United Airlines posted a fourth consecutive quarter of losses with more cost cutting measures expected as the impact of pandemic continued to take toll. The carrier said that it aims to cut about $2bn of annual costs through 2023. It expected to exceed 2019 adjusted EBITDA (non-GAAP) margins only by 2023. Cash burn per day worsened vs. the previous quarter at $33mn/day, including $10mn in severance and debt payments with a core cash burn of $19mn/day. United expects operating revenues to be down 65-70% and capacity to be down at least 51% in 1Q2021. Overall, EPS for the quarter was at -$7 and at -$25.3 for the year. The company has raised over $26bn in liquidity since the pandemic and currently stands on $19.7bn of liquidity which comprises of ~$11.3bn in cash and cash equivalents, $414mn in short-term investments, $1bn in undrawn revolving credit and $7bn under the CARES Act. The company’s long-term debt stands at $24.8bn as at end-2020 vs. $13.15bn in 2019 and near-term maturities of $1.9bn.

United’s bonds were slightly higher with its 4.25% 2022s up 0.4 to 101.3, yielding 3.44% and their 4.875% 2025s up 0.4 to 99.26, yielding 5.08%.

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