United Airlines reports $90M charge over Hong Kong protests

Jan. 8 (UPI) -- United Airlines said it's reporting a $90 million write-down for the fourth quarter of 2019 due to a decrease in demand for its routes to Hong Kong, where civil unrest has lasted for months.

The U.S.-based carrier said its Q4 earnings report will include the "special non-cash impairment charge" of $90 million, which is attributable to "a decrease in demand for the Hong Kong market and the resulting decrease in unit revenue."

United will announce its fourth quarter and full-year 2019 earnings on Jan. 22.

Violent demonstrations and clashes with police have occurred in Hong Kong since last June. They were initially opposed to a since-withdrawn extradition bill to allow fugitives to be transferred to mainland China to face Communist Party courts, but later expanded to cover a number of other concerns.

United Airlines operates 21 flights to Hong Kong International Airport every week -- but, like other carriers, has been hit with drastically declining passenger traffic due to the civil disturbances. Hong Kong's airport lost nearly 1 million passengers in November, its steepest drop in more than a decade.