A United Airlines-operated Boeing 787 Dreamliner takes off from Los Angeles International Airport.
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United Airlines reported a loss in the fourth quarter on Wednesday and warned that sales will continue to suffer in early 2021 as the coronavirus pandemic continues.
Here’s how United performed in the quarter, compared to what Wall Street expected, based on average estimates compiled by Refinitiv:
- Adjusted earnings per share: a loss of $ 7 compared to an estimated loss of $ 6.60 per share.
- Revenue: $ 3.41 billion compared to projected revenue of $ 3.44 billion.
United’s fourth-quarter revenue fell 69 percent from $ 3.41 billion last year, below analysts’ estimates of $ 3.44 billion. Its net loss of $ 1.9 billion this quarter compares to a profit of $ 641 million a year earlier.
The Chicago airline reported an adjusted loss of $ 7 per share, compared to estimates for a loss of $ 6.60 per share. It burned an average of about $ 33 million a day in that quarter, including debt and compensation payments.
The operator does not expect a rapid change earlier this year. Revenues in the first quarter are likely to fall between 65% and 70% below 2019 levels, the airline said. Estimated capacity in the first quarter will decline by at least 51% under the same months in 2019, reflecting a similar outlook for American Airlines.
Following the report, United shares fell 1.5% in hourly trading.
Airline executives have said the widespread availability of coronavirus vaccines will fuel a recovery in air travel. But the launch of the vaccine was slow and chaotic, marked by a lack of doses.
U.S. executives will hold a call to discuss its revenue and prospects at 10:30 a.m. ET on Thursday.