A United Airlines-operated Boeing 787 Dreamliner takes off from Los Angeles International Airport.
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United Airlines on Wednesday recorded a fourth-quarter loss and warned that sales would continue to suffer in early 2021 as the coronavirus pandemic continues.
Below is United’s performance during the quarter, compared to what Wall Street expected, according to average estimates compiled by Refinitiv:
- Adjusted earnings per share: A loss of $ 7 versus an expected loss of $ 6.60 per share.
- Revenue: $ 3.441 billion compared to projected revenue of $ 3.44 million.
United’s fourth-quarter revenue fell 69% from a year earlier, to $ 3.441 billion, below analysts ’estimates of $ 3.44 million. Its net loss of $ 1.9 billion in the quarter compares to a profit of $ 641 million the previous year.
The Chicago-based airline reported an adjusted loss of $ 7 per share, compared to an estimated loss of $ 6.60 per share. It burned about $ 33 million a day on average during the quarter, including debts and layoffs.
The carrier does not expect a quick change earlier this year. First-quarter revenue is likely to reach 65% to 70% below 2019 levels, the airline said. It is estimated that capacity in the first quarter will fall by at least 51% below the same months in 2019, echoing a similar outlook from American Airlines.
Following the report, United shares fell 1.5% in after-hours trading.
Airline executives have said the widespread availability of coronavirus vaccines will fuel the recovery of air travel. But the launch of the vaccine has been slow and chaotic, marked by the scarcity of doses.
U.S. executives will make a call to discuss their revenue and prospects at 10:30 a.m. ET on Thursday.