United (UAL) Income Q4 2020


A Boeing 787 Dreamliner operated by United Airlines departs from Los Angeles International Airport.

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United Airlines reported losses in the fourth quarter on Wednesday and warned that sales would continue in the early part of 2021 as a coronavirus epidemic.

United performed this quarter compared to what Wall Street expected, based on average estimates compiled by Refinitive.

  • Adjusted Earnings Per Share: Loss of $ 7 versus estimated loss of $ 6.60 per share.
  • Revenue: $ 3.41 billion versus expected $ 3.44 billion in revenue.

United’s fourth-quarter revenue fell 69% to $ 3.41 billion from a year earlier, when analysts estimated it at $ 3.44 billion. The net loss of $ 1.9 billion in the quarter compares with a profit of $ 641 million a year earlier.

The carrier’s full-year net loss since 2005 was $ 7.07 billion.

The Chicago-based airline reported an adjusted loss of $ 7 per share, compared to estimates of a loss of $ 6.60 per share. This quarter burned an average of approximately $ 33 million per day, including debt and severance payments. The core daily cash burn, which excludes those items, averaged $ 19 million in the fourth quarter, $ 5 million less than in the third quarter.

Career is not expecting a quick change earlier this year. The airline said revenue in the first quarter would be 65% to 70% below 2019 levels. This projected capacity in the first three months of 2021 would be at least 51% lower than the same period in 2019, echoing a similar outlook from American Airlines.

The carrier called 2021 a “transition year” and said it expects to surpass the 2019 margin by 2023.

United’s cargo business again proved to be a bright spot in this epidemic, with a 77% increase in revenue to $ 560 million in the quarter. That unit contributed 16% of fourth quarter revenue, up from just 3% a year earlier. Passenger airlines went on to beef up those businesses last year as customers faced a worldwide crisis in air freight capacity.

Shares of United lost 1.7% following the report.

Airline officials have said that the widespread availability of coronavirus vaccines will improve air travel. But the vaccine rollout has been slow and disorganized, marked by a lack of dose.

Joint officials will call at 10:30 a.m. ET on Thursday to discuss their revenue and outlook.

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