United Airlines to sell and lease back 22 aircrafts to conserve cash during coronavirus pandemic

United Airlines has signed on Sunday a deal with an Asian aircraft leasing company Bank of China Aviation to sell and then lease back 22 aircraft.

Neither United nor the Bank of China Aviation disclosed the financial terms of the deal.

The agreement will help United conserve cash and give its balance sheet greater flexibility as it faces significant losses due to the coronavirus pandemic which is causing a global plunge in airline travel.

Earlier this week, United chief executive Oscar Munoz said business has essentially fallen to zero.

“We expect to fly fewer people during the entire month of May than we did on a single day in May 2019,” Munoz said in a note to employees, detailing plans to cut its schedule by 90 percent in May.