United Airlines Misses Estimates in Q3 as Pandemic Hits Air Travel



© Reuters. United Airlines Holdings Earnings, Revenue Miss in Q3

By Yasin Ebrahim

Investing.com – United Airlines Holdings (NASDAQ:) reported on Wednesday third-quarter 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

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link