United Airlines posts smaller quarterly loss as travel rebounds

U.S. airlines are eyeing a strong holiday season, with United planning to fly its biggest domestic schedule since the start of the pandemic, offering more than 3,500 daily domestic flights in December - representing 91% of its domestic capacity compared to 2019. United said it expects revenue in the current quarter to recover to at least 70% of 2019 levels.


Reuters | Washington DC | Updated: 20-10-2021 02:29 IST | Created: 20-10-2021 02:27 IST
United Airlines posts smaller quarterly loss as travel rebounds
Representative image Image Credit: Reuters
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United Airlines Holdings on Tuesday reported a narrower-than-expected third-quarter loss, helped by a recovery in travel demand.

The Chicago-based carrier reported an adjusted loss of $1.02 per share, compared with a loss of $8.16 per share last year at the height of the coronavirus pandemic. Analysts were forecasting a loss of $1.67 per share, according to Refinitiv data. With government pandemic aid, the airline reported a net profit of $1.44 per share for the quarter.

Third-quarter revenue came in at $7.75 billion, compared with $2.49 billion a year ago, and was above Wall Street's estimates of $7.64 billion. After a strong summer travel season, the fast spreading Delta variant of the coronavirus slowed down new bookings and drove up cancellations, threatening the industry's fragile recovery.

However, with a decline in COVID-19 cases as more people get vaccinated, carriers say bookings have stabilized and are recovering. U.S. airlines are eyeing a strong holiday season, with United planning to fly its biggest domestic schedule since the start of the pandemic, offering more than 3,500 daily domestic flights in December - representing 91% of its domestic capacity compared to 2019.

United said it expects revenue in the current quarter to recover to at least 70% of 2019 levels. Capacity in the December quarter is estimated to be down 23% compared with the corresponding quarter in 2019.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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