A Boeing 787 Dreamliner operated by United Airlines takes off from Los Angeles International Airport.
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United Airlines posted a loss in the fourth quarter on Wednesday, warning that sales would suffer in the early part of 2021 if 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 versus an expected loss of $ 6.60 per share.
- Revenue: $ 3.41 billion versus expected $ 3.44 billion in revenue.
United’s fourth-quarter revenue fell 69% from a year earlier to $ 3.41 billion, below analysts’ estimates of $ 3.44 billion. Its net loss of $ 1.9 billion for the quarter is comparable to a profit of $ 641 million a year earlier.
The Chicago-based 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 during the quarter, including debt and severance payments.
The carrier does not expect a rapid turnaround early this year. The airline said revenue in the first quarter is likely to be 65% to 70% below the 2019 level. It is estimated that capacity will be 51% lower in the first quarter under the same months of 2019, reflecting a similar outlook for American Airlines.
United shares fell 1.5% after the report.
Airline executives said the general availability of coronavirus vaccines would fuel a recovery in air travel. But vaccination of vaccines was slow and chaotic, characterized by a lack of doses.
United executives will make a call to discuss its revenue and outlook on Thursday at 10:30 ET.