50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

United Airlines Misses Estimates in Q3 as Pandemic Hits Air Travel

Published 10/14/2020, 04:17 PM
Updated 10/14/2020, 04:58 PM
© Reuters.  United Airlines Holdings Earnings, Revenue Miss in Q3
UAL
-

By Yasin Ebrahim

Investing.com - United Airlines Holdings (NASDAQ:UAL) reported on Wednesday third-quarter results that missed analysts' forecasts on both the top and bottom lines as the impact of the pandemic on air travel weighed on performance.

United Airlines Holdings shares lost 1.21% in after-hours trade following the report.

United Airlines Holdings announced a loss per share of $8.16 on revenue of $2.49 billion. Analysts polled by Investing.com anticipated LPS of $-7.57 on revenue of $2.54 billion.

The miss on topline comes as passenger revenue slumped 84% year-over-year.

The company reported that cost cuts had helped improved its cash burn and said it had enough liquidity to weather the impact of the pandemic.

Operating costs were cut by 59% compared with the prior-year period, and the company achieved an average daily cash burn during the third quarter of $25, compared with the second-quarter average daily cash burn of $40 million.

The company's available liquidity at the end of the third quarter 2020 was approximately $19.4 billion.

United Airlines Holdings shares are down 60% from the beginning of the year, still down 63% from its 52 week high of $95.16 set on Nov. 7. They are under-performing the Nasdaq which is up 31.16% from the start of the year.

Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com's earnings calendar

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.