in

United Airlines posts $1.8 billion net loss in pandemic hunch, cuts cash burn


A United Airlines airplane takes off at San Francisco International Airport.

Gary Hershorn | Corbis News | Getty Images

United Airlines on Wednesday posted a wider-than-expected third-quarter loss because the coronavirus pandemic continued to hammer air journey demand, however the provider trimmed its cash burn.

Here’s how United carried out in contrast with what Wall Street anticipated, based mostly on common estimates compiled by Refinitiv:

  • Adjusted EPS: a loss of $8.16 versus an anticipated loss of $7.53 per share.
  • Revenue: $2.49 billion versus $2.50 billion, anticipated.

The Chicago-based provider swung to a net loss of $1.8 billion in the three months ended Sept. 30, from a $1 billion revenue a yr in the past.

Revenue in the interval dropped 78% to $2.49 billion from $11.38 billion in the third quarter of 2019, roughly in line with Wall Street expectations, after the airline minimize capability 70% from final yr. Excluding one-time objects, United posted a per-share loss of $8.16, in contrast with analysts’ estimates of a per-share loss of $7.53.

Airlines have struggled through the pandemic, significantly giant carriers like United, Delta and American, which had been closely reliant on worldwide and enterprise areas, two of the hardest-hit segments.

United’s outcomes come a day after Delta reported a $5.4 billion net loss for the third quarter.

United minimize its day by day cash burn in the quarter to $25 million a day, together with debt and severance funds, down from a mean of $40 million a day in the earlier quarter.

The airline ended the quarter with $19.4 billion in liquidity. Like different carriers United has raised billions to assist climate the coronavirus, by way of inventory and debt gross sales, together with $6.8 billion in debt it backed by its MileagePlus frequent flyer program. U.S. airways additionally obtained parts of $25 billion in federal payroll assist that expired after Sept. 30, opening the door to job cuts.

United early this month began furloughing some 13,000 staff after the phrases of federal payroll assist expired. United and different carriers are pushing for extra assist however Congress and the White House have repeatedly failed to achieve a coronavirus stimulus deal that would embody the additional aid for carriers.

While many potential clients stayed dwelling through the summer time, United’s cargo enterprise was a vibrant spot in the quarter, with income rising 50% to $422 million, highlighting how sure corners of the airline have gotten extra vital in the pandemic.

United shares had been down 0.4% in post-market buying and selling.

Executives will stroll traders by way of outcomes at 10:30 a.m. ET Thursday.



Source hyperlink

What do you think?

Written by Business Boy

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Loading…

0

Cramer reveals what stocks he finds would benefit from a Biden presidency

Fastly is a buy if the stock continues to tank on revenue guidance lower, Cramer says