United Airlines will report a pretax loss of $2.1 billion
for the first quarter, the carrier said in a regulatory filing.

The loss includes a $697 million loan to the ownership of
Latin American carrier Avianca, which has defaulted on the loan. United
anticipates that Avianca won’t be able to repay it.

Avianca’s fleet has been grounded since March 25, due in
large part to the closure of borders in its operating bases in Central America
and South America.

United said revenue in the first quarter was $8 billion, a
17% decline. 

The carrier had $6.3 billion in liquidity on April 16 and
will receive $5 billion in Cares Act funding, with $3.5 billion of that coming
in the form of grants and $1.5 billion from a 10-year, unsecured loan with an
interest rate of 1% during the first five years and 2% during the second five
years. 

United said that it also could borrow an additional $4.5
billion from the Treasury Department. 

United is among several U.S. carriers that have delayed
quarterly earnings reports as a result of the Covid-19 crisis.

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