United Airlines (UAL) missed first-quarter estimates after closing today as the airline industry tries to map the post-pandemic landscape. UAL shares and other airline shares were lower than the results.
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The carrier will report the results to competitor Delta Luglyne (DAL) said last week that it would see a “path to profitability” in the third quarter, even if business and international travel could take time to recover.
United Airlines earnings
Estimates: Wall Street expects United to lose $ 6.97 per share. It expects revenue to drop 59% to $ 3.25 billion.
Results: Loss of $ 7.50 per share on revenue of $ 3.22 billion. The average core cash burn of $ 9 million per day was an improvement of about $ 10 million per day in the fourth quarter. March experienced positive cash flow.
“We have shifted our focus to the next milestone on the horizon and now see a clear path to profitability,” said CEO Scott Kirby. ‘We are encouraged by the strong evidence of the pent-up demand for air travel and our continued ability to adapt quickly, which is why we are so confident that we will achieve our goal of exceeding the adjusted EBITDA margins in 2019 2023 , if not earlier. ‘
United said on Monday that they would offer new flights to Croatia, Greece and Iceland in July. By focusing more on key travel markets, such as those where vaccinated travelers are welcome, United expects to return to positive net income, even if international and long-term demand will only return to around 35% below the 2019 level.
Prospects: United sees that total revenue for the second quarter per available seat mile is 20% lower than the 2019 levels and that capacity will decrease by approximately 45% compared to 2019.
United’s earnings conference call takes place on Tuesday.
UAL Stock
Shares fell 1.7% after closing 1.6% at 54.99 in the stock market today, hovering just above the 50-day line.
UAL stock has a 49 composite rating. The EPS rating is a weak 9, after the coronavirus pandemic stopped much of the journey, causing the airline industry to lose money.
Other airline shares also slipped. Delta stock lost 1% and was just below the 50-day line.
American Airlines (AAL) decreased by 2.2% to 21.55. American was on a rising base with a buying point of 26.19. Suidwes (LUV) decreased by 0.6%. The U.S. and Southwestern report generated revenue on Thursday.
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Airline supplies and leisure trips
As vaccinations increase, airlines are rushing into pent-up travel demand, even as the U.S. coronavirus continues to fall. Analysts at Deutsche Bank said in February that the industry was “back on track” after many potential travelers saved money during the closure.
“Partly thanks to the government’s stimulus surveys, Americans have money to spend, and that goes to things like restaurants and travel,” Helane Becker, an analyst at the airline stock, said in a research note on Friday.
However, she said that each airline adds flights to the same areas.
“People travel to Florida and other coastal cities where they can go to the beach, as well as to national parks in the US,” she said. “Americans also travel to Mexico, the Caribbean, and other recreational destinations in Latin America.”
United Look at Europe
The new European flights announced on Monday said United would “give travelers more options for summer travel by flying directly to countries that are starting to be vaccinated again for visitors.” United allows passengers to upload their vaccine results via its app.
An emergency committee for the World Health Organization’s health organization said Monday that it recommended not requiring proof of vaccination as a condition of traveling internationally.
The committee calls the recommendation the limited (though growing) evidence on the performance of vaccines to reduce transmission and the persistent inequality in the global distribution of vaccines.
Delta said during its reporting last week that it hopes to open flights between the US and the UK this summer. Management has said that Continental Europe is unlikely to open up “in a meaningful way” later this year. Asia, he said, could take longer to reopen.
Yet during its earnings call with airline stock analysts, Delta executives questioned whether it, like other parts of the travel industry, is experiencing understaffing as demand increases.
CEO Ed Bastian said this is not the case as hotels and car rental companies are tackling the bottlenecks. But he said the biggest constraints it has to do are related to pilot training and maintenance.
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