Any way you look at it, it’s no fun being an airline in 2020. United Airlines Holdings (UAL) reported third quarter earnings last week, and surprising nobody, the results were pretty bleak.
Revenue came in at $2.49 billion, a year-over-year decline of 78.1% and missing the estimates by $50 million. Non-GAAP EPS of -$8.16 also came in below the Street’s forecast by $0.61.
On the plus side, due to aggressive cost cutting, the company managed to meet its Q3 $25 million daily cash burn target, improving by 38% on the June quarter’s $40 million a day leak.
Looking ahead, management said demand is steadily improving and expects a 10-point sequential increase in demand for the December quarter. Still, as expected, the demand is significantly lower than last year’s, and UAL plans to run at capacity levels 55% below 4Q19.The company currently anticipates a 67% year-over-year revenue drop in