Daily Management Review

United Airlines recalls profit forecast due to coronavirus


One of the world's largest airlines, United Airlines, withdrew its profit forecast for 2020 due to coronavirus.

Earlier, the company predicted a 100% decrease in passenger traffic to China and a 75% reduction on trans-Pacific flights, which affects 5% of planned United traffic. If the outbreak of COVID-19 is stopped before mid-May and normal trends on trans-Pacific flights gradually recover over the course of five months, then the company can count on $ 11-13 earnings per share.

"Due to the increased uncertainty surrounding the outbreak, its duration, impact and overall demand for air travel, as well as due to the outbreak spreading to other regions, the company recalls its forecast for the full year 2020, released on January 21," the statement of United reads.

At the same time, the airline expects profit growth in 2021.

US airlines suspended flights to China until the end of April. For United Airlines, international flights represent a larger share of profits than its main competitors, American Airlines and Delta Airlines.

United’s shares fell by 3.26% on Monday to $ 75.47 a share, reflecting a general decline in the market in general and airlines in particular.

United Airlines takes the third or fourth place in the world among all airlines in such parameters as the number of passengers carried, annual turnover, fleet size, etc.

source: cnn.com