© Reuters.
Investing.com — United Airlines (NASDAQ:) reported third-quarter results that topped estimates, but Q4 guidance fell short of estimates as higher fuel costs and the suspension of Tel Aviv flights are expected to weigh.
United Airlines Holdings shares were down about 5% in pre-market Wednesday trading.
United Airlines Holdings reported adjusted of $3.65 on revenue of $14.48 billion. Analysts polled by Investing.com anticipated earnings of $3.41 a share on revenue of $14.43 billion.
Third quarter cost per available seat mile, or CASM was down 3.6% compared with the third quarter 2019.
The company said it saw “strength in close-in bookings in August and September with both months well ahead of year-over-year demand.”
Looking ahead, the company forecast Q4 EPS of $1.80 or $1.50, assuming suspension of Tel Aviv flights through year-end. That was below estimates of $2.13.
Bernstein analysts said the move lower is a result of a worse-than-expected cost guide.
“The magnitude of the 4Q guide down — which is largely driven by higher fuel costs — is much more significant than expected, and overshadows what was a great summer for United,” they wrote in a note.
Additional reporting by Senad Karaahmetovic
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