United Airlines Q2

An increase in bookings allowed the United’s sales increase in the second quarter.
For the summer, the airline expects the trend to continue.
United executives will discuss the results on Wednesday at 10:30 AM ET.

United Airlines also makes loss in Q2

United Airlines-Electric AircraftUnited’s loss in Q2 is in line with expectations, while business travel bookings are improving. United Airlines reported on Tuesday higher revenues in the second quarter and one lower loss thanks to a Relaunching air traffic. This makes United the latest airline to release a brightening outlook for one of the sectors most affected by the Covid pandemic.

The Chicago-based airline expects the third and fourth quarters a positive adjusted pre-tax result and plans to increase air traffic in response to higher travel demand. Delta Air Lines and American Airlines also announced last week that they were launching a Improved bookings and financial results.

United’s revenue of $ 5.47 billion in the three months ended June 30 decreased by more than 50% compared to the same quarter of 2019. United, however, still recorded a Net loss of $ 434 million, the sixth consecutive quarterly loss. In the first three months of 2021, United had a Loss of nearly $ 1.4 billion and one Loss of $ 1.63 billion in the second quarter of 2020. The airline gave Revenue of $ 1.1 billion from state aid to, which are part of the $ 54 billion congressional aid package reserved for U.S. airlines since March 2020.

United Airlines second quarter

Tourism and aircraftThis is how United performed in the second quarter compared to Wall Street expectations, based on average estimates:

  • Adjusted earnings per share: Loss of $ 3.91 in line with expectations.
  • Total revenue: $ 5.47 billion versus expected revenue of $ 5.37 billion.
  • United’s shares lost less than 1% in after-hours trading.

The airline said it had completed the second quarter with an available Liquidity of approximately $ 23 billion completed. United reported a loss per share of $ 3.91, which is in line with analysts ‘ estimates.

United said that its Capacity for the current quarter will be 26% below the level of 2019. In the second quarter, it flew 46% less than in 2019. The cost per seat mile excluding fuel and other special fees is likely to increase by 17% compared to the third quarter of 2019, partly due to shorter distances than usual is due to, which are operated by smaller aircraft.

Also the Fuel costs have risen. United said it paid an average of $ 1.97 per gallon for jet fuel in the second quarter, nearly 67% more than a year ago.

Airlines record more bookings

Electric Aircraft-UnitedAirlines have since this spring a Increase in bookings reported, as vaccines were widely introduced, Covid cases declined and governments lifted pandemic-era restrictions.

In addition to the higher travel demand freight revenue increased by almost 51% year-on-year % to $ 606 million. While air cargo demand accounts for a small portion of United’s total revenue, air cargo demand was a bright spot for the airline and others during the pandemic.

United executives plan to discuss the results and provide a more detailed outlook on Wednesday at 10:30 AM ET.

Analysts are expected to ask airline management about trends in international bookings and business travel, two pillars of United’s pre-pandemic business. The rapidly expanding delta variant has raised concerns about new travel restrictions.

On Monday, the Ministry of Foreign Affairs and the Centers for Disease Control and Prevention advised against travel to the UK due to increasing numbers of cases.

But United and other airlines were optimistic, as for the recovery of demand. United announced last month, 270 Narrowbody Jets to Buy from Boeing and Airbus, the Largest Aircraft Order Everto replace older aircraft and expand the airline over the next few years.

Last updated on July 21, 2021

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