdings in the form of a $3.8 billion bond and a $3.0 billion term loan, with interest rates of 6.5% and LIBOR plus 5.25%, respectively.
  • Entered into an equity distribution agreement for the issuance and sale from time to time of up to 28 million shares of UAL common stock in "at-the-market" offerings. Utilized the at-the-market program to raise $22 million through the sale of approximately 532,000 shares in the second quarter.
  • The company entered into an agreement with a subsidiary of BOC Aviation Limited to finance through a sale leaseback transaction six Boeing 787-9 and 16 Boeing 737 MAX 9 aircraft that are currently subject to purchase agreements between United and The Boeing Company and are scheduled to deliver in 2020.
  • Raised $250 million in a secured term loan facility.
  • Increased cargo revenue by 36.3% by serving strategic international cargo-only missions and optimizing aircraft capacity with low passenger demand.
  • Reduced total operating costs by 69% versus the second quarter of 2019; excluding special charges3, reduced operating costs by 54%.
  • Full-year 2020 adjusted capital expenditures4 are now expected to be approximately $3.7 billion.
  • In third quarter 2020 the company expects consolidated system capacity to be down 65% versus third quarter 2019. The company will continue to proactively evaluate and cancel flights on a rolling 60-day basis until it sees signs of a recovery in demand, and expects demand to remain suppressed until the availability of a widely accepted treatment and/or vaccine for COVID-19.
  • Offered employees comprehensive voluntary separation packages including flight benefits and continuous pay through Nov. 30, 2020 with more than 6,000 employees opting to participate.

For earnings history and earnings-related data on United Airlines (UAL) click here.

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