New crown pneumonia (Chinese communist virus) epidemic hit the global airline industry, the United Airlines, one of the four largest airlines in the United States, also suffered a strong loss for five consecutive quarters, a significant loss of $1.357 billion (about 10.584 billion Hong Kong dollars) in the first quarter of this year, underperforming market expectations. Taking into account the past five quarters, the company lost a total of $8.426 billion (about HK$65.722 billion).
The company’s other operating indicators are poor, according to non-GAAP (non-GAAP), adjusted and diluted loss per share of $ 7.5, compared with analysts expected loss of $ 7.08 more than 6%, total revenue is also lower than market expectations of 1.22%, and contracted 59.63% year-on-year to $ 3.221 billion, meaning that last quarter daily “Burning” about $9 million (about HK$70.2 million) per day last quarter.
In fact, into 2021, as the new crown pneumonia vaccine began widespread use, infection cases have declined, countries have also been relaxed travel restrictions, so analysts previously had expectations of United Airlines first quarter performance, but the results were disappointing.
In addition, fuel costs also tend to rise. In the first quarter of this year alone, the company’s average fuel cost was US$1.74 per gallon, a 28.88% increase from US$1.35 in the fourth quarter of last year. Although the company forecasts that operating expenses, net of special levies, are expected to fall 32% in the second quarter of this year compared to the same period in 2019, fuel costs, a major expense, are expected to rise further by about 5.17% quarter-on-quarter to $1.83 per gallon in the second quarter of this year.
In the results report, management also expects capacity to decline by approximately 45% in the second quarter of this year compared to 2019, continuing the decline of 54% in the first quarter of this year compared to the same period in 2019.
Recent Comments