By the end of the third quarter, United expects to have an $17 billion in available liquidity, thanks to an anticipated $4.5 billion federal loan under the CARES Act and the $5 billion term loan facility secured by its MileagePlus program.
The airline expects to slow its cash burn from $40 million a day on average in the second quarter to $30 million a day in the third quarter. United’s new CEO Scott Kirby told investors on a May 1 earnings call that the airline entered the second quarter burning about $50 million a day.
In premarket trading Monday, United stock fell 7% against broader selling in the market. Shares of United, which has a market value of $11.5 billion, have fallen 55% so far this year, as of Friday’s close.