logo
Plus   Neg
Share
Email

Stock Alert: United Airlines Falls 10%

Shares of United Airlines Holdings Inc. (UAL) are losing more than 10 percent in Monday's trading at $29.50, after the airline warned that demand for air travel may remain suppressed into 2021 due to the coronavirus or COVID-19 pandemic. The shares have traded in a range of $17.80 to $96.03 in the past 52 weeks.

In a message to nearly 100,000 employees on Friday, United Airlines Chief Executive Officer Oscar Munoz and President Scott Kirby said that the airline plans to make deeper cuts to its schedules in May and June.

The airline had earlier cut its April schedule by more than 60 percent and now expects its load factors to fall into the teens or single digits with 60 percent less capacity.

United Airlines said it expects travel demand to remain suppressed for months after that, possibly into next year, noting that the impact of COVID-19 on demand for air travel has been far worse than even the aftermath of 9/11.

The airline added it will not conduct involuntary furloughs or pay cuts in the U.S. before September 30, as the federal assistance allows the company time to adapt to this new environment and assess how long it will take for the U.S. economy to begin to recover.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT