United Airlines’ sales tank 78% in Q3 due to COVID-19 restrictions

United Airlines Holdings Inc. (NASDAQ: UAL) published its earnings report for the fiscal third quarter on Wednesday that highlighted a massive 78% decline in sales attributed to the ongoing Coronavirus pandemic.

Shares of the company slid over 1% in extended trading on Wednesday but then jumped back 2% later on. United Airlines is now trading at £27.62 per share after recovering from a low of £15.32 per share in May. It had started the year at a much higher £69 per share. Confused about choosing a reliable stockbroker to trade online? Here’s a list of the top few to make selection easier for you.

United Airlines’ Q3 financial results versus analysts’ estimates

United Airlines said it concluded the third quarter with £1.38 billion of loss that translates to £4.87 per share. In the comparable quarter of last year, it had reported £770 million of earnings or £3.07 per share. United said last month it will roll out a COVID-19 testing program for passengers by mid-October.

On an adjusted basis, the U.S. airline recorded a per-share loss of £6.28 in Q3 versus £3.13 per share of profit in the same quarter last year. In terms of revenue, United posted £1.92 billion in the third quarter versus the year-ago figure of a much higher £8.75 billion. Passenger revenue, the Chicago-based air carrier said, came in 84% lower in the recent quarter at £1.31 billion.

According to FactSet, experts had forecast United Airlines to report £1.92 billion in revenue and £5.79 of adjusted loss per share in Q3. United expects its third-quarter revenue to still be better than its U.S. competitors.

CEO Scott Kirby’s comments on Wednesday

CEO Scott Kirby commented on the financial results on Wednesday and said:

“Having successfully executed our initial crisis strategy, we’re ready to turn the page on seven months that have been dedicated to developing and implementing extraordinary and often painful measures, like furloughing 13 thousand team members, to survive the worst financial crisis in aviation history.”

United Airlines laid off 2,850 pilots in August. Since March, it has raised over £16.93 billion via stock, debt offerings, and the state-backed CARES Act. As of the end of Q3, the airline valued its liquidity at £14.92 billion. United said on Wednesday that it had slashed its operating costs by 59%.

At the time of writing, the U.S. airline holding company has a market capitalisation of £7.97 billion.