UAL's (UAL) Q1 Loss Comes In Better-Than-Expected But Traders Selling
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UAL Corp. (NASDAQ: UAUA), the parent company of United Airlines, posted a narrower-than-expected first quarter loss Tuesday as revenue from passenger fees increased.
The company said that its planes were fuller and passengers paid more money as the sharp downturn in travel seems to be abating. In the quarter passengers paid 12.2 percent more for each mile traveled with UAL.
The nation’s third-largest airline reported an adjusted quarterly loss of $92 million, or 55 cents per share, which compares to a loss of $571 million during the same quarter last year. On a GAAP basis, the quarterly loss came in at about 49 cents per share. Analysts were looking for a loss of 77 cents per share.
Revenue, meanwhile, came in at $4.24 billion, slightly ahead of the market consensus of $4.18 billion.
“We are pleased to report an operating profit in what is traditionally a weak quarter for United compared to our peers, clearly reflective of our efforts to drive systemic improvements that are delivering results across the company,” said Glenn Tilton, UAL Corporation chairman, president and CEO. “We are committed to margin leadership, having produced the best net margin of the five major carriers this quarter, and are doing the work to put our company on the path to sustained profitability.”
Recently, UAL has been discussing possible merger options with US Airways Group Inc. (NYSE: LCC) and Continental Airlines Inc. (NYSE: CAL), but no acknowledgment of the talks was made in the Q1 earnings report.
Shares of UAL are down 61 cents to $21.76 today.
The company said that its planes were fuller and passengers paid more money as the sharp downturn in travel seems to be abating. In the quarter passengers paid 12.2 percent more for each mile traveled with UAL.
The nation’s third-largest airline reported an adjusted quarterly loss of $92 million, or 55 cents per share, which compares to a loss of $571 million during the same quarter last year. On a GAAP basis, the quarterly loss came in at about 49 cents per share. Analysts were looking for a loss of 77 cents per share.
Revenue, meanwhile, came in at $4.24 billion, slightly ahead of the market consensus of $4.18 billion.
“We are pleased to report an operating profit in what is traditionally a weak quarter for United compared to our peers, clearly reflective of our efforts to drive systemic improvements that are delivering results across the company,” said Glenn Tilton, UAL Corporation chairman, president and CEO. “We are committed to margin leadership, having produced the best net margin of the five major carriers this quarter, and are doing the work to put our company on the path to sustained profitability.”
Recently, UAL has been discussing possible merger options with US Airways Group Inc. (NYSE: LCC) and Continental Airlines Inc. (NYSE: CAL), but no acknowledgment of the talks was made in the Q1 earnings report.
Shares of UAL are down 61 cents to $21.76 today.
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