United Airlines missed third-quarter revenue and earnings estimates, with a 78% year over year decline in revenues. The shares of the largest US airline are down almost 60% in the past twelve months as the coronavirus pandemic has devastated the passenger carrier’s fundamentals.
Its losses dropped when compared to the previous quarter as the company has aggressively been going after costs to support margins and lower cash burn rate.
The largest US airline has reported a net loss of $1.8 billion and adjusted net loss came in around $2.4 billion.
United Airlines CEO is Optimitsic
Despite lower than expected numbers, the chief executive officer says their worst financial performance is still better than its competitors. In addition, the CEO claims that they have passed a difficult time and they are now in a recovery mode.
“Even though the negative impact of COVID-19 will persist in the near term, we are now focused on positioning the airline for a strong recovery that will allow United to bring our furloughed employees back to work and emerge as the global leader in aviation,” United CEO Scott Kirby said.
The CEO hinted that bookings are recovering at a sharp pace and the company is in a position to turn cash positive next years.
“Having successfully executed our initial crisis strategy, we’re ready to turn the page on seven months that have been dedicated to developing and implementing extraordinary and often painful measures, like furloughing 13,000 team members, to survive the worst financial crisis in aviation history,” Scott Kirby added.
United Airlines Stock is Offering a Buying Oppertunity
United Airlines’ stock price is presenting a buying opportunity for long-term investors in the market pundit’s view. This is because of the second stimulus package for airlines from the US government. Trump and Biden have repeatedly announced to provide another relief package to the Airline companies in order to avoid employment cuts. In addition, air traveling has stated recovering with strict healthcare protocols.