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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