United Airlines warns of revenue weakness as COVID-19 cases spike

Shares of United Airlines Holdings Inc. dropped 1.8% in premarket trading Thursday, after the air carrier warned that third-quarter results will be hurt as the recent spike in COVID-19 cases has led to a deceleration in customer bookings. United now expects third-quarter revenue to be down 33% from the same period in pre-pandemic 2019, while the current FactSet revenue consensus of $8.41 billion implies a 26% decline. United also cut its third-quarter capacity guidance to be down 28% from 2019 from down 26%, but cost per available seat mile is still expected to be similar to prior guidance. As a result of the revenue weakness, which it expects will continue, United said it now expects an adjusted pre-tax loss in the third quarter, and also expects an adjusted pre-tax loss in the fourth quarter. United's stock has tumbled 20.4% over the past three months through Wednesday, while the U.S. Global Jets ETF has shed 15.0% and the S&P 500 has gained 7.0%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

United Airlines warns of revenue weakness as COVID-19 cases spike
Shares of United Airlines Holdings Inc. dropped 1.8% in premarket trading Thursday, after the air carrier warned that third-quarter results will be hurt as the recent spike in COVID-19 cases has led to a deceleration in customer bookings. United now expects third-quarter revenue to be down 33% from the same period in pre-pandemic 2019, while the current FactSet revenue consensus of $8.41 billion implies a 26% decline. United also cut its third-quarter capacity guidance to be down 28% from 2019 from down 26%, but cost per available seat mile is still expected to be similar to prior guidance. As a result of the revenue weakness, which it expects will continue, United said it now expects an adjusted pre-tax loss in the third quarter, and also expects an adjusted pre-tax loss in the fourth quarter. United's stock has tumbled 20.4% over the past three months through Wednesday, while the U.S. Global Jets ETF has shed 15.0% and the S&P 500 has gained 7.0%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.