A United Airlines Boeing 787 Dreamliner takes off from Los Angeles International Airport.
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United Airlines posted a fourth-quarter loss on Wednesday, warning that sales would 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 versus an expected loss of $ 6.60 per share.
- Revenue: $ 3.41 billion vs. projected $ 3.44 billion in revenue.
United’s fourth-quarter revenue fell 69% from a year earlier to $ 3.41 billion, which is below analyst estimates of $ 3.44 billion. The net loss of $ 1.9 billion in the quarter compares to a profit of $ 641 million a year earlier.
The Chicago-based airline reported an adjusted loss of $ 7 per share, compared to an estimated loss of $ 6.60 per share. It burned an average of about $ 33 million a day in the quarter, including debt and termination benefits.
The courier does not expect a rapid turnaround at the beginning of this year. First quarter sales are likely to be 65% to 70% below 2019 levels, the airline said. Estimated capacity in the first quarter will be at least 51% lower than in the same months of 2019, following a similar expectation from American Airlines.
Shares of United fell 1.5% in after-hours trading after the report.
Airline executives have said the widespread availability of coronavirus vaccines will spur a recovery in air travel. But the introduction of the vaccine has been slow and chaotic, characterized by a lack of doses.
United’s executives will be holding a call on Thursday at 10:30 a.m. ET to discuss earnings and outlook.