United Airlines records 40% gain in the stock market in 2019’s fourth quarter

on Jan 25, 2020
Updated: Mar 11, 2020
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  • United Airlines records 40% gain in the stock market in 2019’s fourth quarter.
  • United Airlines marginally beats the analysts' estimates for earnings and revenue in Q4.
  • United Airlines' net income climbed 39% (year over over) in the fourth quarter.
  • Extended ban on Boeing's 737 Max jetliner continues to weigh on United's performance.

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Earlier this week on Tuesday, United Airlines announced the fourth quarter performance results that highlighted a massive 40% surge in its stock in the 2019’s last three months. The company cited affordable fuel prices and a sharply increasing demand for travel in the past few months to have contributed the most in upbeat results.

Tuesday’s report highlighted the Chicago-based carrier’s quarterly revenue and earnings to have beaten the analysts’ estimates. In extended trading, share prices were seen slightly higher on Tuesday.

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United’s Net Income Climbed 39% In Q4 (Year Over Year)

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Net income for United Airlines was recorded at $614 million in the fourth quarter that marked a 39% hike for the company as compared to the same quarter last year. On revenue’s front, the surge was reported at 4% year over year. At $10.89 billion, United Airlines’ quarterly revenue was posted marginally higher than the analysts’ estimate.

In terms of capacity, the airlines expanded by 2.6% in the recent quarter as compared to last year. United Airlines is known to rely on the Boeing 737 Max jetliner with multiple of the grounded planes in its fleet. The extended ban that saw Boeing losing hope for its fuel-efficient planes to return for commercial flights before the travel intensive summer season, United Airlines is expected to remain under pressure in the first half of 2020.

Based on Refinitiv’s data, analysts had anticipated the airlines to make $2.65 of earnings per share in the fourth quarter. As per Tuesday’s report, the company noted only slightly higher $2.67 of earnings per share in Q4.

United Airlines Continues To Struggle In The Stock Market

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United Airlines hasn’t started the new year on the right foot. Opening at around $90, the stock is currently exchanging hands at $81.90 that marks an almost 10% decline for the U.S carrier in the stock market in January. Owing to the rising complications for Boeing 737 Max and an expected delay in the jetliner’s return, analysts are expecting further struggle for United Airlines in the upcoming months.

United’s performance in 2019 wasn’t too upbeat either. While share prices were seen trading around $82 per share in January 2019, it ended last year with only around 5% growth ($87 per share) in the stock market. Even that was lost in January 2020 with the stock currently trading at around the same level at which it did in January 2019. The 12-month performance for United Airlines, therefore, remained flat on average.

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