United sees cash burn breakeven once demand and capacity drops slow to 50%

CHICAGO (Reuters) – United Airlines expects to be able to halt a daily cash burn rate that averaged $40 million in the second quarter once it reaches a point in which sharp falls in demand and flight capacity have slowed to a roughly 50% decline.

Chicago-based United flew only a fraction of its normal capacity in the second quarter and expects to fly about 35% of its normal summer schedule in the third quarter as the coronavirus pandemic continues to thrash travel demand.

(Reporting by Tracy Rucinski and Sanjana Shivdas; Editing by Chizu Nomiyama)