Chicago (AP) — United Airlines lost $ 646 million in the fourth quarter and said Wednesday that the current surge in COVID-19 cases would negatively impact its March quarter results.
The airline said it expects first-quarter revenue to decline by 20% to 25% from the same period in 2019. Non-fuel costs increase by about 15% per seat.
Omicron variants of the virus appear in United’s plans for 2022. Airlines once wanted to fly 5% more flights than in 2019, but this year they expect less flights than they did before the pandemic.
United said Omicron is hurting short-term bookings, but the outlook for spring and summer travel is better. The Chicago-based airline said it is on track to reach its long-term financial goals for 2023 and 2026.
Company officials will discuss the results with analysts on Thursday.
United’s fourth-quarter loss compared to a loss of $ 1.9 billion a year ago and a profit of $ 641 million in the fourth quarter of 2019.
Except for special items, the company said the adjusted loss was $ 1.60 per share. Analysts were expected to lose $ 2.09 per share, according to a FactSet study.
Revenue was $ 8.19 billion, 25% below the same period in 2019, but above the analyst’s forecast of $ 7.96 billion. Passengers flew 28% less miles than they did two years ago.
United lost $ 1.96 billion in 2021 overall, even after earning $ 4 billion in federal pandemic bailouts to cover labor costs.
The airline has completed the year with 84,100 employees, from 95,900 at the end of 2019.
United Airlines Holdings shares fell approximately 2.4% in long-term transactions after the announcement of financial results.
United posted a loss of $ 646 million and Omicron casts a shadow in the first quarter
Source link United posted a loss of $ 646 million and Omicron casts a shadow in the first quarter
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