United Airlines Holdings reported that it will buy 17 used Airbus A319 planes to try to sell them later.
The company began to experience a significant decrease in international and domestic demand related to Covid-19 during the first quarter of 2020.
In sum, the decrease in demand caused a material deterioration in its revenue in 2020, resulting in a net loss of $ 7.069 million.
Also in relation to the United Airlines fleet, on February 26, 2021, the company entered into an agreement with The Boeing Company for a firm order for 25 Boeing 737 MAX aircraft for delivery in 2023, and to reschedule the delivery of 40 Boeing 737 MAX aircraft previously ordered through 2022 and 5 Boeing 737 MAX aircraft through 2023.
But now those aircraft are scheduled for delivery through 2030.
United Airlines has an agreement to purchase 11 used Boeing 737-700 aircraft with expected delivery dates in 2021.
In addition, the company signed an agreement to purchase 17 used Airbus A319 aircraft, which it intends to sell, with expected delivery dates in 2021 and 2022.
In general, the full extent of Covid-19’s ongoing impact on the company’s long-term financial and operational performance will depend on future developments, including those beyond its control related to:
- The effectiveness and speed of vaccination programs to stop the spread of the virus.
- The introduction and spread of new variants of the virus that may be resistant to currently approved vaccines.
- Passenger testing requirements.
- Mask mandates or other travel restrictions.
United Airlines’ wages and related costs decreased $ 2.5 billion, or 21.1%, in 2020 compared to 2019, primarily due to a 22.4% reduction in employees as a result of voluntary separation and leave programs caused by Covid-19.
Additionally, that general line item resulted in $ 623 million less profit sharing and other employee incentives due to the impact of the pandemic on 2020 results and $ 180 million in tax credits provided by the Low Employee Retention Credit under the CARES Act in 2020.
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As of December 31, 2020, UAL, including its subsidiaries, United Airlines had approximately 74,400 employees, not including unlicensed employees who were retired in connection with the extension of the Payroll Support Program under Subtitle A of Title IV of the Division N of the Consolidated Allowances Act of 2021.