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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

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

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