By Rajesh Kumar Singh
CHICAGO (Reuters) -United Airlines Holdings on Wednesday reported a narrower-than-expected fourth-quarter loss, helped by strong holiday travel demand.
The Chicago-based carrier expects revenue in the quarter through March to be down 20% to 25% compared with the first quarter of 2019 as the turbulence caused by the Omicron coronavirus variant depresses near-term demand. However, bookings for the spring and beyond remain strong, it added.
Rival Delta Air Lines last week forecast a current-quarter loss, citing the Omicron variant’s impact on travel.
Winter storms and an increase in COVID-19 infections among employees have led to mass flight cancellations. In one day alone, nearly one-third of United’s workforce at Newark Liberty International Airport called in sick. Last week, the carrier said 3,000 employees were infected with the virus.
United has cut its flight schedule and is offering its pilots premium pay through the end of the month.
It expects to restore 82% to 84% of pre-pandemic capacity in the current quarter. Full-year capacity is now projected to be slightly lower than in 2019, compared with a 5% increase estimated earlier.
On an adjusted basis, the carrier reported a loss of $1.60 per share for the quarter through December, compared with a loss of $7.00 per share a year ago. Analysts surveyed by Refinitiv, on average, had expected a quarterly loss of $2.11 per share.
Fourth-quarter revenue came in at $8.19 billion, compared with $3.4 billion a year ago, beating the consensus estimate of $7.97 billion.
United will discuss the results on a call with analysts and investors on Thursday morning.
(Reporting by Rajesh Kumar Singh; Editing by Richard Chang)
