United Airlines Holdings Inc. is mapping a recovery from last year’s record loss with a plan that calls for topping pre-pandemic profit margins in 2023.

• This year will be a “transition” from the unprecedented decline in travel demand because of COVID-19, United said in an earnings statement Wednesday. The company expressed “high confidence” that its 2023 profit margin as measured by adjusted earnings before interest, taxes, depreciation and amortization would exceed that of 2019.

Key Insights:

• United’s focus on the long term underscored the bleak outlook for the coming months as the coronavirus pandemic continues to gut travel demand.
• The company played up its liquidity and ability to withstand the long, deep slump that has hammered airlines for almost a year. United said it has raised more than US$26 billion since the pandemic began and ended last year with US$19.7 billion in liquidity.
• The airline said it has identified US$1.4 billion in permanent cost cuts, getting it more than halfway to its goal of US$2 billion. “The truth is that COVID-19 has changed United Airlines forever,” Chief Executive Officer Scott Kirby said in the statement.

Market Reaction:

• The shares fell less than 1 per cent to US$44.85 after the end of New York trading. United tumbled 50 per cent in the 12 months through Wednesday, the worst among major U.S. carriers.

Get More:

• Company statement
• Additional coverage
• United posted an adjusted loss of US$7 a share, 35 cents worse than the average of analyst estimates, as fuel prices were higher than expected.