United Airlines on Wall Street: Profits Expected to Return in Next Quarter

United Airlines Holdings Inc. reported another quarterly loss on Tuesday, telling investors they will have to wait another quarter to realize profits.

United EU,
+ 6.58%
said it lost $ 434 million, or $ 1.34 per share, in the second quarter, compared to a loss of $ 1.6 billion, or $ 5.79 per share, in the second quarter of 2020, when Airline almost came to a halt due to restrictions meant to curb the spread of COVID-19.

Adjusted for one-time items, the company lost $ 3.91 per share in the quarter. Revenue reached $ 5.47 billion from $ 1.48 billion in the quarter.

Analysts polled by FactSet expected the airline to report an adjusted loss of $ 3.96 per share on sales of $ 5.35 billion.

The stock edged up after the smaller-than-expected loss, but recently fell nearly 2% in after-hours trading.

Second-quarter capacity was down 46% from the same period in 2019, United said. The airline said it expects a capacity drop of around 26% in the third quarter, also from 2019, and a 39% increase quarter-over-quarter.

The airline said it expects to be profitable on an adjusted pre-tax basis in the third quarter, which will be the first quarter in the dark since the fourth quarter.
of 2019. The company is also expected to be profitable in the fourth quarter, he said.

Delta Air Lines Inc. DAL,
+ 5.45%
Last week, Wall Street surprised Wall Street with its first profit since the pandemic, which the company attributed in part to an increase in business travel to some metropolitan areas.

Related: Summer travel is back, but will it be enough to spur declining US airlines?

United shares are up around 7% this year, compared to 13% for the S&P 500 SPX index,
+ 1.52%.

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