Investing.com — Airlines fell on Wednesday as travelers fail to return to the skies.
United Airlines forecast a bigger drop in third-quarter passenger revenue than it had previously expected, and said it would look to cancel more flights until it sees a recovery in air travel, Reuters reported.
United expects an 85% drop in passenger revenue, down from its previous estimate of a drop of 83% year-over-year. Third-quarter capacity will also drop about 70% year-over-year, compared with its prior forecast for a decline of 65%. The airline has seen a moderate improvement in bookings for leisure travel in the U.S. and certain short-haul destinations in Latin America and the Caribbean, Reuters said.
Meanwhile, Delta expects a choppy recovery, despite some bright spots, Seeking Alpha reported. Executives at the Cowen Global Transportation and Sustainable Mobility Conference said Delta is on track to reach its third quarter expense reduction target of 50%, with a daily cash burn rate of about $27 million.
U.S. airlines have been bleeding about $5 billion a month, Reuters reported.