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A Boeing 787 Dreamliner operated by United Airlines takes off from Los Angeles International Airport.
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United Airlines recorded a fourth quarter loss on Wednesday and warned that sales would continue to suffer in early 2021 as the coronavirus pandemic continued.
Here’s how United performed in the quarter, compared to what Wall Street expected, based on average estimates compiled by Refinitiv:
- Adjusted earnings per share: A loss of $ 7 compared to an expected loss of $ 6.60 per share.
- Turnover: 3.41 billion dollars against 3.44 billion dollars of expected income.
United’s fourth-quarter revenue fell 69% from a year earlier to $ 3.41 billion, below analysts’ estimates of $ 3.44 billion. Its net loss of $ 1.9 billion in the quarter compares with a profit of $ 641 million a year earlier.
The Chicago-based airline reported an adjusted loss of $ 7 per share, compared to estimates of a loss of $ 6.60 per share. It burned about $ 33 million per day on average during the quarter, including debt and severance pay.
The carrier does not expect a rapid turnaround at the start of this year. First-quarter revenue is likely to be 65% to 70% below 2019 levels, the airline said. It estimates that first quarter capacity will be at least 51% lower compared to the same months of 2019, echoing a similar prospect from American Airlines.
United shares were down 1.5% after-hours trading after the report.
Airlines executives have said the widespread availability of coronavirus vaccines will fuel a resumption of air travel. But the vaccine rollout has been slow and chaotic, marked by a shortage of doses.
United executives will hold a call to discuss his earnings and outlook on Thursday at 10:30 am ET.
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