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United Airlines Holdings Inc. released its fourth consecutive quarter of losses on Wednesday evening, saying it expects capacity to drop by at least 51% in the current quarter.
United UAL,
said it lost $ 1.9 billion, or $ 6.39 per share, in the fourth quarter, contrasting with gains of $ 2.53 per share in the last year’s quarter. Operating revenue fell to $ 3.41 billion from $ 10.9 billion a year ago.
Analysts polled by FactSet had expected United to report a GAAP loss of $ 6.13 per share on sales of $ 3.42 billion. United stocks fell 0.8% in the extended session on Wednesday after ending the regular trading day up 1%.
United said it expects total operating revenue for the first quarter of 2021 to be down 65% to 70%. An “accelerated” distribution of the COVID-19 vaccine could lead to a faster improvement, he said, but the company is not counting on this potential improvement in its first quarter revenue outlook.
It was the airline’s fourth consecutive quarterly loss as travel restrictions linked to the pandemic and concerns about air travel and virus transmission curtailed its operations, including the most important business travel. lucrative and transatlantic flights.
2021 will be “a year of transition focused on preparing for a recovery,” the company said in a statement.
“Since the onset of the COVID-19 crisis, United has raised over $ 26 billion in cash and made significant progress in reducing core cash consumption” and also identified $ 1.4 billion in cash. ‘Annual cost savings and the potential to achieve at least $ 2 billion as structural reductions progress, he said.
The stock has lost around 50% over the past 12 months, contrasting with gains of around 16% for the S&P 500 SPX index,
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