we'll be talking with united ceo scott kirby exclusively on "squawk box. are the airlines strictly a vaccination play right now in other words, people aren't going to fly in big numbers and traffic is not going to come back until we get some really positive news on a vaccine in other words people can say i know it's coming therefore i'm going to get back on board we'll talk to scott kirby about that tomorrow morning on "squawk. >> what's your take on why it's lower than expected? is it probably more head count reduction? >> a couple of things. head count reduction, which kicks in not the until the end of the third quarter it's not about that. it's more about the fact that they've done a great job in terms of limiting capacity when you look at their load factors and where they are in terms of how many seats they've put in the air, they've been much more aggressive than their competitors about saying we're in the going to fly. we're not going to flood the market with seats and hope people come back they have been very judicious. that's showing up in the cash

taking quick steps to ad just is what's in our control. >> scott kirby, thank you for joining us exclusivelyawk box" guys there you heard it from scott himself. they do not expect to get above 50% revenue until vaccine is here and once that vaccine is here then they expect the full return or at least closer to a full return for the entire airline industry guys, back to you. >>> phil, planning a long -- i'm telling you. i'll be so ready i'll take my chances, i think after 14 hours in a car or whatever i'll be like put me back on plane. give me a mask no middle seat i'll take my chance. thank you. coming up first cnbc interview with bill ackman we'll spatalk about his new spa and that prediction he made on this network back in march that hell is coming futures indicated, some of the best levels we've scene. the dnasdaq iups you're watching "squawk box" on cnbc in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. lookentertainmentour experience: xfinity x1. it's the easiest way to watch live tv and all your favorite streaming apps. plus

love, love have a great day we'll talk to you soon united ceo scott kirby will have more on results whens "squawk box" and the team at 8:00 a.m. eastern. not much more for us to talk about because the show is over the a forementioned "squawk box" is next. have a great day we'll see you tomorrow save hundreds on your wireless bill without even leaving your house. just keep your phone and switch to xfinity mobile. you can get it by ordering a free sim card online. once you activate, you only have to pay for the data you need, starting at just $15 a month. there are no term contracts, no activation fees, and no credit check on the first two lines. get a $50 prepaid card when you switch. 5g is now included with all new data options. switch and save hundreds. xfinity mobile. >>> good morning a change in tone from president trump warning that the pandemic will probably get worse before it gets better breaking news overnight, the u.s. confirming it ordered china to close the houston consulate reports that documents were burned there beijing now threatening to retaliate. >>> sales at one major r

we'll talk about the q-3 outlook with united ceo scott kirby. you don't want to miss this exclusive tomorrow morning on "squawk box," 8:00 eastern again, united losing $1.6 billion in the second quarter. bringing down its expected daily cash burn rate to $25 million a day. back to you. >> phil lebeau, thank you for that >> phil, thank you >> sorry, sara my bad >> the just want to get a quick comment from santoli on the share price reaction down .5% after hours giving a lot of information there, mike. it sound like they're getting a little more clarity and visibility on the rate of cash burn and what they can expect even off the low levels. >> the thing is controlling what the company can't control right now. it's been survival mode. it's been trying to mitigate just the cash bleed. and i think they've also been very communicative up to this point. all the airlines have had to be as they've taken in new money and raised debt. i think it is really does hinge on what you're going to see passengers get confident and get the volumes back up. you see

phil lebeau spoke with him earlier and has the highlights >> these were sobering comments from scott kirby the ceo of united airlines. as you look at shares of united, keep in mind his outlook is why the stock is down a little over 3% the cash burn, they get credit for the fact they brought that rate down significantly. they're targeting $25 million a day for the third quarter. better than many people were previously expecting the flight schedule is at 35% compared to the same time last year it's the expected length of how long it will take to make the recovery, that's what i think people are focusing on today here's scott kirby on "squawk box. >> we really focus more on the revenue because that's the best measure of demand. and unfortunately it's down more than your 72%. it's at the moment down like 83%. we think there will be a gradual recovery we don't expect to get anywhere close to normal until there's a vaccine that's widely distributed to a large portion of the population. >> when that vaccine might happen is anybody's guess at this point whether it's later this year, next year, unt

you saw the video from scott kirby earlier this week.'t be surprised if you see similar marketing approaches from other airlines as well. basically it's what you've said, jim, if you're going to fly, you want to be safe and the safest thing to do is wear a mask. >> i think this ad campaign is great. i know scott really well that was a very gutsy ad campaign in an era where the president is featuring social distancing and there's a lot of people in this country think that masks represent weakness. so it was, i think, a bold move that made me feel like, well, wait a second, maybe i'm not going to die because i fly >> right and they're done with the debate i think that's a smart move. i think the gate is -- it's going to go on, you and i both know that. i think the airlines are like we're beyond that. >> right. >> it's a matter of this is the rule, this is how it goes. >> terrific. just terrific. carl, back to you. >> watch for the impact on the transports, jim. as they are doing quite well today along with tesla 1,100 now, jim, as we cross

. >> right united, scott kirby on "squawk box" this morning did say he sees a quick return to 100% revenuecine, but who knows when that is, jim. in the meantime they're trying to get the cash burn from 40 million down to 25 million a day. i did notice marriott said occupancy in china could get back to 60 next month, which is a pretty good number if you are in the hotel business given what they've been through. >> i'm looking at these companies that are now starting to lap and do -- and actually do okay i had logic tech on last night, they are crushing it in china. that's l-o-g-i that has been a total horse. hit its all time high today, up 50%. this is the 50% club that there are so many of now what a strange year. unbelievable logic tech says china is totally back. >> seeing a split in retail as ubs cuts macy's to sell, goes to 3 bucks, cuts kohl's to sell best buy saying that online is 3 x quarter to date, the s&p gainers today. >> and best buy said that ever since all their stores were open their numbers are up really, really well, 15% that's amazing but this is a really strange day, car