United Airlines, Inc. ("United"), a wholly-owned subsidiary of United Airlines Holdings, Inc. ("UAL", and together with United, the "Company") has continued to experience a material decline in demand for both international and domestic travel, as well as an increase in trip cancellations, resulting from the spread of coronavirus ("COVID-19"). As such, the Company has taken proactive steps to mitigate the financial and operational impact to the business.
As a result of the decline in demand resulting from COVID-19, in addition to the capacity reductions on the Company's trans-Pacific routes announced last month, the Company has also announced that it has pulled down 10% of its domestic schedules and 20% of its international schedules in April. The Company also anticipates making reductions in May of at least 20% and plans to proactively evaluate and cancel flights on a rolling 90-day basis until it sees signs of a recovery in demand. The Company's capacity reductions have been focused on, but not limited to, reducing frequencies in markets with the ability to re-accommodate passengers on other frequencies or through other hubs, destinations in level 3 or level 4 travel advisory regions and surrounding areas and routes performing significantly below the system average.
As such, the Company is responding to this changing environment by adjusting its capital expenditures, operating expenditures and liquidity position. With respect to capital expenditures, the Company has postponed projects deemed non-critical to the operation. Therefore, the Company currently expects adjusted capital expenditures1 for full year 2020 to be approximately $4.5 billion. The Company's capital expenditures were front loaded in 2020, and as such, the Company has spent approximately $2 billion year-to-date. The Company also suspended share buybacks under its existing share repurchase program on Monday, February 24, 2020 after the virus outbreak expanded to Italy.
On Monday, March 9, 2020, the Company raised an incremental $2 billion in new liquidity from a group of banks in the form of a secured term loan facility. As of close of business Monday, March 9, 2020, the Company had $8 billion of liquidity, including approximately $6 billion of unrestricted cash and short-term investments, and its fully undrawn revolving credit facility of $2 billion.
Effective immediately, Oscar Munoz, the Company's Chief Executive Officer and Scott Kirby, the Company's President, are forgoing 100% of each of their respective base salaries through at least June 30, 2020.
Due to the uncertain nature of the near-term demand environment, the Company is withdrawing its first quarter 2020 guidance issued on January 21, 2020 and February 24, 2020. However, for the first quarter of 2020 the Company expects to incur a loss.
The information in this Item 7.01, is being furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section, and shall not be deemed incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
1 Adjusted capital expenditures is a non-GAAP measures that includes projects acquired through the issuance of debt and finance leases. Non-cash capital expenditures are not determinable at this time. Accordingly, the Company does not provide capital expenditures guidance on a GAAP basis.