United Airlines shores up liquidity, cuts costs to weather coronavirus

CHICAGO, March 10 (Reuters) - United Airlines Holdings Inc said on Tuesday it has raised an extra $2 billion in financing while slashing its 2020 capital expenditures by more than a third in an effort to prepare for a prolonged slump in travel demand due to COVID-19.

The measures come on top of previous announcements from United regarding capacity cuts and suspended earnings forecasts and will bring the airline’s total liquidity to $8 billion for 2020, while adjusted capex will fall to $4.5 billion from $7 billion previously forecast for the full-year.

The airline said it is now withdrawing guidance for the first quarter and expects to record a loss for the period.

Reporting by Tracy Rucinski; Editing by Bernard Orr