- Summary:
- United Airlines posts a shocking quarterly loss as the impact of the coronavirus pandemic hits the airline industry very hard.
United Airlines has reported a loss of $1.7billion, marking a 4th straight quarter that the airline has posted an earnings shortfall. Adjusted loss stands at $630 million, which is worse than the $300 million loss the airline posted for the same period a year earlier.
United Airlines is also excluding any forward guidance on the impact of vaccination on its sales outlook for the next quarter. However, the company’s CEO is projecting a faster recovery from its international operations than from its domestic routes.
The appalling results come on the back of a very difficult year for the aviation industry, in which a 95% drop in passenger travel as a result of COVID-19 induced lockdowns grounded companies in the aviation value chain all over the world. Delta Airlines (-$326million) and American Airlines (-$1.1 billion) are other airlines that have reported staggering losses as part of their earnings report.
Technical Levels to Watch
Today’s steep drop of nearly 7% puts the 41.59 support level at risk of a collapse. If this support level gives way, 39.47 could become the next downside target. Continued decline mat see the stock push towards 35.37, and if this level also collapses, a run towards 31.70 cannot be ruled out.
Any rallies may be viewed as possible sell areas. This could come off a bounce on the 41.59 support, targeting 46.67 and possibly 51.05. Only if the price breaks above 51.05 can a short-term recovery on United Airlines stock be expected.
United Airlines; Daily Chart